Investments in Securities

6 Months Ended

Jun. 30, 2012

Investments in Securities [Abstract]

INVESTMENTS IN SECURITIES

NOTE 4 – INVESTMENTS IN SECURITIES

The amortized cost of held-to-maturity securities and their approximate fair values are as follows:

	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity securities:
June 30, 2012 (unaudited):
U.S. government sponsored enterprise mortgage-backed securities	$	50,939	$	1,576	$	—	$	52,515
Corporate debt securities		24,122		441		1		24,562
	$	75,061	$	2,017	$	1	$	77,077
December 31, 2011:
U.S. government and federal agency obligations	$	5,600	$	59	$	—	$	5,659
U.S. government sponsored enterprise mortgage-backed securities		46,432		1,168		97		47,503
Corporate debt securities		37,359		600		25		37,934
	$	89,391	$	1,827	$	122	$	91,096

The amortized cost and estimated fair value of debt securities by contractual maturity at June 30, 2012 and December 31, 2011 is as follows. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2012				December 31, 2011
	Held-to-Maturity				Held-to-Maturity
	Amortized Cost Basis		Fair Value		Amortized Cost Basis		Fair Value
	(unaudited)
Due within one year	$	14,074	$	14,211	$	25,741	$	25,915
Due after one year through five years		10,048		10,351		17,218		17,678
U.S. government sponsored enterprise mortgage-backed securities		50,939		52,515		46,432		47,503
	$	75,061	$	77,077	$	89,391	$	91,096

During the six months ended June 30, 2011 (unaudited), proceeds from sales of available-for-sale securities amounted to $15.7 million. For the six months ended June 30, 2011 (unaudited) gross realized gains and gross realized losses on those sales amounted to $2.8 million and $56,000, respectively. For the six months ended June 30, 2011 (unaudited) the income tax expense (benefit) related to the gross gains and losses were $1.1 million and ($23,000), respectively. During the six months ended June 30, 2012 (unaudited), there were no security sales.

Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less than 12 Months				Over 12 Months
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2012 (unaudited):
Corporate debt securities	$	1,039	$	1	$	—	$	—
Total temporarily impaired securities	$	1,039	$	1	$	—	$	—
December 31, 2011:
U.S. government sponsored mortgage-backed securities	$	6,799	$	48	$	965	$	49
Corporate debt securities		7,039		25		—		—
Total temporarily impaired securities	$	13,838	$	73	$	965	$	49

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. At June 30, 2012 (unaudited), unrealized losses related to one corporate debt security with a 0.11% unrealized loss was caused primarily by changes in market interest rates. Consideration is given to (1) the length of time and the 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 and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Based on the Company’s June 30, 2012 (unaudited) quarterly review of securities in the investment portfolio, management deemed the security with an unrealized loss as of June 30, 2012 (unaudited) to be temporarily impaired. At December 31, 2011, unrealized losses related to nine debt securities with aggregate depreciation of 0.8% from the Company’s amortized cost basis were caused primarily by changes in market interest rates. Based on the Company’s December 31, 2011 review of securities in the investment portfolio, management deemed securities with unrealized losses as of December 31, 2011 to be temporarily impaired.

The investment securities portfolio is generally evaluated for other-than-temporary impairment under ASC 320-10, “Investments - Debt and Equity Securities.” However, certain purchased beneficial interests, including non-agency mortgage-backed securities, are evaluated using ASC 325-40, “Investments – Other – Beneficial Interests in Securitized Financial Assets.”