Quarterly report pursuant to Section 13 or 15(d)

SECURITIES

v2.3.0.15
SECURITIES
 9 Months Ended
Sep. 30, 2011
Securities [Abstract]  
SECURITIES
NOTE 2 – SECURITIES

The amortized cost and fair value of securities at period-end were as follows (dollars in thousands):

   
Amortized
    
Gross
Unrealized
    
Gross
Unrealized
    
Fair
  
   
Cost
    
Gains
    
Losses
    
Value
  
September 30, 2011
                        
Available for Sale:
                        
U.S. Treasury and federal agency securities
   $ 27,234     $ 255     $ (5 )   $ 27,484  
State and municipal bonds
     12,689       255       (24 )     12,920  
Corporate bonds
     545       ---       (10 )     535  
Other equity securities
     1,000       48       ---       1,048  
    $ 41,468     $ 558     $ (39 )   $ 41,987  
                                 
December 31, 2010
                                
Available for Sale:
                                
U.S. Treasury and federal agency securities
   $ 8,103     $ 6     $ ---     $ 8,109  
Other equity securities
     1,000       11       ---       1,011  
    $ 9,103     $ 17     $ ---     $ 9,120  
Held to Maturity:
                                
State and municipal bonds
   $ 83     $ ---     $ ---     $ 83  
                                 
    $ 83     $ ---     $ ---     $ 83  


There were no sales of securities in the three and nine month periods ended September 30, 2011 or in the three month period ended September 30, 2010.  During the nine month period ended September 30, 2010, we completed the disposition of nearly all of the municipal, corporate and U.S. agency securities then in our available-for-sale investment portfolio through sales in the open market.  Proceeds from these sales totaled $105.6 million and resulted in a net gain of $2.7 million.

Contractual maturities of debt securities at September 30, 2011 were as follows (dollars in thousands):

   
Available-for-Sale Securities
  
   
Amortized
    
Fair
  
   
Cost
    
Value
  
             
Due in one year or less
   $ ---     $ ---  
Due from one to five years
     14,261       14,493  
Due from five to ten years
     23,957       24,145  
Due after ten years
     2,250       2,301  
                 
    $ 40,468     $ 40,939  
 
Securities with unrealized losses at September 30, 2011, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands):

   
Less than 12 Months
    
12 Months or More
     Total  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
Description of Securities
  
Value
    
Loss
    
Value
    
Loss
    
Value
    
Loss
  
                                     
U.S federal agency securities
   $ 5,010     $ (5 )   $ ---     $ ---     $ 5,010     $ (5 )
State and municipal bonds
     2,817       (24 )     ---       ---       2,817       (24 )
Corporate bonds
     535       (10 )     ---       ---       535       (10 )
Other equity securities
     ---       ---       ---       ---       ---       ---  
                                                 
Total temporarily impaired
   $ 8,362     $ (39 )   $ ---     $ ---     $ 8,362     $ (39 )

There were no securities with unrealized losses at December 31, 2010.

Other-Than-Temporary-Impairment

Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation.  Management determined that no OTTI charges were necessary during the nine month periods ended September 30, 2011 and 2010.

At September 30, 2011 and December 31, 2010, securities with a carrying value of approximately $2.0 million and $2.3 million respectively, were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law.