Securities

6 Months Ended

Jun. 30, 2011

Securities

Securities

Note 3: Securities

The amortized cost and fair values of securities classified available for sale are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
June 30, 2011:	Cost		Gains		Losses			Value
	(dollars in thousands)
U.S. Treasury securities	$	20,394	$	311	$	—		$	20,705
Obligations of U.S. government corporations and agencies	371,950		9,570		(3		)	381,517
Obligations of states and political subdivisions	106,630		3,207		(29		)	109,808
Residential mortgage-backed securities	219,686		4,558		(216		)	224,028
Corporate debt securities	2,515		51		(7		)	2,559
	721,175		17,697		(255		)	738,617
Mutual funds and other equity securities	2,509		1,667		—			4,176
	$	723,684	$	19,364	$	(255	)	$	742,793

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
December 31, 2010:	Cost		Gains		Losses			Value
	(dollars in thousands)
U.S. Treasury securities	$	306	$	75	$	—		$	381
Obligations of U.S. government corporations and agencies	324,193		9,028		(86		)	333,135
Obligations of states and political subdivisions	74,691		2,340		(96		)	76,935
Residential mortgage-backed securities	180,578		3,662		(1,234		)	183,006
Corporate debt securities	1,443		56		—			1,499
	581,211		15,161		(1,416		)	594,956
Mutual funds and other equity securities	3,258		1,245		—			4,503
	$	584,469	$	16,406	$	(1,416	)	$	599,459

The amortized cost and fair value of debt securities available for sale as of June 30, 2011, by contractual maturity, are shown below. Mutual funds and other equity securities do not have stated maturity dates and therefore are not included in the following maturity summary. Mortgages underlying the residential mortgage-backed securities may be called or prepaid without penalties, therefore, actual maturities could differ from the contractual maturities. All residential mortgage-backed securities were issued by U.S. government agencies and corporations.

	Amortized		Fair
	Cost		Value
	(dollars in thousands)
Due in one year or less	$	116,534	$	117,843
Due after one year through five years	344,685		354,473
Due after five years through ten years	177,099		181,292
Due after ten years	82,857		85,009
	$	721,175	$	738,617

Gains and losses related to sales of securities are summarized as follows:

	Six Months Ended June 30,
	2011			2010
	(dollars in thousands)
Gross security gains	$	—		$	742
Gross security (losses)	(2		)	—
Net security (losses) gains	$	(2	)	$	742

The tax provision for these net realized gains and losses was insignificant for the six months ended June 30, 2011 and $0.3 million for the six months ended June 30, 2010.

Investment securities with carrying amounts of $409.4 million and $405.7 million on June 30, 2011 and December 31, 2010, respectively, were pledged as collateral for public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.

The following presents information pertaining to securities with gross unrealized losses as of June 30, 2011 and December 31, 2010, aggregated by investment category and length of time that individual securities have been in continuous loss position:

	Less than 12 months				Greater than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
June 30, 2011:	Value		Losses		Value		Losses		Value		Losses
	(dollars in thousands)
Obligations of U.S. government corporations and agencies	$	404	$	3	$	—	$	—	$	404	$	3
Obligations of states and political subdivisions	12,371		29		—		—		12,371		29
Residential mortgage-backed securities	49,369		216		—		—		49,369		216
Corporate debt securities	672		7						672		7
Total temporarily impaired securities	$	62,816	$	255	$	—	$	—	$	62,816	$	255

	Less than 12 months				Greater than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2010:	Value		Losses		Value		Losses		Value		Losses
	(dollars in thousands)
Obligations of U.S. government corporations and agencies	$	15,698	$	86	$	—	$	—	$	15,698	$	86
Obligations of states and political subdivisions	8,452		96		—		—		8,452		96
Residential mortgage-backed securities	95,926		1,234		—		—		95,926		1,234
Total temporarily impaired securities	$	120,076	$	1,416	$	—	$	—	$	120,076	$	1,416

The total number of securities in the investment portfolio in an unrealized loss position as of June 30, 2011 was 37, which represented a loss of 0.41% of the aggregate carrying value. Based upon review of unrealized loss circumstances, the unrealized losses resulted from changes in market interest rates and liquidity, not from changes in the probability of receiving the contractual cash flows. The Company does not intend to sell the securities and it is more-likely-than-not that the Company will recover the amortized cost prior to being required to sell the securities. Full collection of the amounts due according to the contractual terms of the securities is expected; therefore, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2011.

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. Consideration is given to the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and whether we have the intent to sell the security and it is more-likely-than-not we will have to sell the security before recovery of its cost basis.