Annual Reports

 
Quarterly Reports

  • 10-Q (Nov 14, 2013)
  • 10-Q (Aug 14, 2013)
  • 10-Q (May 14, 2013)
  • 10-Q (Nov 14, 2012)
  • 10-Q (Aug 14, 2012)
  • 10-Q (May 14, 2012)

 
8-K

 
Other

Oneida Financial 10-Q 2011

Documents found in this filing:

  1. 10-Q
  2. Ex-31.1
  3. Ex-32.1
  4. Ex-32.2
  5. Ex-32.2
form10q-118717_onfc.htm
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549


FORM 10-Q

x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934
   
 
For the quarterly period ended September 30, 2011
   
OR
   
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________________________ to __________________________________
 
Securities Exchange Act Number 001-34813

ONEIDA FINANCIAL CORP.
(Exact name of registrant as specified in its charter)

Maryland
 
80-0632920
(State or other jurisdiction of
 
(IRS Employer)
incorporation or organization)
 
Identification Number)

182 Main Street, Oneida, New York 13421

(Address of Principal Executive Offices)

(315) 363-2000
Registrant’s telephone number, including area code

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the Registrant is a large accelerated file, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check One):

 
o Large accelerated filer
o Accelerated filer    o
Non-accelerated filer    x
Smaller reporting company

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.). Yes o No x

APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: There were 7,065,578 shares of the Registrant’s common stock outstanding as of November 1, 2011.

 
 

 
 
ONEIDA FINANCIAL CORP.
INDEX

     
Page
     
         
 
1
 
         
   
2
 
         
   
3
 
         
   
4
 
         
   
5
 
         
   
6
 
         
   
7
 
         
 
30
 
         
 
43
 
         
 
43
 
         
 
44
 
         
 
44
 
         
 
45
 
         
 
45
 
         
 
45
 
         
 
45
 
         
 
45
 
         
 
46
 
 
 
 

 
 
 
Page 1 of 47

 
ONEIDA FINANCIAL CORP. AND SUBSIDIARIES
At September 30, 2011 (unaudited) and December 31, 2010 (unaudited)
 
   
At September 30,
    At December 31,  
   
2011
   
2010
 
   
(in thousands, except share data)
 
ASSETS
           
Cash and due from banks
  $ 19,949     $ 15,608  
Federal funds sold
    21,875       18,133  
TOTAL CASH AND CASH EQUIVALENTS
    41,824       33,741  
                 
Trading securities
    6,970       7,691  
Securities, available for sale
    204,235       227,478  
Securities, held to maturity (fair value $56,404 and $25,070 respectively)
    54,165       24,143  
Mortgage loans held for sale
    1,663       857  
Loans receivable
    289,304       286,850  
Allowance for loan losses
    (3,101 )     (4,276 )
LOANS RECEIVABLE, NET
    286,203       282,574  
                 
Federal Home Loan Bank stock
    2,155       2,109  
Bank premises and equipment, net
    20,887      
19,903
 
Accrued interest receivable
    2,550       2,455  
Bank owned life insurance
    16,737       16,332  
Other assets
    15,894       19,777  
Goodwill
    23,983       23,301  
Other intangible assets
    1,060       1,218  
TOTAL ASSETS
  $ 678,326     $ 661,579  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Liabilities:
               
Interest bearing deposits
  $ 486,076     $ 486,985  
Non-interest bearing deposits
    70,518       65,179  
Borrowings
    11,000       12,000  
Other liabilities
    10,099       11,495  
Due to Broker
    11,462        
TOTAL LIABILITIES
    589,155       575,659  
Oneida Financial Corp. Stockholders’ equity:
               
Preferred stock, 10,000,000 shares authorized
           
Common stock ($.01 par value; 30,000,000 shares authorized 7,068,099 and 7,164,794 issued)
    71       72  
Additional paid-in capital
    44,783       45,636  
Retained earnings
    46,315       44,816  
Accumulated other comprehensive loss
    (1,205 )     (6,198 )
Treasury stock (at cost, 2,521 and 2,521 shares)
    (20 )     (20 )
Unallocated ESOP
    (832 )     (946 )
Total Oneida Financial Corp stockholders’ equity
    89,112       83,360  
Noncontrolling interest
    59       2,560  
TOTAL STOCKHOLDERS’ EQUITY
    89,171       85,920  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 678,326     $ 661,579  
 
The accompanying notes are an integral part of the consolidated financial statements
 
 
Page 2 of 47


ONEIDA FINANCIAL CORP. AND SUBSIDIARIES
For the Three and Nine Months Ended September 30, 2011 (unaudited) and 2010 (unaudited)

   
Three Months Ended
   
Nine Months Ended
 
   
September 30, 2011
   
September 30, 2010
   
September 30, 2011
   
September 30, 2010
 
   
(in thousands, except share and per share data)
 
INTEREST INCOME:
                       
Interest and fees on loans
  $ 3,939     $ 4,187     $ 11,722     $ 12,688  
Interest on investment securities
    1,974       1,747       6,088       4,839  
Dividends on equity securities
    69       76       191       228  
Interest on federal funds sold and interest-earning deposits
    3       11       17       28  
Total interest and dividend income
    5,985       6,021       18,018       17,783  
INTEREST EXPENSE:
                               
Core deposits
    319       526       1,125       1,595  
Time deposits
    504       633       1,612       1,990  
Borrowings
    121       234       384       841  
Note payable
    2             6        
Total interest expense
    946       1,393       3,127       4,426  
NET INTEREST INCOME
    5,039       4,628       14,891       13,357  
Less: Provision for loan losses
    50       650       1,000       1,350  
Net interest income after provision for loan losses
    4,989       3,978       13,891       12,007  
INVESTMENT GAINS (LOSSES):
                               
Total other-than-temporary impairment losses
    (72 )     (1,035 )     (370 )     (1,703 )
Portion of loss recognized in OCI (before taxes)
          386       12       3  
Net impairment losses
    (72 )     (649 )     (358 )     (1,700 )
Net gains on sale of securities, net
    252       537       330       1,287  
Changes in fair value of trading securities
    (665 )     409       158       (315 )
Total investment (losses) gains
    (485 )     297       130       (728 )
NON-INTEREST INCOME:
                               
Commissions and fees on sales of  non-banking products
    4,259       3,845       14,288       12,942  
Other operating income
    1,406       1,376       3,720       3,814  
Total non-interest income
    5,665       5,221       18,008       16,756  
NON-INTEREST EXPENSES:
                               
Compensation and employee benefits
    5,585       5,404       16,965       15,837  
Occupancy expenses, net
    1,162       1,196       3,580       3,721  
Other operating expense
    2,013       1,775       5,801       5,358  
Total non-interest expenses
    8,760       8,375       26,346       24,916  
INCOME BEFORE INCOME TAXES
    1,409       1,121       5,683       3,119  
Provision for income taxes
    389       242       1,426       671  
NET INCOME
    1,020       879       4,257       2,448  
Less: net income attributable to noncontrolling interest
    64       64       192       192  
NET INCOME attributable to Oneida Financial Corp.
  $ 956     $ 815     $ 4,065     $ 2,256  
EARNINGS PER SHARE – BASIC
  $ 0.14     $ 0.12     $ 0.58     $ 0.32  
EARNINGS PER SHARE – DILUTED
  $ 0.14     $ 0.12     $ 0.58     $ 0.32  
 
The accompanying notes are an integral part of the consolidated financial statements.

 
Page 3 of 47

 
ONEIDA FINANCIAL CORP. AND SUBSIDIARIES
For the Three and Nine Months Ended September 30, 2011 (unaudited) and 2010 (unaudited)
 
   
Three Months Ended
   
Nine Months Ended
 
   
September 30,
   
September 30,
   
September 30,
   
September 30,
 
   
2011
   
2010
   
2011
   
2010
 
   
(In thousands)
 
                         
Net income
  $ 1,020     $ 879     $ 4,257     $ 2,448  
                                 
Other comprehensive income (loss), net of tax:
                               
Net change in unrealized gains (losses):
                               
Other-than-temporary impaired securities
                               
Unrealized losses on securities arising during period
    (68 )     (933 )     (179 )     (601 )
Reclassification adjustment for losses included in net income
    72       649       358       1,700  
Net unrealized gains (losses)
    4       (284 )     179       1,099  
Income tax effect
    (1 )     114       (71 )     (440 )
Net change in other-than- temporary securities
    3       (170 )     108       659  
                                 
Securities available for sale:
                               
Unrealized gains on securities arising during period
    2,944       1,542       8,380       3,007  
Reclassification adjustment for gains included in net income
    (252 )     (537 )     (330 )     (1,287 )
Net unrealized gains
    2,692       1,005       8,050       1,720  
Income tax effect
    (1,077 )     (402 )     (3,220 )     (688 )
Net change in securities Available for sale
    1,615       603       4,830       1,032  
                                 
Unrealized holding gains on securities net of tax
    1,618       433       4,938       1,691  
                                 
Change in unrealized loss on pension benefits
    30       32       92       96  
Income tax effect
    (12 )     (13 )     (37 )     (39 )
Net change in pension benefits
    18       19       55       57  
                                 
Other comprehensive income, net of tax
    1,636       452       4,993       1,748  
                                 
Comprehensive Income
    2,656       1,331       9,250       4,196  
Comprehensive income attributable to the Noncontrolling interest
    (64 )     (64 )     (192 )     (192 )
                                 
Comprehensive income attributable to Oneida Financial Corp.
  $ 2,592     $ 1,267     $ 9,058     $ 4,004  

The accompanying notes are an integral part of the consolidated financial statements.
 
Page 4 of 47

 
ONEIDA FINANCIAL CORP. AND SUBSIDIARIES
For the Nine Months Ended September 30, 2011 (unaudited)

   
Common Stock
   
Additional
Paid-In
   
Retained
   
Accumulated
Other
Comprehensive
   
Treasury
   
Common Stock
Issued Under
Employee
Stock Plans
   
Total Equity
Attributable
To Oneida
Financial
   
Non-
controlling
       
   
Shares
   
Amount
   
Capital
   
Earnings
   
Loss
   
Stock
   
Unearned
   
Corp.
   
Interest
   
Total
 
   
(In thousands, except number of shares)
 
                                                             
Balance as of January 1, 2011
    7,164,794     $ 72     $ 45,636     $ 44,816     $ (6,198 )   $ (20 )   $ (946 )   $ 83,360     $ 2,560     $ 85,920  
Net income
                      4,065                         4,065       192       4,257  
Distributions to non-controlling interest
                                                    (192 )     (192 )
Other comprehensive income, net of tax
                            4,993                   4,993             4,993  
Common stock dividends: $0.36 per share
                      (2,566 )                       (2,566 )           (2,566 )
Shares issued under ESOP plans
                9                         114       123             123  
Stock repurchased and retired
    (96,695 )     (1 )     (862 )                             (863 )     (2,501 )     (3,364 )
                                                                                 
Balance as of September 30, 2011
    7,068,099     $ 71     $ 44,783     $ 46,315     $ (1,205 )   $ (20 )   $ (832 )   $ 89,112     $ 59     $ 89,171  
 
The accompanying notes are an integral part of the consolidated financial statements.

 
Page 5 of 47

 
ONEIDA FINANCIAL CORP. AND SUBSIDIARIES
For the Nine Months Ended September 30, 2011 (unaudited) and 2010 (unaudited)

   
Nine Months Ended
 
   
September 30,
 
   
2011
   
2010
 
Operating Activities:
 
(in thousands)
 
Net income
  $ 4,257     $ 2,448  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation and amortization
    1,327       1,476  
Amortization of premiums/discounts on securities, net
    546       287  
Net change in fair value of trading securities
    (158 )     315  
Provision for loan losses
    1,000       1,350  
Loss on disposal of premises and equipment
          15  
Loss on sale of foreclosed property
    85       (3 )
Stock compensation earned
          144  
Loss on impairment of securities
    358       1,700  
ESOP share earned
    123        
Gain on sale of securities, net
    (330 )     (1,287 )
Gain on sale of loans, net
    (257 )     (367 )
Income tax payable
    (41 )     (866 )
Accrued interest receivable
    (95 )     (24 )
Other assets
    615       2,025  
Other liabilities
    (1,667 )     (4,205 )
Earnings on bank owned life insurance
    (405 )     (475 )
Origination of loans held for sale
    (13,636 )     (25,620 )
Proceeds from sales of loans
    13,087       24,585  
Net cash provided by operating activities
    4,809       1,498  
Investing Activities:
               
Purchase of securities available for sale
    (48,445 )     (173,164 )
Proceeds from sale of securities available for sale
    40,231       35,598  
Maturities and calls of securities available for sale
    40,440       38,042  
Principal collected on securities available for sale
    10,302       14,821  
Purchase of securities held to maturity
    (35,025 )      
Maturities and call of securities held to maturity
    1,998       19,061  
Principal collected on securities held to maturity
    2,874       3,312  
Proceeds from sale of trading securities
    845        
Purchase of FHLB stock
    (458 )     (293 )
Redemption of FHLB stock
    412       757  
Net (increase) decrease in loans
    (5,116 )     9,644  
Purchase of bank premises and equipment
    (2,016 )     (1,193 )
Proceeds from the sale of foreclosed property
    381       84  
Purchase of employee benefits company
    (95 )     (117 )
Purchase of insurance company
    (362 )      
Net cash provided by (used in) investing activities
    5,966       (53,448 )
Financing Activities:
               
Net increase in demand deposit, savings, money market, super now and escrow
    12,426       51,347  
Net decrease in time deposits
    (7,996 )     (6,315 )
Net proceeds of stock offerings and conversion
          27,748  
Dividends on preferred stock of subsidiary held by minority interest
    (192 )     (192 )
Proceeds from borrowings
          110  
Repayment of borrowings
    (1,000 )     (14,110 )
Cash dividends
    (2,566 )     (1,268 )
Stock issued/repurchase – noncontrolling interest
    (2,501 )     1  
Repurchase of common shares
    (863 )     (136 )
Exercise of stock options (using treasury stock)
          170  
Net cash (used in) provided by financing activities
    (2,692 )     57,355  
Increase in cash and cash equivalents
    8,083       5,405  
Cash and cash equivalents at beginning of period
    33,741       39,537  
Cash and cash equivalents at end of period
  $ 41,824     $ 44,942  
                 
Supplemental disclosures of cash flow information:
               
Cash paid for interest
    3,143       4,470  
Cash paid for income taxes
    1,465       1,535  
                 
Supplemental noncash disclosures:
               
Transfer of loans to other real estate
    487       863  
Dividends declared and unpaid
    848       860  
Notes payable issued in connection with acquisition
    362        
Transfer of fixed assets to held for sale
          1,018  
Purchase of securities not settled
    11,462        
 
The accompanying notes are an integral part of the consolidated financial statements.

 
Page 6 of 47

 
ONEIDA FINANCIAL CORP.
(UNAUDITED)
SEPTEMBER 30, 2011
Note A – Basis of Presentation

The accompanying unaudited consolidated financial statements include Oneida Financial Corp. (the “Company”), a Maryland corporation and its wholly owned subsidiary, Oneida Savings Bank (the “Bank”) as of September 30, 2011 and December 31, 2010 and for the three and nine month periods ended September 30, 2011 and 2010.  All inter-company accounts and transactions have been eliminated in consolidation.  The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q.  Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes.  These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements could reflect different estimates, assumptions, and judgments.  Certain policies inherently have a greater reliance on the use of estimates, assumptions, and judgments and as such have a greater possibility of producing results that could be materially different than originally reported.  Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, management has identified the determination of the allowance for loan losses, the fair value of trading securities and investment securities and the evaluation of other-than-temporary impairment on securities whose fair value is less than amortized cost to be the accounting areas that require the most subjective or complex judgments, and as such could be most subject to revision as new information becomes available.  Actual results could differ from those estimates.  In the opinion of management, the unaudited consolidated financial statements include all necessary adjustments, consisting of normal recurring accruals, necessary for a fair presentation for the periods presented.  The results of operations for the three months and nine months ended September 30, 2011 are not necessarily indicative of the results to be achieved for the remainder of 2011.  On July 7, 2010, Oneida Financial MHC completed its second step conversion to stock form (the “Conversion”).  At that date, Oneida Financial Corp., a Maryland corporation, became the stock holding company of the Bank.  Oneida Financial Corp., a Federal corporation, was merged with and into Oneida Financial Corp., a Maryland corporation.  As a result of the second-step conversion, all share and per share information have been restated giving retroactive recognition to the second-step conversion ratio of 0.9136.  See Note H for more information.

The data in the consolidated statements of condition for December 31, 2010 was derived from the audited financial statements included in the Company’s 2010 Annual Report on Form 10-K.  That data, along with the interim financial information presented in the consolidated statement of condition, statements of operations, comprehensive income, changes in stockholders’ equity and cash flows should be read in conjunction with the 2010 consolidated financial statements, including the notes thereto included in the Company’s Annual Report on Form 10-K.

Amounts in the prior period’s consolidated financial statements are reclassified when necessary to conform with the current period’s presentation.  Reclassifications did not impact prior period’s net income or stockholders’ equity.

Note B – Earnings per Share

The Company had stock compensation awards with non-forfeitable rights which are considered participating securities prior to 2011.  All compensation awards were vested as of December 31, 2010.  As such, earnings per share is computed using the two-class method.   Basic earnings per share is net income available to common shareholders divided by the weighted average number of common shares outstanding during the period, excluding outstanding participating securities. Diluted earnings per common share includes the dilutive effect of additional potential common shares from stock-based compensation plans, but excludes awards considered participating securities.
 
Earnings per common share have been computed based on the following for the three months and nine months ended September 30, 2011 and 2010:

   
Three Months Ended
   
Nine Months Ended
 
   
September 30,
   
September 30,
   
September 30,
   
September 30,
 
   
2011
   
2010
   
2011
   
2010
 
Net income attributable to Oneida Financial Corp.
  $ 956,364     $ 814,629     $ 4,065,401     $ 2,256,166  
Net earnings allocated to participating securities
          (1,702 )           (7,973 )
Net earnings allocated to common stock
  $ 956,364     $ 812,927     $ 4,065,401     $ 2,248,193  
 
 
Page 7 of 47

 
Note B – Earnings per Share (Continued)
 
Basic
                               
Distributed earnings allocated to common stock
  $ 847,869     $ 857,977     $ 2,566,815     $ 2,119,885  
Undistributed (over distributed) earnings allocated to common stock
    108,495       (45,050 )     1,498,586       128,308  
Net earnings allocated to common stock
  $ 956,364     $ 812,927     $ 4,065,401     $ 2,248,193  
                                 
Weighted average common shares outstanding including shares considered participating securities
    7,011,684       7,017,559       7,034,844       7,110,741  
Less:  Average participating securities
          (14,983 )           (14,983 )
Weighted average shares
    7,011,684       7,002,576       7,034,844       7,095,758  
                                 
Basic earnings per share
  $ 0.14     $ 0.12     $ 0.58     $ 0.32  
                                 
Diluted
                               
Net earnings allocated to common stock
  $ 956,364     $ 812,927     $ 4,065,401     $ 2,248,193  
                                 
Weighted average common shares outstanding for basic earnings per common share
    7,011,684       7,002,576       7,034,844       7,095,758  
Add: Dilutive effects of assumed exercise of stock options
                      2,579  
                                 
Weighted average shares and dilutive potential common shares
    7,011,684       7,002,576       7,034,844       7,098,337  
                                 
Diluted earnings per common share
  $ 0.14     $ 0.12     $ 0.58     $ 0.32  

There were no stock options considered in computing diluted earnings per common share for 2011 and for the three months ended September 30, 2010 as all options expired April 25, 2010.  Dividends of $7,702 as of September 30, 2010 were declared on unvested shares with non-forfeitable dividend rights none of which was included in net income as compensation expense because all the awards are expected to vest.

Note C – Investment Securities and Mortgage-Backed Securities

Investment securities and mortgage-backed securities consist of the following at September 30, 2011 and December 31, 2010:
 
   
September 30, 2011
 
   
Amortized
   
Gross Unrealized
   
Fair
 
 
 
Cost
   
Gains
   
Losses
   
Value
 
 
 
(In thousands)
 
Available-for-sale portfolio:
                       
Investment Securities
                       
Debt securities:
                       
U. S. Agencies
  $ 39,580     $ 223     $     $ 39,803  
Corporate
    28,108       589       (1,199 )     27,498  
Trust preferred securities
    6,266             (2,912 )     3,354  
State and municipal
    43,143       1,940             45,083  
Small business administration
    7,016       77       (23 )     7,070  
    $ 124,113     $ 2,829     $ (4,134 )   $ 122,808  
Mortgage-Backed Securities
                               
Fannie Mae
  $ 41,922     $ 1,185     $     $ 43,107  
Freddie Mac
    9,993       278             10,271  
Government National Mortgage Assoc.
    24,879       1,019             25,898  
Collateralized Mortgage Obligations
    2,233       19       (101 )     2,151  
    $ 79,027     $ 2,501     $ (101 )   $ 81,427  
Total available-for-sale
  $ 203,140     $ 5,330     $ (4,235 )   $ 204,235  

 
Page 8 of 47


Note C – Investment Securities and Mortgage-Backed Securities (Continued)
 
Held-to-maturity portfolio
                       
Investment Securities
                       
Debt securities:
                       
U. S. Agencies
  $ 18,625     $ 296     $     $ 18,921  
State and municipal
    8,187       971             9,158  
Small business administration
    600       7             607  
    $ 27,412     $ 1,274     $     $ 28,686  
Mortgage-Backed Securities
                               
Fannie Mae
  $ 15,353     $ 579     $     $ 15,932  
Freddie Mac
    5,060       165             5,225  
Government National Mortgage Assoc.
    6,340       221             6,561  
    $ 26,753     $ 965     $     $ 27,718  
Total held-to-maturity
  $ 54,165     $ 2,239     $     $ 56,404  

   
December 31, 2010
 
   
Amortized
   
Gross Unrealized
   
Faire
 
 
 
Cost
   
Gains
   
Losses
   
Value
 
 
 
(In thousands)
 
Available-for-sale portfolio:
                       
Investment Securities
                       
Debt securities:
                       
U. S. Agencies
  $ 70,214     $ 136     $ (1,205 )   $ 69,145  
Corporate
    25,139       157       (1,043 )     24,253  
Trust preferred securities
    6,858             (3,454 )     3,404  
State and municipal
    50,249       529       (1,708 )     49,070  
Small business administration
    3,027             (91 )     2,936  
    $ 155,487     $ 822     $ (7,501 )   $ 148,808  
Mortgage-Backed Securities
                               
Fannie Mae
  $ 38,331     $ 288     $ (511 )   $ 38,108  
Freddie Mac
    14,928       173       (151 )     14,950  
Government National Mortgage Assoc.
    22,164       277       (307 )     22,134  
Collateralized Mortgage Obligations
    3,701       9       (232 )     3,478  
    $ 79,124     $ 747     $ (1,201 )   $ 78,670  
Total available-for-sale
  $ 234,611     $ 1,569     $ (8,702 )   $ 227,478  
                                 
Held-to-maturity portfolio
                               
Investment Securities
                               
Debt securities:
                               
U. S. Agencies
  $ 3,998     $ 140     $     $ 4,138  
State and municipal
    8,270       484             8,754  
Small business administration
    663                   663  
    $ 12,931     $ 624     $     $ 13,555  
Mortgage-Backed Securities
                               
Fannie Mae
  $ 5,567     $ 177     $     $ 5,744  
Freddie Mac
    1,306       27             1,333  
Government National Mortgage Assoc.
    4,339       99             4,438  
    $ 11,212     $ 303     $     $ 11,515  
Total held-to-maturity
  $ 24,143     $ 927     $     $ 25,070  

The amortized cost and fair value of the investment securities portfolio at September 30, 2011 are shown by contractual maturities.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
   
Available for Sale
   
Held to Maturity
 
   
Amortized
   
Fair
   
Amortized
   
Fair
 
   
Cost
   
Value
   
Cost
   
Value
 
   
(In thousands)
 
Within one year
  $ 8,203     $ 8,220     $ 1,007     $ 1,027  
After one year through five years
    15,073       15,184       3,096       3,282  
After five years through ten years
    47,710       49,269       11,683       12,284  
After ten years
    53,127       50,135       11,626       12,093  
Total
  $ 124,113     $ 122,808     $ 27,412     $ 28,686  

 
Page 9 of 47

 
Note C – Investment Securities and Mortgage-Backed Securities (Continued)

Sales of securities were as follows:

   
Three Months Ended
   
Nine Months Ended
 
   
September 30, 2011
   
September 30, 2010
   
September 30, 2011
   
September 30, 2010
 
   
(In thousands)
 
Proceeds
  $ 12,828     $ 16,610     $ 40,231     $ 35,598  
Gross Gains
  $ 258     $ 536     $ 640     $ 1,287  
Gross Losses
  $ (6 )   $     $ (310 )   $  

Securities with unrealized losses at September 30, 2011 and December 31, 2010, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

September 30, 2011
 
Less than 12 Months
   
More than 12 Months
   
Total
 
   
Fair
   
Unrealized
   
Fair
   
Unrealized
   
Fair
   
Unrealized
 
Description of Securities
 
Value
   
Loss
   
Value
   
Loss
   
Value
   
Loss
 
   
(In thousands)
 
Corporate
  $ 6,941     $ (59 )   $ 6,851     $ (1,140 )   $ 13,792     $ (1,199 )
Trust preferred securities
                3,354       (2,912 )     3,354       (2,912 )
Small business administration
    2,092       (23 )                 2,092       (23 )
Collateralized mortgage obligations
                1,543       (101 )     1,543       (101 )
                                                 
Total securities available-for-sale in an unrealized loss position
  $ 9,033     $ (82 )   $ 11,748     $ (4,153 )   $ 20,781     $ (4,235 )
 
December 31, 2010
 
Less than 12 Months
   
More than 12 Months
   
Total
 
   
Fair
   
Unrealized
   
Fair
   
Unrealized
   
Fair
   
Unrealized
 
Description of Securities
 
Value
   
Loss
   
Value
   
Loss
   
Value
   
Loss
 
   
(In thousands)
 
U.S. Agency
  $ 50,289     $ (1,205 )   $     $     $ 50,289     $ (1,205 )
Corporate
    9,033       (97 )     4,043       (946 )     13,076       (1,043 )
Trust preferred securities
                3,404       (3,454 )     3,404       (3,454 )
State and municipals
    32,162       (1,708 )                 32,162       (1,708 )
Small business administration
    2,930       (91 )                 2,930       (91 )
Fannie Mae
    22,786       (511 )                 22,786       (511 )
Freddie Mac
    10,256       (151 )                 10,256       (151 )
Ginnie Mae
    11,531       (307 )                 11,531       (307 )
Collateralized mortgage obligations