Investment Securities

3 Months Ended

Mar. 31, 2012

Available-for-sale Securities [Abstract]

Investment Securities

Investment Securities

Investment securities at March 31, 2012 and December 31, 2011 are summarized as follows:

	March 31, 2012
	Amortized Cost		Unrealized  Gains		Unrealized  Losses		Fair Value
	(Amounts in thousands)
Available-for-sale securities:
Securities of U.S. government agencies due:
Within 1 year	$	20,013	$	91	$	—	$	20,104
After 1 but within 5 years	3,316		13		—		3,329
	23,329		104		—		23,433
Government sponsored agencies:
Residential mortgage-backed securities due:
After 1 but within 5 years	366		10		—		376
After 5 but within 10 years	3,147		273		—		3,420
After 10 years	79,844		1,001		425		80,420
	83,357		1,284		425		84,216
Collateralized mortgage obligations due:
After 1 but within 5 years	3,947		22		—		3,969
After 5 but within 10 years	9,422		342		—		9,764
After 10 years	163,038		1,585		581		164,042
	176,407		1,949		581		177,775
Private label collateralized mortgage obligations due:
After 5 but within 10 years	262		—		2		260
After 10 years	1,022		—		43		979
	1,284		—		45		1,239
State and municipal securities due:
Within 1 year	615		2		—		617
After 1 but within 5 years	6,995		361		—		7,356
After 5 but within 10 years	23,697		1,610		—		25,307
After 10 years	37,454		2,029		12		39,471
	68,761		4,002		12		72,751
Common and preferred stocks:	1,114		51		54		1,111
Total available-for-sale securities	$	354,252	$	7,390	$	1,117	$	360,525

	December 31, 2011
	Amortized Cost		Unrealized  Gains		Unrealized  Losses		Fair Value
	(Amounts in thousands)
Available-for-sale securities:
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

Mortgage‑backed securities are included in maturity groups based upon stated maturity date. At March 31, 2012, $84.2 million of the Bank's mortgage‑backed securities were pass‑through securities and $179.0 million were collateralized mortgage obligations. At December 31, 2011, $65.2 million of the Bank's mortgage-backed securities were pass-through securities and $167.3 million were collateralized mortgage obligations. Actual maturity will vary based onrepayment of the underlying mortgage loans.

There were no sales of securities for the quarter ended March 31, 2012. Gross realized gains on the sale of securities for the quarter ended March 31, 2011 were $173,237. There were no losses on the sale of securities available-for-sale for the quarter ended March 31, 2011.

Investment securities with carrying values of approximately $97,610,877 and $120,227,824 at March 31, 2012 and December 31, 2011, 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 March 31, 2012 and December 31, 2011. Securities that have been in a loss position for twelve months or more at March 31, 2012 include one collateralized mortgage obligation, one private label collateralized mortgage and three mortgage backed securitites. 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, 2011 include three mortgage-backed securities, two collateralized mortgage obligations, one private label collateralized mortgage obligation and one common stock. 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 months ended March 31, 2012, 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
March 31, 2012	Fair value		Unrealized  losses		Fair value		Unrealized  losses		Fair value		Unrealized  losses
	(Amounts in thousands)
Securities available-for-sale:
Government sponsored agencies:
Residential mortgage-backed securities	$	20,963	$	132	$	16,699	$	293	$	37,662	$	425
Collateralized mortgage obligations	55,051		572		2,013		9		57,064		581
Private label collateralized mortgage obligations	260		2		979		43		1,239		45
State and municipal securities	2,427		12		—		—		2,427		12
Common and preferred stocks	—		—		51		54		51		54
Total temporarily impaired securities	$	78,701	$	718	$	19,742	$	399	$	98,443	$	1,117

	Less Than 12 Months				12 Months or More				Total
December 31, 2011	Fair value		Unrealized  losses		Fair value		Unrealized  losses		Fair value		Unrealized  losses
	(Amounts in thousands)
Securities available-for-sale:
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