Investment Securities (Tables)

6 Months Ended

Jun. 30, 2012

Amortized Cost, Unrealized Gains and Losses and Fair Value of Investments

The following table presents the amortized cost, unrealized gains, unrealized losses and fair value of investment securities available for sale at June 30, 2012 and December 31, 2011. At June 30, 2012 and December 31, 2011, there were no investment securities classified as held to maturity or trading.

(dollars in thousands)	June 30, 2012
	Amortized cost		Unrealized gains		Unrealized losses			Fair value
U.S. government agencies	$	80,138	$	1,338	$	(8	)	$	81,468
U.S. Treasuries		14,999		43		-			15,042
Pass-through securities		146,623		2,533		-			149,156
Taxable state and political subdivisions		9,131		1,012		-			10,143
Tax exempt state and political subdivisions		43,016		1,958		(98	)		44,876
Corporate obligations		11,000		-		(639	)		10,361
Agency-issued collateralized mortgage obligations		9,692		-		(65	)		9,627
Investments in mutual funds and other equities		2,018		-		(14	)		2,004
Total investment securities available for sale	$	316,617	$	6,884	$	(824	)	$	322,677

(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		9,143		615		-			9,758
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		2,018		-		(12	)		2,006
Total investment securities available for sale	$	291,103	$	5,737	$	(885	)	$	295,955

Investment Securities in Unrealized Loss Position

Investment securities that were in an unrealized loss position at June 30, 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)	June 30, 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	$	2,056	$	(8	)						$	2,056	$	(8	)
Tax exempt state and political subdivisions		7,365		(98	)							7,365		(98	)
Corporate obligations		5,837		(163	)		4,524		(476	)		10,361		(639	)
Agency-issued collateralized mortgage obligations		9,627		(65	)							9,627		(65	)
Investments in mutual funds and other equities							2,004		(14	)		2,004		(14	)
Total investment securities available for sale	$	24,885	$	(334	)	$	6,528	$	(490	)	$	31,413	$	(824	)

(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		-		-			2,006		(12	)		2,006		(12	)
Total investment securities available for sale	$	51,879	$	(873	)	$	2,006	$	(12	)	$	53,885	$	(885	)

Investments Classified by Contractual Maturity

The amortized cost and fair value of investment securities, by maturity, are shown in the table below. The amortized cost and fair value of pass-through securities and agency-issued collateralized mortgage obligations are presented by expected average life, rather than contractual maturity. 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)	June 30, 2012
	Amortized cost		Fair value
Three months or less	$	5,499	$	5,503
Over three months to one year		22,464		22,624
After one year through three years		23,784		24,234
After three years through five years		216,223		219,243
After five years through ten years		17,129		17,802
After ten years		31,518		33,271
Total	$	316,617	$	322,677

Schedule of Investment Securities Pledged to Secure Borrowing and Public Deposits

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

(dollars in thousands)	June 30, 2012
	Amortized cost		Fair value
To state and local governments to secure public deposits	$	68,403	$	70,930
To Federal Reserve Bank to secure borrowings		22,493		23,100
To Federal Home Loan Bank to secure borrowings		1,131		1,157
Other securities pledged, principally to secure deposits		15,888		16,475
Total pledged investment securities	$	107,915	$	111,662