Investment Securities

3 Months Ended

Mar. 31, 2012

Investment Securities [Abstract]

Investment Securities

Note 2 - Investment Securities

The amortized cost and fair value of available-for-sale investment securities at March 31, 2012 and December 31, 2011 are summarized as follows (in thousands):

	March 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Treasury notes	$	20,909		-		277		20,632
U.S. Agency notes		75,613		1,329		144		76,798
U.S. Agency mortgage-backed securities		52,346		1,409		80		53,675
Corporate securities		6,307		58		-		6,365
Municipal securities:
Non-taxable		65,802		3,355		54		69,103
Taxable		21,023		988		4		22,007
Mutual funds		2,111		20		-		2,131
Trust preferred securities		548		36		7		577
Equity securities		977		88		15		1,050
	$	245,636		7,283		581		252,338

	December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Treasury notes	$	17,385		165		-		17,550
U.S. Agency notes		81,415		1,517		5		82,927
U.S. Agency mortgage-backed securities		50,923		1,475		111		52,287
Corporate securities		6,334		47		16		6,365
Municipal securities:
Non-taxable		65,896		3,827		20		69,703
Taxable		21,027		894		14		21,907
Mutual fund		2,103		22		-		2,125
Trust preferred securities		549		37		22		564
Equity securities		526		57		5		578
	$	246,158		8,041		193		254,006

The fair value of held-to-maturity investment securities, consisting of taxable and non-taxable municipal securities, approximates amortized cost at March 31, 2012 and December 31, 2011.

Substantially all securities in unrealized loss positions at March 31, 2012 have been in a loss position less than twelve months.  Management has determined that the unrealized losses at March 31, 2012 are primarily due to fluctuations in market interest rates and do not reflect credit quality deterioration of the securities.   Because the Company does not have the intent to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired.