Investment Securities Available for Sale (Tables)

9 Months Ended

Sep. 30, 2012

Reconciliation of Available-for-Sale Securities

At September 30, 2012 and December 31, 2011, the Company did not have any investment securities classified as trading or held-to-maturity.

	September 30, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
State and municipal	$	12,065	$	348	$	(1	)	$	12,412
Collateralized mortgage obligations		128,561		495		(329	)		128,727
Other mortgage-backed (federal agencies)		85,612		1,265		(6	)		86,871
SBA loan-backed (federal agency)		63,271		34		(510	)		62,795
Total investment securities available for sale	$	289,509	$	2,142	$	(846	)	$	290,805

	December 31, 2011
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
State and municipal	$	113,079	$	7,886	$	—		$	120,965
Collateralized mortgage obligations		117,129		2,210		(390	)		118,949
Other mortgage-backed (federal agencies)		20,022		1,056		—			21,078
Total investment securities available for sale	$	250,230	$	11,152	$	(390	)	$	260,992

Reconciliation of Available for Sale Securities in Continuous Unrealized Loss Position

The following tables summarize the number of securities in each category of investment securities available for sale, the fair value and the gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at the dates indicated (dollars in thousands).

	September 30, 2012
	Less than 12 months						12 months or longer						Total
	#		Fair value		Gross unrealized losses		#		Fair value		Gross unrealized losses		#		Fair value		Gross unrealized losses
State and municipal		1	$	1,091	$	1		—	$	—	$	—		1	$	1,091	$	1
Collateralized mortgage obligations		12		35,463		219		10		12,017		110		22		47,480		329
Other mortgage-backed (federal agencies)		1		4,903		6		—		—		—		1		4,903		6
SBA loan-backed (federal agency)		8		40,515		510		—		—		—		8		40,515		510
Total investment securities available for sale		22	$	81,972	$	736		10	$	12,017	$	110		32	$	93,989	$	846

	December 31, 2011
	Less than 12 months						12 months or longer						Total
	#		Fair value		Gross unrealized losses		#		Fair value		Gross unrealized losses		#		Fair value		Gross unrealized losses
Collateralized mortgage obligations		9	$	23,024	$	192		7	$	16,773	$	198		16	$	39,797	$	390
Total investment securities available for sale		9	$	23,024	$	192		7	$	16,773	$	198		16	$	39,797	$	390

Summary of Ratings by Segment of Investment Securities Available for Sale

The following table summarizes Moody’s ratings, by investment category, of investment securities available for sale based on fair value at September 30, 2012. An “Aaa” rating is based not only on the credit of the issuer, but may also include consideration of the structure of the securities and the credit quality of the collateral.

	State and municipal			Collateralized mortgage obligations			Other mortgage-backed (federal agencies)			SBA loan-backed (federal agency)
Aaa		—	%		100	%		100	%		100	%
Aa1 - A1		75			—			—			—
Baa2		12			—			—			—
Not rated		13			—			—			—
Total		100	%		100	%		100	%		100	%

Summary of Ratings by Standards Poors of Investment Securities Available for Sale

The following table summarizes Standard and Poor’s ratings, by investment category, of investment securities available for sale based on fair value at September 30, 2012.

	State and municipal			Collateralized mortgage obligations			Other mortgage-backed (federal agencies)			SBA loan-backed (federal agency)
Aa+		—	%		100	%		100	%		100	%
Aa - Aa-		39			—			—			—
Not rated		61			—			—			—
Total		100	%		100	%		100	%		100	%

Summary of Amortized Cost of State and Municipal Securities Available for Sale

The following table summarizes the amortized cost of state and municipal securities available for sale at September 30, 2012 by contractual maturity (dollars in thousands). For other investment securities, expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Collateralized mortgage obligations, other mortgage-backed securities and SBA loan-backed securities are shown separately since they are not due at a single maturity date.

	Amortized cost		Fair value
Due in one year or less	$	3,957	$	4,007
Due after one year through five years		7,016		7,314
Due after five years through ten years		1,092		1,091
Due after ten years		—		—
State and municipal		12,065		12,412
Collateralized mortgage obligations		128,561		128,727
Other mortgage-backed (federal agencies)		85,612		86,871
SBA loan-backed (federal agency)		63,271		62,795
Total investment securities available for sale	$	289,509	$	290,805

Summary of Credit Quality of Loans

Investment securities were pledged as collateral for the following purposes at the dates indicated (in thousands).

	September 30, 2012		December 31, 2011
Public funds deposits	$	102,477	$	119,123
Federal Reserve line of credit		1,592		5,510
FHLB advances		—		15,887
Total	$	104,069	$	140,520

Gross Realized Gains and Losses on Investment Securities Available for Sale

The following table summarizes the gross realized gains and losses on investment securities available for sale for the periods indicated (in thousands).

	For the three months ended September 30,				For the nine months ended September 30,
	2012		2011		2012			2011
Realized gains	$	—	$	—	$	9,863		$	56
Realized losses		—		—		(4	)		—
Net realized gains	$	—	$	—	$	9,859		$	56