Securities

6 Months Ended

Jun. 30, 2011

Securities [Abstract]

Securities

(5) Securities

The amortized cost, gross unrealized gains and losses and fair values of securities available for sale at June 30, 2011 and December 31, 2010 is as follows:

	At June 30, 2011
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
			(Dollars in thousands)
Securities available for sale:
U.S. Government agencies and corporations	$	63,152	$	187	$	(6	)	$	63,333
Mortgage backed securities		105,213		4,518		—			109,731
Collateralized mortgage obligations		32,323		916		—			33,239
State and political subdivisions		23,721		1,043		(42	)		24,722
Total securities available for sale	$	224,409	$	6,664	$	(48	)	$	231,025

	At December 31, 2010
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
			(Dollars in thousands)
Securities available for sale:
U.S. Government agencies and corporations	$	56,239	$	511	$	(682	)	$	56,068
Mortgage backed securities		91,793		4,128		(30	)		95,891
Collateralized mortgage obligations		44,297		1,249		(27	)		45,519
State and political subdivisions		24,125		522		(400	)		24,247
Total Securities available for sale	$	216,454	$	6,410	$	(1,139	)	$	221,725

The carrying value of securities pledged to secure trust deposits, public deposits, line of credit, and for other purposes required by law amounted to $148,535 and $152,079 at June 30, 2011 and December 31, 2010 respectively.

The amortized cost and fair value of the debt securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. U.S. Government agencies and corporations include callable and bullet agency issues and agency-backed mortgage backed securities. Mortgage backed securities and collateralized mortgage obligations are not due at a single maturity date and are shown separately.

	At June 30, 2011
	(Dollars in thousands)
	Amortized		Fair
	Cost		Value
Securities available for sale:
Due in one year or less	$	—	$	—
Due from one year to five years		25,834		26,137
Due from five years to ten years		21,895		22,597
Due after ten years		39,144		39,320
Mortgage backed securities and collateralized mortgage obligations		137,536		142,971
Total	$	224,409	$	231,025

Realized gains and losses related to securities available-for-sale at June 30, 2011 and 2010 is as follows:

	(Dollars in thousands)
Gross realized gains	$	500	$	138
Gross realized losses		—		(100	)
Net securities gains	$	500	$	38
Proceeds from the sale of available for sale securities	$	24,664	$	4,170

The securities portfolio contained $5,590 and $6,721 in non-rated securities of state and political subdivisions at June 30, 2011 and December 31, 2010, respectively. Based upon yield, term to maturity and market risk, the fair value of these securities was estimated to be $5,824 and $6,784 at June 30, 2011 and December 31, 2010, respectively. Management reviewed these non-rated securities and has determined that there was no other-than-temporary impairment to their value at June 30, 2011 and December 31, 2010.

The following is a summary of securities that had unrealized losses at June 30, 2011 and December 31, 2010. The information is presented for securities that have been in an unrealized loss position for less than 12 months and for more than 12 months. At June 30, 2011 there were 11 securities with unrealized losses totaling $48 and at December 31, 2010, the Corporation held 33 securities with unrealized losses totaling $1,139. Factors that are temporary in nature may result in securities being valued at less than amortized cost. For example, when the current levels of interest rates offered on securities are higher compared to the coupon interest rates on the securities held by the Corporation or when impairment is not due to credit deterioration, securities will be valued at less than amortized cost. The Corporation has the ability and the intent to hold these securities until their value recovers.

	At June 30, 2011
	Less than 12 months					12 months or longer				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
						(Dollars in thousands)
U.S. Government agencies and corporations	$	19,986	$	(6	)	$	—	$	—	$	19,986	$	(6	)
State and political subdivisions		2,700		(42	)		—		—		2,700		(42	)
Total	$	22,686	$	(48	)	$	—	$	—	$	22,686	$	(48	)

	At December 31, 2010
	Less than 12 months					12 months or longer				Total
			Unrealized					Unrealized				Unrealized
	Fair Value		Losses			Fair Value		Losses		Fair Value		Losses
						(Dollars in thousands)
U.S. Government agencies and corporations	$	29,352	$	(682	)	$	—	$	—	$	29,352	$	(682	)
Mortgage backed securities		14,617		(30	)		—		—		14,617		(30	)
Collateralized mortgage obligations		10,027		(27	)		—		—		10,027		(27	)
State and political subdivisions		1,633		(400	)		—		—		1,633		(400	)
Total	$	55,629	$	(1,139	)	$	—	$	—	$	55,629	$	(1,139	)