Securities

9 Months Ended

Sep. 30, 2011

Securities [Abstract]

Securities

Note 3—Securities

The amortized cost and fair value of securities available for sale and held to maturity securities at September 30, 2011 and December 31, 2010 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2011
Available for sale
U.S. government sponsored entities and agencies	$	2,415	$	1	$	(2	)	$	2,414
State and political subdivision		6,309		8		(21	)		6,296
Mortgage-backed: residential		327		32		—			359
Collateralized mortgage obligations		6,870		76		—			6,946
Total available for sale	$	15,921	$	117	$	(23	)	$	16,015
Held to maturity
Mortgage-backed: residential	$	34	$	2	$	—		$	36
December 31, 2010
Available for sale
U.S. government sponsored entities and agencies	$	613	$	1	$	—		$	614
State and political subdivision		5,153		99		(16	)		5,236
Mortgage-backed: residential		4,334		303		—			4,637
Collateralized mortgage obligations		2,166		50		(19	)		2,197
Total available for sale	$	12,266	$	453	$	(35	)	$	12,684
Held to maturity
Mortgage-backed: residential	$	56	$	3	$	—		$	59

The proceeds from sales of securities and the associated gross gains and losses for the nine months ended September 30, 2011 and September 30, 2010 are listed below:

	Sept. 30, 2011		Sept. 30, 2010
Proceeds	$	13,893	$	—
Gross gains		528		—
Gross losses		—		—

The amortized cost and fair value of securities are shown by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2011
	Amortized Cost		Fair Value
Available for sale
One to five years	$	1,968	$	1,966
Five to ten years		998		980
Beyond ten years		5,758		5,764
Mortgage backed: residential		327		359
Collateralized mortgage obligations		6,870		6,946
Total	$	15,921	$	16,015
Held to maturity
One to five years	$	34	$	36
Five to ten years		—		—
Total	$	34	$	36

Securities pledged at September 30, 2011 and December 31, 2010 had a carrying amount of $7.2 million and $10.0 million, respectively, and were pledged to secure public deposits, federal funds lines of credit, and securities sold under repurchase agreements.

The following table summarizes the investment securities with unrealized losses at September 30, 2011 and December 31, 2010 aggregated by major security type and length of time in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or Longer				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
September 30, 2011
Available for sale
U.S. gov’t sponsored entities and agencies		723		(2	)		17		—		740		(2	)
State and political subdivisions	$	1,237	$	(21	)	$	—	$	—	$	1,237	$	(21	)
Total temporarily impaired	$	1,960	$	(23	)	$	17	$	—	$	1,977	$	(23	)

	Less Than 12 Months					12 Months or Longer				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2010
Available for sale
U.S. government-sponsored entities and agencies	$	709	$	(16	)	$	—	$	—	$	709	$	(16	)
State and political subdivisions		—		—			18		—		18		—
Mortgage-backed: Residential		490		(19	)		—		—		490		(19	)
Total temporarily impaired	$	1,199	$	(35	)	$	18	$	—	$	1,217	$	(35	)

Unrealized losses on securities have not been recognized into income because the issuers are of high credit quality (rated AA or higher), management does not intend to sell the securities and it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the securities approach maturity.