Investment Securities

9 Months Ended

Sep. 30, 2011

Investment Securities [Abstract]

Investment Securities

NOTE 2 – INVESTMENT SECURITIES

Ameris' investment policy blends the Company's liquidity needs and interest rate risk management with its desire to increase income and provide funds for expected growth in loans. The investment securities portfolio consists primarily of U.S. government sponsored mortgage-backed securities and agencies, state, county and municipal securities and corporate debt securities. Ameris' portfolio and investing philosophy concentrate activities in obligations where the credit risk is limited. For the small portion of Ameris' portfolio found to present credit risk, the Company has reviewed the investments and financial performance of the obligors and believes the credit risk to be acceptable.

Management and the Company's Asset and Liability Committee (the "ALCO Committee") evaluate securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. While the majority of the unrealized losses on debt securities relate to changes in interest rates, corporate debt securities have also been affected by reduced levels of liquidity and higher risk premiums. Occasionally, management engages independent third parties to evaluate the Company's position in certain corporate debt securities to aid management and the ALCO Committee in its determination regarding the status of impairment. The Company believes that each investment poses minimal credit risk and, further, that the Company does not intend to sell these investment securities at an unrealized loss position at September 30, 2011, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity. Therefore, at September 30, 2011, these investments are not considered impaired on an other-than temporary basis.

The amortized cost and estimated fair value of investment securities available for sale at September 30, 2011, December 31, 2010 and September 30, 2010 are presented below:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in Thousands)
September 30, 2011:
U. S. government agencies	$	20,007	$	302	$	—		$	20,309
State, county and municipal securities		68,486		3,196		—			71,682
Corporate debt securities		11,638		247		(357	)		11,528
Mortgage-backed securities		230,786		6,838		(304	)		237,320
Total securities	$	330,917	$	10,583	$	(661	)	$	340,839
December 31, 2010:
U. S. government agencies	$	35,128	$	448	$	(108	)	$	35,468
State, county and municipal securities		57,385		928		(617	)		57,696
Corporate debt securities		13,540		123		(2,877	)		10,786
Mortgage-backed securities		213,737		6,732		(1,838	)		218,631
Total securities	$	319,790	$	8,231	$	(5,440	)	$	322,581
September 30, 2010:
U. S. government agencies	$	15,358	$	923	$	—		$	16,281
State, county and municipal securities		46,600		2,174		(2	)		48,772
Corporate debt securities		12,522		170		(2,839	)		9,853
Mortgage-backed securities		153,545		7,379		(3	)		160,921
Total securities	$	228,025	$	10,646	$	(2,844	)	$	235,827

The amortized cost and fair value of available-for-sale securities at September 30, 2011 by contractual maturity are summarized in the table below. Expected maturities for mortgage-backed securities may differ from contractual maturities because in certain cases borrowers can prepay obligations without prepayment penalties. Therefore, these securities are not included in the following maturity summary:

	Amortized Cost		Fair Value
	(Dollars in Thousands)
Due in one year or less	$	13,902	$	13,969
Due from one year to five years		17,772		18,406
Due from five to ten years		40,917		43,372
Due after ten years		27,540		27,772
Mortgage-backed securities		230,786		237,320
	$	330,917	$	340,839

Securities with a carrying value of approximately $177.6 million serve as collateral to secure public deposits and other purposes required or permitted by law at September 30, 2011.

The following table details the gross unrealized losses and fair value of securities aggregated by category and duration of continuous unrealized loss position at September 30, 2011, December 31, 2010 and September 30, 2010.

	Less Than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
September 30, 2011:
U. S. government agencies	$	—	$	—		$	—	$	—		$	—	$	—
State, county and municipal securities		—		—			—		—			—		—
Corporate debt securities		100		—			6,732		(357	)		6,832		(357	)
Mortgage-backed securities		33,741		(304	)		—		—			33,741		(304	)
Total temporarily impaired securities	$	33,841	$	(304	)	$	6,732	$	(357	)	$	40,573	$	(661	)
December 31, 2010:
U. S. government agencies	$	25,017	$	(108	)	$	—	$	—		$	25,017	$	(108	)
State, county and municipal securities		17,563		(617	)		—		—			17,563		(617	)
Corporate debt securities		1,048		(20	)		5,078		(2,857	)		6,126		(2,877	)
Mortgage-backed securities		64,549		(1,838	)		15		—			64,564		(1,838	)
Total temporarily impaired securities	$	108,177	$	(2,583	)	$	5,093	$	(2,857	)	$	113,270	$	(5,440	)
September 30, 2010:
U. S. government agencies	$	—	$	—		$	—	$	—		$	—	$	—
State, county and municipal securities		1,205		(2	)		—		—			1,205		(2	)
Corporate debt securities		99		(1	)		5,153		(2,838	)		5,252		(2,839	)
Mortgage-backed securities		1,615		(3	)		15		—			1,630		(3	)
Total temporarily impaired securities	$	2,919	$	(6	)	$	5,168	$	(2,838	)	$	8,087	$	(2,844	)