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Investment Securities
 6 Months Ended
Jun. 30, 2011
Investment Securities  
Investment Securities
NOTE 6-INVESTMENT SECURITIES

The amortized cost, gross unrealized gains and losses, and fair value of the Company's investment securities at June 30, 2011 and December 31, 2010, are summarized as follows:

   
June 30, 2011
 
   
Amortized
cost
   
Gross
unrealized
gains
   
Gross
unrealized
losses
   
Fair
value
 
   
(in thousands)
 
Available for sale
                       
    U.S. Government and federal agencies
 
$
8,989
   
$
32
   
$
-
   
$
9,021
 
    State and political subdivisions
   
48,413
     
2,649
     
(16
)
   
51,046
 
    Residential mortgage-backed securities issued by quasi-governmental agencies
   
52,837
     
1,546
     
(25
)
   
54,358
 
    Residential mortgage-backed securities privately issued
   
10,123
     
238
     
(8
)
   
10,353
 
Total investment securities available for sale
   
120,362
     
4,465
     
(49
)
   
124,778
 
                                 
Held to maturity
                               
    Residential mortgage-backed securities issued by quasi-governmental agencies
   
2,809
     
350
     
-
     
3,159
 
Total investment securities
 
 $
123,171
   
$
4,815
   
 $
(49
 
 
)
 
 $
127,937
 

   
December 31, 2010
 
   
Amortized
cost
   
Gross
unrealized
gains
   
Gross
unrealized
losses
   
Fair
value
 
   
(in thousands)
 
Available for sale
                       
    U.S. Government and federal agencies
 
$
6,000
   
$
59
   
$
-
   
$
6,059
 
    Corporate debt securities
   
3,340
     
223
     
-
     
3,563
 
    State and political subdivisions
   
47,348
     
1,120
     
(260
)
   
48,208
 
    Residential mortgage-backed securities issued by quasi-governmental agencies
   
50,942
     
1,950
     
(6
)
   
52,886
 
    Residential mortgage-backed securities, privately issued
   
13,425
     
224
     
(44
)
   
13,605
 
Total investment securities available for sale
   
121,055
     
3,576
     
(310
)
   
124,321
 
                                 
Held to maturity
                               
    Residential mortgage-backed securities issued by quasi-governmental agencies
   
3,169
     
341
     
-
     
3,510
 
Total investment securities
 
$
124,224
   
$
3,917
   
$
(310
 
)
 
$
127,831
 

Gross realized gains were $210,000 for the three and six months ended June 30, 2011. These gains resulted from proceeds from the sale of  investment and mortgage-backed securities of $5.1 million. Gross realized gains were $7,000 for the three and six months ended June 30, 2010. These gains resulted from proceeds from the sale of investment equity securities of $60,000.
 
    The amortized cost and fair value of investment and mortgage-backed securities, by contractual maturity, are shown below.
 
 
   
June 30, 2011
 
   
Available for sale
   
Held to maturity
 
   
Amortized
cost
   
Fair
value
   
Amortized
cost
   
Fair
value
 
   
(in thousands)
 
Investment securities
                       
Due in one year or less
 
$
1,285
   
$
1,297
   
$
-
   
$
-
 
Due after one year through five years
   
11,722
     
12,081
     
-
     
-
 
Due after five years through 10 years
   
27,512
     
28,986
     
-
     
-
 
Due after ten years
   
16,883
     
17,703
     
-
     
-
 
     
57,402
     
60,067
     
-
     
-
 
                                 
Mortgage-backed  securities
   
62,960
     
64,711
     
2,809
     
3,159
 
Total investment and mortgage-backed securities
 
$
120,362
   
$
124,778
   
$
2,809
   
$
3,159
 


 The table below indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2011:

   
Number
   
Less than
12 months
   
12 months
or longer
   
Total
 
Description of Securities
 
of
Securities
   
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
   
Fair
value
   
Unrealized
Loss
 
   
(in thousands)
 
State and political subdivisions
   
2
   
$
709
   
$
(16
)
 
$
-
   
$
-
   
$
709
   
$
(16
)
Residential mortgage-backed securities issued by quasi-governmental agencies
   
5
     
6,916
     
(25
)
   
-
     
-
     
6,916
     
(25
)
Residential mortgage-backed securities privately issued
   
1
     
3,872
     
(8
)
   
-
     
-
     
3,872
     
(8
)
                                                         
Total temporarily impaired securities
   
8
   
$
11,497
   
$
(49
)
 
$
-
   
$
-
   
$
11,497
   
$
(49
)


The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2010:

   
Number
   
Less than
12 months
   
12 months
or longer
   
Total
 
Description of Securities
 
of
Securities
   
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
   
Fair
value
   
Unrealized
Loss
 
   
(in thousands)
 
State and political subdivisions
   
17
   
$
14,210
   
$
(260
)
 
$
-
   
$
-
   
$
14,210
   
$
(260
)
Residential mortgage-backed securities issued by quasi-governmental agencies
   
1
     
3,027
     
(6
)
   
-
     
-
     
3,027
     
(6
)
Residential mortgage-backed securities privately issued
   
3
     
7,048
     
(44
)
   
-
     
-
     
7,048
     
(44
)
Total temporarily impaired securities
   
21
   
$
24,285
   
$
(310
)
 
$
-
   
$
-
   
$
24,285
   
$
(310
)

On a quarterly basis, temporarily impaired securities are evaluated to determine whether such impairment is other-than-temporary impairment (“OTTI”). The Company has performed this evaluation and has determined that the unrealized losses at June 30, 2011 and December 31, 2010, respectively, are not considered other-than-temporary but are the result of changes in interest rates, and are therefore reflected in other comprehensive income.