Investment Securities

6 Months Ended

Jun. 30, 2011

Investment Securities

Investment Securities

(5) Investment Securities

The amortized cost, estimated fair values, and gross unrealized gains and losses of Suffolk's investment securities available for sale and held to maturity at June 30, 2011 and December 31, 2010, respectively, were: (in thousands)

	June 30, 2011									December 31, 2010
	Amortized Cost		Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses			Amortized Cost		Estimated Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Available for sale:
U.S. Treasury securities	$	2,002	$	2,003	$	1	$	—		$	8,014	$	8,102	$	88	$	—
U.S. government agency debt		7,022		7,061		39					22,196		22,495		299		—
Collateralized mortgage obligations		139,454		144,666		6,858		(1,646	)		157,179		162,323		6,627		(1,483	)
Mortgage-backed securities		406		465		59		—			452		510		58		—
Obligations of states and political subdivisions		157,344		167,695		10,386		(35	)		196,578		203,240		7,511		(849	)
Balance		306,228		321,890		17,343		(1,681	)		384,419		396,670		14,583		(2,332	)
Held to maturity:
Obligations of states and political subdivisions		9,603		10,399		797		(1	)		9,936		10,623		695		(8	)
Other securities		80		80		—		—			80		80		—		—
Balance		9,683		10,479		797		(1	)		10,016		10,703		695		(8	)
Total investment securities	$	315,911	$	332,369	$	18,140	$	(1,682	)	$	394,435	$	407,373	$	15,278	$	(2,340	)

The amortized cost, maturities, and approximate fair value of Suffolk's investment securities at June 30, 2011 were as follows: (in thousands)

	Available for Sale												Held to Maturity
	U.S. Treasury Securities				U.S. Govt. Agency Debt				Obligations of States & Political Subdivisions				Obligations of States & Political Subdivisions				Other Securities				Total Amortized Cost		Total Fair Value
(1) Maturity (in years)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within 1	$	2,002	$	2,003	$	7,022	$	7,061	$	410	$	416	$	2,241	$	2,262	$	—	$	—	$	11,675	$	11,742
After 1 but within 5		—		—		—		—		39,961		43,128		4,229		4,533		—		—		44,190		47,661
After 5 but within 10		—		—		—		—		114,961		122,032		3,133		3,604		—		—		118,094		125,636
After 10		—		—		—		—		2,012		2,119		—		—		—		—		2,012		2,119
Other Securities		—		—		—		—		—		—		—		—		80		80		80		80
Subtotal		2,002		2,003		7,022		7,061		157,344		167,695		9,603		10,399		80		80		176,051		187,238
Collateralized mortgage obligations		—		—		—		—		—		—		—		—		—		—		139,454		144,666
Mortgage-backed securities		—		—		—		—		—		—		—		—		—		—		406		465
Total	$	2,002	$	2,003	$	7,022	$	7,061	$	157,344	$	167,695	$	9,603	$	10,399	$	80	$	80	$	315,911	$	332,369

(1) Maturities shown are stated maturities. Securities backed by mortgages are expected to have substantial periodic prepayments resulting in weighted average lives considerably less than what would be surmised from the table above.

As a member of the Federal Reserve System, the Bank owns Federal Reserve Bank stock with a book value of $712,000. The stock has no maturity and there is no public market for the investment.

As a member of the Federal Home Loan Bank of New York ("FHLB"), the Bank owns FHLB stock with a book value of $1,744,000. As of June 30, 2011, the Bank owns 17,442 shares valued at approximately $1,744,000 as its membership portion. The stock has no maturity and there is no public market for the investment. Assets pledged as collateral to FHLB as of June 30, 2011 and December 31, 2010 totaled $280,060,000 and $356,349,000, respectively, consisting of eligible loans and investment securities as determined under FHLB guidelines. The Bank evaluates the FHLB stock for impairment, concluding that there was no impairment as of June 30, 2011.

At June 30, 2011 investment securities carried at $286,622,000 were pledged to secure trust deposits and public funds on deposit.

The table below indicates the length of time individual securities, both held-to-maturity and available-for-sale, have been held in a continuous unrealized loss position at the date indicated: (in thousands)

As of June 30, 2011			Less than 12 months				12 months or longer				Total
Type of securities	Number of Securities		Fair Value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Obligations of states and political subdivisions		9	$	3,609	$	37	$	—	$	—	$	3,609	$	37
Collateralized mortgage obligations		3		—		—		10,110		1,646		10,110		1,646
Total		12	$	3,609	$	37	$	10,110	$	1,646	$	13,719	$	1,683

As of December 31, 2010			Less than 12 months				12 months or longer				Total
Type of securities	Number of Securities		Fair Value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Obligations of states and political subdivisions		89	$	39,836	$	857	$	—	$	—	$	39,836	$	857
Collateralized mortgage obligations		2		—		—		10,981		1,483		10,981		1,483
Total		91	$	39,836	$	857	$	10,981	$	1,483	$	50,817	$	2,340

Management has considered factors such as market value, cash flows, and analysis of underlying collateral regarding other-than-temporarily impaired securities and determined that there are no other-than-temporarily impaired securities as of June 30, 2011.

The unrealized losses in collateralized mortgage obligations at June 30, 2011 were caused by changes in interest rates, a significant widening of credit spreads across markets for these securities, and illiquidity in the financial markets for these instruments. These securities include two private issues held at a continuous, unrealized loss for more than twelve months. Each of these securities has some level of credit enhancement, and none are collateralized by sub-prime loans. With the assistance of a third party, management reviews the characteristics of these securities periodically, including levels of delinquency and foreclosure, projected losses at various degrees of severity, and credit enhancement and coverage. These securities are performing according to their terms, and, in the opinion of management, will continue to do so.

Suffolk does not have the intent to sell these securities and does not anticipate that it will be necessary to sell these securities before the full recovery of principal and interest due, which may be at maturity. Therefore, Suffolk did not consider these investments to be other-than-temporarily impaired at June 30, 2011.