XML 43 R9.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Investment Securities | 9 Months Ended
--- | ---
Sep. 30, 2013
Investments Debt And Equity Securities [Abstract] |
Investment Securities | Note 2 — Investment Securities The following is a summary of investment securities available-for-sale as of September 30, 2013 and December 31, 2012:
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gain |  |  | Loss |  |  | Value |
|  | (In thousands) |
September 30, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities (1) |  | $ | 129,463 |  |  | $ | 793 |  |  | $ | 3,171 |  |  | $ | 127,085 |
U.S. government agency securities |  |  | 98,844 |  |  |  | 4 |  |  |  | 5,970 |  |  |  | 92,878 |
Collateralized mortgage obligations (1) |  |  | 85,191 |  |  |  | 773 |  |  |  | 854 |  |  |  | 85,110 |
Municipal bonds-tax exempt |  |  | 6,438 |  |  |  | 61 |  |  |  | 13 |  |  |  | 6,486 |
Municipal bonds-taxable |  |  | 35,290 |  |  |  | 219 |  |  |  | 721 |  |  |  | 34,788 |
Corporate bonds |  |  | 20,478 |  |  |  | 210 |  |  |  | 205 |  |  |  | 20,483 |
SBA loan pool securities |  |  | 13,826 |  |  |  | — |  |  |  | 905 |  |  |  | 12,921 |
Other securities |  |  | 3,025 |  |  |  | — |  |  |  | 104 |  |  |  | 2,921 |
Equity securities |  |  | 218 |  |  |  | 167 |  |  |  | — |  |  |  | 385 |
Total securities available-for-sale |  | $ | 392,773 |  |  | $ | 2,227 |  |  | $ | 11,943 |  |  | $ | 383,057 |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities (1) |  | $ | 157,185 |  |  | $ | 3,327 |  |  | $ | 186 |  |  | $ | 160,326 |
U.S. government agency securities |  |  | 92,990 |  |  |  | 222 |  |  |  | 94 |  |  |  | 93,118 |
Collateralized mortgage obligations (1) |  |  | 98,821 |  |  |  | 1,775 |  |  |  | 109 |  |  |  | 100,487 |
Municipal bonds-tax exempt |  |  | 12,209 |  |  |  | 603 |  |  |  | — |  |  |  | 12,812 |
Municipal bonds-taxable |  |  | 44,248 |  |  |  | 2,029 |  |  |  | 135 |  |  |  | 46,142 |
Corporate bonds |  |  | 20,470 |  |  |  | 176 |  |  |  | 246 |  |  |  | 20,400 |
SBA loan pool securities |  |  | 14,104 |  |  |  | 4 |  |  |  | 82 |  |  |  | 14,026 |
Other securities |  |  | 3,331 |  |  |  | 73 |  |  |  | 47 |  |  |  | 3,357 |
Equity securities |  |  | 354 |  |  |  | 78 |  |  |  | 40 |  |  |  | 392 |
Total securities available-for-sale |  | $ | 443,712 |  |  | $ | 8,287 |  |  | $ | 939 |  |  | $ | 451,060 |
(1) | Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities
The amortized cost and estimated fair value of investment securities as of September 30, 2013, by contractual maturity, are shown below. Although mortgage-backed securities and collateralized mortgage obligations have contractual maturities through 2063, 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 |
|  | Amortized |  |  | Estimated |
|  | Cost |  |  | Fair Value |
|  | (In thousands) |
Within one year |  | $ | — |  |  | $ | — |
Over one year through five years |  |  | 33,325 |  |  |  | 33,315 |
Over five years through ten years |  |  | 105,186 |  |  |  | 100,320 |
Over ten years |  |  | 39,390 |  |  |  | 36,842 |
Mortgage-backed securities |  |  | 129,463 |  |  |  | 127,085 |
Collateralized mortgage obligations |  |  | 85,191 |  |  |  | 85,110 |
Equity securities |  |  | 218 |  |  |  | 385 |
Total |  | $ | 392,773 |  |  | $ | 383,057 |
FASB ASC 320, “Investments — Debt and Equity Securities,” requires us to periodically evaluate our investments for other-than-temporary impairment (“OTTI”). There was no OTTI charge during the nine months ended September 30, 2013. 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 September 30, 2013 and December 31, 2012:
|  | Holding Period |
|  | Less Than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Gross |  |  | Estimated |  |  | Number |  |  | Gross |  |  | Estimated |  |  | Number |  |  | Gross |  |  | Estimated |  |  | Number |
|  | Unrealized |  |  | Fair |  |  | of |  |  | Unrealized |  |  | Fair |  |  | of |  |  | Unrealized |  |  | Fair |  |  | of |
|  | Loss |  |  | Value |  |  | Securities |  |  | Loss |  |  | Value |  |  | Securities |  |  | Loss |  |  | Value |  |  | Securities |
|  | (In thousands, except number of securities) |
September 30, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 1,552 |  |  | $ | 64,931 |  |  |  | 21 |  |  | $ | 1,619 |  |  | $ | 22,774 |  |  |  | 9 |  |  | $ | 3,171 |  |  | $ | 87,705 |  |  |  | 30 |
U.S. government agency securities |  |  | 4,577 |  |  |  | 70,263 |  |  |  | 26 |  |  |  | 1,393 |  |  |  | 19,603 |  |  |  | 7 |  |  |  | 5,970 |  |  |  | 89,866 |  |  |  | 33 |
Collateralized mortgage obligations |  |  | 500 |  |  |  | 24,478 |  |  |  | 12 |  |  |  | 354 |  |  |  | 9,610 |  |  |  | 4 |  |  |  | 854 |  |  |  | 34,088 |  |  |  | 16 |
Municipal bonds-tax exempt |  |  | 13 |  |  |  | 4,065 |  |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 13 |  |  |  | 4,065 |  |  |  | 2 |
Municipal bonds-taxable |  |  | 479 |  |  |  | 19,783 |  |  |  | 14 |  |  |  | 242 |  |  |  | 3,876 |  |  |  | 4 |  |  |  | 721 |  |  |  | 23,659 |  |  |  | 18 |
Corporate bonds |  |  | 91 |  |  |  | 4,899 |  |  |  | 1 |  |  |  | 114 |  |  |  | 6,874 |  |  |  | 2 |  |  |  | 205 |  |  |  | 11,773 |  |  |  | 3 |
SBA loan pool securities |  |  | 229 |  |  |  | 2,714 |  |  |  | 1 |  |  |  | 676 |  |  |  | 10,207 |  |  |  | 3 |  |  |  | 905 |  |  |  | 12,921 |  |  |  | 4 |
Other securities |  |  | 18 |  |  |  | 1,994 |  |  |  | 3 |  |  |  | 86 |  |  |  | 927 |  |  |  | 2 |  |  |  | 104 |  |  |  | 2,921 |  |  |  | 5 |
Total |  | $ | 7,459 |  |  | $ | 193,127 |  |  |  | 80 |  |  | $ | 4,484 |  |  | $ | 73,871 |  |  |  | 31 |  |  | $ | 11,943 |  |  | $ | 266,998 |  |  |  | 111 |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 186 |  |  | $ | 28,354 |  |  |  | 10 |  |  | $ | — |  |  | $ | — |  |  |  | — |  |  | $ | 186 |  |  | $ | 28,354 |  |  |  | 10 |
U.S. government agency securities |  |  | 94 |  |  |  | 26,894 |  |  |  | 9 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 94 |  |  |  | 26,894 |  |  |  | 9 |
Collateralized mortgage obligations |  |  | 109 |  |  |  | 14,344 |  |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 109 |  |  |  | 14,344 |  |  |  | 5 |
Municipal bonds-taxable |  |  | 126 |  |  |  | 4,587 |  |  |  | 4 |  |  |  | 9 |  |  |  | 1,964 |  |  |  | 3 |  |  |  | 135 |  |  |  | 6,551 |  |  |  | 7 |
Corporate bonds |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 246 |  |  |  | 10,738 |  |  |  | 3 |  |  |  | 246 |  |  |  | 10,738 |  |  |  | 3 |
SBA loan pool securities |  |  | 82 |  |  |  | 11,004 |  |  |  | 3 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 82 |  |  |  | 11,004 |  |  |  | 3 |
Other securities |  |  | 1 |  |  |  | 12 |  |  |  | 1 |  |  |  | 46 |  |  |  | 953 |  |  |  | 1 |  |  |  | 47 |  |  |  | 965 |  |  |  | 2 |
Equity securities |  |  | 40 |  |  |  | 96 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 40 |  |  |  | 96 |  |  |  | 1 |
Total |  | $ | 638 |  |  | $ | 85,291 |  |  |  | 33 |  |  | $ | 301 |  |  | $ | 13,655 |  |  |  | 7 |  |  | $ | 939 |  |  | $ | 98,946 |  |  |  | 40 |
All individual securities that have been in a continuous unrealized loss position for 12 months or longer as of September 30, 2013 and December 31, 2012 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 September 30, 2013. These securities have fluctuated in value since their purchase dates as market interest rates have fluctuated. 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. The Company does 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 basis. In addition, the unrealized losses on municipal and 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. Therefore, in management’s opinion, all securities that have been in a continuous unrealized loss position for the past 12 months or longer as of September 30, 2013 and December 31, 2012 were not other-than-temporarily impaired, and therefore, no impairment charges as of September 30, 2013 and December 31, 2012 were 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 |  |  | Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
|  | (In thousands) |
Gross realized gains on sales of investment securities |  | $ | 619 |  |  | $ | 10 |  |  | $ | 932 |  |  | $ | 1,442 |
Gross realized losses on sales of investment securities |  |  | (8 | ) |  |  | — |  |  |  | (9 | ) |  |  | (50 | )
Net realized gains on sales of investment securities |  | $ | 611 |  |  | $ | 10 |  |  | $ | 923 |  |  | $ | 1,392 |
Proceeds from sales of investment securities |  | $ | 26,661 |  |  | $ | 8,000 |  |  | $ | 51,425 |  |  | $ | 96,538 |
Tax expense on sales of investment securities |  | $ | 257 |  |  | $ | 4 |  |  | $ | 388 |  |  | $ | 585 |
For the three months ended September 30, 2013, there was a $611,000 net gain in earnings resulting from the sale of investment securities that had previously been recorded as net unrealized gains of $899,000 in comprehensive income. For the three months ended September 30, 2012, there was a $10,000 net gain in earnings resulting from the redemption of investment securities that had previously been recorded as net unrealized gains of $4,000 in comprehensive income. For the nine months ended September 30, 2013, there was a $923,000 net gain in earnings resulting from the redemption and sale of investment securities that had previously been recognized as net unrealized gains of $2.4 million in comprehensive income. For the nine months ended September 30, 2012, there was a $1.4 million net gain in earnings resulting from the redemption and sale of investment securities that had previously been recorded as net unrealized gains of $1.7 million in comprehensive income. Investment securities available-for-sale with carrying values of $50.5 million and $18.2 million as of September 30, 2013 and December 31, 2012, 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 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6871852&loc=d3e26610-111562 Reference 2: 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 3: 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 Reference 4: 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 5: 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=27724398&loc=d3e27232-111563 Reference 6: 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=27724398&loc=d3e27161-111563 + Details
Name: | us-gaap_MarketableSecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration