Investment Securities

12 Months Ended

Dec. 31, 2011

Investment Securities [Abstract]

Investment Securities

(4)  Investment Securities

The following table presents the amortized cost, unrealized gains, unrealized losses and fair value of investment securities available for sale at December 31, 2011 and 2010.  At December 31, 2011 and 2010, there were no securities classified as held to maturity or trading.

(dollars in thousands)	December 31, 2011
	Amortized cost		Unrealized gains		Unrealized losses			Fair value
U.S. government agencies	$	75,383	$	1,207	$	(16	)	$	76,574
U.S. Treasuries		42,077		520		-			42,597
Pass-through securities		116,219		1,295		(116	)		117,398
Taxable state and political subdivisions		9,142		615		-			9,757
Tax exempt state and political subdivisions		35,263		2,100		(28	)		37,335
Corporate obligations		11,000		-		(713	)		10,287
Investments in mutual funds and other equities		4,044		-		(118	)		3,926
Total investment securities available for sale	$	293,128	$	5,737	$	(991	)	$	297,874

(dollars in thousands)	December 31, 2010
	Amortized cost		Unrealized gains		Unrealized losses			Fair value
U.S. government agencies	$	103,109	$	695	$	(814	)	$	102,990
U.S. Treasuries		54,175		530		(62	)		54,643
Pass-through securities		1,216		24		(1	)		1,239
Taxable state and political subdivisions		6,090		33		(356	)		5,767
Tax exempt state and political subdivisions		22,312		603		(304	)		22,611
Corporate obligations		9,001		24		(51	)		8,974
Investments in mutual funds and other equities		4,044		-		(712	)		3,332
Total investment securities available for sale	$	199,947	$	1,909	$	(2,300	)	$	199,556

The following table shows gross unrealized losses and fair value of securities with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2011 and 2010:

(dollars in thousands)	December 31, 2011
	Less than 12 Months					12 Months or Longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
U.S. government agencies	$	10,499	$	(16	)	$	-	$	-		$	10,499	$	(16	)
Pass-through securities		29,838		(116	)		-		-			29,838		(116	)
Tax exempt state and political subdivisions		1,255		(28	)		-		-			1,255		(28	)
Corporate obligations		10,287		(713	)		-		-			10,287		(713	)
Investments in mutual funds and other equities		-		-			4,044		(118	)		4,044		(118	)
Total investment securities available for sale	$	51,879	$	(873	)	$	4,044	$	(118	)	$	55,923	$	(991	)

(dollars in thousands)	December 31, 2010
	Less than 12 Months					12 Months or Longer				Total
	Fair value		Unrealized losses			Fair value		Unrealized losses		Fair value		Unrealized losses
U.S. government agencies	$	52,196	$	(814	)	$	-	$	-	$	52,196	$	(814	)
U.S. Treasuries		4,988		(62	)		-		-		4,988		(62	)
Pass-through securities		200		(1	)		-		-		200		(1	)
Taxable state and political subdivisions		4,221		(356	)		-		-		4,221		(356	)
Tax exempt state and political subdivisions		6,004		(304	)		-		-		6,004		(304	)
Corporate obligations		7,949		(51	)		-		-		7,949		(51	)
Investments in mutual funds and other equities		4,044		(712	)		-		-		4,044		(712	)
Total investment securities available for sale	$	79,602	$	(2,300	)	$	-	$	-	$	79,602	$	(2,300	)

Certain securities shown above currently have fair values less than amortized cost, and therefore, contain unrealized losses.  In the opinion of management, these securities are considered only temporarily impaired due to changes in market interest rates, the widening of market spreads subsequent to the initial purchase of the securities or to disruptions to credit markets and not due to concerns regarding the underlying credit of the issuers or the underlying collateral.  There were 10 securities with unrealized losses at December 31, 2011.

Contractual maturities of securities as of December 31, 2011, are shown below.  Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties.

(dollars in thousands)	Dates of Maturities
	Under 1 year			1 - 5 years			5 - 10 years			Over 10 years			Total
U.S. government agencies	$	2,525		$	73,544		$	505		$	-		$	76,574
Weighted average yield		2.08	%		1.73	%		1.72	%		-			1.74	%
U.S. Treasuries		34,742			7,855			-			-			42,597
Weighted average yield		1.18	%		1.79	%		-			-			1.29	%
Pass-through securities *		45			66			28,040			89,247			117,398
Weighted average yield		2.91	%		2.13	%		1.97	%		2.38	%		2.28	%
Taxable state and political subdivisions		-			-			2,523			7,234			9,757
Weighted average yield		-			-			4.19	%		4.59	%		4.49	%
Tax exempt state and political subdivisions		333			6,974			13,269			16,759			37,335
Weighted average yield		2.95	%		2.43	%		2.63	%		3.37	%		2.92	%
Corporate obligations		-			7,347			2,940			-			10,287
Weighted average yield		-			1.24	%		4.00	%		-			1.99	%
Investments in mutual funds and other equities		-			-			-			3,926			3,926
Weighted average yield		-			-			-			2.84	%		2.84	%
Total	$	37,645		$	95,786		$	47,277		$	117,166		$	297,874
Weighted average yield														2.15	%

* Final contractual maturity

For the years ended December 31, 2011, 2010 and 2009, there were no sales of investment securities available for sale.

The following table shows securities, which were pledged to secure public deposits, borrowings and other items, as permitted or required by law, at December 31, 2011:

(dollars in thousands)	2011
	Amortized cost		Fair value
To state and local governments to secure public deposits	$	62,961	$	65,313
To Federal Reserve Bank to secure borrowings		27,568		28,263
To Federal Home Loan Bank to secure borrowings		1,175		1,202
Other securities pledged, principally to secure deposits		13,228		13,818
Total pledged investment securities	$	104,932	$	108,596