Investment Securities

9 Months Ended

Sep. 30, 2012

Investment Securities [Abstract]

Investment Securities

8. Investment Securities

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of investment securities at September 30, 2012 and December 31, 2011 are as follows:

	September 30, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
			(In thousands)
Available for sale:
U.S. Government sponsored enterprises	$	73,958	$	130	$	5	$	74,083
Corporate bonds		4,211		96		0		4,307
Corporate equity securities		100		0		56		44
Mortgage-backed securities		1,230		45		0		1,275
Total investment securities available for sale	$	79,499	$	271	$	61	$	79,709
Held to maturity:
Mortgage-backed securities	$	939	$	58	$	0	$	997
Total investment securities held to maturity	$	939	$	58	$	0	$	997

	December 31, 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		0		54		52
Mortgage-backed securities		1,469		32		0		1,501
Total investment securities available for sale	$	17,864	$	38	$	57	$	17,845
Held to maturity:
Municipal bonds	$	2,008	$	0	$	0	$	2,008
Mortgage-backed securities		1,075		52		0		1,127
Total investment securities held to maturity	$	3,083	$	52	$	0	$	3,135

The amortized cost and estimated fair value of investment securities at September 30, 2012 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	$	6,498	$	6,499	$	0	$	0
Due after one year through five years		71,671		71,891		0		0
Due after five years through ten years		0		0		0		0
Due after ten years		0		0		0		0
Subtotal		78,169		78,390		0		0
Mortgage-backed securities		1,230		1,275		939		997
Corporate equity securities		100		44		0		0
Total	$	79,499	$	79,709	$	939	$	997

Proceeds from sales of investment securities during the nine months ended September 30, 2012, totaled $8,000, resulting in gross realized gains of $1,000, and for the year ended December 31, 2011, proceeds from sales totaled $27.2 million, resulting in gross realized gains of $1.3 million.

At September 30, 2012 and December 31, 2011, there were $3.0 million and $7.0 million of securities in an unrealized loss position less than twelve months and $44,000 and $52,000 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 September 30, 2012 and December 31, 2011.

	September 30, 2012
	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	$	0	$	0		0		44	$	56		1
U.S. Government sponsored enterprises		2,993		5		1		0		0		0
Total	$	2,993	$	5		1	$	44	$	56		1

	December 31, 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	$	0	$	0		0	$	52	$	54		2
U.S. Government sponsored enterprises		6,994		3		3		0		0		0
Total	$	6,994	$	3		3	$	52	$	54		2

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 September 30, 2012 and December 31, 2011 approximately $10.0 million and $13.7 million, respectively, of investment securities were pledged in accordance with federal and state requirements to secure deposits and repurchase agreements.