Investment Securities

9 Months Ended

Sep. 30, 2011

Investment Securities [Abstract]

Investment Securities

(3)  Investment Securities

Investment securities as of September 30, 2011 are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Securities Available for Sale:
U.S. Government Agencies Mortgage-Backed	$	299,085	$	5,148	$	(50	)	$	304,183
State, County & Municipal		6,639		81		(32	)		6,688
Corporate Obligations		2,000		127		(11	)		2,116
Asset-Backed Securities		479		--		(347	)		132
	$	308,203	$	5,356	$	(440	)	$	313,119
Securities Held to Maturity:
State, County and Municipal	$	49	$	--	$	(1	)	$	48

The amortized cost and fair value of investment securities as of September 30, 2011, by contractual maturity, are shown hereafter.  Expected maturities will differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities
	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due After One Year Through Five Years	$	831	$	842	$	49	$	48
Due After Five Years Through Ten Years		5,490		5,650		--		--
Due After Ten Years		2,797		2,444		--		--
		9,118		8,936		49		48
Mortgage-Backed Securities		299,085		304,183		--		--
	$	308,203	$	313,119	$	49	$	48

Investment securities as of December 31, 2010 are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Securities Available for Sale:
U.S. Government Agencies Mortgage-Backed	$	299,019	$	1,763	$	(2,319	)	$	298,463
State, County & Municipal		3,248		35		(27	)		3,256
Corporate Obligations		2,000		102		(115	)		1,987
Asset-Backed Securities		479		--		(347	)		132
	$	304,746	$	1,900	$	(2,808	)	$	303,838
Securities Held to Maturity:
State, County and Municipal	$	48	$	5	$	--		$	53

Proceeds from the sale of investments available for sale during first nine months of 2011 totaled $251,044 compared to $211,597 for the first nine months of 2010.  The sale of investments available for sale during 2011 resulted in gross realized gains of $1,947 and gross realized losses of $(2) and the sale of investments available for sale during 2010 resulted in gross realized gain of $1,800 and losses of $0.

Nonaccrual securities are securities for which principal and interest are doubtful of collection in accordance with original terms and for which accruals of interest have been discontinued due to payment delinquency.  Fair value of securities on nonaccrual status totaled $132 and $132 as of September 30, 2011 and December 31, 2010, respectively.

Investment securities having a carry value approximating $96,497 and $123,789 as of September 30, 2011 and December 31, 2010, respectively, were pledged to secure public deposits and for other purposes.

Information pertaining to securities with gross unrealized losses at September 30, 2011 and December 31, 2010 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less Than 12 Months					12 Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
September 30, 2011
U.S. Government Agencies Mortgage-Backed	$	27,184	$	(48	)	$	1,950	$	(2	)	$	29,134	$	(50	)
State, County and Municipal		1,521		(31	)		78		(2	)		1,599		(33	)
Corporate Obligations		--		--			989		(11	)		989		(11	)
Asset-Backed Securities		--		--			132		(347	)		132		(347	)
	$	28,705	$	(79	)	$	3,149	$	(362	)	$	31,854	$	(441	)
December 31, 2010
U.S. Government Agencies Mortgage-Backed	$	152,287	$	(2,319	)	$	--	$	--		$	152,287	$	(2,319	)
State, County and Municipal		1,777		(27	)		--		--			1,777		(27	)
Corporate Obligations		--		--			885		(115	)		885		(115	)
Asset-Backed Securities		--		--			132		(347	)		132		(347	)
	$	154,064	$	(2,346	)	$	1,017	$	(462	)	$	155,081	$	(2,808	)

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 (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At September 30, 2011, the debt securities with unrealized losses have depreciated 1.37 percent from the Company's amortized cost basis.  These unrealized losses relate principally to current interest rates for similar types of securities.  In analyzing an issuer's financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer's financial condition.  As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other-than-temporary.