Investment Securities

6 Months Ended

Jun. 30, 2012

Investment Securities [Abstract]

Investment Securities

Note 3 – Investment Securities

The amortized cost and estimated fair values of investments in debt and equity securities are summarized in the following tables:

	June 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities Available-for-Sale			(In thousands)
Obligations of U.S. government corporations and agencies	$	181,374	$	9,639		—		$	191,013
Obligations of states and political subdivisions		9,562		391		—			9,953
Corporate debt securities		1,855		28		—			1,883
Total securities available-for-sale	$	192,791	$	10,058		—		$	202,849
	December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Securities Available-for-Sale			(In thousands)
Obligations of U.S. government corporations and agencies	$	207,284	$	10,100		—		$	217,384
Obligations of states and political subdivisions		9,561		467		—			10,028
Corporate debt securities		1,848		—	$	(37	)		1,811
Total securities available-for-sale	$	218,693	$	10,567	$	(37	)	$	229,223

No investment securities were sold during the six months ended June 30, 2012 or the year ended December 31, 2011. Investment securities with an aggregate carrying value of $103,152,000 and $110,763,000 at June 30, 2012 and December 31, 2011, respectively, were pledged as collateral for specific borrowings, lines of credit and local agency deposits.

The amortized cost and estimated fair value of debt securities at June 30, 2012 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At June 30, 2012, obligations of U.S. government corporations and agencies with a cost basis totaling $181,374,000 consist almost entirely of mortgage-backed securities whose contractual maturity, or principal repayment, will follow the repayment of the underlying mortgages. For purposes of the following table, the entire outstanding balance of these mortgage-backed securities issued by U.S. government corporations and agencies is categorized based on final maturity date. At June 30, 2012, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S. government corporations and agencies to be approximately 3.2 years. Average remaining life is defined as the time span after which the principal balance has been reduced by half.

	Amortized Cost		Estimated Fair Value
Investment Securities	(In thousands)
Due in one year	$	3,003	$	3,122
Due after one year through five years		10,444		11,016
Due after five years through ten years		57,159		59,161
Due after ten years		122,185		129,550
Totals	$	192,791	$	202,849

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

	Less than 12 months					12 months or more				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(In thousands)
June 30, 2012:
Securities Available-for-Sale:
Obligations of U.S. government corporations and agencies		—		—			—		—		—		—
Obligations of states and political subdivisions		—		—			—		—		—		—
Corporate debt securities		—		—			—		—		—		—
Total securities available-for-sale		—		—			—		—		—		—
	Less than 12 months					12 months or more				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
	(In thousands)
December 31, 2011
Securities Available-for-Sale:
Obligations of U.S. government corporations and agencies	$	10		—			—		—	$	10		—
Obligations of states and political subdivisions		—		—			—		—		—		—
Corporate debt securities		1,811	$	(37	)		—		—		1,811	$	(37	)
Total securities available-for-sale	$	1,821	$	(37	)		—		—	$	1,821	$	(37	)

Obligations of U.S. government corporations and agencies: Unrealized losses on investments in obligations of U.S. government corporations and agencies are caused by interest rate increases. The contractual cash flows of these securities are guaranteed by U.S. Government Sponsored Entities (principally Fannie Mae and Freddie Mac). It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, these investments are not considered other-than-temporarily impaired. At June 30, 2012, no debt securities had an unrealized loss.