Securities

12 Months Ended

Dec. 31, 2011

Securities [Abstract]

SECURITIES

5. SECURITIES

The components of securities are as follows:

		September 30,		September 30,		September 30,		September 30,
	December 31, 2011
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and government sponsored entities’ securities	$	50,003	$	797	$	—	$	50,800
Equity securities		114		149		—		263
Mortgage-backed GSE securities: residential		403,943		4,592		—		408,535
Total	$	454,060	$	5,538	$	—	$	459,598

		September 30,		September 30,		September 30,			September 30,
	December 31, 2010
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and government sponsored entities’ securities	$	65,099	$	—	$	(2,164	)	$	62,935
Equity securities		235		159		—			394
Mortgage-backed GSE securities: residential		300,290		1,688		(3,265	)		298,713
Total	$	365,624	$	1,847	$	(5,429	)	$	362,042

Debt securities available for sale by contractual maturity, repricing or expected call date are shown below:

		September 30,		September 30,
	December 31, 2011
	Amortized cost		Fair value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		50,003		50,800
Mortgage-backed GSE securities: residential		403,943		408,535
Total	$	453,946	$	459,335

Since equity securities do not have a contractual maturity, they are excluded from the table above.

Proceeds, gross realized gains, losses and impairment charges of available for sale securities were as follows:

		September 30,			September 30,			September 30,
	2011			2010			2009
	(Dollars in thousands)
Proceeds	$	428,396		$	396,291		$	75,493
Gross gains		8,662			8,970			1,863
Gross losses		(29	)		(167	)		—
Impairment charges		(89	)		(58	)		(778	)

The tax benefit (provision) related to net realized gains and losses was $0, $0, and $(380,000), respectively.

Securities pledged for the Company’s investment in VISA stock were approximately $5.7 million at December 31, 2011 and 2010. Securities pledged for participation in the Ohio Linked Deposit Program were approximately $418,000 and $864,000 at December 31, 2011 and 2010, respectively. See further discussion regarding pledged securities in Note 13.

United Community had no securities available for sale in an unrealized loss position at December 31, 2011.

Securities available for sale in an unrealized loss position are as follows at December 31, 2010:

		September 30,		September 30,			September 30,		September 30,		September 30,		September 30,
	Less than 12 months					12 months or more				Total
	Fair value		Unrealized loss			Fair value		Unrealized loss		Fair value		Unrealized loss
	(Dollars in thousands)
Description of securities:
U.S. Treasury and government sponsored entities	$	62,935	$	(2,164	)	$	—	$	—	$	62,935	$	(2,164	)
Mortgage-backed GSE securities: residential		203,569		(3,265	)		—		—		203,569		(3,265	)
Total temporarily impaired securities	$	266,504	$	(5,429	)	$	—	$	—	$	266,504	$	(5,429	)

All of the U.S. Treasury and government sponsored entities and mortgage-backed securities that were temporarily impaired at December 31, 2010, were impaired due to the level of interest rates at that time.

The Company evaluates its equity securities for impairment on a quarterly basis. In general, if a security has been in an unrealized loss position for more than twelve months, the Company will recognize an OTTI charge on the security. If the security has been in an unrealized loss position for less than twelve months, the Company examines the capital levels, nonperforming asset ratios and liquidity position of the issuer to determine whether or not an OTTI charge is appropriate.

The Company recognized an $89,000 OTTI charge on an equity investment in four financial institutions in 2011. The Company recognized a $58,000 OTTI charge in 2010 and a $787,000 OTTI charge in 2009. Based upon reviews of the financial institutions’ capital structure, nonperforming assets ratios and liquidity levels, the chance for recovery in the foreseeable future appeared remote.