Securities

6 Months Ended

Jun. 30, 2011

Securities [Abstract]

SECURITIES

NOTE 2 – SECURITIES

Securities consist of the following at June 30, 2011 and December 31, 2010:

			Gross		Gross
	Amortized		unrealized		unrealized
(Dollars in thousands)	cost		gains		losses		Fair value
June 30, 2011
Available-for-sale:
U.S. Treasury security	$	100	$	—	$	—	$	100
Obligations of U.S. Government corporations and agencies		22,988		35		52		22,971
Mortgage-backed securites in government sponsored entities		42,996		1,632		7		44,621
Obligations of states and political subdivisions		12,770		505		9		13,266
Corporate bonds		1,000		—		14		986
Total debt securities		79,854		2,172		82		81,944
Equity securities in financial institutions		69		4		14		59
Total available-for-sale		79,923		2,176		96		82,003
Restricted stock		5,463		—		—		5,463
Total securities	$	85,386	$	2,176	$	96	$	87,466
December 31, 2010
Available-for-sale:
U.S. Treasury security	$	100	$	—	$	—	$	100
Obligations of U.S. Government corporations and agencies		20,009		8		306		19,711
Mortgage-backed securites in government sponsored entities		41,005		1,374		28		42,351
Obligations of states and political subdivisions		11,699		341		46		11,994
Corporate bonds		1,000		—		8		992
Total debt securities		73,813		1,723		388		75,148
Equity securities in financial institutions		69		3		16		56
Total available-for-sale		73,882		1,726		404		75,204
Restricted stock		5,463		—		—		5,463
Total securities	$	79,345	$	1,726	$	404	$	80,667

The amortized cost and fair value of debt securities at June 30, 2011, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized
(Dollars in thousands)	cost		Fair value
Available-for-sale:
Due in one year or less	$	1,976	$	1,983
Due after one through five years		6,362		6,549
Due after five through ten years		16,637		17,131
Due after ten years		54,879		56,281
Total debt securities available-for-sale	$	79,854	$	81,944

Realized Gains and Losses

The following table shows the proceeds from sales of available-for-sale securities and the gross realized gains and losses on the sales of those securities that have been included in earnings as a result of the sales. Gains or losses on the sales of available-for-sale securities are recognized upon sale and are determined by the specific identification method.

	Three months ended				Six months ended
	June 30,				June 30,
	2011		2010		2011		2010
Proceeds	$	—	$	3,359	$	—	$	3,359
Realized gains	$	—	$	148	$	—	$	148
Realized losses		—		—		—		—
Impairment losses		—		—		—		—
Net securities (losses) gains	$	—	$	148	$	—	$	148

At least quarterly, the Company conducts a comprehensive security-level impairment assessment. The assessments are based on the nature of the securities, the extent and duration of the securities, the extent and duration of the loss and management’s intent to sell or if it is more likely than not that management will be required to sell a security before recovery of its amortized cost basis, which may be maturity. Management believes the Company will fully recover the cost of these securities and it does not intend to sell these securities and likely will not be required to sell them before the anticipated recovery of the remaining amortized cost basis, which may be maturity. As a result, management concluded that these securities were not other-than-temporarily impaired at June 30, 2011 and has recognized the total amount of the impairment in other comprehensive income, net of tax.

The following table presents gross unrealized losses and fair value of securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2011 and December 31, 2010:

	Securities in a continuous unrealized loss position
	Less than 12 months				12 months or more				Total
	Gross				Gross				Gross
	unrealized		Fair		unrealized		Fair		unrealized		Fair
(Dollars in thousands)	losses		value		losses		value		losses		value
June 30, 2011
Obligations of U.S. Corporations and agencies	$	52	$	6,941	$	—	$	—	$	52	$	6,941
Mortgage-backed securities in government sponsored entities		—		—		7		322		7		322
Obligations of state & political subdivisions		9		910		—		—		9		910
Corporate bonds		14		986		—		—		14		986
Total debt securities		75		8,837		7		322		82		9,159
Equity securities in financial institutions		—		—		14		40		14		40
Total temporarily impaired securities	$	75	$	8,837	$	21	$	362	$	96	$	9,199
December 31, 2010
Obligations of U.S. Corporations and agencies	$	306	$	12,686	$	—	$	—	$	306	$	12,686
Mortgage-backed securities in government sponsored entities		14		4,032		14		493		28		4,525
Obligations of state & political subdivisions		46		2,561		—		—		46		2,561
Corporate bonds		8		492		—		—		8		492
Total debt securities		374		19,771		14		493		388		20,264
Equity securities in financial institutions		—		—		16		38		16		38
Total temporarily impaired securities	$	374	$	19,771	$	30	$	531	$	404	$	20,302

There were twelve (12) securities in an unrealized loss position at June 30, 2011, three (3) of which were in a continuous loss position for twelve months or more. There were twenty-two (22) securities in an unrealized loss position at December 31, 2010, three (3) of which were in a continuous loss position for twelve months or more.