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Securities
 6 Months Ended
Jun. 30, 2011
Securities  
Securities

Note 2. Securities

The Company invests in U.S. agency and mortgage-backed securities, obligations of state and political subdivisions and corporate equity securities. Amortized costs and fair values of securities available for sale at June 30, 2011 and December 31, 2010 were as follows:

 

     (in thousands)  
     June 30, 2011  
     Amortized
Cost		      Gross
Unrealized
Gains		      Gross
Unrealized
(Losses)		     Fair
Value		  

U.S. agency and mortgage-backed securities

    $ 66,976       $ 2,303       $ (3 )    $ 69,276   

Obligations of states and political subdivisions

      12,879         477         (29 )      13,327   

Corporate equity securities

      23         154         —          177   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 79,878       $ 2,934       $ (32 )    $ 82,780   
  

 

 

     

 

 

     

 

 

    

 

 

  
     (in thousands)  
     December 31, 2010  
     Amortized
Cost		      Gross
Unrealized
Gains		      Gross
Unrealized
(Losses)		     Fair
Value		  

U.S. agency and mortgage-backed securities

    $ 45,627       $ 1,508       $ (211 )    $ 46,924   

Obligations of states and political subdivisions

      13,290         225         (214 )      13,301   

Corporate equity securities

      23         172         —          195   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 58,940       $ 1,905       $ (425 )    $ 60,420   
  

 

 

     

 

 

     

 

 

    

 

 

  

At June 30, 2011 and December 31, 2010, investments in an unrealized loss position that were temporarily impaired were as follows:

 

     (in thousands)  
     June 30, 2011  
     Less than 12 months     12 months or more     Total  
     Fair Value      Unrealized
(Loss)		     Fair Value      Unrealized
(Loss)		     Fair Value      Unrealized
(Loss)		  

U.S. agency and mortgage-backed securities

    $ 1,997       $ (3 )    $ —         $ —        $ 1,997       $ (3 ) 

Obligations of states and political subdivisions

      —           —          459         (29 )      459         (29 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  
   $ 1,997       $ (3 )    $ 459       $ (29 )    $ 2,456       $ (32 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

     (in thousands)  
     December 31, 2010  
     Less than 12 months     12 months or more     Total  
     Fair Value      Unrealized
(Loss)		     Fair Value      Unrealized
(Loss)		     Fair Value      Unrealized
(Loss)		  

U.S. agency and mortgage-backed securities

    $ 11,286       $ (211 )    $ —         $ —        $ 11,286       $ (211 ) 

Obligations of states and political subdivisions

      2,923         (128 )      893         (86 )      3,816         (214 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  
   $ 14,209       $ (339 )    $ 893       $ (86 )    $ 15,102       $ (425 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

The tables above provide information about securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security's entire amortized cost basis. Presently, the Company does not intend to sell any of these securities, will not be required to sell these securities, and expects to recover the entire amortized cost of all the securities.

At June 30, 2011, there was one U.S. agency and mortgage-backed security and one obligation of state and political subdivisions in an unrealized loss position. One hundred percent of the Company's investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 4.0 years at June 30, 2011.

The Company's investment in Federal Home Loan Bank (FHLB) stock totaled $2.0 million at June 30, 2011. FHLB stock is generally viewed as a long-term investment and as a restricted security, which is carried at cost, because there is a minimal market for the stock. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider this investment to be other-than-temporarily impaired at June 30, 2011, and no impairment has been recognized. FHLB stock is shown in restricted securities on the balance sheet and is not part of the available for sale securities portfolio.