Securities Available for Sale

6 Months Ended

Jun. 30, 2011

Securities Available for Sale

Securities Available for Sale

4.   Securities Available for Sale

The following tables summarize securities available for sale (in thousands):

		As of June 30, 2011
			Gross	Gross
		Amortized	Unrealized	Unrealized	Estimated
		Cost	Gains	Losses	Fair Value
Government agency securities:
Mortgage-backed securities	$	90,673	7,221	-	97,894
Agency Bonds		60,000	59	-	60,059
REMICs (1)		52,175	2,178	-	54,353
Total		202,848	9,458	-	212,306
Investment Securities:
Municipal Bonds		85,267	41	3	85,305
Taxable securities		17,598	4	2	17,600
Equity securities		1,260	47	1	1,306
Total investment securities		104,125	92	6	104,211
Total	$	306,973	9,550	6	316,517

		As of December 31, 2010
			Gross	Gross
		Amortized	Unrealized	Unrealized	Estimated
		Cost	Gains	Losses	Fair Value
Government agency securities:
Mortgage-backed securities	$	105,219	6,823	-	112,042
Agency bonds		60,000	143	-	60,143
REMICs (1)		66,034	2,807	-	68,841
Total		231,253	9,773	-	241,026
Investment Securities:
Municipal bonds		162,113	33	23	162,123
Taxable securities		19,936	8	22	19,922
Equity securities		1,260	39	3	1,296
Total investment securities		183,309	80	48	183,341
Derivatives		24	-	-	24
Total	$	414,586	9,853	48	424,391

(1) Real estate mortgage investment conduits ("REMICs") are pass-through entities that hold residential loans.  Investors in these entities are issued ownership interests in the entities in the form of a bond.  The securities are guaranteed by government agencies.

The following table shows the gross unrealized losses and fair value of the Company's securities available for sale with unrealized losses that are deemed temporary, 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 (in thousands):

		As of June 30, 2011
		Less Than 12 Months		12 Months or Greater		Total
		Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
		Value	Losses	Value	Losses	Value	Losses
Taxable Securities	$	12,105	(2)	-	-	12,105	(2)
Municipal Bonds		5,084	(3)	-	-	5,084	(3)
Equity securities		-	-	9	(1)	9	(1)
Total	$	17,189	(5)	9	(1)	17,198	(6)
		As of December 31, 2010
		Less Than 12 Months		12 Months or Greater		Total
		Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
		Value	Losses	Value	Losses	Value	Losses
Municipal Bonds	$	90,413	(23)	-	-	90,413	(23)
Taxable Securities		15,155	(22)	-	-	15,155	(22)
Equity securities		-	-	7	(3)	7	(3)
Total	$	105,568	(45)	7	(3)	105,575	(48)

                The unrealized losses on municipal bonds and taxable securities outstanding less than 12 months are primarily the result of interest rate changes.  The Company expects to receive cash proceeds in an amount equal to its entire investment in municipal bonds and taxable securities upon maturity.

                The unrealized losses on the equity securities at June 30, 2011 and December 31, 2010 are insignificant.  Accordingly, the Company does not consider these investments other-than-temporarily impaired at June 30, 2011 and December 31, 2010. 

The scheduled maturities of debt securities available for sale were (in thousands):

		Debt Securities
		Available for Sale
			Estimated
		Amortized	Fair
June 30, 2011 (1)		Cost	Value
Due within one year	$	101,611	101,653
Due after one year, but within five years		61,404	61,462
Due after five years, but within ten years		18,525	19,108
Due after ten years		124,173	132,988
Total	$	305,713	315,211

(1)   Scheduled maturities in the above table are based on contractual maturities which may vary significantly from actual maturities due to prepayments.

Included in securities activities, net were (in thousands):

		For the Three Months		For the Six Months
		Ended June 30,		Ended June 30,
		2011	2010	2011	2010
Gross gains on securities sales	$	-	-	-	3,138
Proceed from sales of securities		-	-	-	46,911
Gross gains (losses) on foreign
currency put options		-	309	(24)	309

                Management reviews its investments for other-than-temporary declines in value quarterly.  As a consequence of the review during 2011, the company recognized $1.5 million other-than-temporary declines in value related to a private equity investment in an unrelated financial institution.