Quarterly report pursuant to Section 13 or 15(d)

Securities

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Securities
 9 Months Ended
Sep. 30, 2012
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3 - Securities

The fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

 

    (Dollars in thousands)  
          Gross     Gross     Estimated  
    Cost     Unrealized     Unrealized     Fair  
    Basis     Gains     Losses     Value  
September 30, 2012                        
U.S. government sponsored entities   $ 14,511     $ 104     $ -     $ 14,615  
Collateralized mortgage obligations and residential mortgage-backed securities     111,275       4,066       (12 )     115,329  
Municipal securities     56,540       4,440       -       60,980  
Collateralized debt obligations     5,207       -       (3,852 )     1,355  
Total securities available-for-sale   $ 187,533     $ 8,610     $ (3,864 )   $ 192,279  
                                 
December 31, 2011                                
U.S. government sponsored entities   $ 15,610     $ 41     $ (3 )   $ 15,648  
Collateralized mortgage obligations and residential mortgage-backed securities     107,569       3,630       (2 )     111,197  
Municipal securities     54,738       4,018       -       58,756  
Collateralized debt obligations     5,214       -       (3,853 )     1,361  
Total securities available-for-sale   $ 183,131     $ 7,689     $ (3,858 )   $ 186,962  

 

The fair value of available-for-sale debt securities and carrying amount, if different, at September 30, 2012 by contractual maturity, were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

 

    (Dollars in thousands)  
    Available-for-sale  
    Estimated        
    Fair     Tax-Equivalent  
September 30, 2012   Value     Yield (%)  
Due in one year or less   $ 1,280       5.97  
Due from one to five years     8,244       4.30  
Due from five to ten years     34,443       4.29  
Due over ten years     32,983       5.03  
Collateralized mortgage obligations and residential mortgage-backed securities     115,329       2.94  
Total   $ 192,279       3.62  

 

Sales of available-for-sale securities were as follows:

 

    (Dollars in thousands)  
    September 30,     September 30,  
    2012     2011  
             
Proceeds   $ 15,574     $ 13,562  
Gross gains     735       692  
Gross losses     -       (9 )

 

Accumulated other comprehensive income/(loss) balances, net of tax, related to available-for-sale securities, were as follows:

 

    (Dollars in thousands)  
    Unrealized
gain/(loss)		  
Beginning balance, December 31, 2011   $ 2,476  
Current period change     605  
Ending balance, September 30, 2012   $ 3,081  

 

Securities with carrying values of approximately $32,890,000 and $70,412,000 were pledged as of September 30, 2012 and December 31, 2011, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law. The reduction in pledged securities is a result of the lifting of a state requirement to pledge securities for public funds on deposit.

 

Securities with unrealized losses at September 30, 2012 and December 31, 2011 not recognized in income are as follows:

 

    (Dollars in thousands)  
    Less than 12 months     12 months or longer     Total  
    Estimated           Estimated           Estimated        
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
September 30, 2012   Value     Losses     Value     Losses     Value     Losses  
U.S. government sponsored entities   $ -     $ -     $ -     $ -     $ -     $ -  
Collateralized mortgage obligations and residential mortgage-backed securities     2,597       (12 )     -       -       2,597       (12 )
Municipal securities     -       -       -       -       -       -  
Collateralized debt obligations     -       -       1,355       (3,852 )     1,355       (3,852 )
Total temporarily impaired   $ 2,597     $ (12 )   $ 1,355     $ (3,852 )   $ 3,952     $ (3,864 )
Number of securities             3               4               7  

 

    (Dollars in thousands)  
    Less than 12 months     12 months or longer     Total  
    Estimated           Estimated           Estimated        
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
December 31, 2011   Value     Losses     Value     Losses     Value     Losses  
U.S. government sponsored entities   $ 1,287     $ (3 )   $ -     $ -     $ 1,287     $ (3 )
Collateralized mortgage obligations and residential mortgage-backed securities     2,030       (2 )     -       -       2,030       (2 )
Municipal securities     -       -       -       -       -       -  
Collateralized debt obligations     -       -       1,361       (3,853 )     1,361       (3,853 )
Total temporarily impaired   $ 3,317     $ (5 )   $ 1,361     $ (3,853 )   $ 4,678     $ (3,858 )
Number of securities             2               4               6  

 

Unrealized losses on securities have not been recognized into income because the securities are of high credit quality or have undisrupted cash flows. Management has the intent and ability to hold those securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in securities markets. The fair value is expected to recover as the securities approach maturity.