Note 5 – Investment Securities

9 Months Ended

Sep. 30, 2011

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

Note 5 – Investment Securities

The following is a summary of the investment securities portfolio by major classification:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
	(Dollars in thousands)
September 30, 2011
Available for sale:
U.S. Government Agency obligations	$	7,196	$	84	$	-	$	7,280
Municipal bonds		6,771		113		-		6,884
Mortgage-backed securities		37,050		328		10		37,368
SBA securities		1,257		71		-		1,328
Other securities		1,996		219		137		2,078
Subtotal		54,270		815		147		54,938
Held to maturity:
U.S. Treasury obligations		9,968		70		-		10,038
U.S. Government Agency obligations		6,998		15		-		7,013
Mortgage-backed securities		56,539		2,805		-		59,344
Other securities		4,000		-		127		3,873
Subtotal		77,505		2,890		127		80,268
Total	$	131,775	$	3,705	$	274	$	135,206

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
	(Dollars in thousands)
December 31, 2010
Available for sale:
U.S. Government Agency obligations	$	19,297	$	23	$	122	$	19,198
Municipal bonds		11,602		40		128		11,514
Mortgage-backed securities		40,655		293		175		40,773
Other securities		2,781		110		68		2,823
Subtotal		74,335		466		493		74,308
Held to maturity:
U.S. Treasury obligations		9,955		-		38		9,917
U.S. Government Agency obligations		8,509		4		129		8,384
Mortgage-backed securities		14,814		641		37		15,418
Other securities		4,000		-		81		3,919
Subtotal		37,278		645		285		37,638
Total	$	111,613	$	1,111	$	778	$	111,946

The following tables set forth the amount of the unrealized losses and fair values of the investment securities by investment types segregated between those that have been in a continuous unrealized-loss position for less than twelve months and those investments that have been in a continuous unrealized-loss position for more than twelve months at September 30, 2011 and December 31, 2010.  At September 30, 2011, the unrealized losses related to five mortgage-backed securities, four corporate bonds and four other securities.  Of these 13 securities, four have been in a continuous-loss position for more than 12 months.  At December 31, 2010, the unrealized losses related to two U.S. Treasury obligations, 14 municipal bonds, seven mortgage-backed securities, and six other securities.  Of these 39 securities, three have been in a continuous-loss position for more than 12 months.  As of September 30, 2011, and December 31, 2010, management concluded that the unrealized losses presented above were temporary in nature since the unrealized losses were attributable to changes in interest rates and not a deterioration of the credit quality of the issuers.  Also, the Company has the intent and ability to hold these investment securities until maturity or until such unrealized losses are eliminated.

	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(Dollars in thousands)
September 30, 2011
Available for sale:
Mortgage-backed securities	$	3,526	$	9	$	94	$	1	$	3,620	$	10
Other securities		416		67		75		70		491		137
Subtotal		3,942		76		169		71		4,111		147
Held to maturity:
Other securities	$	2,883	$	117	$	990	$	10	$	3,873	$	127
Subtotal		2,883		117		990		10		3,873		127
Total	$	6,825	$	193	$	1,159	$	81	$	7,984	$	274
December 31, 2010
Available for sale:
U.S. Govt. Agency obligations	$	18,113	$	122	$	-	$	-	$	18,113	$	122
Municipals bonds		8,376		128		-		-		8,376		128
Mortgage-backed securities		9,395		174		108		1		9,503		175
Other securities		-		-		104		68		104		68
Subtotal		35,884		424		212		69		36,096		493
Held to maturity:
U.S. Treasury obligations	$	9,917	$	38	$	-	$	-	$	9,917	$	38
U.S. Govt. Agency obligations		5,881		129		-		-		5,881		129
Mortgage-backed securities		3,049		37		-		-		3,049		37
Other securities		3,919		81		-		-		3,919		81
Subtotal		22,766		285		-		-		22,766		285
Total	$	58,650	$	709	$	212	$	69	$	58,862	$	778

From time to time the Company will pledge investment securities as collateral to secure public deposits and for other purposes as required or allowed by law.  The amortized cost of these pledged investment securities was $84.2 million at September 30, 2011 and $67.5 million at December 31, 2010.