XML 36 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Investment Securities
 6 Months Ended
Jun. 30, 2012
Investment Securities [Abstract]  
Investment Securities

3. Investment Securities

Summary information regarding investment securities classified as available for sale and held to maturity as of June 30, 2012 and December 31, 2011 is as follows.

 

                                         
(dollars in thousands)               Gross Unrealized
Losses		        

June 30, 2012

   Amortized
Cost		     Gross
Unrealized
Gains		     Less Than
1 Year		     Over 1
Year		     Fair Value  

Available for sale:

                                        

U.S. agency mortgage-backed

   $ 106,150     $ 3,224     $ 5     $ —       $ 109,369  

Non-U.S. agency mortgage-backed

     13,746       126       8       236       13,628  

Municipal bonds

     11,542       651       —         —         12,193  

U.S. government agency

     17,143       387       2       —         17,528  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale

   $ 148,581     $ 4,388     $ 15     $ 236     $ 152,718  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
           

Held to maturity:

                                        

U.S. agency mortgage-backed

   $ 1,451     $ 23     $ —       $ —       $ 1,474  

Municipal bonds

     972       71       —         —         1,043  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total held to maturity

   $ 2,423     $ 94     $ —       $ —       $ 2,517  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

                                         
(dollars in thousands)               Gross Unrealized
Losses		        

December 31, 2011

   Amortized
Cost		     Gross
Unrealized
Gains		     Less Than
1 Year		     Over 1
Year		     Fair Value  

Available for sale:

                                        

U.S. agency mortgage-backed

   $ 113,692     $ 2,879     $ 42     $ —       $ 116,529  

Non-U.S. agency mortgage-backed

     14,833       37       766       425       13,679  

Municipal bonds

     11,598       623       —         —         12,221  

U.S. government agency

     12,521       310       —         —         12,831  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
           

Total available for sale

   $ 152,644     $ 3,849     $ 808     $ 425     $ 155,260  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
           

Held to maturity:

                                        

U.S. agency mortgage-backed

   $ 2,289     $ 49     $ —       $ —       $ 2,338  

Municipal bonds

     1,173       64       —         —         1,237  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
           

Total held to maturity

   $ 3,462     $ 113     $ —       $ —       $ 3,575  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

The amortized cost and estimated fair value by maturity of the Company’s investment securities as of June 30, 2012 are shown in the following table. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. The expected maturity of a security may differ from its contractual maturity because of prepayments or the exercise of call options. Accordingly, actual maturities may differ from contractual maturities.

 

                                         

(dollars in thousands)

   One Year
or Less		     One Year
to Five
Years		     Five to
Ten Years		     Over Ten
Years		     Total  

Fair Value

                                        

Securities available for sale:

                                        

U.S. agency mortgage-backed

   $ —       $ 1,256     $ 8,788     $ 99,325     $ 109,369  

Non-U.S. agency mortgage-backed

     —         —         —         13,628       13,628  

Municipal bonds

     —         3,238       6,032       2,923       12,193  

U.S. government agency

     —         5,912       6,117       5,499       17,528  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale

   $ —       $ 10,406     $ 20,937     $ 121,375     $ 152,718  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
           

Securities held to maturity:

                                        

U.S. agency mortgage-backed

   $ 17     $ 1,017     $ 440     $ —       $ 1,474  

Municipal bonds

     —         1,043       —         —         1,043  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total held to maturity

     17       2,060       440       —         2,517  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investment securities

   $ 17     $ 12,466     $ 21,377     $ 121,375     $ 155,235  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

                                         

(dollars in thousands)

   One Year
or Less		     One Year
to Five
Years		     Five to
Ten Years		     Over Ten
Years		     Total  

Amortized Cost

                                        

Securities available for sale:

                                        

U.S. agency mortgage-backed

   $ —       $ 1,184     $ 8,666     $ 96,300     $ 106,150  

Non-U.S. agency mortgage-backed

     —         —         —         13,746       13,746  

Municipal bonds

     —         3,148       5,649       2,745       11,542  

U.S. government agency

     —         5,863       5,975       5,305       17,143  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale

   $ —       $ 10,195     $ 20,290     $ 118,096     $ 148,581  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
           

Securities held to maturity:

                                        

U.S. agency mortgage-backed

   $ 17     $ 997     $ 437     $ —       $ 1,451  

Municipal bonds

     —         972       —         —         972  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total held to maturity

     17       1,969       437       —         2,423  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total investment securities

   $ 17     $ 12,164     $ 20,727     $ 118,096     $ 151,004  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Management evaluates securities for other-than-temporary impairment at least quarterly, and more frequently when economic and market conditions warrant such evaluations. Consideration is given to (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; and (3) the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which may extend to maturity.

The Company has developed a process to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves evaluating each security for impairment by monitoring credit performance, collateral type, collateral geography, bond credit support, loan-to-value ratios, credit scores, loss severity levels, pricing levels, downgrades by rating agencies, cash flow projections and other factors as indicators of potential credit issues. The Company performs a credit analysis based on different credit scenarios at least quarterly to detect impairment on its investment securities. When the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.

 

As of June 30, 2012 and December 31, 2011, the Company had $38,795,000 and $20,912,000, respectively, of securities pledged to secure public deposits.