Interest-bearing Deposits and Securities

3 Months Ended

Jun. 30, 2012

Interest-bearing Deposits and Securities:

Interest-bearing Deposits and Securities

Note 5:  INTEREST-BEARING DEPOSITS AND SECURITIES

The following table sets forth additional detail regarding our interest-bearing deposits and securities at the dates indicated (includes securities—trading, available-for-sale and held-to-maturity, all at carrying value) (in thousands):

	June 30, 2012	December 31, 2011	June 30, 2011
Interest-bearing deposits included in cash and due from banks	$132,536	$69,758	$168,198
U.S. Government and agency obligations	229,669	341,606	216,761
Municipal bonds:
Taxable	19,225	18,497	14,486
Tax exempt	102,139	88,963	83,315
Total municipal bonds	121,364	107,460	97,801
Corporate bonds	42,923	42,565	59,788
Mortgage-backed or related securities:
Ginnie Mae (GNMA)	16,736	19,572	21,818
Freddie Mac (FHLMC)	62,782	42,001	25,941
Fannie Mae (FNMA)	88,610	66,519	27,362
Private issuer	1,780	1,835	3,108
Total mortgage-backed or related securities	169,908	129,927	78,229
Asset-backed securities:
Student Loan Marketing Association (SLMA)	32,492	--	--
Equity securities (excludes FHLB stock)	454	402	646
Total securities	596,810	621,960	453,225
FHLB stock	37,371	37,371	37,371
Total interest-bearing deposits and securities	$766,717	$729,089	$658,794

Securities—Trading:  The amortized cost and estimated fair value of securities—trading at June 30, 2012 and December 31, 2011 are summarized as follows (dollars in thousands):

	June 30, 2012
	Amortized Cost	Fair Value	Percent of Total
U.S. Government and agency obligations	$1,400	$1,645	2.1%
Municipal bonds:
Taxable	85	92	0.1
Tax exempt	5,437	5,509	7.1
Total municipal bonds	5,522	5,601	7.2
Corporate bonds	62,948	37,605	48.6
Mortgage-backed or related securities:
FHLMC	8,509	9,132	11.8
FNMA	20,927	22,931	29.7
Total mortgage-backed or related securities	29,436	32,063	41.5
Equity securities	6,914	454	0.6
Total trading securities	$106,220	$77,368	100.0%

	December 31, 2011
	Amortized Cost	Fair Value	Percent of Total
U.S. Government and agency obligations	$2,401	$2,635	3.3%
Municipal bonds:
Taxable	391	420	0.5
Tax exempt	5,431	5,542	6.9
Total municipal bonds	5,822	5,962	7.4
Corporate bonds	63,502	35,055	43.4
Mortgage-backed or related securities:
FHLMC	10,535	11,246	13.9
FNMA	23,489	25,427	31.5
Total mortgage-backed or related securities	34,024	36,673	45.4
Equity securities	6,914	402	0.5
Total trading securities	$112,663	$80,727	100.0%

There were no sales of securities--trading during the six months ended June 30, 2012 or 2011.  The Company did not recognize any OTTI charges on securities--trading during the six months ended June 30, 2012 or 2011.  At June 30, 2012, there were no securities--trading in a nonaccrual status.  At June 30, 2011, there was one single-issuer trust preferred security that was on nonaccrual; however, subsequently, deferred and current payments have been received, removing the security from nonaccrual status.

The amortized cost and estimated fair value of securities—trading at June 30, 2012 and December 31, 2011, by contractual maturity, are shown below (in thousands).  Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.

	June 30, 2012		December 31, 2011
	Amortized Cost	Fair Value	Amortized Cost	Fair Value
Due in one year or less	$--	$--	$1,000	$1,009
Due after one year through five years	1,544	1,619	1,545	1,626
Due after five years through ten years	4,093	4,091	4,087	4,123
Due after ten years through twenty years	6,717	6,728	6,544	6,184
Due after twenty years	57,516	32,413	58,549	30,710
Total before mortgage-backed and equity securities	69,870	44,851	71,725	43,652
Mortgage-backed securities	29,436	32,063	34,024	36,673
Equity securities	6,914	454	6,914	402
Total	$106,220	$77,368	$112,663	$80,727

Securities—Available-for-Sale:  The amortized cost and estimated fair value of securities—available-for-sale at June 30, 2012 and December 31, 2011 are summarized as follows (dollars in thousands):

	June 30, 2012
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	Percent of Total
U.S. Government and agency obligations	$227,344	$700	$(20)	$228,024	52.3%
Municipal bonds:
Taxable	12,587	257	(2)	12,842	2.9
Tax exempt	20,646	225	(11)	20,860	4.8
Total municipal bonds	33,233	482	(13)	33,702	7.7
Corporate bonds	4,032	36	--	4,068	0.9
Mortgage-backed or related securities:
FHLMC	53,656	169	(175)	53,650	12.3
FNMA	64,986	748	(56)	65,678	15.1
GNMA	15,476	1,260	--	16,736	3.8
Other	1,672	108	--	1,780	0.4
Total mortgage-backed or related securities	135,790	2,285	(231)	137,844	31.6
Asset-backed securities:
SLMA	32,652	--	(160)	32,492	7.5
Total	$433,051	$3,503	$(424)	$436,130	100.0%

	December 31, 2011
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	Percent of Total
U.S. Government and agency obligations	$338,165	$862	$(56)	$338,971	72.8%
Municipal bonds:
Taxable	10,358	225	(2)	10,581	2.3
Tax exempt	16,535	210	(16)	16,729	3.6
Total municipal bonds	26,893	435	(18)	27,310	5.9
Corporate bonds	6,240	20	--	6,260	1.3
Mortgage-backed or related securities:
FHLMC	30,504	284	(33)	30,755	6.6
FNMA	40,897	310	(115)	41,092	8.8
GNMA	18,145	1,427	--	19,572	4.2
Other	1,735	100	--	1,835	0.4
Total mortgage-backed or related                  securities	91,281	2,121	(148)	93,254	20.0
Total	$462,579	$3,438	$(222)	$465,795	100.0%

At June 30, 2012 and December 31, 2011, an aging of unrealized losses and fair value of related securities—available-for-sale was as follows (in thousands):

	June 30, 2012
	Less Than 12 Months		12 Months or More		Total
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. Government and agency obligations	$32,016	$(20)	$--	$--	$32,016	$(20)
Municipal bonds:
Taxable	5,873	(2)	--	--	5,873	(2)
Tax exempt	3,083	(11)	--	--	3,083	(11)
Total municipal bonds	8,956	(13)	--	--	8,956	(13)
Mortgage-backed or related securities:
FNMA	18,113	(56)	--	--	18,113	(56)
FHLMC	32,676	(175)	--	--	32,676	(175)
Total mortgage-backed or related securities	50,789	(231)	--	--	50,789	(231)
Asset-backed securities:
SLMA	32,492	(160)	--	--	32,492	(160)
Total	$124,253	$(424)	$--	$--	$124,253	$(424)

	December 31, 2011
	Less Than 12 Months		12 Months or More		Total
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. Government and agency obligations	$74,326	$(56)	$--	$--	$74,326	$(56)
Municipal bonds:
Taxable	3,599	(2)	--	--	3,599	(2)
Tax exempt	4,075	(16)	--	--	4,075	(16)
Total municipal bonds	7,674	(18)	--	--	7,674	(18)
Mortgage-backed or related securities:
FNMA	27,332	(115)	--	--	27,332	(115)
FHLMC	6,556	(33)	--	--	6,556	(33)
Total mortgage-backed or related securities	33,888	(148)	--	--	33,888	(148)
Total	$115,888	$(222)	$--	$--	$115,888	$(222)

There were two sales of securities--available-for-sale totaling $12 million with a resulting gain of $29,000 during the six months ended June 30, 2012.  There were no sales of securities--available-for-sale during the six months ended June 30, 2011.  At June 30, 2012 there were 28 securities--available for sale with unrealized losses, compared to 26 securities at December 31, 2011.  Management does not believe that any individual unrealized loss as of June 30, 2012 represents OTTI.  The decline in fair market values of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase.

The amortized cost and estimated fair value of securities—available-for-sale at June 30, 2012 and December 31, 2011, by contractual maturity, are shown below (in thousands).  Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.

	June 30, 2012
	Amortized Cost	Fair Value
Due in one year or less	$30,087	$30,158
Due after one year through five years	208,232	209,261
Due after five years through ten years	37,705	37,720
Due after ten years through twenty years	21,237	21,147
Due after twenty years	--	--
Total by contractual maturity before mortgage-backed securities	297,261	298,286
Mortgage-backed securities	135,790	137,844
Total by contractual maturity	$433,051	$436,130

	December 31, 2011
	Amortized Cost	Fair Value
:DueInOneYearOrLessMember»Due in one year or less	$19,520	$19,602
Due after one year through five years	312,862	313,930
Due after five years through ten years	38,916	39,009
Due after ten years through twenty years	--	--
Due after twenty years	--	--
Total by contractual maturity before mortgage-backed securities	371,298	372,541
Mortgage-backed securities	91,281	93,254
Total by contractual maturity	$462,579	$465,795

Securities—Held-to-Maturity:  The amortized cost and estimated fair value of securities—held-to-maturity at June 30, 2012 and December 31, 2011 are summarized as follows (dollars in thousands):

	June 30, 2012
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	Percent of Total
Municipal bonds:
Taxable	$6,292	$441	$--	$6,733	7.6%
Tax exempt	75,770	5,439	(39)	81,170	91.0
Total municipal bonds	82,062	5,880	(39)	87,903	98.6
Corporate bonds	1,250	--	--	1,250	1.4
Total Held to Maturity Securities	$83,312	$5,880	$(39)	$89,153	100.0%

	December 31, 2011
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	Percent of Total
Municipal bonds:
Taxable	$7,496	$390	$--	$7,886	9.8%
Tax exempt	66,692	4,281	--	70,973	88.6
Total municipal bonds	74,188	4,671	--	78,859	98.4
Corporate bonds	1,250	--	(2)	1,248	1.6
Total Held to Maturity Securities	$75,438	$4,671	$(2)	$80,107	100.0%

At June 30, 2012 and December 31, 2011, an age analysis of unrealized losses and fair value of related securities—held-to-maturity was as follows (in thousands):

	June 30, 2012
	Less Than 12 Months		12 Months or More		Total
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Municipal bonds:
Taxable	$--	$--	$--	$--	$--	$--
Tax exempt	6,195	(39)	--	--	6,195	(39)
Total municipal bonds	6,195	(39)	--	--	6,195	(39)
Corporate bonds	--	--	--	--	--	--
Total Held to Maturity Security Age Analysis	$6,195	$(39)	$-	$--	$6,195	$(39)

	December 31, 2011
	Less Than 12 Months		12 Months or More		Total
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
Corporate bonds	$--	$--	$498	(2)	$498	$(2)
Total Held to Maturity Security Age Analylsis	$--	$--	$498	$(2)	$498	$(2)

There were no sales of securities--held-to-maturity during the six months ended June 30, 2012 and 2011.  The Company did not recognize any OTTI charge on securities--held-to-maturity during the six months ended June 30, 2012 or 2011.  As of June 30, 2012, there were no securities--held-to-maturity in a nonaccrual status.  There are six securities--held-to-maturity with unrealized losses at June 30, 2012, compared to two at December 31, 2011.  Management does not believe that any individual unrealized loss as of June 30, 2012 represents OTTI.  The decline in fair market value of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase.

The amortized cost and estimated fair value of securities—held-to-maturity at June 30, 2012 and December 31, 2011, by contractual maturity, are shown below (in thousands).  Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.

	June 30, 2012		December 31, 2011
	Amortized Cost	Fair Value	Amortized Cost	Fair Value
Due in one year or less	$1,378	$1,395	$2,707	$2,768
Due after one year through five years	15,366	16,118	14,420	15,150
Due after five years through ten years	12,049	12,555	9,726	10,254
Due after ten years through twenty years	48,507	52,935	46,741	49,936
Due after twenty years	6,012	6,150	1,844	1,999
Total by contractual maturity	$83,312	$89,153	$75,438	$80,107

Pledged Securities: The following table presents, as of June 30, 2012, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):

	Amortized Cost	Fair Value
Purpose or beneficiary:
State and local governments public deposits	$99,188	$105,703
Interest rate swap counterparties	10,153	10,275
Retail repurchase transaction accounts	105,347	108,261
Other	6,142	6,310
Total pledged securities	$220,830	$230,549