Investment Securities

3 Months Ended

Mar. 31, 2013

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:

	March 31, 2013
	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	$	126,912	$	7,052		—	$	133,964
Obligations of states and political subdivisions		8,315		263		—		8,578
Corporate debt securities		1,866		46		—		1,912
Total securities available-for-sale	$	137,093	$	7,361		—	$	144,454
	December 31, 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	$	143,633	$	8,068		—	$	151,701
Obligations of states and political subdivisions		9,098		323		—		9,421
Corporate debt securities		1,862		43		—		1,905
Total securities available-for-sale	$	154,593	$	8,434		—	$	163,027

No investment securities were sold during the three months ended March 31, 2013 or the year ended December 31, 2012. Investment securities with an aggregate carrying value of $67,078,000 and $66,911,000 at March 31, 2013 and December 31, 2012, 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 March 31, 2013 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 March 31, 2013, obligations of U.S. government corporations and agencies with a cost basis totaling $126,912,000 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 March 31, 2013, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S. government corporations and agencies to be approximately 3.5 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	$	2,692	$	2,766
Due after one year through five years		4,637		4,872
Due after five years through ten years		43,900		45,569
Due after ten years		85,864		91,247
Totals	$	137,093	$	144,454

At March 31, 2013 and December 31, 2012, the Company had no investment securities with gross unrealized losses.