Securities

9 Months Ended

Sep. 30, 2012

Securities [Abstract]

Securities

Note 3. Securities

Securities have been classified in the consolidated balance sheets according to management’s intent. At September 30, 2012 and December 31, 2011, all of the Company’s securities were classified as available for sale. The amortized cost of securities and their approximate fair values at September 30, 2012 and December 31, 2011 are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale
September 30, 2012:
Municipal securities	$	1,011	$	58	$	—		$	1,069
Collateralized mortgage obligations guaranteed by FNMA and FHLMC		8,473		22		(22	)		8,473
Asset-backed securities substantially guaranteed by the U.S. Government		3,037		—		(30	)		3,007
Mortgage-backed securities guaranteed by SBA, FNMA, GNMA and FHLMC		7,062		132		—			7,194
	$	19,583	$	212	$	(52	)	$	19,743
December 31, 2011:
Municipal securities	$	8,737	$	385	$	—		$	9,122
Collateralized mortgage obligations guaranteed by FNMA and FHLMC		12,809		26		(90	)		12,745
Mortgage-backed securities guaranteed by SBA, FNMA, GNMA and FHLMC		3,228		5		(3	)		3,230
	$	24,774	$	416	$	(93	)	$	25,097

Mortgage-backed securities and collateralized mortgage obligations are backed by single-family mortgage loans. The Company does not hold any securities backed by commercial real estate loans. Asset-backed securities are secured by student loans and substantially guaranteed by the U.S. Government.

For the three and nine months ended September 30, 2012 and 2011, proceeds from sale of securities available for sale, gross gains and gross losses were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Proceeds from sale	$	1,218	$	5,762	$	16,484	$	21,789
Gross gains	$	128	$	120	$	709	$	322
Gross losses	$	—	$	—	$	81	$	—

Gross unrealized losses and fair values by investment category and length of time in a continuous unrealized loss position at September 30, 2012 and December 31, 2011 were as follows:

	Number of Security Positions with Unrealized losses		Continuous Unrealized Losses Existing for Less than 12 Months					Continuous Unrealized Losses Existing for 12 Months or Longer				Total
			Market Value		Unrealized Losses			Market Value		Unrealized Losses		Market Value		Unrealized Losses
September 30, 2012:
Collateralized mortgage obligations		3	$	4,340	$	(22	)	$	—	$	—	$	4,340	$	(22	)
Asset-backed securities		1		3,007		(30	)		—		—		3,007		(30	)
		4	$	7,347	$	(52	)	$	—	$	—	$	7,347	$	(52	)
December 31, 2011:
Collateralized mortgage obligations		7	$	10,019	$	(90	)	$	—	$	—	$	10,019	$	(90	)
Mortgage-backed securities		1		970		(3	)		—		—		970		(3	)
		8	$	10,989	$	(93	)	$	—	$	—	$	10,989	$	(93	)

For all of the above securities available for sale, the gross unrealized losses are generally due to changes in interest rates. The Company does not intend to sell these securities and it is more-likely-than-not that the Company will not be required to sell prior to anticipated recovery. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent of the Company to sell or whether it would be more-likely-than-not required to sell its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

The scheduled maturities of securities at September 30, 2012 and December 31, 2011 are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2012				December 31, 2011
	Available for Sale				Available for Sale
	Amortized Cost		Market Value		Amortized Cost		Market Value
Due after 10 years	$	1,011	$	1,069	$	8,737	$	9,122
Mortgage-backed securities, collateralized mortgage obligations and asset-backed securities		18,572		18,674		16,037		15,975
	$	19,583	$	19,743	$	24,774	$	25,097