Investment Securities (Tables)

9 Months Ended

Sep. 30, 2013

Amortized Cost and Estimated Fair Value of Available-For-Sale Securities, Including Gross Unrealized Gains and Losses

The amortized cost and estimated fair value of available-for-sale securities, including gross unrealized gains and losses, at September 30, 2013, and December 31, 2012, were as follows:


	September 30, 2013
	Amortized		Unrealized		Unrealized			Fair		OTTI in
	Cost		Gains		Losses			Value		AOCI⁽¹⁾
(Amounts in thousands)
U.S. Treasury securities	$	9,701	$	—	$	(435	)	$	9,266	$	—
Municipal securities		152,965		2,760		(3,923	)		151,802		—
Single issue trust preferred securities		55,750		—		(9,811	)		45,939		—
Corporate securities		5,000		—		(67	)		4,933		—
Mortgage-backed securities:
Agency		321,486		3,416		(6,637	)		318,265		—
Non-Agency Alt-A residential		13,242		—		(3,219	)		10,023		(3,219	)

Total mortgage-backed securities		334,728		3,416		(9,856	)		328,288		(3,219	)
Equity securities		5,315		187		(54	)		5,448		—

Total	$	563,459	$	6,363	$	(24,146	)	$	545,676	$	(3,219	)


	December 31, 2012
	Amortized		Unrealized		Unrealized			Fair		OTTI in
	Cost		Gains		Losses			Value		AOCI⁽¹⁾
(Amounts in thousands)
Municipal securities	$	151,119	$	8,195	$	(97	)	$	159,217	$	—
Single issue trust preferred securities		55,707		—		(11,061	)		44,646		—
Mortgage-backed securities:
Agency		310,323		6,023		(449	)		315,897		—
Non-Agency Alt-A residential		14,215		—		(3,148	)		11,067		(3,148	)

Total mortgage-backed securities		324,538		6,023		(3,597	)		326,964		(3,148	)
Equity securities		3,446		190		(105	)		3,531		—

Total	$	534,810	$	14,408	$	(14,860	)	$	534,358	$	(3,148	)

(1)	Other-than-temporary impairment in accumulated other comprehensive income

Amortized Cost and Estimated Fair Value of Held-to-Maturity Securities, Including Gross Unrealized Gains and Losses

The amortized cost and estimated fair value of held-to-maturity securities, including gross unrealized gains and losses, at September 30, 2013, and December 31, 2012, were as follows:


	September 30, 2013
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
(Amounts in thousands)
Municipal securities	$	567	$	5	$	—	$	572

Total	$	567	$	5	$	—	$	572


	December 31, 2012
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
(Amounts in thousands)
Municipal securities	$	816	$	16	$	—	$	832

Total	$	816	$	16	$	—	$	832

Amortized Cost and Estimated Fair Value of Available-for-Sale and Held-to-Maturity Securities

The amortized cost and estimated fair value of available-for-sale and held-to-maturity securities by contractual maturity at September 30, 2013, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized
(Amounts in thousands)	Cost		Fair Value
Available-for-sale securities
Due within one year	$	727	$	735
Due after one year but within five years		17,725		18,101
Due after five years but within ten years		35,742		35,808
Due after ten years		169,222		157,296

		223,416		211,940
Mortgage-backed securities		334,728		328,288
Equity securities		5,315		5,448

Total	$	563,459	$	545,676

Held-to-maturity securities
Due within one year	$	—	$	—
Due after one year but within five years		567		572
Due after five years but within ten years		—		—
Due after ten years		—		—

Total	$	567	$	572

Available-For-Sale Securities in Continuous Unrealized Loss Position

Available-for-sale securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer at September 30, 2013, and December 31, 2012, were as follows:


	September 30, 2013
	Less than 12 Months					12 Months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
(Amounts in thousands)
U.S. Treasury securities	$	9,266	$	(435	)	$	—	$	—		$	9,266	$	(435	)
Municipal securities		43,722		(3,923	)		—		—			43,722		(3,923	)
Single issue trust preferred securities		—		—			45,939		(9,811	)		45,939		(9,811	)
Corporate securities		4,933		(67	)		—		—			4,933		(67	)
Mortgage-backed securities:
Agency		147,950		(5,869	)		16,006		(768	)		163,956		(6,637	)
Non-Agency Alt-A residential		—		—			10,023		(3,219	)		10,023		(3,219	)

Total mortgage-backed securities		147,950		(5,869	)		26,029		(3,987	)		173,979		(9,856	)
Equity securities		4,981		(19	)		153		(35	)		5,134		(54	)

Total	$	210,852	$	(10,313	)	$	72,121	$	(13,833	)	$	282,973	$	(24,146	)


	December 31, 2012
	Less than 12 Months					12 Months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
(Amounts in thousands)
Municipal securities	$	6,436	$	(97	)	$	—	$	—		$	6,436	$	(97	)
Single issue trust preferred securities		—		—			44,646		(11,061	)		44,646		(11,061	)
Mortgage-backed securities:
Agency		74,197		(449	)		15		—			74,212		(449	)
Non-Agency Alt-A residential		—		—			11,066		(3,148	)		11,066		(3,148	)

Total mortgage-backed securities		74,197		(449	)		11,081		(3,148	)		85,278		(3,597	)
Equity securities		3,106		(25	)		108		(80	)		3,214		(105	)

Total	$	83,739	$	(571	)	$	55,835	$	(14,289	)	$	139,574	$	(14,860	)

Company's Gross Gains and Gross Losses Realized from Sale of Securities

The following table details the Company’s gross gains and gross losses realized from the sale of securities for the periods indicated:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
(Amounts in thousands)
Gross realized gains	$	—		$	315		$	307		$	434
Gross realized losses		(39	)		(87	)		(116	)		(164	)

Net gain (loss) on sale of securities	$	(39	)	$	228		$	191		$	270

Cumulative Roll Forward of Credit Losses Recognized in Earnings for Debt Securities for Which Portion of OTTI Recognized in OCI

The following table provides a cumulative roll forward of credit losses recognized in earnings for debt securities for which a portion of the OTTI is recognized in OCI:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
(Amounts in thousands)
Beginning balance ⁽¹⁾	$	7,478	$	6,536	$	7,478	$	6,536
Additions for credit losses on securities not previously recognized		—		—		—		—
Additions for credit losses on securities previously recognized		—		942		—		942
Reduction for increases in cash flows		—		—		—		—
Reduction for securities management no longer intends to hold to recovery		—		—		—		—
Reduction for securities sold/realized losses		—		—		—		—

Ending balance	$	7,478	$	7,478	$	7,478	$	7,478

(1)	The beginning balance includes credit related losses included in OTTI charges recognized on debt securities in prior periods.

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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