The amortized cost and fair value of investment securities held to maturity consisted of the following (in thousands):

The contractual maturities of investment securities held to maturity are as follows (in thousands):

The amortized cost and fair value of investment securities available for sale consisted of the following (in thousands):

The contractual maturities of investment securities available for sale are as follows (in thousands):

June 30, 2011		Amortized Cost		Estimated Fair Value
Due in one year or less	$	-	$	-
Due after one year through five years		5,000		4,999
Due after five years through ten years		-		-
Due after ten years		3,493		1,507
Total	$	8,493	$	6,506

The fair value of temporarily impaired securities, the amount of unrealized losses and the length of time these unrealized losses existed are as follows (in thousands):

	Less than 12 months					12 months or longer					Total
		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
June 30, 2011

Trust preferred	$	-	$	-		$	988	$	(1,986	)	$	988	$	(1,986	)
Agency securities		4,999		(1	)		-		-			4,999		(1	)
Total	$	4,999	$	(1	)	$	988	$	(1,986	)	$	5,987	$	(1,987	)

	Less than 12 months					12 months or longer					Total
		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
March 31, 2011

Trust preferred	$	-	$	-		$	916	$	(2,058	)	$	916	$	(2,058	)
Agency securities		4,864		(136	)		-		-			4,864		(136	)
Total	$	4,864	$	(136	)	$	916	$	(2,058	)	$	5,780	$	(2,194	)

At June 30, 2011, the Company had a single collateralized debt obligation which is secured by trust preferred securities issued by 19 other financial institution holding companies, which we refer to as a pooled trust preferred security. The Company holds the mezzanine tranche of this security. Four of the issuers in this pool have defaulted (representing 37% of the remaining collateral), and eight others are currently in deferral (30% of the remaining collateral). The Company has estimated an expected default rate of 45% for the security. The expected default rate was estimated based primarily on an analysis of the financial condition of the underlying banks. There was no excess subordination on this security.

During the three months ended June 30, 2011, the Company determined that there was no additional other than temporary impairment (“OTTI”) charge on the above pooled trust preferred security. The Company does not intend to sell this security and it is not more likely than not that the Company will be required to sell the security before the anticipated recovery of the remaining amortized cost basis.

To determine the component of gross OTTI related to credit losses, the Company compared the amortized cost basis of the OTTI security to the present value of the revised expected cash flows, discounted using the current pre-impairment yield. The revised expected cash flow estimates are based primarily on an analysis of default rates, prepayment speeds and third-party analytical reports. Significant judgment of management is required in this analysis that includes, but is not limited to, assumptions regarding the ultimate collectibility of principal and interest on the underlying collateral.

The unrealized losses on the above agency securities are primarily attributable to increases in market interest rates subsequent to their purchase by the Company. The Company expects the fair value of these agency securities to recover as the agency securities approach their maturity dates or sooner if market yields for such securities decline. The Company does not believe that any of the agency securities are impaired due to reasons of credit quality or related to any company or industry specific event. Based on management’s evaluation and intent, none of the unrealized losses related to the agency securities in this table are considered other than temporary.