Quarterly report pursuant to Section 13 or 15(d)

Securities

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Securities
 6 Months Ended
Jun. 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):

   
Gross
    
Gross
              
   
Amortized
    
Unrealized
    
Unrealized
    
Fair
  
   
Cost
    
Gains
    
Losses
    
Value
  
June 30, 2011
                        
Available for Sale:
                        
U.S. Treasury and federal agency securities
   $ 15,681     $ 145     $ ---     $ 15,826  
State and municipal bonds
     5,803       105     $ (21 )   $ 5,887  
Other equity securities
     1,000       22       ---       1,022  
    $ 22,484     $ 272     $ (21 )   $ 22,735  
                                 
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 six month periods ended June 30, 2011 or in the three month period ended March 31, 2010.  During the three month period ended June 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 June 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
     15,488       15,657  
Due from five to ten years
     5,924       5,983  
Due after ten years
     72       73  
                 
    $ 21,484     $ 21,713  
 
Securities with unrealized losses at June 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
   $ ---     $ ---     $ ---     $ ---     $ ---     $ ---  
State and municipal bonds
     1,501       (21 )     ---       ---       1,501       (21 )
Other equity securities
     ---       ---       ---       ---       ---       ---  
                                                 
Total temporarily impaired
   $ 1,501     $ (21 )   $ ---     $ ---     $ 1,501     $ (21 )

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 six month periods ended June 30, 2011 and 2010.

At June 30, 2011 and December 31, 2010, securities with a carrying value of approximately $2,008,000 and $2,250,000, respectively, were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law.