Investment Securities (Tables)

9 Months Ended

Sep. 30, 2012

Investment Securities

Debt and equity securities have been classified in the consolidated balance sheets according to management’s intent. Investment securities at September 30, 2012 and December 31, 2011 are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(In thousands)	Cost		Gains		Losses		Value
September 30, 2012
Securities available for sale:
Agency mortgage-backed securities	$	22,022	$	538	$	9	$	22,551
Agency CMO		24,278		169		90		24,357
Privately-issued CMO		666		19		28		657
Other debt securities:
Agency notes and bonds		42,119		330		1		42,448
Municipal obligations		28,331		1,750		20		30,061
Subtotal—debt securities		117,416		2,806		148		120,074
Mutual funds		3,263		56		18		3,301
Total securities available for sale	$	120,679	$	2,862	$	166	$	123,375
Securities held to maturity:
Agency mortgage-backed securities	$	14	$	0	$	0	$	14
Total securities held to maturity	$	14	$	0	$	0	$	14
December 31, 2011
Securities available for sale:
Agency mortgage-backed securities	$	11,689	$	542	$	11	$	12,220
Agency CMO		23,196		152		60		23,288
Privately-issued CMO		896		16		32		880
Other debt securities:
Agency notes and bonds		41,971		395		3		42,363
Municipal obligations		25,800		1,501		0		27,301
Subtotal—debt securities		103,552		2,606		106		106,052
Mutual funds		5,369		52		33		5,388
Total securities available for sale	$	108,921	$	2,658	$	139	$	111,440
Securities held to maturity:
Agency mortgage-backed securities	$	16	$	0	$	0	$	16
Total securities held to maturity	$	16	$	0	$	0	$	16

Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities as of September 30, 2012, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the obligations may be prepaid without penalty.

	Securities Available for Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
(In thousands)
Due in one year or less	$	832	$	835	$	0	$	0
Due after one year through five years		6,537		6,669		0		0
Due after five years through ten years		19,406		19,859
Due after ten years		43,675		45,146		0		0
		70,450		72,509		0		0
Mortgage-backed securities and
CMO		46,966		47,565		14		14
	$	117,416	$	120,074	$	14	$	14

Investment Securities Available for Sale with Gross Unrealized Losses Aggregated by Investment Category and Length of Time Individual Investment Securities Have Been in Continuous Position

Information pertaining to investment securities available for sale with gross unrealized losses at September 30, 2012, aggregated by investment category and the length of time that individual investment securities have been in a continuous position, follows:

	Number of Investment Positions		Fair Value		Gross Unrealized Losses
(Dollars in thousands)
Continuous loss position less than twelve months:
Agency notes and bonds		3	$	3,049	$	1
Agency CMO		10		9,798		86
Agency mortgage-backed securities		1		2,075		9
Muncipal obligations		5		1,638		20
Total less than twelve months		19		16,560		116
Continuous loss position more than twelve months:
Privately-issued CMO		1		202		28
Agency CMO		2		1,105		4
Mutual fund		1		374		18
Total more than twelve months		4		1,681		50
Total securities available for sale		23	$	18,241	$	166