Investment Securities (Tables)

9 Months Ended

Sep. 30, 2012

Investment Securities [Abstract]

Amortized cost and estimated fair value of investment securities

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

	September 30, 2012
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
Debt investment securities:
US Treasury, agencies and GSEs	$	5,176	$	26	$	-		$	5,202
State and political subdivisions		25,994		1,122		(2	)		27,114
Corporate		24,042		382		(525	)		23,899
Residential mortgage-backed - US agency		52,797		1,768		(1	)		54,564
Residential mortgage-backed - private label		346		11		-			357
Total		108,355		3,309		(528	)		111,136
Equity investment securities:
Mutual funds:
Ultra short mortgage fund		1,286		14		-			1,300
Large cap equity fund		905		243		-			1,148
Other mutual funds		183		114		-			297
Common stock - financial services industry		422		10		(1	)		431
Total		2,796		381		(1	)		3,176
Total investment securities	$	111,151	$	3,690	$	(529	)	$	114,312

	December 31, 2011
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
Debt investment securities:
US Treasury, agencies and GSEs	$	5,025	$	48	$	-		$	5,073
State and political subdivisions		19,508		797		(1	)		20,304
Corporate		21,086		38		(690	)		20,434
Residential mortgage-backed - US agency		49,665		1,395		(4	)		51,056
Residential mortgage-backed - private label		505		14		-			519
Total		95,789		2,292		(695	)		97,386
Equity investment securities:
Mutual funds:
Ultra short mortgage fund		1,286		12		-			1,298
Large cap equity fund		905		119		-			1,024
Other mutual funds		183		60		-			243
Common stock - financial services industry		443		2		(1	)		444
Total		2,817		193		(1	)		3,009
Total investment securities	$	98,606	$	2,485	$	(696	)	$	100,395

Amortized cost and estimated fair value of debt investments by contractual maturity

The amortized cost and estimated fair value of debt investments at September 30, 2012 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.

	Amortized		Estimated
	Cost		Fair Value
(In thousands)
Due in one year or less	$	7,294	$	7,329
Due after one year through five years		22,421		22,887
Due after five years through ten years		7,042		7,478
Due after ten years		18,455		18,521
Mortgage-backed securities		53,143		54,921
Totals	$	108,355	$	111,136

Investment securities' gross unrealized losses and fair value by investment category and length of time that individual securities have continuous unrealized loss position

The Company's investment securities' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

										September 30, 2012
			Less than Twelve Months							Twelve Months or More							Total
	Number of							Number of							Number of
	Individual		Unrealized			Fair		Individual		Unrealized			Fair		Individual		Unrealized			Fair
	Securities		Losses			Value		Securities		Losses			Value		Securities		Losses			Value
(Dollars in thousands)
State and political subdivisions		4	$	(2	)	$	1,475		-	$	-		$	-		4	$	(2	)	$	1,475
Corporate		4		(37	)		2,633		2		(488	)		1,481		6		(525	)		4,114
Residential mortgage-backed - US agency		2		(1	)		1,018		-		-			-		2		(1	)		1,018
Common stock-financial services industry		1		(1	)		2		-		-			-		1		(1	)		2
Totals		11	$	(41	)	$	5,128		2	$	(488	)	$	1,481		13	$	(529	)	$	6,609
										December 31, 2011
			Less than Twelve Months							Twelve Months or More							Total
	Number of							Number of							Number of
	Individual		Unrealized			Fair		Individual		Unrealized			Fair		Individual		Unrealized			Fair
	Securities		Losses			Value		Securities		Losses			Value		Securities		Losses			Value
(Dollars in thousands)
State and political subdivisions		1	$	(1	)	$	412		-	$	-		$	-		1	$	(1	)	$	412
Corporate		19		(131	)		13,489		2		(559	)		1,410		21		(690	)		14,899
Residential mortgage-backed - US agency		2		(4	)		1,896		-		-			-		2		(4	)		1,896
Common stock-financial services industry		-		-			-		1		(1	)		3		1		(1	)		3
Totals		22	$	(136	)	$	15,797		3	$	(560	)	$	1,413		25	$	(696	)	$	17,210

Roll-forward of the amount related to credit losses recognized in earnings

The following table presents a roll-forward of the amount related to credit losses recognized in earnings for the periods ended September 30:

(In thousands)	2012		2011
Beginning balance – January 1	$	-	$	875
Reductions for securities sold		-		(875	)
Ending balance - September 30	$	-	$	-

Gross realized gains (losses) on sale of securities

Gross realized gains (losses) on sales of securities for the indicated periods are detailed below:

	For the three months					For the nine months
	ended September 30,					ended September 30,
(In thousands)	2012			2011		2012			2011
Realized gains	$	30		$	469	$	191		$	796
Realized losses		(12	)		-		(12	)		(5	)
	$	18		$	469	$	179		$	791