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Securities | 12 Months Ended
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Dec. 31, 2012
Securities [Abstract] |
Securities | 3. Securities Securities available-for-sale at December 31, 2012 and 2011 are as follows:
|  | December 31, 2012 |  |  | December 31, 2011 |
|  | Amortized Cost |  |  | Unrealized |  |  | Fair Value |  |  | Amortized Cost |  |  | Unrealized |  |  | Fair Value |
|  | Gains |  |  | Losses |  |  |  |  | Gains |  |  | Losses |  |
U.S. Treasury |  |  | $ 4,018 |  |  |  | $ 18 |  |  |  | $ - |  |  |  | $ 4,036 |  |  |  | $ 8,064 |  |  |  | $66 |  |  | $ | - |  |  |  | $ 8,130 |
U.S. Gov’t sponsored entities |  |  | 157,965 |  |  |  | 5,977 |  |  |  | (161) |  |  |  | 163,781 |  |  |  | 102,258 |  |  |  | 5,249 |  |  |  | (15 | ) |  |  | 107,492 |
State & political subdivisions |  |  | 170,223 |  |  |  | 11,113 |  |  |  | (57) |  |  |  | 181,279 |  |  |  | 149,685 |  |  |  | 8,844 |  |  |  | (92 | ) |  |  | 158,437 |
Residential & multi-family mortgage |  |  | 308,800 |  |  |  | 8,724 |  |  |  | (702) |  |  |  | 316,822 |  |  |  | 292,297 |  |  |  | 8,043 |  |  |  | (214 | ) |  |  | 300,126 |
Commercial mortgage |  |  | 1,275 |  |  |  | 29 |  |  |  | - |  |  |  | 1,304 |  |  |  | 2,077 |  |  |  | 45 |  |  |  | - |  |  |  | 2,122 |
Corporate notes & bonds |  |  | 17,368 |  |  |  | 26 |  |  |  | (2,370) |  |  |  | 15,024 |  |  |  | 17,358 |  |  |  | 50 |  |  |  | (3,548 | ) |  |  | 13,860 |
Pooled trust preferred |  |  | 800 |  |  |  | - |  |  |  | (200) |  |  |  | 600 |  |  |  | 800 |  |  |  | - |  |  |  | (460 | ) |  |  | 340 |
Pooled SBA |  |  | 50,667 |  |  |  | 2,277 |  |  |  | (17) |  |  |  | 52,927 |  |  |  | 44,851 |  |  |  | 1,282 |  |  |  | (77 | ) |  |  | 46,056 |
Other securities |  |  | 1,521 |  |  |  | 17 |  |  |  | - |  |  |  | 1,538 |  |  |  | 1,521 |  |  |  | 23 |  |  |  | - |  |  |  | 1,544 |
Total |  |  | $712,637 |  |  |  | $28,181 |  |  |  | $(3,507) |  |  |  | $737,311 |  |  |  | $618,911 |  |  |  | $23,602 |  |  |  | $(4,406) |  |  |  | $638,107 |
At December 31, 2012 and 2011, there were no holdings of securities by any one issuer, other than U.S. Government sponsored entities, in an amount greater than 10% of shareholders’ equity. Trading securities accounted for under the fair value option at December 31, 2012 and 2011 are as follows:
|  | 2012 |  |  | 2011 |
Corporate equity securities |  | $ | 3,117 |  |  | $ | 1,959 |
Certificates of deposit |  |  | 408 |  |  |  | 255 |
International mutual funds |  |  | 287 |  |  |  | 257 |
Large cap growth mutual funds |  |  | 157 |  |  |  | 145 |
Money market mutual funds |  |  | 110 |  |  |  | 241 |
Large cap value mutual funds |  |  | 104 |  |  |  | 105 |
Corporate notes and bonds |  |  | 101 |  |  |  | 100 |
Real estate investment trust mutual funds |  |  | 65 |  |  |  | 68 |
U.S. Government sponsored entities |  |  | 58 |  |  |  | 55 |
Small cap mutual funds |  |  | 26 |  |  |  | 25 |
Mid cap mutual funds |  |  | 26 |  |  |  | 23 |
Total |  | $ | 4,459 |  |  | $ | 3,233 |
Securities with unrealized losses at December 31, 2012 and 2011, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:
December 31, 2012 |  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
Description of Securities |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |
U.S. Treasury |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
U.S. Gov’t sponsored entities |  |  | 41,715 |  |  |  | (161 | ) |  |  | - |  |  |  | - |  |  |  | 41,715 |  |  |  | (161 | )
State & political subdivisions |  |  | 7,857 |  |  |  | (57 | ) |  |  | - |  |  |  | - |  |  |  | 7,857 |  |  |  | (57 | )
Residential & multi-family mortgage |  |  | 32,159 |  |  |  | (688 | ) |  |  | 4,254 |  |  |  | (14 | ) |  |  | 36,413 |  |  |  | (702 | )
Commercial mortgage |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Corporate notes & bonds |  |  | - |  |  |  | - |  |  |  | 13,002 |  |  |  | (2,370 | ) |  |  | 13,002 |  |  |  | (2,370 | )
Pooled trust preferred |  |  | - |  |  |  | - |  |  |  | 600 |  |  |  | (200 | ) |  |  | 600 |  |  |  | (200 | )
Pooled SBA |  |  | 3,521 |  |  |  | (17 | ) |  |  | - |  |  |  | - |  |  |  | 3,521 |  |  |  | (17 | )
Other securities |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
|  | $ | 85,252 |  |  | $ | (923 | ) |  | $ | 17,856 |  |  | $ | (2,584 | ) |  | $ | 103,108 |  |  | $ | (3,507 | )
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |
December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
U.S. Gov’t sponsored entities |  |  | 7,671 |  |  |  | (15 | ) |  |  | - |  |  |  | - |  |  |  | 7,671 |  |  |  | (15 | )
State & political subdivisions |  |  | 5,314 |  |  |  | (92 | ) |  |  | - |  |  |  | - |  |  |  | 5,314 |  |  |  | (92 | )
Residential and multi-family mortgage |  |  | 36,626 |  |  |  | (162 | ) |  |  | 9,485 |  |  |  | (52 | ) |  |  | 46,111 |  |  |  | (214 | )
Commercial mortgage |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Corporate notes & bonds |  |  | 2,860 |  |  |  | (139 | ) |  |  | 8,841 |  |  |  | (3,409 | ) |  |  | 11,701 |  |  |  | (3,548 | )
Pooled trust preferred |  |  | - |  |  |  | - |  |  |  | 340 |  |  |  | (460 | ) |  |  | 340 |  |  |  | (460 | )
Pooled SBA |  |  | 8,139 |  |  |  | (77 | ) |  |  | - |  |  |  | - |  |  |  | 8,139 |  |  |  | (77 | )
Other securities |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
|  | $ | 60,610 |  |  | $ | (485 | ) |  | $ | 18,666 |  |  | $ | (3,921 | ) |  | $ | 79,276 |  |  | $ | (4,406 | )
The Corporation evaluates securities for other-than-temporary impairment on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation. The following table provides detailed information related to the Corporation’s structured pooled trust preferred securities as of December 31, 2012 and for the years ended December 31, 2012, 2011, and 2010:
|  | As of December 31, 2012 |  |  | Credit Losses Realized in Earnings |
|  | Adjusted Amortized |  |  | Unrealized |  |  | Fair |  |  | Year Ended December 31, |
|  | Cost |  |  | Gain (Loss) |  |  | Value |  |  | 2012 |  |  | 2011 |  |  | 2010 |
ALESCO Preferred Funding V, Ltd. |  | $ | 800 |  |  | $ | (200 | ) |  | $ | 600 |  |  | $ | - |  |  | $ | - |  |  | $ | 440 |
ALESCO Preferred Funding XII, Ltd. |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 280 |  |  |  | 933 |
ALESCO Preferred Funding XVII, Ltd. |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Preferred Term Securities XVI, Ltd. |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 118 |  |  |  | 868 |
US Capital Funding VI, Ltd. |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 800 |  |  | $ | (200 | ) |  | $ | 600 |  |  | $ | - |  |  | $ | 398 |  |  | $ | 2,241 |
At December 31, 2012, the Corporation evaluated the ALESCO Preferred Funding V, Ltd. Security for other than-temporary impairment by estimating the cash flows expected to be received, taking into account future estimated levels of deferrals and defaults by the underlying issuers and discounting those cash flows at the appropriate accounting yield. A roll-forward of the other-than-temporary impairment amount related to credit losses for the years ended December 31, 2012, 2011 and 2010 is as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in other comprehensive income, beginning of period |  | $ | 4,054 |  |  | $ | 3,656 |  |  | $ | 1,415 |
Additional credit loss for which other-than-temporary impairment was not previously recognized |  |  | - |  |  |  | - |  |  |  | 868 |
Additional credit loss for which other-than-temporary impairment was previously recognized |  |  | - |  |  |  | 398 |  |  |  | 1,373 |
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in other comprehensive income, end of period |  | $ | 4,054 |  |  | $ | 4,054 |  |  | $ | 3,656 |
Due to the insignificance of the adjusted amortized cost of structured pooled trust preferred securities as of December 31, 2012 and 2011, no further disclosures are required. For the securities that comprise corporate notes and bonds and the securities that comprise states and political subdivisions, management monitors publicly available financial information such as filings with the Securities and Exchange Commission in order to evaluate the securities for other-than-temporary impairment. For financial institution issuers, management also monitors information from quarterly “call” report filings that are used to generate Uniform Bank Performance Reports. When reviewing this information, management considers the financial condition and near term prospects of the issuer and whether downgrades by bond rating agencies have occurred. Management also considers the length of time and extent to which fair value has been less than cost and the intent and ability of the Corporation to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. As of December 31, 2012 and 2011, management concluded that the securities described in the previous paragraph were not other-than-temporarily impaired for the following reasons:
| — |  | There is no indication of any significant deterioration of the creditworthiness of the institutions that issued the securities.
| — |  | All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be received timely.
The Corporation does not intend to sell and it is not more likely than not that it will be required to sell the securities in an unrealized loss position before recovery of its amortized cost basis. On December 31, 2012 and 2011, securities carried at $264,813 and $264,166, respectively, were pledged to secure public deposits and for other purposes as provided by law. The following is a schedule of the contractual maturity of securities available for sale, excluding equity securities, at December 31, 2012:
|  | December 31, 2012 |
|  | Amortized Cost |  |  | Fair Value |
1 year or less |  | $ | 26,495 |  |  | $ | 26,741 |
1 year – 5 years |  |  | 102,828 |  |  |  | 106,190 |
5 years – 10 years |  |  | 167,676 |  |  |  | 177,533 |
After 10 years |  |  | 53,375 |  |  |  | 54,256 |
|  |  | 350,374 |  |  |  | 364,720 |
Residential and multi-family mortgage |  |  | 308,800 |  |  |  | 316,822 |
Pooled SBA |  |  | 50,667 |  |  |  | 52,927 |
Commercial mortgage |  |  | 1,275 |  |  |  | 1,304 |
Total debt securities |  | $ | 711,116 |  |  | $ | 735,773 |
Mortgage securities and pooled SBA securities are not due at a single date; periodic payments are received based on the payment patterns of the underlying collateral. Information pertaining to security sales is as follows:
Year ended December 31 |  | Proceeds |  |  | Gross Gains |  |  | Gross Losses |
2012 |  | $ | 125,579 |  |  | $ | 1,809 |  |  | $ | 430 |
2011 |  |  | 69,740 |  |  |  | 878 |  |  |  | 264 |
2010 |  |  | 95,381 |  |  |  | 1,677 |  |  |  | 17 |
The tax provision related to these net realized gains was $483, $215, and $581, respectively. During 2012, 2011 and 2010, the Corporation sold securities carried at fair value under the fair value option. Proceeds were $3,386 in 2012, $343 in 2011 and $34 in 2010, resulting in net gains (losses) of $298 in 2012, $30 in 2011, and ($68) in 2010.

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- 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
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