INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2012

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.

The amortized cost and estimated fair value of investment securities available for sale at June 30, 2012, December 31, 2011 and June 30, 2011 are presented below:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in Thousands)
June 30, 2012:
U. S. government agencies	$	8,602	$	296	$	—		$	8,898
State, county and municipal securities		95,354		5,047		(74	)		100,327
Corporate debt securities		11,792		231		(517	)		11,506
Mortgage-backed securities		239,412		7,032		(195	)		246,249
Total securities	$	355,160	$	12,606	$	(786	)	$	366,980
December 31, 2011:
U. S. government agencies	$	14,670	$	267	$	—		$	14,937
State, county and municipal securities		75,665		3,558		(90	)		79,133
Corporate debt securities		11,640		167		(406	)		11,401
Mortgage-backed securities		228,085		6,559		(148	)		234,496
Total securities	$	330,060	$	10,551	$	(644	)	$	339,967
June 30, 2011:
U. S. government agencies	$	24,056	$	203	$	—		$	24,259
State, county and municipal securities		58,636		1,950		(40	)		60,546
Corporate debt securities		11,637		242		(2,157	)		9,722
Mortgage-backed securities		234,437		5,979		(567	)		239,849
Total securities	$	328,766	$	8,374	$	(2,764	)	$	334,376

The amortized cost and fair value of available-for-sale securities at June 30, 2012 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	$	9,306	$	9,320
Due from one year to five years		18,553		19,264
Due from five to ten years		51,174		54,892
Due after ten years		36,715		37,255
Mortgage-backed securities		239,412		246,249
	$	355,160	$	366,980

Securities with a carrying value of approximately $201.2 million serve as collateral to secure public deposits and other purposes required or permitted by law at June 30, 2012.

The following table details the gross unrealized losses and fair value of securities aggregated by category and duration of continuous unrealized loss position at June 30, 2012, December 31, 2011 and June 30, 2011.

	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)
June 30, 2012:
U. S. government agencies	$	—	$	—		$	—	$	—		$	—	$	—
State, county and municipal securities		10,342		(73	)		—		—			10,342		(73	)
Corporate debt securities		—		—			6,562		(518	)		6,562		(518	)
Mortgage-backed securities		31,680		(167	)		5,040		(28	)		36,720		(195	)
Total temporarily impaired securities	$	42,022	$	(240	)	$	11,602	$	(546	)	$	53,624	$	(786	)
December 31, 2011:
U. S. government agencies	$	—	$	—		$	—	$	—		$	—	$	—
State, county and municipal securities		10,134		(90	)		—		—			10,134		(90	)
Corporate debt securities		100		—			6,681		(406	)		6,781		(406	)
Mortgage-backed securities		20,929		(148	)		—		—			20,929		(148	)
Total temporarily impaired securities	$	31,163	$	(238	)	$	6,681	$	(406	)	$	37,844	$	(644	)
June 30, 2011:
U. S. government agencies	$	—	$	—		$	—	$	—		$	—	$	—
State, county and municipal securities		3,844		(39	)		203		(1	)		4,047		(40	)
Corporate debt securities		100		(1	)		4,936		(2,156	)		5,036		(2,157	)
Mortgage-backed securities		60,926		(567	)		—		—			60,926		(567	)
Total temporarily impaired securities	$	64,870	$	(607	)	$	5,139	$	(2,158	)	$	70,009	$	(2,764	)