Investment Securities

9 Months Ended

Sep. 30, 2011

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3 – Investment Securities

The amortized cost and estimated fair values of investment securities are as follows:

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Available-for-sale securities:
September 30, 2011:
Obligations of U.S. Government agencies and corporations	$	39,888	$	947	$	2	$	40,833
Mortgage-backed securities		62,607		1,819		52		64,374
Equity securities		569		28		-		597
Total	$	103,064	$	2,794	$	54	$	105,804
December 31, 2010:
Obligations of U.S. Government agencies and corporations	$	58,052	$	921	$	69	$	58,904
Mortgage-backed securities		38,817		933		173		39,577
Equity securities		566		8		-		574
Total	$	97,435	$	1,862	$	242	$	99,055
Held-to-maturity securities:
September 30, 2011:
Obligations of states and political subdivisions	$	6,524	$	279	$	-	$	6,803
December 31, 2010:
Obligations of states and political subdivisions	$	6,727	$	143	$	19	$	6,851

The amortized cost and estimated fair values of investment securities by maturity date at September 30, 2011 are as follows:

	Available for sale				Held to maturity
	Amortized		Estimated		Amortized		Estimated
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	7,003	$	7,109	$	693	$	696
Due after one year through five years		18,428		18,574		3,524		3,643
Due after five years through ten years		5,005		5,187		1,297		1,374
Due after ten years		72,059		74,337		1,010		1,090
		102,495		105,207		6,524		6,803
Equity securities		569		597		-		-
Total	$	103,064	$	105,804	$	6,524	$	6,803

The maturity dates for debt securities are determined using contractual maturity dates.

The following table provides information about gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position at September 30, 2011:

	Less than 12 Months				More than 12 Months				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-sale securities:
U.S. Gov’t. agencies and corporations	$	1,997	$	2	$	-	$	-	$	1,997	$	2
Mortgage-backed securities		7,861		52		-		-		7,861		52
Total	$	9,858	$	54	$	-	$	-	$	9,858	$	54

The available-for-sale securities have a fair value of approximately $105.8 million.  Of these securities, approximately $9.9 million have unrealized losses when compared to their amortized cost.  The securities with the unrealized losses in the available-for-sale portfolio all have modest duration risk, low credit risk, and minimal losses (approximately 0.05%) when compared to total amortized cost.  The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase.  Because the Company does not intend to sell these debt securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity, the Company considers the unrealized losses in the available-for-sale portfolio to be temporary.  There were no unrealized losses in the held-to-maturity securities portfolio at September 30, 2011.