Investment Securities (Tables)

12 Months Ended

Dec. 31, 2013

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

The following tables present the amortized cost and fair value of available-for-sale securities, including gross unrealized gains and losses, as of the dates indicated:


	December 31, 2013
(Amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		OTTI in AOCI⁽¹⁾
U.S. Treasury securities	$	9,708	$	—	$	(695	)	$	9,013	$	—
Municipal securities		147,049		1,868		(4,637	)		144,280		—
Single issue trust preferred securities		55,764		—		(9,530	)		46,234		—
Corporate securities		5,000		—		(129	)		4,871		—
Mortgage-backed securities:
Agency		306,319		2,575		(8,508	)		300,386		—
Non-Agency Alt-A residential		12,543		—		(2,754	)		9,789		(2,754	)

Total mortgage-backed securities		318,862		2,575		(11,262	)		310,175		(2,754	)
Equity securities		5,259		24		(36	)		5,247		—

Total	$	541,642	$	4,467	$	(26,289	)	$	519,820	$	(2,754	)


	December 31, 2012
(Amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		OTTI in AOCI ⁽¹⁾
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, Fair Value, and Weighted-Average Yield of Securities by Contractual Maturity

The following table presents the amortized cost, fair value, and weighted-average yield of held-to-maturity securities, by contractual maturity, as of December 31, 2013. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.


(Amounts in thousands)	Municipal Securities			Tax Equivalent Purchase Yield⁽¹⁾
Amortized cost maturity:
Within one year	$	190			8.05	%
After one year through five years		378			8.17	%
After five years through ten years		—			—
After ten years		—			—

Total amortized cost	$	568

Tax equivalent purchase yield		8.13	%
Average contractual maturity (in years)		1.33

Fair value maturity:
Within one year	$	193
After one year through five years		386
After five years through ten years		—
After ten years		—

Total fair value	$	579

(1)	Fully taxable equivalent at the rate of 35%.

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

The following tables present the amortized cost and fair value of held-to-maturity securities, including gross unrealized gains and losses, as of the dates indicated:


	December 31, 2013
(Amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Municipal securities	$	568	$	11	$	—	$	579

Total	$	568	$	11	$	—	$	579


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

Total	$	816	$	16	$	—	$	832

Amortized Cost and Fair Value of Municipal Securities by State, Including Gross Unrealized Gains and Losses

The following table presents municipal securities, by state, for the states where the largest volume of these securities are held in the Company’s portfolio. The table also presents the amortized cost and fair value of the municipal securities, including gross unrealized gains and losses, as of the dates indicated.


	December 31, 2013
(Amounts in thousands)	Percent of Municipal Portfolio			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
New York		11.34	%	$	16,161	$	294	$	(28	)	$	16,427
Minnesota		8.56	%		12,504		174		(279	)		12,399
New Jersey		8.18	%		11,565		306		(25	)		11,846
Connecticut		7.86	%		11,406		91		(109	)		11,388
Wisconsin		7.83	%		11,815		118		(584	)		11,349
Ohio		7.45	%		11,299		135		(637	)		10,797
Massachusetts		6.85	%		10,102		119		(295	)		9,926
Texas		6.24	%		9,483		134		(576	)		9,041
Other		35.68	%		53,282		508		(2,104	)		51,686

Total		100.00	%	$	147,617	$	1,879	$	(4,637	)	$	144,859


	December 31, 2013
(Amounts in thousands)	Percent of Municipal Portfolio			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
New York		11.04	%	$	16,552	$	1,114	$	—		$	17,666
Wisconsin		8.66	%		13,266		602		—			13,868
Minnesota		8.61	%		12,990		798		(4	)		13,784
New Jersey		8.01	%		11,940		874		—			12,814
Connecticut		7.72	%		11,693		660		—			12,353
Texas		7.42	%		11,416		470		(16	)		11,870
Ohio		7.31	%		11,147		575		(21	)		11,701
Massachusetts		6.98	%		10,531		642		(3	)		11,170
Other		34.25	%		52,400		2,476		(53	)		54,823

Total		100.00	%	$	151,935	$	8,211	$	(97	)	$	160,049

Available-For-Sale Securities in Continuous Unrealized Loss Position

The following tables present the fair values and unrealized losses for available-for-sale securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of the dates indicated. There were no held-to-maturity securities in a continuous unrealized loss position as of December 31, 2013 or 2012.


	December 31, 2013
	Less than 12 Months					12 Months or longer					Total
(Amounts in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities	$	9,012	$	(695	)	$	—	$	—		$	9,012	$	(695	)
Municipal securities		57,950		(4,147	)		3,049		(490	)		60,999		(4,637	)
Single issue trust preferred securities		—		—			46,234		(9,530	)		46,234		(9,530	)
Corporate securities		4,872		(129	)		—		—			4,872		(129	)
Mortgage-backed securities:
Agency		114,047		(4,361	)		55,706		(4,147	)		169,753		(8,508	)
Non-Agency Alt-A residential		—		—			9,789		(2,754	)		9,789		(2,754	)

Total mortgage-backed securities		114,047		(4,361	)		65,495		(6,901	)		179,542		(11,262	)
Equity securities		4,976		(24	)		20		(12	)		4,996		(36	)

Total	$	190,857	$	(9,356	)	$	114,798	$	(16,933	)	$	305,655	$	(26,289	)


	December 31, 2012
	Less than 12 Months					12 Months or longer					Total
(Amounts in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
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 presents the components of the Company’s net gain from the sale of securities in the periods indicated:


	Year Ended December 31,
(Amounts in thousands)	2013			2012			2011
Gross realized gains	$	553		$	723		$	6,963
Gross realized losses		(154	)		(240	)		(1,699	)

Net gain on sale of securities	$	399		$	483		$	5,264

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

The following table presents the activity for credit-related losses recognized in earnings on debt securities where a portion of an OTTI was recognized in OCI for the periods indicated:


	Year Ended December 31,
(Amounts in thousands)	2013		2012		2011
Beginning balance ⁽¹⁾	$	7,478	$	6,536	$	4,251
Additions for credit losses on securities not previously recognized		—		—		—
Additions for credit losses on securities previously recognized		320		942		2,285
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	$	7,798	$	7,478	$	6,536

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

Held-to-maturity Securities

Amortized Cost, Fair Value, and Weighted-Average Yield of Securities by Contractual Maturity

The following table presents the amortized cost, fair value, and weighted-average yield of available-for-sale securities, by contractual maturity, as of December 31, 2013. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.


(Amounts in thousands)	U.S. Treasury Securities			Municipal Securities			Corporate Notes			Total			Tax Equivalent Purchase Yield⁽¹⁾
Amortized cost maturity:
Within one year	$	—		$	1,386		$	—		$	1,386			3.85	%
After one year through five years		—			14,227			—			14,227			5.69	%
After five years through ten years		9,708			131,436			55,762			196,906			3.63	%
After ten years		—			—			5,002			5,002			1.15	%

Amortized cost	$	9,708		$	147,049		$	60,764			217,521

Mortgage-backed securities											318,862			2.50	%
Equity securities											5,259			4.92	%

Total amortized cost										$	541,642

Tax equivalent purchase yield		2.09	%		4.76	%		1.34	%		3.01	%
Average contractual maturity (in years)		9.38			10.42			13.55			11.25

Fair value maturity:
Within one year	$	—		$	1,393		$	—		$	1,393
After one year through five years		—			14,557			—			14,557
After five years through ten years		9,013			128,330			47,131			184,474
After ten years		—			—			3,974			3,974

Fair value	$	9,013		$	144,280		$	51,105			204,398

Mortgage-backed securities											310,175
Equity securities											5,247

Total fair value										$	519,820

(1)	Fully taxable equivalent at the rate of 35%.

- 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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