Investment Securities

9 Months Ended

Sep. 30, 2011

Available-for-sale Securities [Abstract]

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

Investment Securities

Investment securities at September 30, 2011 and December 31, 2010 are summarized as follows:

	September 30, 2011
	Amortized Cost		Unrealized  Gains		Unrealized  Losses		Fair Value
	(Amounts in thousands)
Available-for-sale securities:
Securities of U.S. government agencies due:
After 1 but within 5 years	$	23,865	$	148	$	—	$	24,013
	23,865		148		—		24,013
Government sponsored agencies:
Residential mortgage-backed securities due:
After 1 but within 5 years	607		24		—		631
After 5 but within 10 years	3,820		297		—		4,117
After 10 years	51,921		924		408		52,437
	56,348		1,245		408		57,185
Collateralized mortgage obligations due:
After 5 but within 10 years	18,196		701		—		18,897
After 10 years	122,941		1,611		223		124,329
	141,137		2,312		223		143,226
Private label collateralized mortgage obligations due:
After 5 but within 10 years	313		12		—		325
After 10 years	1,033		—		183		850
	1,346		12		183		1,175
State and municipal securities due:
Within 1 year	622		2		—		624
After 1 but within 5 years	9,025		463		—		9,488
After 5 but within 10 years	23,262		1,342		—		24,604
After 10 years	30,108		1,551		6		31,653
	63,017		3,358		6		66,369
Common and preferred stocks:	1,113		34		37		1,110
Total available-for-sale securities	$	286,826	$	7,109	$	857	$	293,078

	December 31, 2010
	Amortized Cost		Unrealized  Gains		Unrealized  Losses		Fair Value
	(Amounts in thousands)
Available-for-sale securities:
Securities of U.S. government agencies due:
After 1 but within 5 years	$	14,547	$	6	$	3	$	14,550
	14,547		6		3		14,550
Government sponsored agencies:
Residential mortgage-backed securities due:
After 1 but within 5 years	1,040		36		—		1,076
After 5 but within 10 years	7,839		602		—		8,441
After 10 years	41,863		1,132		437		42,558
	50,742		1,770		437		52,075
Collateralized mortgage obligations due:
After 5 but within 10 years	16,063		165		57		16,171
After 10 years	140,021		672		938		139,755
	156,084		837		995		155,926
Private label collateralized mortgage obligations due:
After 5 but within 10 years	406		17		—		423
After 10 years	1,430		—		148		1,282
	1,836		17		148		1,705
State and municipal securities due:
Within 1 year	2,476		18		—		2,494
After 1 but within 5 years	10,680		327		53		10,954
After 5 but within 10 years	21,348		413		236		21,525
After 10 years	38,260		295		906		37,649
	72,764		1,053		1,195		72,622
Common and preferred stocks:	1,113		36		25		1,124
Total available-for-sale securities	$	297,086	$	3,719	$	2,803	$	298,002

Mortgage‑backed securities are included in maturity groups based upon stated maturity date. At September 30, 2011, $57.2 million of the Bank's mortgage‑backed securities were pass‑through securities and $144.4 million were collateralized mortgage obligations. At December 31, 2010, $52.1 million of the Bank's mortgage-backed securities were pass-through securities and $157.6 million were collateralized mortgage obligations. Actual maturity will vary based onrepayment of the underlying mortgage loans.

Gross realized gains on the sale of securities for the three and nine months ended September 30, 2011 were $1.6 million and $2.2 million, respectively. Gross realized gains on the sale of securities for the three and nine months ended September 30, 2010 were $1,000 and $889,000, respectively. There were no losses on the sale of securities available-for-sale for the three and six month periods ended September 30, 2011 and 2010.

Investment securities with carrying values of approximately $113,949,973 and $111,803,619 at September 30, 2011 and December 31, 2010, respectively, were pledged as collateral for public deposits and for other purposes as required or permitted by law.

The following table presents the gross unrealized losses and fair value of investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2011 and December 31, 2010. Securities that have been in a loss position for twelve months or more at September 30, 2011 include two collateralized mortgage obligations and one private label collateralized mortgage obligation. The key factors considered in evaluating the collateralized mortgage obligations, private label collateralized mortgage obligations, and municipal securities were cash flows of this investment and the assessment of other relative economic factors. Securities that have been in a loss position for twelve months or more at December 31, 2010 include one mortgage-backed security, one municipal security and one private label collateralized mortgage obligation. The unrealized losses relate to securities that have incurred fair value reductions due to a shift in demand from non-governmental securities and municipals to U.S. Treasury bonds and governmental agencies due to credit market concerns. The unrealized losses are not likely to reverse until market interest rates decline to the levels that existed when the securities were purchased. None of the unrealized losses relate to the marketability of the securities or the issuer's ability to honor redemption obligations. It is not more likely than not that the Company will have to sell the investments before recovery of their amortized cost bases. For the three and nine months ended September 30, 2010, there were no securities available-for-sale deemed to be other than temporarily impaired (“OTTI”).

If management determines that an investment has experienced an other than temporary impairment, the loss is recognized in the income statement.

	Less Than 12 Months				12 Months or More				Total
September 30, 2011	Fair value		Unrealized  losses		Fair value		Unrealized  losses		Fair value		Unrealized  losses
	(Amounts in thousands)
Securities available-for-sale:
U.S. government agencies	$	—	$	—	$	—	$	—	$	—	$	—
Government sponsored agencies:
Residential mortgage-backed securities	27,883		408		—		—		27,883		408
Collateralized mortgage obligations	31,692		179		5,437		44		37,129		223
Private label collateralized mortgage obligations	—		—		851		183		851		183
State and municipal securities	1,384		6		—		—		1,384		6
Common and preferred stocks	74		37		—		—		74		37
Total temporarily impaired securities	$	61,033	$	630	$	6,288	$	227	$	67,321	$	857

	Less Than 12 Months				12 Months or More				Total
December 31, 2010	Fair value		Unrealized  losses		Fair value		Unrealized  losses		Fair value		Unrealized  losses
	(Amounts in thousands)
Securities available-for-sale:
U.S. government agencies	$	4,569	$	3	$	—	$	—	$	4,569	$	3
Government sponsored agencies:
Residential mortgage-backed securities	21,637		435		136		2		21,773		437
Collateralized mortgage obligation	76,925		995		—		—		76,925		995
Private label collateralized mortgage obligations	—		—		1,283		148		1,283		148
State and municipal securities	31,775		1,174		276		21		32,051		1,195
Common and preferred stocks, and other	79		25		—		—		79		25
Total temporarily impaired securities	$	134,985	$	2,632	$	1,695	$	171	$	136,680	$	2,803