Investment Securities

3 Months Ended

Mar. 31, 2012

Investment Securities [Abstract]

Investment Securities

(3)  Investment Securities

The following table presents the amortized cost, unrealized gains, unrealized losses and fair value of investment securities available for sale at March 31, 2012 and December 31, 2011.  At March 31, 2012 and December 31, 2011, there were no investment securities as held to maturity or trading.

(dollars in thousands)	March 31, 2012
	Amortized cost		Unrealized gains		Unrealized losses			Fair value
U.S. government agencies	$	80,290	$	1,159	$	(57	)	$	81,392
U.S. Treasuries		27,012		115		-			27,127
Pass-through securities		139,985		1,529		(247	)		141,267
Taxable state and political subdivisions		9,136		815		-			9,951
Tax exempt state and political subdivisions		36,947		1,693		(114	)		38,526
Corporate obligations		11,000		-		(372	)		10,628
Agency-issued collateralized mortgage obligations		9,941		-		(142	)		9,799
Investments in mutual funds and other equities		4,044		65		(15	)		4,094
Total investment securities available for sale	$	318,355	$	5,376	$	(947	)	$	322,784

(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

Investment securities that were in an unrealized loss position at March 31, 2012 and December 31, 2011, are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. In the opinion of management, these securities are considered only temporarily impaired due to changes in market interest rates or the widening of market spreads subsequent to the initial purchase of the securities, and not due to concerns regarding the underlying credit of the issuers or the underlying collateral.

(dollars in thousands)	March 31, 2012
	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	$	10,198	$	(57	)	$	-	$	-		$	10,198	$	(57	)
Pass-through securities		33,295		(247	)		-		-			33,295		(247	)
Tax exempt state and political subdivisions		6,795		(114	)		-		-			6,795		(114	)
Corporate obligations		5,805		(195	)		4,823		(177	)		10,628		(372	)
Agency-issued collateralized mortgage obligations		9,799		(142	)		-		-			9,799		(142	)
Investments in mutual funds and other equities		2,018		(15	)		-		-			2,018		(15	)
Total investment securities available for sale	$	67,910	$	(770	)	$	4,823	$	(177	)	$	72,733	$	(947	)

(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	)

At March 31, 2012 and December 31, 2011, there were 23 and 10 investment securities in unrealized loss positions, respectively.  For each security in an unrealized loss position, the Company assesses whether it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. For debt securities that are considered other-than-temporarily impaired and that the Company does not intend to sell and will not be required to sell prior to recovery of its amortized cost basis, the Company will separate the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is calculated as the difference between the security's amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security's fair value and the present value of future expected cash flows is deemed to be due to factors that are not credit related and is recognized in other comprehensive income.

The Company does not intend to sell the securities that are temporarily impaired, and it is more likely than not that the Company will not have to sell those securities before recovery of the cost basis. Additionally, the Company has evaluated the credit ratings of its investment securities and their issuers and/or insurers, as applicable. Based on the Company's evaluation, management has determined that no investment security in the Company's investment portfolio was other-than-temporarily impaired at March 31, 2012 or December 31, 2011.

The amortized cost and fair value of investment securities, presented by contractual maturity, are shown in the table below.  Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

(dollars in thousands)	March 31, 2012
	Amortized cost		Fair value
Three months or less	$	12,053	$	12,079
Over three months to one year		28,019		28,281
After one year through three years		8,981		9,314
After three years through five years		73,680		74,295
After five years through ten years		43,273		44,443
After ten years		152,349		154,372
Total	$	318,355	$	322,784

The following table presents investment securities which were pledged to secure borrowings and public deposits as permitted or required by law:

(dollars in thousands)	March 31, 2012
	Amortized cost		Fair value
To state and local governments to secure public deposits	$	65,314	$	67,488
To Federal Reserve Bank to secure borrowings		22,511		23,071
To Federal Home Loan Bank to secure borrowings		1,147		1,173
Other securities pledged, principally to secure deposits		15,905		16,323
Total pledged investment securities	$	104,877	$	108,055

For the three months ended March 31, 2012, the Company realized gross gains of $344 thousand and gross losses of $2 thousand on the sale of investment securities available for sale.  There were no investment security sales during the three months ended March 31, 2011.