XML 1141 R10.htm IDEA: XBRL DOCUMENT

Securities

12 Months Ended

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
		Amortized Cost				Gains				Losses				Fair Value				Amortized Cost				Gains				Losses				Fair Value
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.

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

+ References+ Details