INVESTMENT SECURITIES

9 Months Ended

Sep. 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 September 30, 2012, December 31, 2011 and September 30, 2011 are presented below:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in Thousands)
September 30, 2012:
U. S. government agencies	$	8,606	$	289	$	—		$	8,895
State, county and municipal securities		106,541		5,345		(144	)		111,742
Corporate debt securities		11,793		262		(560	)		11,495
Mortgage-backed securities		222,641		6,562		(284	)		228,919
Total securities	$	349,581	$	12,458	$	(988	)	$	361,051
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
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

The amortized cost and fair value of available-for-sale securities at September 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	$	9,385	$	9,428
Due from one year to five years		18,605		19,420
Due from five to ten years		57,227		61,179
Due after ten years		41,723		42,105
Mortgage-backed securities		222,641		228,919
	$	349,581	$	361,051

Securities with a carrying value of approximately $171.7 million serve as collateral to secure public deposits and other purposes required or permitted by law at September 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 September 30, 2012, December 31, 2011 and September 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)
September 30, 2012:
U. S. government agencies	$	—	$	—		$	—	$	—		$	—	$	—
State, county and municipal securities		14,653		(132	)		505		(12	)		15,158		(144	)
Corporate debt securities		—		—			5,551		(560	)		5,551		(560	)
Mortgage-backed securities		32,660		(267	)		3,434		(17	)		36,094		(284	)
Total temporarily impaired securities	$	47,313	$	(399	)	$	9,490	$	(589	)	$	56,803	$	(988	)
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	)
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	)