(2)	Investment Securities

Investment securities available for sale at June 30, 2011 and December 31, 2010 are as follows:

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

Mortgage-backed securities	$	153,613	2,216	272	155,557
U.S. Government
sponsored enterprises		49,821	830	103	50,548
State and political subdivisions		87,125	2,214	392	88,947
Trust preferred securities		1,250	-	-	1,250
Equity securities		1,025	360	81	1,304

Total	$	292,834	5,620	848	297,606

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

Mortgage-backed securities	$	137,811	2,119	569	139,361
U.S. Government
sponsored enterprises		42,933	393	686	42,640
State and political subdivisions		89,486	793	2,450	87,829
Trust preferred securities		1,250	-	-	1,250
Equity securities		982	387	-	1,369

Total	$	272,462	3,692	3,705	272,449

The current fair value and associated unrealized losses on investments in securities with unrealized losses at June 30, 2011 and December 31, 2010 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	June 30, 2011
	Less than 12 Months			12 Months or More		Total
	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses

Mortgage-backed securities	$	28,020	272	-	-	28,020	272
U.S. Government
sponsored enterprises		10,845	103	-	-	10,845	103
State and political subdivisions		22,405	378	784	14	23,189	392
Equity securities		-	-	327	81	327	81

Total	$	61,270	753	1,111	95	62,381	848

(Dollars in thousands)
	December 31, 2010
	Less than 12 Months			12 Months or More		Total
	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses

Mortgage-backed securities	$	59,471	569	-	-	59,471	569
U.S. Government
sponsored enterprises		24,123	686	-	-	24,123	686
State and political subdivisions		56,374	2,450	-	-	56,374	2,450

Total	$	139,968	3,705	-	-	139,968	3,705

At June 30, 2011, unrealized losses in the investment securities portfolio relating to debt securities totaled $767,000. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the June 30, 2011 tables above, 31 out of 151 securities issued by state and political subdivisions contained unrealized losses and 18 out of 106 securities issued by U.S. government sponsored enterprises, including mortgage-backed securities, contained unrealized losses. These unrealized losses are considered temporary because of acceptable investment grades on each security and the repayment sources of principal and interest are government backed. The unrealized loss on one equity security was $81,000 as of June 30, 2011. This unrealized loss is considered temporary based upon the entity's strong capital position and growth potential.

The amortized cost and estimated fair value of investment securities available for sale at June 30, 2011, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

(Dollars in thousands)
	Amortized Cost		Estimated Fair Value
Due within one year	$	7,368	7,415
Due from one to five years		41,668	42,452
Due from five to ten years		70,375	71,596
Due after ten years		18,785	19,282
Mortgage-backed securities		153,613	155,557
Equity securities		1,025	1,304
Total	$	292,834	297,606

Proceeds from sales of securities available for sale during six months ended June 30, 2011 were $35.3 million and resulted in a gross gain of $1.3 million. Proceeds from sales of securities available for sale during the six months ended June 30, 2010 were $5.2 million and resulted in a gross gain of $268,000.

Securities with a fair value of approximately $101.8 million and $75.5 million at June 30, 2011 and December 31, 2010, respectively, were pledged to secure public deposits and for other purposes as required by law.