Securities

3 Months Ended

Mar. 31, 2012

SecuritiesAbstract

Securities

Note 7: Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
	(In thousands)
Available-for-sale securities:
March 31, 2012:
U.S. government agencies	$	1,471	$	16	$	1	$	1,486
Mortgage-backed securities of      government sponsored entities		100,771		2,615		73		103,313
Private-label collateralized mortgage      obligations		1,515		49		—		1,564
State and political subdivisions		25,198		1,144		32		26,310
Totals	$	128,955	$	3,824	$	106	$	132,673

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
	(In thousands)
Available-for-sale securities:
December 31, 2011:
U.S. government agencies	$	1,559	$	26	$	1	$	1,584
Mortgage-backed securities of      government sponsored entities		98,816		2,636		124		101,328
Private-label collateralized mortgage      obligations		1,693		48		—		1,741
State and political subdivisions		24,694		1,315		25		25,984
Totals	$	126,762	$	4,025	$	150	$	130,637

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Approximate Fair Value
	(In thousands)
Held-to-maturity Securities:
March 31, 2012:
U.S. government agencies	$	143	$	—	$	1	$	142
Mortgage-backed securities of      government sponsored entities		1,515		15		—		1,530
State and political subdivisions		7		—		—		7
	$	1,665	$	15	$	1	$	1,679
December 31, 2011:
U.S. government agencies	$	145	$	—	$	—	$	145
Mortgage-backed securities of      government sponsored entities		1,527		16		—		1,543
State and political subdivisions		7		—		—		7
	$	1,679	$	16	$	—	$	1,695

Amortized cost and fair value of available-for-sale securities and held-to-maturity securities at March 31, 2012 by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Within one year	$	1,305	$	1,321	$	7	$	7
One to five years		1,531		1,590		—		—
Five to ten years		7,783		8,111		—		—
After ten years		16,050		16,774		143		142
		26,669		27,796		150		149
Mortgage-backed securities of      government sponsored entities		100,771		103,313		1,515		1,530
Private-label collateralized      mortgage obligations		1,515		1,564		—		—
Totals	$	128,955	$	132,673	$	1,665	$	1,679

The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $56.8 million and $53.9 million at March 31, 2012 and December 31, 2011, respectively.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at March 31, 2012 and December 31, 2011, was $21.8 million and $17.7 million, which represented approximately 16% and 14%, respectively, of the Company’s aggregate available-for-sale and held-to-maturity investment portfolio. These declines resulted primarily from changes in market interest rates.

Based on an evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these government agency, mortgage-backed and state and political subdivision securities are temporary at March 31, 2012.

Should the impairment of any of these government agency, mortgage-backed and state and political subdivision securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. The following table shows the gross unrealized losses and fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

March 31, 2012

	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(In thousands)
U.S. government agencies	$	—	$	—	$	449	$	2	$	449	$	2
Mortgage-backed securities of government sponsored entities		18,403		62		847		11		19,250		73
Private-label collateralized mortgage obligations		91		0		—		—		91		0
State and political subdivisions		1,360		7		759		25		2,119		32
Total temporarily impaired securities	$	19,854	$	69	$	2,055	$	38	$	21,909	$	107

December 31, 2011

	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(In thousands)
U.S. government agencies	$	—	$	—	$	313	$	1	$	313	$	1
Mortgage-backed securities of government sponsored entities		16,624		124		—		—		16,624		124
State and political subdivisions		—		—		759		25		759		25
Total temporarily impaired securities	$	16,624	$	124	$	1,072	$	26	$	17,696	$	150