Securities

9 Months Ended

Sep. 30, 2011

Securities [Abstract]

Securities

(5) Securities

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

	At September 30, 2011
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(Dollars in thousands)
Securities available for sale:
U.S. Government agencies and corporations	$	58,784	$	134	$	(285	)	$	58,633
Mortgage backed securities		113,916		4,540		(247	)		118,209
Collateralized mortgage obligations		28,632		717		(5	)		29,344
State and political subdivisions		24,600		1,578		(6	)		26,172
Total securities available for sale	$	225,932	$	6,969	$	(543	)	$	232,358

	At December 31, 2010
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair 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 $140,552 and $152,079 at September 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 September 30, 2011
	(Dollars in thousands)
Securities available for sale:	Amortized Cost		Fair Value
Due in one year or less	$	—	$	—
Due from one year to five years		25,805		25,826
Due from five years to ten years		17,947		18,844
Due after ten years		39,632		40,135
Mortgage backed securities and collateralized mortgage obligations		142,548		147,553
Total	$	225,932	$	232,358

Realized gains and losses related to securities available-for-sale sold during the nine-month periods ended September 30, 2011 and 2010 are as follows:

	September 30,
	2011		2010
	(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	$	24,560	$	4,170

The securities portfolio contained $1,205 and $6,721 in non-rated securities of state and political subdivisions at September 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 $1,289 and $6,784 at September 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 September 30, 2011 and December 31, 2010.

The following is a summary of securities that had unrealized losses at September 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 September 30, 2011 there were 7 securities with unrealized losses totaling $543 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 September 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	$	14,715	$	(285	)	$	—	$	—	$	14,715	$	(285	)
Mortgage backed securities		16,320		(247	)		—		—		16,320		(247	)
Collateralized mortgage obligations		4,354		(5	)		—		—		4,354		(5	)
State and political subdivisions		355		(6	)		—		—		355		(6	)
Total	$	35,744	$	(543	)	$	—	$	—	$	35,744	$	(543	)

	At December 31, 2010
	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	$	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	)