Investment Securities

12 Months Ended

Dec. 31, 2011

Available-for-sale Securities [Abstract]

Investment Securities

INVESTMENT SECURITIES

The following tables present investment securities at December 31, 2011 and 2010:

	December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Available-for-sale securities:	(Amounts in thousands)
Securities of U.S. government agencies due:
Within 1 year	$	9,988	$	51	$	—	$	10,039
After 1 but within 5 years	13,622		65		—		13,687
	23,610		116		—		23,726
Government sponsored agencies:
Residential Mortgage-backed securities due:
After 1 but within 5 years	476		18		—		494
After 5 but within 10 years	3,481		281		—		3,762
After 10 years	60,388		959		393		60,954
	64,345		1,258		393		65,210
Collateralized mortgage obligations due:
After 5 but within 10 years	13,986		478		—		14,464
After 10 years	150,915		1,241		592		151,564
	164,901		1,719		592		166,028
Private label collateralized mortgage
obligations due:
After 5 but within 10 years	275		10		—		285
After 10 years	1,028		—		57		971
	1,303		10		57		1,256
State and municipal securities due:
Within 1 year	618		5		—		623
After 1 but within 5 years	6,575		347		—		6,922
After 5 but within 10 years	21,252		1,639		19		22,872
After 10 years	40,455		2,255		9		42,701
	68,900		4,246		28		73,118
Common and preferred stocks:	1,113		23		52		1,084
Total available-for-sale securities	$	324,172	$	7,372	$	1,122	$	330,422

	December 31, 2010
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Available-for-sale securities:	(Amounts in thousands)
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 December 31, 2011and 2010, the Bank's mortgage‑backed securities were pass‑through securities. Actual maturity will vary based on repayment of the underlying mortgage loans.

Gross realized gains on sales of available-for-sale securities in 2011 were $2,836,085. There were no gross realized losses on sales of available-for-sale securities in 2011. Gross realized gains and losses on sales of available-for-sale securities in 2010 were $2,196,980 and $16,919, respectively. There were no gross realized gains or losses of available-for-sale securities in 2009.

Investment securities with carrying values of $120,227,824 and $111,803,619 at December 31, 2011 and 2010, respectively, were pledged as collateral for public deposits and for other purposes as required or permitted by law.

If management determines that an investment has experienced an OTTI, the loss is recognized in the income statement. The Company’s investment in a financial institution classified as available-for-sale was considered to be OTTI and approximately $386,000 was charged-off in 2010.There were no OTTI charges recorded for securities available-for-sale for the years ended December 31, 2011 and 2009. Management believes that the market prices of these equity securities will not recover in the immediate future due to the current economic environment. All OTTI losses were deemed to be credit related losses.

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 December 31, 2011 and 2010. Securities that have been in a loss position for twelve months or more at December 31, 2011 include three mortgage-backed securities, two collateralized mortgage obligations, one private label collateralized mortgage obligation and one common stock. The key factors considered in evaluating the private label collateralized mortgage obligations 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. Since none of the unrealized losses relate to the marketability of the securities or the issuer’s ability to honor redemption obligations, none of the securities are deemed to be OTTI. It is more likely than not that the Company will not have to sell the investments before recovery of their amortized cost bases.

	December 31, 2011
	Less Than 12 Months				12 Months or More				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Securities available-for-sale:	(Amounts in thousands)
U.S. government agencies	$	—	$	—	$	—	$	—	$	—	$	—
Government sponsored agencies:
Residential mortgage-backed securities	13,121		45		16,751		348		29,872		393
Collateralized mortgage obligation	70,421		505		5,043		87		75,464		592
Private label collateralized mortgage obligations	—		—		971		57		971		57
State and municipal securities	3,429		28		—		—		3,429		28
Common and preferred stocks, and other	6		1		53		51		59		52
Total temporarily impaired securities	$	86,977	$	579	$	22,818	$	543	$	109,795	$	1,122

	December 31, 2010
	Less Than 12 Months				12 Months or More				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Securities available-for-sale:	(amounts in thousands)
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