Investment Securities

9 Months Ended

Sep. 30, 2011

Investment Securities [Abstract]

Investment Securities

(5) Investment Securities

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

	September 30, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
Securities available-for-sale:
Government-sponsored enterprises and FFCB bonds	$	14,180	$	349	$	—		$	14,529
Obligations of states and political subdivisions		10,861		592		—			11,453
Mortgage-backed securities		154,388		2,401		(88	)		156,701
SBA-backed securities		112,844		554		(197	)		113,201
Corporate bonds		32,750		30		(1,598	)		31,182
	$	325,023	$	3,926	$	(1,883	)	$	327,066

	December 31, 2010
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
Securities available-for-sale:
Government-sponsored enterprises and FFCB bonds	$	25,466	$	183	$	(868	)	$	24,781
Obligations of states and political subdivisions		12,818		240		(80	)		12,978
Mortgage-backed securities		150,850		837		(1,597	)		150,090
SBA-backed securities		57,362		258		(767	)		56,853
Corporate bonds		29,387		77		(937	)		28,527
	$	275,883	$	1,595	$	(4,249	)	$	273,229

Gross realized gains and losses on sales of securities for the three and nine-month periods ended September 30, 2011 and September 30, 2010 were as follows:

		$0,000,000			$0,000,000
	Nine months ended September 30, (Dollars in thousands)
	2011			2010
Gross realized gains	$	1,987		$	3,519
Gross realized losses		(105	)		(48	)
Net realized gains	$	1,882		$	3,471

		$0,000,			$0,000,
	Three months ended September 30, (Dollars in thousands)
	2011			2010
Gross realized gains	$	1,016		$	2,062
Gross realized losses		(18	)		(32	)
Net realized gains	$	998		$	2,030

Analysis of Certain Investments in Debt and Equity Securities for Other Than Temporary Impairment

The following tables set forth the amount of unrealized losses at September 30, 2011 and December 31, 2010 (that is, the amount by which cost or amortized cost exceeds fair value), and the related fair value of investments with unrealized losses, none of which are considered to be other-than-temporarily impaired. The tables are segregated into investments that have been in a continuous unrealized-loss position for less than 12 months from those that have been in a continuous unrealized-loss position for 12 months or longer.

	September 30, 2011
	Less Than 12 Months				12 Months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Mortgage-backed securities	$	23,213	$	88	$	—	$	—	$	23,213	$	88
SBA-backed securities		42,846		197		—		—		42,846		197
Corporate bonds		22,948		1,187		1,588		411		24,536		1,598
Total	$	89,007	$	1,472	$	1,588	$	411	$	90,595	$	1,883

	December 31, 2010
	Less Than 12 Months				12 Months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Government-sponsored enterprises and FFCB bonds	$	17,410	$	868	$	—	$	—	$	17,410	$	868
Obligations of states and political subdivisions		3,548		80		—		—		3,548		80
Mortgage-backed securities		99,549		1,597		—		—		99,549		1,597
SBA-backed securities		31,963		767		—		—		31,963		767
Corporate bonds		20,815		654		1,717		283		22,532		937
Total	$	173,285	$	3,966	$	1,717	$	283	$	175,002	$	4,249

As of September 30, 2011 and December 31, 2010, management concluded that the unrealized losses presented above, which consisted of thirty-seven securities at September 30, 2011 and seventy-nine securities at December 31, 2010, are temporary in nature and the Company has the intent to hold these investments for a time necessary to recover their cost and it is not likely that the Bank would be required to sell prior to recovery. The losses above are on debt securities that have contractual maturity dates and are primarily related to market interest rates. All unrealized losses on investment securities are not considered to be other-than-temporary, because they are related to changes in interest rates, lack of liquidity and demand in the general investment market and do not affect the expected cash flows of the underlying collateral or the issuer. The Bank's mortgage-backed securities are all backed by government sponsored enterprises or agencies. The Bank does not own any private label mortgage-backed securities.

At September 30, 2011 and December 31, 2010, the balance of Federal Home Loan Bank ("FHLB") of Atlanta stock held by the Company was $3.8 million and $4.6 million, respectively. On August 16, 2011, FHLB paid a dividend for the second quarter of 2011 with an annualized rate of 0.76%. The dividend rate was equal to average three-month LIBOR for the period of April 1, 2011 to June 30, 2011 plus 0.50%, and was applicable to capital stock held during that period. Management believes that its investment in FHLB stock was not other-than-temporarily impaired as of September 30, 2011 or December 31, 2010. However, there can be no assurance that the impact of recent or future legislation on the Federal Home Loan Banks will not also cause a decrease in the value of the FHLB stock held by the Company.

The aggregate amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2011 by remaining contractual maturity are as follows:

	Amortized Cost		Fair Value
	(Dollars in thousands)
Government-sponsored enterprises and FFCB bonds:
Due in five through ten years	$	14,180	$	14,529
Obligations of states and political subdivisions:
Due in one year or less		251		252
Due in one through five years		961		1,038
Due in five through ten years		4,153		4,383
Due after ten years		5,496		5,780
Mortgage-backed securities:
Due in five through ten years		8,152		8,288
Due after ten years		146,236		148,413
SBA-backed securities:
Due in five through ten years		4,967		5,075
Due after ten years		107,877		108,126
Corporate bonds:
Due in one through five years		13,358		13,241
Due in five through ten years		19,392		17,941
Total securities	$	325,023	$	327,066

Securities with an amortized cost of $190.7 million at September 30, 2011 are pledged as collateral. Of this total, securities with an amortized cost of $57.0 million and fair value of $57.5 million are pledged as collateral for FHLB advances.

The aggregate amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2010 by remaining contractual maturity are as follows:

	Amortized Cost		Fair Value
	(Dollars in thousands)
Government-sponsored enterprises and FFCB bonds:
Due in one through five years	$	2,000	$	1,972
Due in five through ten years		16,108		15,982
Due after ten years		7,358		6,827
Obligations of states and political subdivisions:
Due in one year or less		370		373
Due in one through five years		252		253
Due in five through ten years		5,203		5,354
Due after ten years		6,993		6,998
Mortgage-backed securities:
Due in five through ten years		4,307		4,551
Due after ten years		146,543		145,539
SBA-backed securities:
Due in five through ten years		5,889		5,973
Due after ten years		51,473		50,880
Corporate bonds:
Due in one year through five years		8,779		8,712
Due in five through ten years		17,421		16,767
Due after ten years		3,187		3,048
Total securities	$	275,883	$	273,229

Securities with an amortized cost of $212.2 million at December 31, 2010 were pledged as collateral. Of this total, securities with an amortized cost of $52.9 million and fair value of $52.2 million were pledged as collateral for FHLB advances.