Investment Securities (Tables)

9 Months Ended

Sep. 30, 2012

Amortized Costs and Fair Values of Securities Available for Sale

Amortized costs and fair values of the securities available for sale as are as follows for the periods ended,

September 30, 2012 (Unaudited) (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
US Government Agencies	$	23,414	$	445	$	—		$	23,859
Mortgage Back Securities		13,456		368		(15	)		13,809
Collateralized Mortgage Obligations		7,872		76		—			7,948
Asset-Backed Debt Securities		2,578		—		(2,510	)		68
Municipal Securities		10,609		1,211		—			11,820
Total	$	57,929	$	2,100	$	(2,525	)	$	57,504

December 31, 2011 (Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
US Government Agencies	$	24,030	$	576	$	—		$	24,606
Mortgage Back Securities		12,932		258		(11	)		13,179
Collateralized Mortgage Obligations		7,823		69		—			7,892
Asset-Backed Debt Securities		2,548		—		(2,480	)		68
Municipal Securities		10,678		915		(2	)		11,591
Total	$	58,011	$	1,818	$	(2,493	)	$	57,336

Amortized Costs and Fair Values of Securities Available for Sale by Contractual Maturities

The amortized cost and estimated fair value of securities available for sale as of September 30, 2012 and December 31, 2011 by contractual maturities are shown below. Actual maturities may differ from contractual maturities because the securities may be called or prepaid without any penalties.

	September 30, 2012				December 31, 2011
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
(Dollars in thousands)	(Unaudited)
US Government Agencies
< 1 year	$	10,058	$	10,127	$	5,011	$	5,050
1-5 years		12,356		12,732		17,845		18,346
5-10 years		1,000		1,000		1,174		1,210
> 10 years		—		—		—		—
Mortgage Back Securities
< 1 year		—		—		—		—
1-5 years		—		—		—		—
5-10 years		7,158		7,342		7,794		7,878
> 10 years		6,298		6,467		5,138		5,301
Collateralized Mortgage Obligations
< 1 year		—		—		—		—
1-5 years		326		328		480		481
5-10 years		415		424		651		659
> 10 years		7,131		7,196		6,692		6,752
Asset-backed
> 10 years		2,578		68		2,548		68
State and Municipal
< 1 year		—		—		—		—
1-5 years		2,934		3,138		2,174		2,305
5-10 years		7,675		8,682		7,850		8,585
> 10 years		—		—		654		701
Total	$	57,929	$	57,504	$	58,011	$	57,336

Investment Securities Available for Sale that have Unrealized Loss Position

The following table sets forth the investment securities available for sale that have an unrealized loss position as of the dates indicated:

			Continuous Unrealized Losses
September 30, 2012 (Unaudited) (Dollars in thousands)	Fair Value		Total		Less Than 12 Months		More than 12 Months
US Government Agencies	$	—	$	—	$	—	$	—
Mortgage Back Securities		2,006		15		15		—
Asset-Backed Debt Securities		68		2,510		—		2,510
Municipal Securities		—		—		—		—
Total	$	2,074	$	2,525	$	15	$	2,510

			Continuous Unrealized Losses
December 31, 2011 (Dollars in thousands)	Fair Value		Total		Less Than 12 Months		More than 12 Months
US Government Agencies	$	—	$	—	$	—	$	—
Mortgage Back Securities		2,890		11		11		—
Asset-Backed Debt Securities		68		2,480		—		2,480
Municipal Securities		527		2		2		—
Total	$	3,485	$	2,493	$	13	$	2,480

Certain Summary Information with Respect to Trapeza Collateralized Debt Obligations and Underlying Issuers

When evaluating the financial condition and near-term prospects of the issuer, the Company considers the financial strength of the issuers comprising the Trapeza CDO. In this regard, the following table provides certain summary information with respect to the Trapeza CDO and the underlying issuers within that security for the periods indicated:

	September 30, 2012	December 31, 2011
Current number of performing and non-performing issuers	Performing: 36 Deferring interest: 10 Defaulted: 9	Performing: 36 Deferring interest: 10 Defaulted: 9
Actual deferrals and defaults as a percentage of the original collateral	Deferral: 13.6% Defaults: 14.1%	Deferral: 15.4% Defaults: 12.9%
Expected deferrals and defaults as a percentage of the remaining performing collateral	Expected new deferrals: 0 Expected new defaults: 1.8%	Expected new deferrals: 0 Expected new defaults: 8.2%
Subordination level of the tranche held by the registrant as a percentage of the remaining performing collateral	11.20%	11.30%
Subordination level of the tranche held by the registrant plus all superior tranche levels as a percentage of the remaining performing collateral	112.60%	108.10%
External credit ratings (Moody’s / Fitch)	Ca / C	Ca / C