INVESTMENT SECURITIES (Tables)

9 Months Ended

Sep. 30, 2012

The following tables set forth the amortized cost and estimated fair values of the Bank's investment securities.

	September 30, 2012
			Gross			Gross
	Amortized		Unrealized			Unrealized			Fair
	Cost		Gains			Losses			Value
Held-to-Maturity Securities:					(in thousands)
State and municipals	$	37,998	$	2,506		$	-		$	40,504
Pass-through mortgage securities		4,682		438			-			5,120
Collateralized mortgage obligations		5,029		363			-			5,392
	$	47,709	$	3,307		$	-		$	51,016
Available-for-Sale Securities:
State and municipals	$	304,170	$	26,098		$	(86	)	$	330,182
Pass-through mortgage securities		38,935		2,486			-			41,421
Collateralized mortgage obligations		399,428		15,058			(710	)		413,776
	$	742,533	$	43,642		$	(796	)	$	785,379

	December 31, 2011
			Gross			Gross
	Amortized		Unrealized			Unrealized			Fair
	Cost		Gains			Losses			Value
Held-to-Maturity Securities:					(in thousands)
State and municipals	$	43,091	$	2,906		$	-		$	45,997
Pass-through mortgage securities		6,851		551			-			7,402
Collateralized mortgage obligations		12,143		535			-			12,678
	$	62,085	$	3,992		$	-		$	66,077
Available-for-Sale Securities:
U.S. government agencies	$	5,000	$	113		$	-		$	5,113
State and municipals		292,662		20,580			(47	)		313,195
Pass-through mortgage securities		68,060		5,726			-			73,786
Collateralized mortgage obligations		489,546		12,933			(617	)		501,862
	$	855,268	$	39,352		$	(664	)	$	893,956

Securities with Unrealized Losses

Securities With Unrealized Losses. The following tables set forth securities with unrealized losses presented by length of time the securities have been in a continuous unrealized loss position.

	September 30, 2012
	Less than
	12 Months					Total
	Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss
	(in thousands)
State and municipals	$	10,877	$	(86	)	$	10,877	$	(86	)
Collateralized mortgage obligations		39,663		(710	)		39,663		(710	)
Total temporarily impaired	$	50,540	$	(796	)	$	50,540	$	(796	)

	December 31, 2011
	Less than
	12 Months					Total
	Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss
	(in thousands)
State and municipals	$	6,176	$	(47	)	$	6,176	$	(47	)
Collateralized mortgage obligations		66,357		(617	)		66,357		(617	)
Total temporarily impaired	$	72,533	$	(664	)	$	72,533	$	(664	)

Proceeds and Realized Gain on the Sale of Available for Sale Securities

Sales of Available-for-Sale Securities. Sales of available-for-sale securities were as follows:

	Nine Months Ended					Three Months Ended
	September 30,					September 30,
	2012			2011		2012		2011
	(in thousands)
Proceeds	$	102,687		$	4,370	$	-	$	-

Gross gains	$	4,248		$	122	$	-	$	-
Gross losses		(635	)		-		-		-
Net gains	$	3,613		$	122	$	-	$	-

Maturities

Maturities. The following table sets forth by maturity the amortized cost and fair value of the investment securities portfolio at September 30, 2012. State and municipal securities are included in the table at the earlier of their stated maturity or, if applicable, their pre-refunded date. The mortgage-backed securities shown in the table are expected to have substantial periodic repayments.

	Amortized Cost		Fair Value
Held-to-Maturity Securities	(in thousands)
Within one year	$	944	$	946
After 1 through 5 years		12,525		13,268
After 5 through 10 years		21,939		23,467
After 10 years		2,590		2,823
Mortgage-backed securities		9,711		10,512
	$	47,709	$	51,016
Available-for-Sale Securities
Within one year	$	1,518	$	1,538
After 1 through 5 years		6,170		6,456
After 5 through 10 years		28,619		30,202
After 10 years		267,863		291,986
Mortgage-backed securities		438,363		455,197
	$	742,533	$	785,379