Investment Securities (Tables)

9 Months Ended

Sep. 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 September 30, 2012:

	Amortized		Unrealized		Unrealized			Fair Value
	Cost		Gains		Losses			(Estimated)
Securities available for sale
U.S. Treasury and agency	$	-	$	-	$	-		$	-
Mortgage-backed securities		183,126,000		6,408,000		(97,000	)		189,437,000
State and political subdivisions		100,614,000		8,363,000		(22,000	)		108,955,000
Corporate securities		-		-		-			-
Other equity securities		1,563,000		49,000		(104,000	)		1,508,000
	$	285,303,000	$	14,820,000	$	(223,000	)	$	299,900,000
Securities to be held to maturity
U.S. Treasury and agency	$	65,859,000	$	390,000	$	(21,000	)	$	66,228,000
Mortgage-backed securities		44,236,000		3,400,000		(10,000	)		47,626,000
State and political subdivisions		43,861,000		4,367,000		-			48,228,000
Corporate securities		300,000		-		-			300,000
	$	154,256,000	$	8,157,000	$	(31,000	)	$	162,382,000
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 September 30, 2011:

	Amortized		Unrealized		Unrealized			Fair Value
	Cost		Gains		Losses			(Estimated)
Securities available for sale
U.S. Treasury and agency	$	15,295,000	$	1,199,000	$	-		$	16,494,000
Mortgage-backed securities		227,180,000		8,173,000		(315,000	)		235,038,000
State and political subdivisions		70,124,000		3,936,000		(21,000	)		74,039,000
Corporate securities		1,103,000		-		(324,000	)		779,000
Other equity securities		534,000		33,000		(135,000	)		432,000
	$	314,236,000	$	13,341,000	$	(795,000	)	$	326,782,000
Securities to be held to maturity
U.S. Treasury and agency	$	20,998,000	$	180,000	$	-		$	21,178,000
Mortgage-backed securities		61,048,000		4,221,000		(19,000	)		65,250,000
State and political subdivisions		47,353,000		3,397,000		(251,000	)		50,499,000
Corporate securities		300,000		-		-			300,000
	$	129,699,000	$	7,798,000	$	(270,000	)	$	137,227,000
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 September 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	$	4,592,000	$	4,652,000	$	1,376,000	$	1,380,000
Due in 1 to 5 years		50,173,000		51,286,000		11,046,000		11,569,000
Due in 5 to 10 years		16,908,000		17,965,000		20,519,000		22,376,000
Due after 10 years		212,067,000		224,489,000		121,315,000		127,057,000
Equity securities		1,563,000		1,508,000		-		-
	$	285,303,000	$	299,900,000	$	154,256,000	$	162,382,000

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 September 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	$	4,394,000	$	4,450,000	$	152,000	$	153,000
Due in 1 to 5 years		11,188,000		11,748,000		14,848,000		15,415,000
Due in 5 to 10 years		34,872,000		36,698,000		22,158,000		23,608,000
Due after 10 years		263,248,000		273,454,000		92,541,000		98,051,000
Equity securities		534,000		432,000		-		-
	$	314,236,000	$	326,782,000	$	129,699,000	$	137,227,000

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 nine months and quarters ended September 30, 2012 and 2011:

	For the nine months ended September 30,						For the quarters ended September 30,
	2012			2011			2012		2011
Proceeds from sales of securities	$	25,437,000		$	75,182,000		$	300,000	$	6,000
Gross realized gains		2,256,000			964,000			-		7,000
Gross realized losses		(289,000	)		(727,000	)		-		1,000
Net gain	$	1,967,000		$	237,000			-	$	8,000
Related income taxes	$	688,000		$	83,000		$	-	$	3,000

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

	For the nine months ended September 30,						For the quarters ended September 30,
	2012			2011			2012			2011
Balance at beginning of period	$	7,401,000		$	(2,057,000	)	$	7,526,000		$	2,198,000
Unrealized gains arising during the period		5,178,000			15,949,000			3,019,000			9,174,000
Realized gains during the period		(1,967,000	)		(237,000	)		-			(8,000	)
Related deferred taxes		(1,124,000	)		(5,500,000	)		(1,057,000	)		(3,209,000	)
Net change		2,087,000			10,212,000			1,962,000			5,957,000
Balance at end of period	$	9,488,000		$	8,155,000		$	9,488,000		$	8,155,000

Schedule of Temporary Impairment Losses

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 Value		Unrealized			Fair Value		Unrealized			Fair Value		Unrealized
	(Estimated)		Losses			(Estimated)		Losses			(Estimated)		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 September 30, 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 12 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of September 30, 2011 is summarized below:

	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized			Fair Value		Unrealized			Fair Value		Unrealized
	(Estimated)		Losses			(Estimated)		Losses			(Estimated)		Losses
U.S. Treasury and agency	$	-	$	-		$	-	$	-		$	-	$	-
Mortgage-backed securities		11,669,000		(46,000	)		6,984,000		(288,000	)		18,653,000		(334,000	)
State and political subdivisions		1,748,000		(21,000	)		1,569,000		(251,000	)		3,317,000		(272,000	)
Corporate securities		-		-			779,000		(324,000	)		779,000		(324,000	)
Other equity securities		151,000		(119,000	)		36,000		(16,000	)		187,000		(135,000	)
	$	13,568,000	$	(186,000	)	$	9,368,000	$	(879,000	)	$	22,936,000	$	(1,065,000	)