Investment Securities

6 Months Ended

Jun. 30, 2011

Investment Securities

Investment Securities

Note 5 — Investment Securities

The following is the amortized cost and fair value of investment securities held to maturity:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost		Gains		Losses			Value
June 30, 2011:
State and municipal obligations	$	19,100	$	734	$	—		$	19,834
December 31, 2010:
State and municipal obligations	$	19,941	$	227	$	(18	)	$	20,150
June 30, 2010:
State and municipal obligations	$	20,092	$	506	$	(14	)	$	20,584

The following is the amortized cost and fair value of investment securities available for sale:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(Dollars in thousands)	Cost		Gains		Losses			Value
June 30, 2011:
Government-sponsored enterprises debt *	$	57,729	$	1,085	$	—		$	58,814
State and municipal obligations	38,893		1,621		(137		)	40,377
Mortgage-backed securities **	106,968		3,427		(19		)	110,376
Corporate stocks	255		139		(5		)	389
	$	203,845	$	6,272	$	(161	)	$	209,956
December 31, 2010:
Government-sponsored enterprises debt *	$	69,854	$	844	$	(164	)	$	70,534
State and municipal obligations	39,749		680		(425		)	40,004
Mortgage-backed securities **	83,045		1,752		(357		)	84,440
Trust preferred (collateralized debt obligations)	2,324		—		(290		)	2,034
Corporate stocks	256		106		—			362
	$	195,228	$	3,382	$	(1,236	)	$	197,374
June 30, 2010:
Government-sponsored enterprises debt *	$	111,383	$	1,909	$	(2	)	$	113,290
State and municipal obligations	40,495		1,330		(373		)	41,452
Mortgage-backed securities **	85,789		4,998		—			90,787
Trust preferred (collateralized debt obligations)	5,883		—		(123		)	5,760
Corporate stocks	285		89		(19		)	355
	$	243,835	$	8,326	$	(517	)	$	251,644

* - Government-sponsored enterprises holdings are comprised of debt securities offered by Federal Home Loan Mortgage Corporation (“FHLMC”) or Freddie Mac, Federal National Mortgage Association (“FNMA”) or Fannie Mae, FHLB, and Federal Farm Credit Banks (“FFCB”).

** - All of the mortgage-backed securities are issued by government-sponsored enterprises; there are no private-label holdings.

The following is the amortized cost and fair value of other investment securities:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
June 30, 2011:
Federal Reserve Bank stock	$	6,617	$	—	$	—	$	6,617
Federal Home Loan Bank stock	12,478		—		—		12,478
Investment in unconsolidated subsidiaries	1,332		—		—		1,332
	$	20,427	$	—	$	—	$	20,427
December 31, 2010:
Federal Reserve Bank stock	$	5,987	$	—	$	—	$	5,987
Federal Home Loan Bank stock	13,278		—		—		13,278
Investment in unconsolidated subsidiaries	1,332		—		—		1,332
	$	20,597	$	—	$	—	$	20,597
June 30, 2010:
Federal Reserve Bank stock	$	5,987	$	—	$	—	$	5,987
Federal Home Loan Bank stock	14,862		—		—		14,862
Investment in unconsolidated subsidiaries	1,332		—		—		1,332
	$	22,181	$	—	$	—	$	22,181

The Company has determined that the investment in Federal Reserve Bank stock and FHLB stock is not other than temporarily impaired as of June 30, 2011 and ultimate recoverability of the par value of these investments is probable.  See “Other Investments” under Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

The amortized cost and fair value of debt securities at June 30, 2011 by contractual maturity are detailed below.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties.

	Securities				Securities
	Held to Maturity				Available for Sale
	Amortized		Fair		Amortized		Fair
(Dollars in thousands)	Cost		Value		Cost		Value
Due in one year or less	$	—	$	—	$	5	$	5
Due after one year through five years	662		671		6,438		6,513
Due after five years through ten years	5,778		6,003		52,925		54,007
Due after ten years	12,660		13,160		144,477		149,431
	$	19,100	$	19,834	$	203,845	$	209,956

Information pertaining to the Company’s securities available for sale with gross unrealized losses at June 30, 2011, December 31, 2010 and June 30, 2010, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is as follows:

	Less Than Twelve Months				Twelve Months or More
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
(Dollars in thousands)	Losses		Value		Losses		Value
June 30, 2011:
Securities Held to Maturity
State and municipal obligations	$	—	$	—	$	—	$	—
Securities Available for Sale
State and municipal obligations	$	55	$	3,927	$	82	$	913
Mortgage-backed securities	19		7,910		—		—
Corporate stocks	5		20		—		—
	$	79	$	11,857	$	82	$	913
December 31, 2010:
Securities Held to Maturity
State and municipal obligations	$	18	$	3,050	$	—	$	—
Securities Available for Sale
Government-sponsored enterprises debt	$	164	$	26,138	$	—	$	—
State and municipal obligations	229		12,402		196		1,350
Mortgage-backed securities	357		31,547		—		—
Trust preferred (collateralized debt obligations)	—		—		290		2,034
	$	750	$	70,087	$	486	$	3,384
June 30, 2010:
Securities Held to Maturity
State and municipal obligations	$	—	$	—	$	14	$	808
Securities Available for Sale
Government-sponsored enterprises debt	$	2	$	2,574	$	—	$	—
State and municipal obligations	55		2,563		319		4,322
Trust preferred (collateralized debt obligations)	—		—		122		2,450
Corporate stocks	19		150		—		—
	$	76	$	5,287	$	441	$	6,772