Investment Securities Held-to-Maturity

12 Months Ended

Dec. 31, 2011

Securities Available-for-Sale and Investment Securities Held-to-Maturity [Abstract]

Investment Securities Held-to-Maturity

4.    Investment Securities Held-to-Maturity

	December 31, 2011								December 31, 2010
			Gross		Gross		Estimated				Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
	(Dollars in thousands)
U.S. Government Sponsored Enterprise	$	26,979	$	36	$	2	$	27,013	$	84,534	$	148	$	488	$	84,194
U.S. Government Sponsored Enterprise Mortgage-Backed Securities		152,389		5,435		15		157,809		145,582		5,246		1,498		149,330
Total	$	179,368	$	5,471	$	17	$	184,822	$	230,116	$	5,394	$	1,986	$	233,524

Included in U.S. Government and Agency Securities are securities pledged to secure public deposits and repurchase agreements at fair value amounting to $8,885,000 and $10,000,000 at December 31, 2011, and 2010, respectively. Also included are securities pledged for borrowing at the Federal Home Loan Bank at fair value amounting to $49,345,000 and $79,844,000 at December 31, 2011, and 2010, respectively.

At December 31, 2011 and 2010, all mortgage-backed securities are obligations of U.S. Government Sponsored Enterprises. Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac. Control of these enterprises was directly taken over by the U.S. Government in the third quarter of 2008.

The following table shows the maturity distribution of the Company’s securities held-to-maturity at December 31, 2011.

	Amortized		Fair
	Cost		Value
	(Dollars in thousands)
Within one year	$	7,133	$	7,269
After one but within five years		128,398		133,231
After five but within ten years		43,552		44,034
More than ten years		285		288
Total	$	179,368	$	184,822

The weighted average remaining life of investment securities held-to-maturity at December 31, 2011, was 4.0 years. Included in the weighted average remaining life calculation at December 31, 2011, were $24,979,000 of U.S. Government Sponsored Enterprises obligations that are callable at the discretion of the issuer. The actual maturities, which were used in the table above, of mortgage-backed securities, will differ from the contractual maturities due to the ability of the issuers to prepay underlying obligations.

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2011. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 2 and 0 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 92 holdings at December 31, 2011.

As of December 31, 2011, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell this debt security and it is not likely that it will be required to sell this debt security before the anticipated recovery of its remaining amortized cost. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on this security are from an issuer that is investment grade.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit quality of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary.

	December 31, 2011
	Less Than 12 Months				12 Months or Longer				Total
			Unrealized				Unrealized				Unrealized
Temporarily Impaired Investments	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
U.S. Government Sponsored Enterprises	$	4,994	$	2	$	—	$	—	$	4,994	$	2
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		5,367		15		—		—		5,367		15
Total temporarily impaired securities	$	10,361	$	17	$	—	$	—	$	10,361	$	17

The unrealized loss on U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities related primarily to interest rates and not credit quality, and because the Company does not intend to sell any of these investments and it is not likely that it will be required to sell these investments before the anticipated recovery of the remaining amortized cost, the Company does not consider this investment to be other-than-temporarily impaired at December 31, 2011.

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2010. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 11 and 0 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 101 holdings at December 31, 2010.

	December 31, 2010
	Less Than 12 Months				12 Months or Longer				Total
			Unrealized				Unrealized				Unrealized
Temporarily Impaired Investments	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
U.S. Government Sponsored Enterprises	$	29,491	$	488	$	—	$	—	$	29,491	$	488
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		37,628		1,498		—		—		37,628		1,498
Total temporarily impaired securities	$	67,119	$	1,986	$	—	$	—	$	67,119	$	1,986

The unrealized loss on U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities related primarily to interest rates and not credit quality, and because the Company does not intend to sell any of these investments and it is not likely that it will be required to sell these investments before the anticipated recovery of the remaining amortized cost, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2010.