Investment Securities (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Available For Sale, Held-to-Maturity, and Restricted Equity Securities

The following table summarizes the amortized cost and estimated fair value of investment securities at June 30, 2012:

	Amortized		Unrealized		Unrealized			Fair Value
	Cost		Gains		Losses			(Estimated)
Securities available for sale
U.S. Treasury and agency	$	-	$	-	$	-		$	-
Mortgage-backed securities		201,552,000		5,677,000		(250,000	)		206,979,000
State and political subdivisions		92,353,000		6,291,000		(51,000	)		98,593,000
Corporate securities		-		-		-			-
Other equity securities		1,863,000		47,000		(135,000	)		1,775,000
	$	295,768,000	$	12,015,000	$	(436,000	)	$	307,347,000
Securities to be held to maturity
U.S. Treasury and agency	$	41,197,000	$	282,000	$	(33,000	)	$	41,446,000
Mortgage-backed securities		49,992,000		3,524,000		(8,000	)		53,508,000
State and political subdivisions		44,286,000		4,088,000		-			48,374,000
Corporate securities		300,000		-		-			300,000
	$	135,775,000	$	7,894,000	$	(41,000	)	$	143,628,000
Restricted equity securities
Federal Home Loan Bank Stock	$	13,412,000	$	-	$	-		$	13,412,000
Federal Reserve Bank Stock		1,036,000		-		-			1,036,000
	$	14,448,000	$	-	$	-		$	14,448,000

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
Restricted equity securities
Federal Home Loan Bank Stock	$	14,031,000	$	-	$	-		$	14,031,000
Federal Reserve Bank Stock		1,412,000		-		-			1,412,000
	$	15,443,000	$	-	$	-		$	15,443,000

The following table summarizes the amortized cost and estimated fair value of investment securities at June 30, 2011:

	Amortized		Unrealized		Unrealized			Fair Value
	Cost		Gains		Losses			(Estimated)
Securities available for sale
U.S. Treasury and agency	$	15,324,000	$	799,000	$	-		$	16,123,000
Mortgage-backed securities		220,245,000		2,548,000		(1,269,000	)		221,524,000
State and political subdivisions		63,696,000		1,573,000		(107,000	)		65,162,000
Corporate securities		1,105,000		-		(169,000	)		936,000
Other equity securities		527,000		26,000		(20,000	)		533,000
	$	300,897,000	$	4,946,000	$	(1,565,000	)	$	304,278,000
Securities to be held to maturity
U.S. Treasury and agency	$	12,970,000	$	-	$	(186,000	)	$	12,784,000
Mortgage-backed securities		60,836,000		3,626,000		(37,000	)		64,425,000
State and political subdivisions		48,864,000		2,399,000		(346,000	)		50,917,000
Corporate securities		300,000		-		-			300,000
	$	122,970,000	$	6,025,000	$	(569,000	)	$	128,426,000
Restricted equity securities
Federal Home Loan Bank Stock	$	14,031,000	$	-	$	-		$	14,031,000
Federal Reserve Bank Stock		1,412,000		-		-			1,412,000
	$	15,443,000	$	-	$	-		$	15,443,000

Contractual Maturities of Investment Securities

The following table summarizes the contractual maturities of investment securities at June 30, 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	$	4,296,000	$	4,328,000	$	1,382,000	$	1,399,000
Due in 1 to 5 years		55,317,000		56,358,000		13,556,000		14,134,000
Due in 5 to 10 years		23,143,000		24,034,000		21,137,000		22,958,000
Due after 10 years		211,149,000		220,852,000		99,700,000		105,137,000
Equity securities		1,863,000		1,775,000		-		-
	$	295,768,000	$	307,347,000	$	135,775,000	$	143,628,000

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 June 30, 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	$	5,032,000	$	4,941,000	$	227,000	$	227,000
Due in 1 to 5 years		7,623,000		7,904,000		10,633,000		11,147,000
Due in 5 to 10 years		25,845,000		26,099,000		23,562,000		24,623,000
Due after 10 years		261,870,000		264,801,000		88,548,000		92,429,000
Equity securities		527,000		533,000		-		-
	$	300,897,000	$	304,278,000	$	122,970,000	$	128,426,000

Schedule of Securities Gains and Losses

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 six months and quarters ended June 30, 2012 and 2011:

	For the six months ended June 30,						For the quarters ended June 30,
	2012			2011			2012		2011
Proceeds from sales of securities	$	25,137,000		$	75,176,000		$	14,194,000	$	75,176,000
Gross realized gains		2,256,000			957,000			1,444,000		957,000
Gross realized losses		(289,000	)		(728,000	)		-		(728,000	)
Net gain	$	1,967,000		$	229,000		$	1,444,000	$	229,000
Related income taxes	$	688,000		$	80,000		$	505,000	$	80,000

The following table summarizes activity in the unrealized gain or loss on available for sale securities included in other comprehensive income for the six months and quarters ended June 30, 2012 and 2011.

	For the six months ended June 30,						For the quarters ended June 30,
	2012			2011			2012			2011
Balance at beginning of period	$	7,401,000		$	(2,057,000	)	$	7,088,000		$	(1,389,000	)
Unrealized gains arising during the period		2,159,000			6,775,000			2,118,000			5,747,000
Realized gains during the period		(1,967,000	)		(229,000	)		(1,444,000	)		(229,000	)
Related deferred taxes		(67,000	)		(2,291,000	)		(236,000	)		(1,931,000	)
Net change		125,000			4,255,000			438,000			3,587,000
Balance at end of period	$	7,526,000		$	2,198,000		$	7,526,000		$	2,198,000

Schedule of Temporary Impairment Losses

Management reviews securities with unrealized losses for other than temporary impairment. As of June 30, 2012, there were 30 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 eight 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 June 30, 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	$	7,942,000	$	(33,000	)	$	-	$	-		$	7,942,000	$	(33,000	)
Mortgage-backed securities		9,822,000		(110,000	)		5,137,000		(148,000	)		14,959,000		(258,000	)
State and political subdivisions		3,719,000		(51,000	)		-		-			3,719,000		(51,000	)
Corporate securities		-		-			-		-			-		-
Other equity securities		-		-			191,000		(135,000	)		191,000		(135,000	)
	$	21,483,000	$	(194,000	)	$	5,328,000	$	(283,000	)	$	26,811,000	$	(477,000	)

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 June 30, 2011, there were 65 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 June 30, 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	$	12,784,000	$	(186,000	)	$	-	$	-		$	12,784,000	$	(186,000	)
Mortgage-backed securities		71,157,000		(1,044,000	)		3,681,000		(262,000	)		74,838,000		(1,306,000	)
State and political subdivisions		12,050,000		(142,000	)		1,489,000		(311,000	)		13,539,000		(453,000	)
Corporate securities		-		-			936,000		(169,000	)		936,000		(169,000	)
Other equity securities		247,000		(15,000	)		48,000		(5,000	)		295,000		(20,000	)
	$	96,238,000	$	(1,387,000	)	$	6,154,000	$	(747,000	)	$	102,392,000	$	(2,134,000	)