Investment Securities (Tables)

6 Months Ended

Jun. 30, 2014

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:


	June 30, 2014
(Amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		OTTI in AOCI⁽¹⁾
U.S. Treasury securities	$	9,722	$	—	$	(250	)	$	9,472	$	—
Municipal securities		141,820		4,059		(1,744	)		144,135		—
Single issue trust preferred securities		55,792		—		(7,482	)		48,310		—
Corporate securities		5,000		58		—			5,058		—
Mortgage-backed securities:
Agency		182,775		1,053		(3,438	)		180,390		—
Non-Agency Alt-A residential		11,741		—		(1,733	)		10,008		(1,733	)

Total mortgage-backed securities		194,516		1,053		(5,171	)		190,398		(1,733	)
Equity securities		752		302		(2	)		1,052		—

Total	$	407,602	$	5,472	$	(14,649	)	$	398,425	$	(1,733	)


	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	)

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

Amortized Cost and 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:


	June 30, 2014
(Amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Agency securities	$	15,894	$	1	$	(15	)	$	15,880
Municipal securities		378		7		—			385
Corporate securities		3,126		12		—			3,138

Total	$	19,398	$	20	$	(15	)	$	19,403


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

Total	$	568	$	11	$	—		$	579

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

The following table presents the amortized cost and fair value of available-for-sale securities and held-to-maturity securities, by contractual maturity, as of June 30, 2014. 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)	Amortized Cost		Fair Value
Available-for-sale securities
Due within one year	$	1,689	$	1,697
Due after one year but within five years		9,397		9,640
Due after five years but within ten years		45,138		46,079
Due after ten years		156,110		149,559

		212,334		206,975
Mortgage-backed securities		194,516		190,398
Equity securities		752		1,052

Total	$	407,602	$	398,425

Held-to-maturity securities
Due within one year	$	190	$	192
Due after one year but within five years		19,208		19,211
Due after five years but within ten years		—		—
Due after ten years		—		—

Total	$	19,398	$	19,403

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:


	June 30, 2014
	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	$	—	$	—		$	9,472	$	(250	)	$	9,472	$	(250	)
Municipal securities		915		(3	)		29,615		(1,741	)		30,530		(1,744	)
Single issue trust preferred securities		—		—			48,310		(7,482	)		48,310		(7,482	)
Mortgage-backed securities:
Agency		180		(5	)		97,950		(3,433	)		98,130		(3,438	)
Non-Agency Alt-A residential		—		—			10,008		(1,733	)		10,008		(1,733	)

Total mortgage-backed securities		180		(5	)		107,958		(5,166	)		108,138		(5,171	)
Equity securities		154		(2	)		—		—			154		(2	)

Total	$	1,249	$	(10	)	$	195,355	$	(14,639	)	$	196,604	$	(14,649	)


	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	$	9,013	$	(695	)	$	—	$	—		$	9,013	$	(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		4,871		(129	)		—		—			4,871		(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	)

Held to Maturity Securities in Continuous Unrealized Loss Position

The following table presents the fair values and unrealized losses for held-to-maturity 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.


	June 30, 2014
	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. Agency securities	$	15,209	$	(15	)	$	—	$	—	$	15,209	$	(15	)

Total	$	15,209	$	(15	)	$	—	$	—	$	15,209	$	(15	)

Net Loss or Gain from Sale of Securities

The following table presents the components of the Company’s net loss or gain from the sale of securities in the periods indicated:


	Three Months Ended June 30,						Six Months Ended June 30,
(Amounts in thousands)	2014			2013			2014			2013
Gross realized gains	$	1,288		$	152		$	1,511		$	307
Gross realized losses		(1,347	)		(39	)		(1,525	)		(77	)

Net (loss) gain on sale of securities	$	(59	)	$	113		$	(14	)	$	230

Credit Losses Recognized in Earnings for Debt Securities Where 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:


	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2014		2013		2014		2013
Beginning balance⁽¹⁾	$	8,030	$	7,478	$	7,798	$	7,478
Additions for credit losses on securities previously recognized		254		—		486		—

Ending balance	$	8,284	$	7,478	$	8,284	$	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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