Investment Securities

12 Months Ended

Dec. 31, 2011

Investment Securities [Abstract]

INVESTMENT SECURITIES

NOTE–B - INVESTMENT SECURITIES

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of investment securities at December 31, 2011 and 2010 are as follows:

	2011
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
	(In thousands)
Available for sale:
U.S. Government sponsored enterprises	$	16,289	$	6	$	3	$	16,292
Corporate equity securities		106		—		54		52
Mortgage-backed securities		1,469		32		—		1,501
Total investment securities available for sale	$	17,864	$	38	$	57	$	17,845
Held to maturity:
Municipal bonds	$	2,008	$	—	$	—	$	2,008
Mortgage-backed securities		1,075		52		—		1,127
Total investment securities held to maturity	$	3,083	$	52	$	—	$	3,135
	2010
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
	(In thousands)
Available for sale:
U.S. Government sponsored enterprises	$	2,010	$	55	$	—	$	2,065
Corporate equity securities		157		—		59		98
Mortgage-backed securities		27,040		1,565		—		28,605
Total investment securities available for sale	$	29,207	$	1,620	$	59	$	30,768
Held to maturity:
Municipal bonds	$	2,608	$	32	$	36	$	2,604
Mortgage-backed securities		1,340		52		3		1,389
Total investment securities held to maturity	$	3,948	$	84	$	39	$	3,993

The amortized cost and estimated fair value of investment securities at December 31, 2011 by contractual term to maturity are shown below.

	Available for Sale				Held to Maturity
	Amortized cost		Estimated fair value		Amortized cost		Estimated fair value
	(In thousands)
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years		16,289		16,292		—		—
Due after five years through ten years		—		—		—		—
Due after ten years		—		—		2,008		2,008
Subtotal		16,289		16,292		2,008		2,008
Mortgage-backed securities		1,469		1,501		1,075		1,127
Corporate equity securities		106		52		—		—
Total	$	17,864	$	17,845	$	3,083	$	3,135

Proceeds from sales of investment securities during the year ended December 31, 2011, totaled $27.2 million, resulting in gross realized gains of $1.3 million. There were no sales of investment securities in 2010 or 2009.

At December 31, 2011 and 2010, there were $7.0 million and $2.1 million securities in an unrealized loss position less than twelve months and $0 and $11,000 of securities in an unrealized loss position more than twelve months, respectively. The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2011 and 2010.

	2011
	Less than 12 months						More than 12 months
(In thousands)	Fair value		Unrealized losses		No. of Securities		Fair value		Unrealized losses		No. of Securities
Available for sale:
Corporate equity securities	$	—	$	—		—	$	52	$	54		2
U.S. Government sponsored enterprises		6,994		3		3		—		—		—
Total	$	6,994	$	3		3	$	52	$	54		2
	2010
	Less than 12 months						More than 12 months
(In thousands)	Fair value		Unrealized losses		No. of Securities		Fair value		Unrealized losses		No. of Securities
Available for sale:
Corporate equity securities	$	—	$	—		—	$	98	$	59		2
Held to maturity:
Municipal bonds		2,112		36		1		—		—		—
Mortgage-backed securities		—		—		—		11		3		2
Total	$	2,112	$	36		1	$	109	$	62		4

Management has the intent and ability to hold these securities for the foreseeable future and the decline in the fair value is primarily due to an increase in market interest rates. The fair values are expected to recover as securities approach maturity dates.

At December 31, 2011 and 2010, approximately $13.7 million and $13.9 million, respectively, of investment securities were pledged in accordance with federal and state requirements to secure deposits and repurchase agreements.