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Investment Securities
 3 Months Ended
Mar. 31, 2012
Investments Securities [Abstract]  
Investment Securities
Note 2 - Investment Securities

The following table summarizes the amortized cost and estimated fair value of investment securities at March 31, 2012:

   
Amortized
  
Unrealized
  
Unrealized
  
Fair Value
 
   
Cost
  
Gains
  
Losses
  
(Estimated)
 
Securities available for sale
            
U.S. Treasury and agency
 $-  $-  $-  $- 
Mortgage-backed securities
  226,671,000   5,805,000   (361,000)  232,115,000 
State and political subdivisions
  77,672,000   5,540,000   (50,000)  83,162,000 
Corporate securities
  -   -   -   - 
Other equity securities
  1,863,000   44,000   (73,000)  1,834,000 
   $306,206,000  $11,389,000  $(484,000) $317,111,000 
Securities to be held to maturity
                
U.S. Treasury and agency
 $39,694,000  $37,000  $(435,000) $39,296,000 
Mortgage-backed securities
  52,185,000   3,638,000   -   55,823,000 
State and political subdivisions
  45,427,000   3,941,000   (154,000)  49,214,000 
Corporate securities
  300,000   -   -   300,000 
   $137,606,000  $7,616,000  $(589,000) $144,633,000 
Non-marketable securities
                
Federal Home Loan Bank Stock
 $13,412,000  $-  $-  $13,412,000 
Federal Reserve Bank Stock
  1,411,000   -   -   1,411,000 
   $14,823,000  $-  $-  $14,823,000 







The following table summarizes the amortized cost and estimated fair value of investment securities at December 31, 2011:

   
Amortized
  
Unrealized
  
Unrealized
  
Fair Value
 
   
Cost
  
Gains
  
Losses
  
(Estimated)
 
Securities available for sale
            
U.S. Treasury and agency
 $-  $-  $-  $- 
Mortgage-backed securities
  191,924,000   6,486,000   (178,000)  198,232,000 
State and political subdivisions
  80,259,000   5,484,000   (17,000)  85,726,000 
Corporate securities
  1,098,000   -   (287,000)  811,000 
Other equity securities
  1,535,000   37,000   (139,000)  1,433,000 
   $274,816,000  $12,007,000  $(621,000) $286,202,000 
Securities to be held to maturity
                
U.S. Treasury and agency
 $19,390,000  $132,000  $-  $19,522,000 
Mortgage-backed securities
  56,800,000   3,900,000   (3,000)  60,697,000 
State and political subdivisions
  46,171,000   4,159,000   (172,000)  50,158,000 
Corporate securities
  300,000   -   -   300,000 
   $122,661,000  $8,191,000  $(175,000) $130,677,000 
Non-marketable securities
                
Federal Home Loan Bank Stock
 $14,032,000  $-  $-  $14,032,000 
Federal Reserve Bank Stock
  1,411,000   -   -   1,411,000 
   $15,443,000  $-  $-  $15,443,000 

The following table summarizes the amortized cost and estimated fair value of investment securities at March 31, 2011:

   
Amortized
  
Unrealized
  
Unrealized
  
Fair Value
 
   
Cost
  
Gains
  
Losses
  
(Estimated)
 
Securities available for sale
            
U.S. Treasury and agency
 $15,352,000  $591,000  $-  $15,943,000 
Mortgage-backed securities
  255,703,000   1,138,000   (3,731,000)  253,110,000 
State and political subdivisions
  55,040,000   577,000   (536,000)  55,081,000 
Corporate securities
  1,108,000   -   (185,000)  923,000 
Other equity securities
  385,000   18,000   (9,000)  394,000 
   $327,588,000  $2,324,000  $(4,461,000) $325,451,000 
Securities to be held to maturity
                
U.S. Treasury and agency
 $2,936,000  $-  $(292,000) $2,644,000 
Mortgage-backed securities
  59,063,000   3,348,000   (76,000)  62,335,000 
State and political subdivisions
  47,787,000   1,641,000   (506,000)  48,922,000 
Corporate securities
  150,000   -   -   150,000 
   $109,936,000  $4,989,000  $(874,000) $114,051,000 
Non-marketable securities
                
Federal Home Loan Bank Stock
 $14,032,000  $-  $-  $14,032,000 
Federal Reserve Bank Stock
  1,411,000   -   -   1,411,000 
   $15,443,000  $-  $-  $15,443,000 





The following table summarizes the contractual maturities of investment securities at March 31, 2012:

   
Securities available for sale
  
Securities to be held to maturity
 
   
Amortized
Cost
  
Fair Value (Estimated)
  
Amortized
Cost
  
Fair Value (Estimated)
 
Due in 1 year or less
 $5,894,000  $5,948,000  $4,663,000  $4,710,000 
Due in 1 to 5 years
  59,887,000   60,971,000   12,173,000   12,940,000 
Due in 5 to 10 years
  13,014,000   13,442,000   35,563,000   38,100,000 
Due after 10 years
  225,548,000   234,916,000   85,207,000   88,883,000 
Equity securities
  1,863,000   1,834,000   -   - 
   $306,206,000  $317,111,000  $137,606,000  $144,633,000 

The following table summarizes the contractual maturities of investment securities at December 31, 2011:

   
Securities available for sale
  
Securities to be held to maturity
 
   
Amortized
Cost
  
Fair Value (Estimated)
  
Amortized
Cost
  
Fair Value (Estimated)
 
Due in 1 year or less
 $6,617,000  $6,773,000  $5,179,000  $5,227,000 
Due in 1 to 5 years
  18,792,000   19,473,000   10,085,000   10,654,000 
Due in 5 to 10 years
  23,219,000   24,065,000   23,027,000   24,694,000 
Due after 10 years
  224,653,000   234,458,000   84,370,000   90,102,000 
Equity securities
  1,535,000   1,433,000   -   - 
   $274,816,000  $286,202,000  $122,661,000  $130,677,000 

The following table summarizes the contractual maturities of investment securities at March 31, 2011:

   
Securities available for sale
  
Securities to be held to maturity
 
   
Amortized
Cost
  
Fair Value (Estimated)
  
Amortized
Cost
  
Fair Value (Estimated)
 
Due in 1 year or less
 $212,000  $218,000  $1,072,000  $1,084,000 
Due in 1 to 5 years
  2,818,000   2,964,000   5,629,000   5,948,000 
Due in 5 to 10 years
  4,774,000   4,916,000   16,974,000   17,737,000 
Due after 10 years
  319,399,000   316,959,000   86,261,000   89,282,000 
Equity securities
  385,000   394,000   -   - 
   $327,588,000  $325,451,000  $109,936,000  $114,051,000 

At March 31, 2012, securities with a fair value of $136,156,000 were pledged to secure public deposits, repurchase agreements, and for other purposes as required by law. This compares to securities with a fair value of $141,506,000 as of December 31, 2011 and $121,143,000 at March 31, 2011, pledged for the same purposes.
Gains and losses on the sale of securities available for sale are computed by subtracting the amortized cost at the time of sale from the security's selling price, net of accrued interest to be received. The following table shows securities gains and losses for the three months ended March 31, 2012 and 2011:

   
For the three months ended
March 31, 2012
  
For the three months ended
 March 31, 2011
 
Proceeds from sales
 $10,943,000  $- 
Gross gains
 $812,000  $- 
Gross losses
 $(289,000) $- 
Net gain
 $523,000  $- 
Related income taxes
 $183,000  $- 

Management reviews securities with unrealized losses for other than temporary impairment. As of March 31, 2012, there were 42 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair market value, of which 8 had been temporarily impaired for 12 months or more. At the present time, there have been no material changes in the credit quality of these securities resulting in other than temporary impairment, and in Management's opinion, no additional write-down for other-than-temporary impairment is warranted. Information regarding securities temporarily impaired as of March 31, 2012 is summarized below:

   
Less than 12 months
  
12 months or more
  
Total
 
   
Fair
  
Unrealized
  
Fair
  
Unrealized
  
Fair
  
Unrealized
 
   
Value
  
Losses
  
Value
  
Losses
  
Value
  
Losses
 
U.S. Treasury and agency
 $33,514,000  $(435,000) $-  $-  $33,514,000  $(435,000)
Mortgage-backed securities
  35,242,000   (280,000)  6,608,000   (81,000)  41,850,000   (361,000)
State and political subdivisions
  4,924,000   (204,000)  -   -   4,924,000   (204,000)
Corporate securities
  -   -   -   -   -   - 
Other equity securities
  -   -   253,000   (73,000)  253,000   (73,000)
   $73,680,000  $(919,000) $6,861,000  $(154,000) $80,541,000  $(1,073,000)

As of December 31, 2011, there were 29 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 11 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of December 31, 2011 is summarized below:

   
Less than 12 months
  
12 months or more
  
Total
 
   
Fair
  
Unrealized
  
Fair
  
Unrealized
  
Fair
  
Unrealized
 
   
Value
  
Losses
  
Value
  
Losses
  
Value
  
Losses
 
U.S. Treasury and agency
 $-  $-  $-  $-  $-  $- 
Mortgage-backed securities
  12,489,000   (25,000)  6,780,000   (156,000)  19,269,000   (181,000)
State and political subdivisions
  1,984,000   (17,000)  1,667,000   (172,000)  3,651,000   (189,000)
Corporate securities
  -   -   811,000   (287,000)  811,000   (287,000)
Other equity securities
  154,000   (120,000)  34,000   (19,000)  188,000   (139,000)
   $14,627,000  $(162,000) $9,292,000  $(634,000) $23,919,000  $(796,000)

As of March 31, 2011, there were 104 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair market value, of which 12 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of March 31, 2011 is summarized below:

   
Less than 12 months
  
12 months or more
  
Total
 
   
Fair
  
Unrealized
  
Fair
  
Unrealized
  
Fair
  
Unrealized
 
   
Value
  
Losses
  
Value
  
Losses
  
Value
  
Losses
 
U.S. Treasury and agency
 $2,645,000  $(292,000) $-  $-  $2,645,000  $(292,000)
Mortgage-backed securities
  187,278,000   (3,471,000)  6,757,000   (336,000)  194,035,000   (3,807,000)
State and political subdivisions
  29,835,000   (659,000)  1,398,000   (383,000)  31,233,000   (1,042,000)
Corporate securities
  -   -   922,000   (185,000)  922,000   (185,000)
Other equity securities
  10,000   (2,000)  47,000   (7,000)  57,000   (9,000)
   $219,768,000  $(4,424,000) $9,124,000  $(911,000) $228,892,000  $(5,335,000)

The Bank is a member of the Federal Home Loan Bank ("FHLB") of Boston, a cooperatively owned wholesale bank for housing and finance in the 6 New England States. As a requirement of membership in the FHLB, the Bank must own a minimum required amount of FHLB stock, calculated periodically based primarily on its level of borrowings from the FHLB. The Bank uses the FHLB for much of its wholesale funding needs. As of March 31, 2012 and 2011, and December 31, 2011, the Bank's investment in FHLB stock totaled $13.4 million and $14.0 million, respectively. FHLB stock is a non-marketable equity security and therefore is reported at cost, which equals par value.