Investment Securities:

6 Months Ended

Jun. 30, 2011

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 8 Investment Securities:

The amortized cost, carrying value and estimated fair values of investment securities available for sale as of June 30, 2011 and December 31, 2010 are as follows:

	June 30, 2011
	Amortized		Unrealized		Unrealized			Estimated
	cost		gains		losses			fair value
	(dollars in thousands)
Securities Available for Sale:
U.S. government and agency securities	$	8,004	$	19	$	(24	)	$	7,999
States and political subdivisions		1,514		23		(7	)		1,530
SBA Cert of Participation		7,589		70		-			7,659
Mortgage-backed securities		6,775		1		(46	)		6,730
	$	23,882	$	113	$	(77	)	$	23,918
	December 31, 2010
	Amortized		Unrealized		Unrealized			Estimated
	cost		gains		losses			fair value
Securities Available for Sale:
U.S. government and agency securities	$	10,212	$	28	$	(198	)	$	10,042
States and political subdivisions		1,818		9		(28	)		1,799
SBA Cert of Participation		7,793		-		(177	)		7,616
Mortgage-backed securities		13,062		103		(80	)		13,085
	$	32,885	$	140	$	(483	)	$	32,542

The carrying value of investment securities pledged to secure public funds, borrowings and for other purposes as required or permitted by law amounts to approximately $19.7 million at June 30, 2011 and $29.6 million at December 31, 2010.  During 2010 the Company had proceeds from the sale of approximately $19.8 million securities and gross gains of $588 thousand.  The Company had proceeds from the sale of approximately $7.2 million securities and gross gains of $105 thousand during the second quarter of 2011 and for the year to date 2011.

The amortized cost and estimated fair value of debt securities at June 30, 2011, by contractual maturity, are shown below.  Mortgage-backed securities are classified in accordance with their estimated lives. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations.

	Amortized		Estimated
(dollars in thousands)	cost		fair value
Securities available for sale:
Due in one year or less	$	-	$	-
Due after one year through five years		4,553		4,581
Due after five years through ten years		579		578
Due after ten years		18,750		18,759
	$	23,882	$	23,918

The gross unrealized loss and related estimated fair value of investment securities that have been in a continuous loss position for less than twelve months and over twelve months at June 30, 2011, and December 31, 2010 are as follows:

	Less than twelve months					Over twelve months				Total
	Unrealized			Estimated		Unrealized		Estimated		Unrealized			Estimated
	loss			fair value		loss		fair value		loss			fair value
	(dollars in thousands)
June 30, 2011:
U.S. government and agency securities	$	-		$	-	$	-	$	-	$	-		$	-
States and political subdivisions		(7	)		444		-		-		(7	)		444
SBA Certificates of participation		-			-		-		-		-			-
Mortgage-backed securities		(71	)		10,534		-		-		(71	)		10,534
	$	(78	)	$	10,978	$	-	$	-	$	(78	)	$	10,978
	Less than twelve months					Over twelve months				Total
	Unrealized			Estimated		Unrealized		Estimated		Unrealized			Estimated
	loss			fair value		loss		fair value		loss			fair value
December 31, 2010:
U.S. government and agency securities	$	(198	)	$	7,999	$	-	$	-	$	(198	)	$	7,999
States and political subdivisions		(28	)		1,020		-		-		(28	)		1,020
SBA Certificates of participation		(177	)		7,616		-		-		(177	)		7,616
Mortgage-backed securities		(80	)		6,863		-		-		(80	)		6,863
	$	(483	)	$	23,498	$	-	$	-	$	(483	)	$	23,498

Unrealized losses on securities have not been recognized into income because the issuer bonds are of high credit quality (rated AAA), management does not intend to sell and it is not likely that management would be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates.  The fair value is expected to recover as the bonds approach maturity.