XML 60 R11.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Investment Securities | 6 Months Ended
--- | ---
Jun. 30, 2012
Investment Securities [Abstract] |
INVESTMENT SECURITIES | NOTE 4 — INVESTMENT SECURITIES The following is a summary of investment securities held to maturity:
|  | Amortized Cost |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Estimated Fair Value |
|  | (In Thousands) |
June 30, 2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds-Tax Exempt |  | $ | 9,762 |  |  | $ | 254 |  |  | $ | — |  |  | $ | 10,016 |
Municipal Bonds-Taxable |  |  | 38,588 |  |  |  | 1,155 |  |  |  | 31 |  |  |  | 39,712 |
Mortgage-Backed Securities (1) |  |  | 2,785 |  |  |  | 55 |  |  |  | — |  |  |  | 2,840 |
U.S. government Agency Securities |  |  | 1,995 |  |  |  | 10 |  |  |  | — |  |  |  | 2,005 |
|  | $ | 53,130 |  |  | $ | 1,474 |  |  | $ | 31 |  |  | $ | 54,573 |
December 31, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal Bonds-Tax Exempt |  | $ | 9,815 |  |  | $ | 98 |  |  | $ | 46 |  |  | $ | 9,867 |
Municipal Bonds-Taxable |  |  | 38,797 |  |  |  | 117 |  |  |  | 522 |  |  |  | 38,392 |
Mortgage-Backed Securities (1) |  |  | 3,137 |  |  |  | 2 |  |  |  | 11 |  |  |  | 3,128 |
U.S. government Agency Securities |  |  | 7,993 |  |  |  | 2 |  |  |  | 19 |  |  |  | 7,976 |
|  | $ | 59,742 |  |  | $ | 219 |  |  | $ | 598 |  |  | $ | 59,363 |
(1) | Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities.
The following is a summary of investment securities available for sale:
|  | Amortized Cost |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Estimated Fair Value |
|  | (In Thousands) |
June 30, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities (1) |  | $ | 112,672 |  |  | $ | 2,574 |  |  | $ | 110 |  |  | $ | 115,136 |
Collateralized Mortgage Obligations (1) |  |  | 95,663 |  |  |  | 1,068 |  |  |  | 149 |  |  |  | 96,582 |
U.S. Government Agency Securities |  |  | 74,094 |  |  |  | 208 |  |  |  | 76 |  |  |  | 74,226 |
Municipal Bonds-Tax Exempt |  |  | 3,074 |  |  |  | 63 |  |  |  | — |  |  |  | 3,137 |
Municipal Bonds-Taxable |  |  | 5,895 |  |  |  | 435 |  |  |  | — |  |  |  | 6,330 |
Corporate Bonds |  |  | 20,465 |  |  |  | 3 |  |  |  | 567 |  |  |  | 19,901 |
Other Securities |  |  | 3,318 |  |  |  | 81 |  |  |  | 42 |  |  |  | 3,357 |
Equity Securities |  |  | 531 |  |  |  | — |  |  |  | 46 |  |  |  | 485 |
|  | $ | 315,712 |  |  | $ | 4,432 |  |  | $ | 990 |  |  | $ | 319,154 |
December 31, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities (1) |  | $ | 110,433 |  |  | $ | 2,573 |  |  | $ | 1 |  |  | $ | 113,005 |
Collateralized Mortgage Obligations (1) |  |  | 161,214 |  |  |  | 1,883 |  |  |  | 260 |  |  |  | 162,837 |
U.S. Government Agency Securities |  |  | 72,385 |  |  |  | 168 |  |  |  | 5 |  |  |  | 72,548 |
Municipal Bonds-Tax Exempt |  |  | 3,389 |  |  |  | 93 |  |  |  | — |  |  |  | 3,482 |
Municipal Bonds-Taxable |  |  | 5,901 |  |  |  | 237 |  |  |  | — |  |  |  | 6,138 |
Corporate Bonds |  |  | 20,460 |  |  |  | — |  |  |  | 624 |  |  |  | 19,836 |
Other Securities |  |  | 3,318 |  |  |  | 58 |  |  |  | 41 |  |  |  | 3,335 |
Equity Securities |  |  | 647 |  |  |  | 85 |  |  |  | 51 |  |  |  | 681 |
|  | $ | 377,747 |  |  | $ | 5,097 |  |  | $ | 982 |  |  | $ | 381,862 |
(1) | Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities.
The amortized cost and estimated fair value of investment securities at June 30, 2012, by contractual maturity, are shown below. Although mortgage-backed securities and collateralized mortgage obligations have contractual maturities through 2042, expected maturities may 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 Cost |  |  | Estimated Fair Value |  |  | Amortized Cost |  |  | Estimated Fair Value |
|  | (In Thousands) |
Within One Year |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Over One Year Through Five Years |  |  | 36,579 |  |  |  | 36,017 |  |  |  | 1,756 |  |  |  | 1,808 |
Over Five Years Through Ten Years |  |  | 58,110 |  |  |  | 58,592 |  |  |  | 21,778 |  |  |  | 22,382 |
Over Ten Years |  |  | 12,157 |  |  |  | 12,342 |  |  |  | 26,811 |  |  |  | 27,543 |
Mortgage-Backed Securities |  |  | 112,672 |  |  |  | 115,136 |  |  |  | 2,785 |  |  |  | 2,840 |
Collateralized Mortgage Obligations |  |  | 95,663 |  |  |  | 96,582 |  |  |  | — |  |  |  | — |
Equity Securities |  |  | 531 |  |  |  | 485 |  |  |  | — |  |  |  | — |
|  | $ | 315,712 |  |  | $ | 319,154 |  |  | $ | 53,130 |  |  | $ | 54,573 |
In accordance with FASB ASC 320, “Investments – Debt and Equity Securities,” which amended current other-than-temporary impairment (“OTTI”) guidance, we periodically evaluate our investments for OTTI. For the three months ended June 30, 2012, we recorded $116,000 in OTTI charges in earnings on available-for-sale security. The Company had an equity security with a carrying value of $395,000 at June 30, 2012. During 2012, the issuer’s financial condition had deteriorated and it was determined that the value on the investment is other-than-temporarily-impaired. Based on the closing price of the shares at June 30, 2012, we recorded an OTTI charge of $116,000 to write down the value of the investment security to its fair value. We perform periodic reviews for impairment in accordance with FASB ASC 320. Gross unrealized losses on investment securities available for sale, the estimated fair value of the related securities and the number of securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows as of June 30, 2012 and December 31, 2011:
|  | Holding Period |
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
Investment Securities Available for Sale |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Number of Securities |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Number of Securities |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Number of Securities |
|  | (In Thousands, Except Number of Securities) |
June 30, 2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities |  | $ | 110 |  |  | $ | 20,100 |  |  |  | 4 |  |  | $ | — |  |  | $ | — |  |  |  | — |  |  | $ | 110 |  |  | $ | 20,100 |  |  |  | 4 |
Collateralized Mortgage Obligation |  |  | 22 |  |  |  | 9,470 |  |  |  | 4 |  |  |  | 127 |  |  |  | 2,643 |  |  |  | 3 |  |  |  | 149 |  |  |  | 12,113 |  |  |  | 7 |
U.S. Government Agency Securities |  |  | 76 |  |  |  | 15,481 |  |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 76 |  |  |  | 15,481 |  |  |  | 5 |
Other Securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 42 |  |  |  | 958 |  |  |  | 1 |  |  |  | 42 |  |  |  | 958 |  |  |  | 1 |
Corporate Bonds |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 567 |  |  |  | 18,398 |  |  |  | 5 |  |  |  | 567 |  |  |  | 18,398 |  |  |  | 5 |
Equity Securities |  |  | 46 |  |  |  | 90 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 46 |  |  |  | 90 |  |  |  | 1 |
|  | $ | 254 |  |  | $ | 45,141 |  |  |  | 14 |  |  | $ | 736 |  |  | $ | 21,999 |  |  |  | 9 |  |  | $ | 990 |  |  | $ | 67,140 |  |  |  | 23 |
December 31, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities |  | $ | 1 |  |  | $ | 3,076 |  |  |  | 1 |  |  | $ | — |  |  | $ | — |  |  |  | — |  |  | $ | 1 |  |  | $ | 3,076 |  |  |  | 1 |
Collateralized Mortgage Obligation |  |  | 260 |  |  |  | 36,751 |  |  |  | 16 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 260 |  |  |  | 36,751 |  |  |  | 16 |
U.S. Government Agency Securities |  |  | 5 |  |  |  | 6,061 |  |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5 |  |  |  | 6,061 |  |  |  | 2 |
Other Securities |  |  | 1 |  |  |  | 12 |  |  |  | 1 |  |  |  | 40 |  |  |  | 959 |  |  |  | 1 |  |  |  | 41 |  |  |  | 971 |  |  |  | 2 |
Corporate Bonds |  |  | 41 |  |  |  | 4,445 |  |  |  | 2 |  |  |  | 583 |  |  |  | 15,391 |  |  |  | 4 |  |  |  | 624 |  |  |  | 19,836 |  |  |  | 6 |
Equity Securities |  |  | 51 |  |  |  | 85 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 51 |  |  |  | 85 |  |  |  | 1 |
|  | $ | 359 |  |  | $ | 50,430 |  |  |  | 23 |  |  | $ | 623 |  |  | $ | 16,350 |  |  |  | 5 |  |  | $ | 982 |  |  | $ | 66,780 |  |  |  | 28 |
The impairment losses described previously are not included in the table above. All individual securities that have been in a continuous unrealized loss position for 12 months or longer as of June 30, 2012 and December 31, 2011 had investment grade ratings upon purchase. The issuers of these securities have not established any cause for default on these securities and the various rating agencies have reaffirmed these securities’ long-term investment grade status as of June 30, 2012. These securities have fluctuated in value since their purchase dates as market interest rates have fluctuated. The unrealized losses on investments in U.S. agency securities were caused by interest rate increases subsequent to the purchase of these securities. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than par. Because the Bank does not intend to sell the securities in this class and it is not likely that the Bank will be required to sell these securities before recovery of their amortized cost basis, which may include holding each security until contractual maturity, the unrealized losses on these investments are not considered other-than-temporarily impaired. Of the residential mortgage-backed securities and collateralized mortgage obligations portfolio in an unrealized loss position at June 30, 2012, all of them are issued and guaranteed by U.S. government sponsored entities. The unrealized losses on residential mortgage-backed securities and collateralized mortgage obligations were caused by changes in market interest rates or the widening of market spreads subsequent to the initial purchase of these securities, and were not caused by concerns regarding the underlying credit of the issuers or the underlying collateral. It is expected that these securities will not be settled at a price less than the amortized cost of each investment. Because the decline in fair value is attributable to changes in interest rates or widening market spreads and not credit quality, and because the Bank does not intend to sell the securities in this class and it is not likely that the Bank will be required to sell these securities before recovery of their amortized cost basis, which may include holding each security until contractual maturity, the unrealized losses on these investments are not considered other-than-temporarily-impaired. The unrealized losses on corporate bonds are not considered other-than-temporarily impaired as the bonds are rated investment grade and there are no credit quality concerns with the issuers. Interest payments have been made as scheduled, and management believes this will continue in the future and that the bonds will be repaid in full as scheduled. FASB ASC 320 requires other-than-temporarily-impaired investment securities to be written down when fair value is below amortized cost in circumstances where: (1) an entity has the intent to sell a security; (2) it is more likely than not that an entity will be required to sell the security before recovery of its amortized cost basis; or (3) an entity does not expect to recover the entire amortized cost basis of the security. If an entity intends to sell a security or if it is more likely than not the entity will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If an entity does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in other comprehensive income. We do not intend to sell these securities and it is not more likely than not that we will be required to sell the investments before the recovery of its amortized cost bases. Therefore, in management’s opinion, all securities, other than the OTTI write-down related to an equity security, that have been in a continuous unrealized loss position for the past 12 months or longer as of June 30, 2012 and December 31, 2011 are not other-than-temporarily-impaired, and therefore, no other impairment charges as of June 30, 2012 and December 31, 2011 are warranted. Realized gains and losses on sales of investment securities, proceeds from sales of investment securities and the tax expense on sales of investment securities were as follows for the periods indicated:
|  | Three Months Ended June 31, |  |  | Six Months Ended June 31, |
|  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
|  | (In Thousands) |  |  | (In Thousands) |
Gross Realized Gains on Sales of Investment Securities |  | $ | 1,431 |  |  | $ | 969 |  |  | $ | 1,432 |  |  | $ | 969 |
Gross Realized Losses on Sales of Investment Securities |  | $ | (50 | ) |  | $ | (1,039 | ) |  | $ | (50 | ) |  | $ | (1,039 | )
Net Realized Gains on Sales of Investment Securities |  | $ | 1,381 |  |  | $ | (70 | ) |  | $ | 1,382 |  |  | $ | (70 | )
Proceeds from Sales of Investment Securities |  | $ | 85,538 |  |  | $ | 157,777 |  |  | $ | 88,538 |  |  | $ | 157,777 |
Tax Expense on Sales of Investment Securities |  | $ | 581 |  |  | $ | — |  |  | $ | 581 |  |  | $ | — |
For the three months ended June 30, 2012, $1.0 million of net unrealized losses arose during the period and was included in comprehensive income and there was a $1.4 million gain in earnings resulting from the sale of investment securities that had previously recorded net realized gains of $1.9 million in comprehensive income. For the three months ended June 30, 2011, $6.2 million of net unrealized gains arose during the period and was included in comprehensive income, and there was a $70,000 loss in earnings resulting from the sale of investment securities that had previously recorded net unrealized losses of $1.3 million in comprehensive income. For the six months ended June 31, 2012, $370,000 of net unrealized losses arose during the period and was included in comprehensive income and there was a $1.4 million gain in earnings resulting from the sale of investment securities that had previously recorded net unrealized gains of $1.7 million in comprehensive income. For the six months ended June 30, 2011, $6.3 million of net unrealized gains arose during the period and was included in comprehensive income, and there was a $70,000 loss in earnings resulting from the sale of investment securities that had previously recorded net unrealized losses of $1.5 million in comprehensive income. Investment securities available for sale with carrying values of $25.6 million and $45.8 million as of June 30, 2012 and December 31, 2011, respectively, were pledged to secure FHLB advances, public deposits and for other purposes as required or permitted by law.

X
- Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.2,12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6871852&loc=d3e26626-111562 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6871852&loc=d3e26610-111562 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.4) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 + Details
Name: | us-gaap_MarketableSecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration