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Securities
 12 Months Ended
Dec. 31, 2012
Securities [Abstract]  
SECURITIES

(4) SECURITIES

The following table summarizes securities held for investment and securities available for sale:

 

                 
    December 31,  
    2012     2011  
    (Dollars in thousands)  

Held for investment at cost (fair value: $16,689 and $22,958, respectively)

   $ 16,416     $ 22,477  

Available for sale, at fair value

     546,126       592,500  
   

 

 

    

 

 

  

Total

   $ 562,542     $ 614,977  
   

 

 

    

 

 

  

The following table summarizes the amortized cost and estimated fair values of securities held for investment:

 

                                 
    Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Estimated
Fair
Value		  
    (Dollars in thousands)  

December 31, 2012

                                

U.S. Treasury and other Federal agencies

   $ 781     $ 59     $ —       $ 840  

States and political subdivisions

     15,635       222       (8 )      15,849  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 16,416     $ 281     $ (8 )    $ 16,689  
   

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2011

                                

U.S. Treasury and other Federal agencies

   $ 997     $ 75     $ —       $ 1,072  

States and political subdivisions

     21,480       406       —         21,886  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 22,477     $ 481     $ —       $ 22,958  
   

 

 

    

 

 

    

 

 

    

 

 

  

The following table summarizes the amortized cost and estimated fair values of securities available for sale:

 

                                 
    Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Estimated
Fair
Value		  
    (Dollars in thousands)  

December 31, 2012

                                

U.S. Federal agencies (1)

   $ 452,554     $ 3,654     $ (164 )    $ 456,044  

Mortgage backed securities

     19,100       825       (1 )      19,924  

States and political subdivisions

     53,912       2,875       (20 )      56,767  

Other securities (2)

     10,843       2,562       (14 )      13,391  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 536,409     $ 9,916     $ (199 )    $ 546,126  
   

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2011

                                

U.S. Federal agencies (1)

   $ 481,486     $ 6,673     $ (116 )    $ 488,043  

Mortgage backed securities

     28,984       615       (13 )      29,586  

States and political subdivisions

     60,239       2,490       (20 )      62,709  

Other securities (2)

     7,222       4,940       —         12,162  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 577,931     $ 14,718     $ (149 )    $ 592,500  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Primarily consists of FHLMC, FNMA, GNMA and mortgage backed securities through U.S. agencies.
(2) Primarily consists of equity securities.

 

The maturities of securities held for investment and available for sale are summarized in the following table using contractual maturities. Actual maturities may differ from contractual maturities due to obligations that are called or prepaid. For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been presented at their contractual maturity.

 

                                 
    December 31,  
    2012     2011  
    Amortized
Cost		     Estimated
Fair
Value		     Amortized
Cost		     Estimated
Fair
Value		  
    (Dollars in thousands)  

Held for Investment

                                

Contractual maturity of debt securities:

                                

Within one year

   $ 4,180     $ 4,227     $ 5,845     $ 5,908  

After one year but within five years

     10,360       10,496       13,967       14,256  

After five years but within ten years

     1,400       1,438       1,883       1,943  

After ten years

     476       528       782       851  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 16,416     $ 16,689     $ 22,477     $ 22,958  
   

 

 

    

 

 

    

 

 

    

 

 

  

Available for Sale

                                

Contractual maturity of debt securities:

                                

Within one year

   $ 144,666     $ 145,027     $ 105,169     $ 107,109  

After one year but within five years

     256,890       259,475       317,979       321,661  

After five years but within ten years

     36,764       38,306       61,412       63,358  

After ten years

     90,626       93,293       86,149       88,210  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total debt securities

     528,946       536,101       570,709       580,338  

Equity securities

     7,463       10,025       7,222       12,162  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 536,409     $ 546,126     $ 577,931     $ 592,500  
   

 

 

    

 

 

    

 

 

    

 

 

  

The following is a detail of proceeds from sales and calls, and realized securities gains and losses, on available for sale securities:

 

                         
    Year Ended December 31,  
    2012     2011     2010  
    (Dollars in thousands)  

Proceeds

   $ 10,425     $ 94,658     $ 5,783  

Gross gains realized

     5,575       1,940       528  

Gross losses realized

     660       342       204  

The following table is a summary of the Company’s book value of securities that were pledged as collateral for public funds on deposit, repurchase agreements and for other purposes as required or permitted by law:

 

                 
    Year Ended December 31,  
    2012     2011  
    (Dollars in thousands)  

Book value of pledged securities

   $ 499,244     $ 527,211  

 

The following table summarizes securities with unrealized losses, segregated by the duration of the unrealized loss, at December 31, 2012 and 2011 respectively:

 

                                                 
    Less than 12 Months     More than 12 Months     Total  
    Estimated
Fair Value		     Unrealized
Losses		     Estimated Fair
Value		     Unrealized
Losses		     Estimated Fair
Value		     Unrealized
Losses		  
    (Dollars in thousands)  

December 31, 2012

                                                

Held for Investment

                                                

U.S. Federal agencies

   $ —       $ —       $ 6     $ —       $ 6     $ —    

States and political subdivisions

     115       —         1,327       8       1,442       8  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 115     $ —       $ 1,333     $ 8     $ 1,448     $ 8  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Available for Sale

                                                

U.S. Federal agencies

   $ 20,072     $ 7     $ 151,701     $ 158     $ 171,773     $ 165  

States and political subdivisions

     928       3       1,505       17       2,433       20  

Other

     —         —         3,366       14       3,366       14  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 21,000     $ 10     $ 156,572     $ 189     $ 177,572     $ 199  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2011

                                                

Held for Investment

                                                

U.S. Federal agencies

   $ —       $ —       $ —       $ —       $ —       $ —    

States and political subdivisions

     205       —         —         —         205       —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 205     $ —       $ —       $ —       $ 205     $ —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Available for Sale

                                                

U.S. Federal agencies

   $ —       $ —       $ 148,576     $ 116     $ 148,576     $ 116  

States and political subdivisions

     40       —         3,571       33       3,611       33  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 40     $ —       $ 152,147     $ 149     $ 152,187     $ 149  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Declines in the fair value of held for investment and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Management has the ability and intent to hold the securities classified as held for investment until they mature, at which time the Company will receive full value for the securities. Furthermore, as of December 31, 2012 and 2011, the Company also had the ability and intent to hold the securities classified as available for sale for a period of time sufficient for a recovery of cost. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying debt securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality and therefore has not recognized any impairment in the Company’s consolidated statement of comprehensive income.