Securities

9 Months Ended

Sep. 30, 2012

Securities

Securities

Note 3:  Securities

The amortized cost, unrealized gains and losses and fair values of securities classified available for sale are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(dollars in thousands)
September 30, 2012:
U.S. Treasury securities	$	52,056	$	1,314	$	—		$	53,370
Obligations of U.S. government corporations and agencies	364,484		7,450		—			371,934
Obligations of states and political subdivisions	258,443		7,087		(76		)	265,454
Residential mortgage-backed securities	251,180		10,027		—			261,207
Corporate debt securities	7,655		133		(1		)	7,787
	933,818		26,011		(77		)	959,752
Mutual funds and other equity securities	3,079		1,356		—			4,435
	$	936,897	$	27,367	$	(77	)	$	964,187

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(dollars in thousands)
December 31, 2011:
U.S. Treasury securities	$	45,550	$	485	$	—		$	46,035
Obligations of U.S. government corporations and agencies	339,983		9,083		(35		)	349,031
Obligations of states and political subdivisions	149,368		5,193		(124		)	154,437
Residential mortgage-backed securities	271,787		6,374		(46		)	278,115
Corporate debt securities	2,532		73		(22		)	2,583
	809,220		21,208		(227		)	830,201
Mutual funds and other equity securities	219		1,329		—			1,548
	$	809,439	$	22,537	$	(227	)	$	831,749

The amortized cost and fair value of debt securities available for sale as of September 30, 2012, by contractual maturity, are shown below.  Mutual funds and other equity securities do not have stated maturity dates and therefore are not included in the following maturity summary.  Mortgages underlying the residential mortgage-backed securities may be called or prepaid without penalties; therefore, actual maturities could differ from the contractual maturities. All residential mortgage-backed securities were issued by U.S. government agencies and corporations.

	Amortized		Fair
	Cost		Value
	(dollars in thousands)
Due in one year or less	$	127,700	$	129,004
Due after one year through five years	483,166		493,485
Due after five years through ten years	238,636		247,945
Due after ten years	84,316		89,318
	$	933,818	$	959,752

Realized gains and losses related to sales of securities are summarized as follows:

	Three Months Ended September 30,
	2012		2011
	(dollars in thousands)
Gross security gains	$	511	$	—
Gross security (losses)	—		—
Net security (losses) gains	$	511	$	—

	Nine Months Ended September 30,
	2012			2011
	(dollars in thousands)
Gross security gains	$	576		$	—
Gross security (losses)	(1		)	(2		)
Net security (losses) gains	$	575		$	(2	)

The tax provision for these net realized gains and losses was $0.2 million for the three and nine months ended September 30, 2012 and insignificant for the three and nine months ended September 30, 2011.

Investment securities with carrying amounts of $483.6 million and $359.9 million on September 30, 2012 and December 31, 2011, respectively, were pledged as collateral for public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.

Information pertaining to securities with gross unrealized losses at September 30, 2012 and December 31, 2011 aggregated by investment category and length of time that individual securities have been in a continuous loss position follows:

	Less than 12 months				Greater than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(dollars in thousands)
September 30, 2012:
U.S. Treasury securities(1)	$	51	$	—	$	—	$	—	$	51	$	—
Obligations of states and political subdivisions	15,117		76		—		—		15,117		76
Corporate debt securities	2,866		1		—		—		2,866		1
Total temporarily impaired securities	$	18,034	$	77	$	—	$	—	$	18,034	$	77

(1)Unrealized loss was less than one thousand dollars.

		Less than 12 months				Greater than 12 months				Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
		Value		Losses		Value		Losses		Value		Losses
	(dollars in thousands)
December 31, 2011:
Obligations of U.S. government corporations and agencies		$	15,615	$	35	$	—	$	—	$	15,615	$	35
Obligations of states and political subdivisions		21,037		124		—		—		21,037		124
Residential mortgage-backed securities		16,428		46		—		—		16,428		46
Corporate debt securities		455		22						455		22
Total temporarily impaired securities		$	53,535	$	227	$	—	$	—	$	53,535	$	227

The total number of securities in the investment portfolio in an unrealized loss position as of September 30, 2012 was 40, and represented a loss of 0.43% of the aggregate carrying value. Based upon a review of unrealized loss circumstances, the unrealized losses resulted from changes in market interest rates and liquidity, not from changes in the probability of receiving the contractual cash flows. The Company does not intend to sell the securities and it is more-likely-than-not that the Company will recover the amortized cost prior to being required to sell the securities.  Full collection of the amounts due according to the contractual terms of the securities is expected; therefore, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2012.

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation.  Consideration is given to the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and whether the Company has the intent to sell the security and it is more-likely-than-not we will have to sell the security before recovery of its cost basis.