Investment Securities

12 Months Ended

Dec. 31, 2012

Investment Securities [Abstract]

Investment Securities

Note 3 - Investment Securities

The amortized cost and fair value of investment securities held to maturity are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(dollars in thousands)
December 31, 2012:
US Treasury securities	$	29,414	$	1,278	$	-		$	30,692
US Agency securities		4,142		79		-			4,221
US Government sponsored
mortgage-backed securities		510		40		-			550
Total	$	34,066	$	1,397	$	-		$	35,463
December 31, 2011:
US Treasury securities	$	34,498	$	1,285	$	(5	)	$	35,778
US Agency securities		5,206		43		(4	)		5,245
US Government sponsored
mortgage-backed securities		653		48		-			701
Total	$	40,357	$	1,376	$	(9	)	$	41,724

As of December 31, 2012 and 2011, there were $7,288,000 and $6,432,000, respectively, of US Treasury securities or mortgage-backed securities pledged by Bancorp as collateral for borrowers' letters of credit with Anne Arundel County.

No securities were in a gross unrealized loss position at December 31, 2012. The Bank does not consider any of their securities to be other than temporarily impaired at December 31, 2012, because none of these securities have unrealized losses.

The following tables show fair value and unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2011.

	Less than 12 months					12 Months or More					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
December 31, 2011:	(dollars in thousands)
US Treasury securities	$	2,046	$	(5	)	$	-	$	(-	)	$	2,046	$	(5	)
US Agency securities		1,032		(4	)		-		(-	)		1,032		(4	)
Total	$	3,078	$	(9	)	$	-	$	(-	)	$	3,078	$	(9	)

The amortized cost and estimated fair value of debt securities as of December 31, 2012, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Held to Maturity
	(dollars in thousands)
	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	5,010	$	5,059
Due from one year to five years		25,524		26,448
Due from five years to ten years		3,022		3,406
US Government sponsored
Mortgage-backed securities		510		550
	$	34,066	$	35,463