Available-For-Sale Securities

12 Months Ended

Dec. 31, 2011

Available-For-Sale Securities [Abstract]

Available-For-Sale Securities

NOTE 2: AVAILABLE-FOR-SALE SECURITIES

The amortized cost and estimated fair value, together with gross unrealized gains and losses, of available-for-sale securities are as follows:

				December 31, 2011
				Gross		Gross
		Amortized		Unrealized	Unrealized
		Cost		Gains		Losses			Fair Value
(In thousands)
U.S. Government sponsored agencies	$	60,967	$	228	$	(24	)	$	61,171
Equity and other securities		600		19		–			619
	$	61,567	$	247	$	(24	)	$	61,790
				December 31, 2010
				Gross		Gross
		Amortized		Unrealized	Unrealized
		Cost		Gains		Losses			Fair Value
(In thousands)
U.S. Government sponsored agencies	$	62,990	$	228	$	(179	)	$	63,039
Equity and other securities		600		1		–			601
	$	63,590	$	229	$	(179	)	$	63,640

The amortized cost and estimated fair value of available-for-sale securities at December 31, 2011, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

		Amortized
		Cost		Fair Value
(In thousands)
Due in one year or less	$	5,997	$	6,024
Due after one year through five years		29,994		30,011
Due after five years through ten years		24,976		25,136
Due after ten years		–		–
Total		60,967		61,171
Equity and other securities		600		619
	$	61,567	$	61,790

The book value and estimated fair value of securities pledged as collateral to secure public deposits amounted to $5,000,000 and $5,013,000 at December 31, 2011 and $5,002,000 and $5,013,000 at December 31, 2010.

Gross gains of $0, $885,000, and $346,000 were realized in 2011, 2010 and 2009, respectively, and no gross losses were realized in 2011, 2010 and 2009, respectively, from sales of available-for-sale securities.

Certain investments in debt and marketable equity securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2011 and 2010, was $19,973,000 and $29,813,000, which is approximately 32.3% and 46.8%, respectively, of the Company's available-for-sale investment portfolio. These declines in fair value resulted primarily from recent increases in market interest rates. Based on evaluation of available information and evidence, particularly recent volatility in market yields on debt securities, management believes the declines in fair value for these securities are temporary.

Unrealized losses and fair value, aggregated by investment type and length of time that individual securities have been in a continuous unrealized loss position are as follows:

						December 31, 2011
		Less than 12 Months				12 Months or More			Total		Total
Description of			Unrealized				Unrealized				Unrealized
Securities		Fair Value	Losses			Fair Value	Losses	Fair Value			Losses
(In thousands)
U.S. Government sponsored
agencies	$	19,973	$	24	$	–	$	– $	19,973	$	24
Equity and other securities		–		–		–		–	–		–
Total temporarily impaired
securities	$	19,973	$	24	$	–	$	– $	19,973	$	24

						December 31, 2010
		Less than 12 Months				12 Months or More			Total		Total
Description of			Unrealized				Unrealized				Unrealized
Securities		Fair Value		Losses		Fair Value	Losses	Fair Value			Losses
(In thousands)
U.S. Government sponsored
agencies	$	29,813	$	179	$	–	$	– $	29,813	$	179
Equity and other securities		–		–		–		–	–		–
Total temporarily impaired
securities	$	29,813	$	179	$	–	$	– $	29,813	$	179

The unrealized losses on the Company's investments in direct obligations of U.S. government sponsored agencies were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2011.

The Company enters into sales of securities under agreements to repurchase. The amounts deposited under these agreements represent short-term debt and are reflected as a liability in the consolidated balance sheets. The securities underlying the agreements are book-entry securities. During the period, securities held in safekeeping were pledged to the depositors under a written custodial agreement that explicitly recognizes the depositors' interest in the securities. At December 31, 2011, or at any month end during the period, no material amount of agreements to repurchase securities sold was outstanding with any individual entity.

Information on sales of securities under agreements to repurchase is as follows:

		2011		2010
(In thousands)
Balance as of December 31	$	14,413	$	17,674
Carrying value of securities pledged to secure agreements to repurchases
at December 31	$	24,131	$	27,031
Average balance during the year of securities sold under agreements to repurchase	$	16,405	$	17,922
Maximum amount outstanding at any month-end during the year	$	18,633	$	21,935