Quarterly report pursuant to Section 13 or 15(d)

Securities

 v2.3.0.11
Securities
 6 Months Ended
Jun. 30, 2011
Securities  
Securities
11. SECURITIES

The amortized cost, gross unrealized gains and losses and estimated fair values of investment securities as of June 30, 2011 and December 31, 2010 are summarized as follows (in thousands):

 

            Gross Unrealized        
     Amortized
Cost		      Gains      (Losses)     Estimated
Fair Value		  

June 30, 2011

           

U.S. government and agency securities

    $ 8,533       $ 780       $ —        $ 9,313   

Obligations of states and political subdivisions

      182,466         5,675         (724 )      187,417   

Corporate and other bonds

      15,005         461         (422 )      15,044   

Mortgage-backed securities

      341,423         12,226         (101 )      353,548   

Federal Reserve Bank stock - restricted

      6,711         —           —          6,711   

Federal Home Loan Bank stock - restricted

      16,172         —           —          16,172   

Other securities

      2,857         —           (2 )      2,855   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total securities

   $ 573,167       $ 19,142       $ (1,249 )    $ 591,060   
  

 

 

     

 

 

     

 

 

    

 

 

  

December 31, 2010

           

U.S. government and agency securities

    $ 9,610       $ 454       $ (103 )    $ 9,961   

Obligations of states and political subdivisions

      176,431         2,189         (3,588 )      175,032   

Corporate and other bonds

      15,543         380         (858 )      15,065   

Mortgage-backed securities

      334,696         9,767         (425 )      344,038   

Federal Reserve Bank stock - restricted

      6,716         —           —          6,716   

Federal Home Loan Bank stock - restricted

      18,345         —           —          18,345   

Other securities

      3,259         32         (7 )      3,284   
  

 

 

     

 

 

     

 

 

    

 

 

  

Total securities

    $ 564,600       $ 12,822       $ (4,981 )    $ 572,441   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

The following table shows the gross unrealized losses and fair value (in thousands) of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position and are as follows:

 

     Less than 12 months     More than 12 months     Total  
     Fair value      Unrealized
Losses		     Fair value      Unrealized
Losses		     Fair value      Unrealized
Losses		  

As of June 30, 2011

                

Obligations of states and political subdivisions

    $ 18,493       $ (675 )    $ 4,608       $ (49 )    $ 23,101       $ (724 ) 

Mortgage-backed securities

      13,472         (101 )      —           —          13,472         (101 ) 

Corporate bonds and other securities

      21         (2 )      4,498         (422 )      4,519         (424 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Totals

    $ 31,986       $ (778 )    $ 9,106       $ (471 )    $ 41,092       $ (1,249 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

As of December 31, 2010

                

U.S. government and agency securities

    $ 43       $ (103 )    $ —         $ —        $ 43       $ (103 ) 

Obligations of states and political subdivisions

      82,952         (2,451 )      14,762         (1,137 )      97,714         (3,588 ) 

Mortgage-backed securities

      49,515         (425 )      —           —          49,515         (425 ) 

Corporate bonds and other securities

      —           (7 )      4,104         (858 )      4,104         (865 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Totals

    $ 132,510       $ (2,986 )    $ 18,866       $ (1,995 )    $ 151,376       $ (4,981 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

As of June 30, 2011, there were $9.1 million, or 17 issues, of individual securities that had been in a continuous loss position for more than 12 months. Additionally, these securities had an unrealized loss of $0.5 million and consisted of corporate and municipal obligations.

During each quarter the Company conducts an assessment of the securities portfolio for other-than-temporary impairment ("OTTI") consideration. The assessment considers factors such as external credit ratings, delinquency coverage ratios, market price, management's judgment, expectations of future performance, and relevant industry research and analysis. An impairment is OTTI if any of the following conditions exists: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or the entity does not expect to recover the security's entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Based on the assessment for the quarter ended June 30, 2011 and in accordance with the guidance, no OTTI was recognized.