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Securities
9 Months Ended
Sep. 30, 2011
Investments, Debt and Equity Securities [Abstract] 
Marketable Securities [Text Block]
3. Securities
 
          The amortized cost and fair value of securities available for sale as of September 30, 2011 and December 31, 2010 (in thousands) are as follows:
 
  September 30, 2011
        Gross   Gross      
  Amortized   Unrealized   Unrealized   Fair
  Cost   Gains   (Losses)   Value
Obligations of U. S. Government                        
       sponsored agencies $      37 573   $      469   $      (1 )   $      38 041
State and municipal obligations   6 454     255     - -       6 709
Equity securities   1 099     - -     (306 )     793
  $ 45 126   $ 724   $ (307 )   $ 45 543
 
  December 31, 2010
        Gross   Gross      
  Amortized   Unrealized   Unrealized   Fair
  Cost       Gains       (Losses)       Value
Obligations of U. S. Government                        
       sponsored agencies $ 36 207   $ 241   $          (160 )   $ 36 288
State and municipal obligations   5 537     71     (84 )     5 524
Equity securities   1 100     - -     (222 )     878
  $ 42 844   $ 312   $ (466 )   $ 42 690
                         
         
The primary purpose of the investment portfolio is to generate income and meet liquidity needs of the company through readily saleable financial instruments. The portfolio is made up of fixed rate bonds, whose prices move inversely with rates. At the end of any accounting period, the investment portfolio has unrealized gains and losses. The company monitors the portfolio, which is subject to liquidity needs, market rate changes and credit risk changes, to see if adjustments are needed. The primary concern in a loss situation is the credit quality of the business behind the instrument. There is one debt security in the consolidated portfolio that has a loss at September 30, 2011. The primary cause of the temporary impairments in the company’s investments in debt securities was fluctuations in interest rates. Because the company intends to hold these investments in debt securities to maturity and it is more likely than not that the company will not be required to sell these investments before a recovery of unrealized losses, the company does not consider these investments to be other-than-temporarily impaired at September 30, 2011 and no impairment has been recognized.
 
There are three equity security investments in the company’s portfolio with losses at September 30, 2011. The company considers these investments to be temporarily impaired at September 30, 2011 and is recognizing no impairment. These are community bank stock related holdings.
 
U.S. Government sponsored agencies include the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation debt securities with a fair value of $22.4 million as of September 30, 2011 and $11.7 million as of December 31, 2010
 
The following table summarizes the fair value and gross unrealized losses for securities aggregated by investment category and length of time that individual securities have been in a continuous gross unrealized loss position as of September 30, 2011 and December 31, 2010 (in thousands).
 
  September 30, 2011
  Less than 12 months   More than 12 months   Total
        Gross         Gross           Gross
        Unrealized         Unrealized           Unrealized
  Fair Value       Losses       Fair Value       Losses       Fair Value       Losses
Obligations of U.S. Government                                          
       sponsored agencies $     999   $            (1 )   $     - -   $          - -     $     999     $         (1 )
State and municipal obligations   - -     - -       - -     - -       - -       - -  
Equity securities   - -     - -       793     (306 )     793       (306 )
       Total $ 999   $ (1 )   $ 793   $ (306 )   $ 1 792     $ (307 )
                                           
  December 31, 2010
  Less than 12 months   More than 12 months   Total
        Gross         Gross         Gross
        Unrealized         Unrealized         Unrealized
  Fair Value   Losses   Fair Value   Losses   Fair Value   Losses
Obligations of U.S. Government                                                            
       sponsored agencies $     9 899   $         (147 )   $     1 108   $           (13 )   $     11 007   $          (160 )
State and municipal obligations   1 912     (84 )     - -     - -       1 912     (84 )
Equity securities   878     (222 )     - -     - -       878     (222 )
       Total $ 12 689   $ (453 )   $ 1 108   $ (13 )   $ 13 797   $ (466 )
                                         
  The company’s investment in Federal Home Loan Bank (FHLB) stock totaled $822 thousand at September 30, 2011. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock, other than the FHLBs or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Despite the FHLB’s temporary suspension of repurchases of excess capital stock on a regular basis, the company does not consider this investment to be other-than-temporarily impaired at September 30, 2011 and no impairment has been recognized. FHLB stock is shown as a separate line item on the balance sheet and is not a part of the available for sale securities portfolio.
 
          At September 30, 2011 and December 31, 2010, securities with carrying values of approximately $11.9 million and $24 million, respectively, were pledged to secure municipal deposits, securities sold under agreements to repurchase, other borrowings, and for other purposes as required or permitted by law.