Note 5 - Investments

The amortized cost and estimated fair value of investment securities available for sale as of March 31, 2012 and December 31, 2011 are:

(Dollars in thousands)

Gross

Estimated

Amortized

Unrealized

Fair

March 31, 2012

Cost

Gains

Losses

Value

Equity securities

2,105

(213

)

1,969

U.S. Government agency securities

11,380

(27

)

11,436

Municipal securities

44,488

2,529

(16

)

47,001

Corporate debt securities

2,484

(49

)

2,486

Trust preferred securities

5,895

(1,290

)

4,605

Agency mortgage-backed securities

50,473

1,034

(127

)

51,380

Private-label mortgage-backed securities

3,144

(346

)

2,798

Asset-backed securities

(17

)

120,033

3,774

(2,085

)

121,722

			Gross		Gross			Estimated
(Dollars in thousands)	Amortized		Unrealized		Unrealized			Fair
December 31, 2011	Cost		Gains		Losses			Value
Equity securities	$	2,105	$	11	$	(357	)	$	1,759
U.S. Government agency securities		13,159		75		(5	)		13,229
Municipal securities		42,490		2,598		(7	)		45,081
Corporate debt securities		2,484		49		(119	)		2,414
Trust preferred securities		5,890		-		(1,272	)		4,618
Agency mortgage-backed securities		54,314		1,159		(188	)		55,285
Private-label mortgage-backed securities		3,366		1		(500	)		2,867
Asset-backed securities		66		-		(18	)		48
	$	123,874	$	3,893	$	(2,466	)	$	125,301

The amortized cost of securities pledged as collateral to secure various funding sources was $100.0 million at March 31, 2012 and $112.1 million at December 31, 2011.

The amortized cost and fair value of debt securities as of March 31, 2012, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities.

	Amortized		Fair
(Dollars in thousands)	Cost		Value
Due in one year or less	$	2,684	$	2,731
Due after one year through five years		12,239		12,838
Due after five years through ten years		17,649		18,540
Due after ten years		31,739		31,466
		64,311		65,575
Mortgage-backed securities		53,617		54,178

	$	117,928	$	119,753

The following table reflects temporary impairment in the investment portfolio (excluding restricted stock), aggregated by investment category, length of time that individual securities have been in a continuous unrealized loss position and the number of securities in each category as of March 31, 2012 and December 31, 2011:

	March 31, 2012
	Less than 12 months							12 months or more							Total
	Fair		Unrealized					Fair		Unrealized					Fair		Unrealized
(Dollars in thousands)	Value		Losses			Number		Value		Losses			Number		Value		Losses			Number

Equity securities	$	425	$	(18	)		3	$	946	$	(195	)		12	$	1,371	$	(213	)		15
U.S. Government agency securities		4,973		(25	)		5		1,276		(2	)		5		6,249		(27	)		10
Municipal securities		1,491		(16	)		2		-		-			-		1,491		(16	)		2
Corporate debt securities		-		-			-		1,958		(49	)		2		1,958		(49	)		2
Trust preferred securities		-		-			-		4,605		(1,290	)		7		4,605		(1,290	)		7
Agency mortgage-backed securities		8,008		(80	)		8		3,495		(47	)		4		11,503		(127	)		12
Private-label mortgage-backed securities		1,018		(36	)		2		1,706		(310	)		4		2,724		(346	)		6
Asset-backed securities		-		-			-		47		(17	)		3		47		(17	)		3
Total temporarily impaired securities	$	15,915	$	(175	)		20	$	14,033	$	(1,910	)		37	$	29,948	$	(2,085	)		57

	December 31, 2011
	Less than 12 months							12 months or more							Total
	Fair		Unrealized					Fair		Unrealized					Fair		Unrealized
(Dollars in thousands)	Value		Losses			Number		Value		Losses			Number		Value		Losses			Number

Equity securities	$	394	$	(111	)		3	$	864	$	(246	)		13	$	1,258	$	(357	)		16
U.S. Government agency securities		6,068		(3	)		5		1,321		(2	)		5		7,389		(5	)		10
Municipal securities		579		(7	)		1		-		-			-		579		(7	)		1
Corporate debt securities		-		-			-		1,889		(119	)		2		1,889		(119	)		2
Trust preferred securities		-		-			-		4,618		(1,272	)		7		4,618		(1,272	)		7
Agency mortgage-backed securities		12,452		(156	)		12		1,174		(32	)		1		13,626		(188	)		13
Private-label mortgage-backed securities		1,057		(36	)		2		1,636		(464	)		4		2,693		(500	)		6
Asset-backed securities		-		-			-		48		(18	)		3		48		(18	)		3
Total temporarily impaired securities	$	20,550	$	(313	)		23	$	11,550	$	(2,153	)		35	$	32,100	$	(2,466	)		58

The following table provides additional detail about trust preferred securities as of March 31, 2012:

Trust Preferred Securities
(Dollars in thousands)
Deal Name	Single Issuer or Pooled	Class	Amortized Cost		Fair Value		Gross Unrealized Gain (Loss)			Lowest Credit Rating Assigned	Number of Banks Currently Performing		Deferrals and Defaults as % of Original Collateral	Expected Deferral/ Defaults as a Percentage of Remaining Performing Collateral

Huntington Cap Trust	Single	Preferred Stock	$	931	$	729	$	(202	)	B		1	None	None
Huntington Cap Trust II	Single	Preferred Stock		877		702		(175	)	B		1	None	None
BankAmerica Cap III	Single	Preferred Stock		957		701		(256	)	BB		1	None	None
Wachovia Cap Trust II	Single	Preferred Stock		274		227		(47	)	Baa2		1	None	None
Corestates Captl Tr II	Single	Preferred Stock		926		764		(162	)	Baa1		1	None	None
Chase Cap VI JPM	Single	Preferred Stock		958		771		(187	)	BBB		1	None	None
Fleet Cap Tr V	Single	Preferred Stock		972		711		(261	)	BB		1	None	None
			$	5,895	$	4,605	$	(1,290	)

The following table provides additional detail about private label mortgage-backed securities as of March 31, 2012:

Private Label Mortgage Backed Securities
(Dollars in thousands)							Gross							Cummulative
	Orgination		Amortized		Fair		Unrealized			Collateral	Lowest Credit	Credit		OTTI
Decscription	Date		Cost		Value		Gain (Loss)			Type	Rating Assigned	Support %		Charges
RALI 2003-QS15 A1		8/1/2003	$	74	$	74	$	-		ALT A	A1		11.34	$	-
RALI 2004-QS4 A7		3/1/2004		437		432		(5	)	ALT A	AA		12.23		-
MALT 2004-6 7A1		6/1/2004		617		586		(31	)	ALT A	B		11.53		-
RALI 2005-QS2 A1		2/1/2005		525		494		(31	)	ALT A	CCC		7.25		-
RALI 2006-QS4 A2		4/1/2006		823		652		(171	)	ALT A	D		-		218
GSR 2006-5F 2A1		5/1/2006		238		228		(10	)	Prime	C		2.07		-
RALI 2006-QS8 A1		7/28/2006		430		332		(98	)	ALT A	D		-		172
			$	3,144	$	2,798	$	(346	)					$	390

For more information concerning investments, refer to the Investment Securities discussion in the Financial Condition section of Management's Discussion and Analysis.