Available-For-Sale Securities

3 Months Ended

Mar. 31, 2012

Available-For-Sale Securities [Abstract]

Available-For-Sale Securities

Note 4: 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:

				March 31, 2012
				Gross		Gross
		Amortized		Unrealized	Unrealized				Fair
		Cost		Gains		Losses			Value
(In thousands)
U.S. Government sponsored agencies	$	65,975	$	80	$	(7	)	$	66,048
Equity and other securities		600		18		–			618
	$	66,575	$	98	$	(7	)	$	66,666

				December 31, 2011
				Gross		Gross
		Amortized		Unrealized	Unrealized				Fair
		Cost		Gains		Losses			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

The amortized cost and estimated fair value of available-for-sale securities at March 31, 2012, 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		Fair
		Cost		Value
(In thousands)
Due in one year or less	$	5,998	$	6,014
Due after one year through five years		24,996		25,023
Due after five years through ten years		34,981		35,011
Due after ten years		–		–
Total		65,975		66,048
Equity and other securities		600		618
	$	66,575	$	66,666

The book value and estimated fair value of securities pledged as collateral to secure public deposits amounted to $5,000,000 and $5,005,000, respectively at March 31, 2012 and $5,000,000 and $5,013,000, respectively at December 31, 2011.

There were no gross gains or losses realized for the three months ended March 31, 2012 and 2011, 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 March 31, 2012 and December 31, 2011, was $9,981,000 and $19,973,000, which is approximately 15.0% and 32.3%, 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 the fair value for these securities are temporary.

Unrealized losses and fair value as of March 31, 2012 and December 31, 2011, aggregated by investment type and length of time that individual securities have been in a continuous unrealized loss position are as follows:

						March 31, 2012
		Less than 12 Months				12 Months or More				Total
		Unrealized				Unrealized				Unrealized
		Fair Value	Losses			Fair Value	Losses			Fair Value		Losses
(In thousands)
U.S. Government sponsored
agencies	$	9,981	$	7	$	–	$	–	$	9,981	$	7
Equity and other securities		–		–		–		–		–		–
Total temporarily
impaired securities	$	9,981	$	7	$	–	$	–	$	9,981	$	7

						December 31, 2011
		Less than 12 Months				12 Months or More				Total
			Unrealized				Unrealized				Unrealized
		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

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 the recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2012.

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 March 31, 2012, 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:

		March 31, 2012		December 31, 2011
(In thousands)
Balance	$	15,625	$	14,413
Carrying value of securities pledged to secure agreements to
repurchase at period end		24,037		24,131
Average balance during the period of securities sold under
agreements to repurchase		15,138		16,405
Maximum amount outstanding at any month-end during the
period		15,625		18,633