Securities

6 Months Ended

Jun. 30, 2012

Securities [Abstract]

Securities

(4) SECURITIES

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluations. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At June 30, 2012, the Company has 12 securities with unrealized losses. The amortized cost of securities and their estimated fair values at June 30, 2012, were as follows:

	June 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Restricted:
FHLB stock	$	4,428		—		—			4,428
Unrestricted:
U.S. government and agency securities:
Agency debt securities	$	165,194		4,494		(64	)		169,624
Tax free municipal bonds		64,405		5,097		(1	)		69,501
Taxable municipal bonds		12,650		1,358		—			14,008
Trust preferred securities		2,000		—		(578	)		1,422
Mortgage-backed securities:
GNMA		27,601		1,531		(6	)		29,126
FNMA		70,167		2,438		—			72,605
FHLMC		10,078		288		—			10,366
NON-AGENCY CMOs		6,972		20		(136	)		6,856
AGENCY CMOs		17,708		566		—			18,274
	$	376,775		15,792		(785	)		391,782

The amortized cost of securities and their estimated fair values at December 31, 2011, was as follows:

	December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428
Unrestricted:
U.S. government and agency securities:	$	171,141		3,511		(65	)		174,587
Tax free municipal bonds		60,432		4,623		—			65,055
Taxable municipal bonds		12,846		1,059		—			13,905
Trust preferred securities		2,000		—		(1,007	)		993
Mortgage-backed securities:
GNMA		30,427		1,413		(19	)		31,821
FNMA		59,195		2,101		(1	)		61,295
FHLMC		15,108		491		—			15,599
NON-AGENCY CMOs		2,012		7		(223	)		1,796
AGENCY CMOs		18,163		568		—			18,731
	$	371,324		13,773		(1,315	)		383,782

The scheduled maturities of debt securities available for sale at June 30, 2012, were as follows:

June 30, 2012	Amortized Cost		Estimated Fair Value
	(Dollars in Thousands)
Due within one year	$	834	$	838
Due in one to five years		9,344		9,513
Due in five to ten years		24,962		26,965
Due in more than ten years		54,168		58,090
		89,308		95,406
Amortizing agency bonds		154,941		159,149
Mortgage-backed securities		132,526		137,227
Total debt securities available for sale	$	376,775	$	391,782

The scheduled maturities of debt securities available for sale at December 31, 2011, were as follows:

December 31, 2011	Amortized Cost		Estimated Fair Value
	(Dollars in Thousands)
Due within one year	$	461		464
Due in one to five years		6,844		6,929
Due in five to ten years		24,471		26,153
Due after ten years		72,460		75,804
		104,236		109,350
Amortizing agency bonds		142,183		145,190
Mortgage-backed securities		124,905		129,242
Total debt securities available for sale	$	371,324		383,782

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of June 30, 2012, are as follows:

	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
						(Dollars in Thousands)
Available for sale
U.S. government and agency securities:
Agency debt securities	$	10,464		(64	)		—		—			10,464		(64	)
Taxable municipals		—		—			—		—			—		—
Tax free municipals		834		(1	)		—		—			834		(1	)
Trust preferred securities		—		—			1,422		(578	)		1,422		(578	)
Mortgage-backed securities:
GNMA		1,708		(6	)		—		—			1,708		(6	)
FNMA		—		—			—		—			—		—
FHLMC		—		—			—		—			—		—
NON-AGENCY CMOs		3,120		(12	)		857		(124	)		3,977		(136	)
AGENCY CMOs		—		—			—		—			—		—
Total Available for Sale	$	16,126		(83	)		2,279		(702	)		18,405		(785	)

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2011, were as follows:

	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
	(Dollars in Thousands)
Available for sale
U.S. government and agency securities:
Agency debt securities	$	20,422		(54	)		2,007		(11	)		22,429		(65	)
Taxable municipal bonds		—		—			—		—			—		—
Tax free municipal bonds		—		—			—		—			—		—
Trust preferred securities		—		—			993		(1,007	)		993		(1,007	)
Mortgage-backed securities:
GNMA		1,925		(19	)		—		—			1,925		(19	)
FNMA		—		—			81		(1	)		81		(1	)
FHLMC		—		—			—		—			—		—
NON-AGENCY CMOs		—		—			1,494		(223	)		1,494		(223	)
AGENCY CMOs		—		—			—		—			—		—
Total Available for Sale	$	22,347		(73	)		4,575		(1,242	)		26,922		(1,315	)

At June 30, 2012, securities with a book value of approximately $119.0 million and a market value of approximately $128.2 million were pledged to various municipalities for deposits in excess of FDIC limits as required by law. In addition, securities with a book value of $1.5 million and a market value of $1.6 million are pledged as collateral to the Federal Home Loan Bank of Cincinnati. The Federal Home Loan Bank of Cincinnati has issued letters of credit in the Bank’s name totaling $15.5 million secured by the Bank’s loan portfolio to secure additional municipal deposits.

At June 30, 2012, securities with a book and market value of approximately $21.7 million were sold under agreements to repurchase from various customers. Furthermore, the Company has two wholesale repurchase agreements with third parties secured by investments with a combined book value of $19.0 million and a market value of $19.4 million. One repurchase agreement is in the amount of $6.0 million and has a maturity of September 18, 2016 and is currently callable on a quarterly basis and has a fixed rate of interest of 4.36%. The second repurchase agreement, in the amount of $10.0 million, has a maturity of September 5, 2014, is currently callable quarterly and has a fixed rate of interest of 4.28%.