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Investments (Tables)
 3 Months Ended
Mar. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
Available-for-sale securities reconciliation
The following table sets forth the carrying values and estimated fair values of our investment securities portfolio at the dates indicated (in thousands): 
 
 
March 31, 2013
Available-for-Sale Securities
 
Amortized Cost
 
Gross
Unrealized
 Gains
 
Gross
Unrealized
Losses
 
Estimated
 Fair Value
Debt securities:
 
 

 
 

 
 

 
 

U.S. Government agencies
 
$
14,894

 
$
70

 
$
(16
)
 
$
14,948

Obligations of states and political subdivisions
 
149,843

 
9,166

 
(1,144
)
 
157,865

U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
 
179,915

 
1,826

 
(741
)
 
181,000

Private label residential mortgage backed securities
 
5,707

 
618

 
(68
)
 
6,257

Other equity securities
 
7,596

 
296

 
—

 
7,892

 
 
$
357,955

 
$
11,976

 
$
(1,969
)
 
$
367,962

 
 
 
December 31, 2012
Available-for-Sale Securities
 
Amortized Cost
 
Gross
Unrealized
 Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
Debt securities:
 
 

 
 

 
 

 
 

U.S. Government agencies
 
$
9,443

 
$
34

 
$
(23
)
 
$
9,454

Obligations of states and political subdivisions
 
151,312

 
10,751

 
(385
)
 
161,678

U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
 
206,465

 
3,152

 
(1,107
)
 
208,510

Private label residential mortgage backed securities
 
6,258

 
323

 
(206
)
 
6,375

Other equity securities
 
7,596

 
352

 
—

 
7,948

 
 
$
381,074

 
$
14,612

 
$
(1,721
)
 
$
393,965
Realized gains and losses
Proceeds and gross realized gains (losses) from the sales or calls of investment securities for the periods ended March 31, 2013 and 2012 are shown below (in thousands):
 
 
For the Quarter
Ended March 31,
Available-for-Sale Securities
 
2013
 
2012
Proceeds from sales or calls
 
$
22,157

 
$
4,392

Gross realized gains from sales or calls
 
1,006

 
409

Gross realized losses from sales or calls
 
(193
)
 
(62
)
Securities in a continuous unrealized loss position
Investment securities with unrealized losses as of the dates indicated are summarized and classified according to the duration of the loss period as follows (in thousands): 
 
 
March 31, 2013
 
 
Less than 12 Months
 
12 Months or More
 
Total
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
Available-for-Sale Securities
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
Debt securities:
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government agencies
 
$
4,691

 
$
(16
)
 
$
—

 
$
—

 
$
4,691

 
$
(16
)
Obligations of states and political subdivisions
 
49,708

 
(1,144
)
 
—

 
—

 
49,708

 
(1,144
)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
 
50,263

 
(553
)
 
15,162

 
(188
)
 
65,425

 
(741
)
Private label residential mortgage backed securities
 
—

 
—

 
406

 
(68
)
 
406

 
(68
)
 
 
$
104,662

 
$
(1,713
)

$
15,568

 
$
(256
)
 
$
120,230

 
$
(1,969
)

 
 
December 31, 2012
 
 
Less than 12 Months
 
12 Months or More
 
Total
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
Available-for-Sale Securities
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
Debt securities:
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government agencies
 
$
3,590

 
$
(23
)
 
$
—

 
$
—

 
$
3,590

 
$
(23
)
Obligations of states and political subdivisions
 
30,572

 
(385
)
 
—

 
—

 
30,572

 
(385
)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
 
76,764

 
(809
)
 
18,024

 
(298
)
 
94,788

 
(1,107
)
Private label residential mortgage backed securities
 
—

 
—

 
2,886

 
(206
)
 
2,886

 
(206
)
 
 
$
110,926

 
$
(1,217
)
 
$
20,910

 
$
(504
)
 
$
131,836

 
$
(1,721
)
Summary of credit ratings for below investment grade investments
PLRMBS as of March 31, 2013 with credit ratings below investment grade are summarized in the table below (dollars in thousands):
 
Description 
 
Book
Value
 
Market Value
 
Unrealized
Gain
(Loss)
 
Rating
 
Agency
 
12 Month
Historical
Prepayment
Rates %
 
Projected
Default
Rates %
 
Projected
Severity
Rates %
 
Original
Purchase
Price %
 
Current
Credit
Enhancement
%
PHHAM
 
$
1,702

 
1,859

 
$
157

 
D
 
Fitch
 
12.41

 
21.30

 
51.00

 
97.25

 
—

CWALT 1
 
595

 
610

 
15

 
D
 
Fitch
 
15.52

 
29.50

 
57.40

 
100.73

 
—

CWALT 2
 
257

 
237

 
(20
)
 
D
 
Fitch
 
16.59

 
32.80

 
70.50

 
101.38

 
(1.00
)
FHAMS
 
1,562

 
1,849

 
287

 
D
 
Fitch
 
12.75

 
19.10

 
49.20

 
95.00

 
(0.80
)
BAALT
 
42

 
32

 
(10
)
 
C
 
Fitch
 
12.87

 
12.30

 
50.70

 
97.24

 
2.07

ABFS
 
173

 
135

 
(38
)
 
D
 
S&P
 
8.28

 
8.85

 
65.00

 
97.46

 
—

CONHE
 
39

 
63

 
24

 
Caa2
 
Moodys
 
13.00

 
6.12

 
67.33

 
86.39

 
—

TOTALS
 
$
4,370

 
$
4,785

 
$
415

 
 
 
 
 
 

 
 
 
 

 
 

 
 
Credit losses recorded in earnings
The following tables provide a roll forward for the three month periods ended March 31, 2013 and 2012 of investment securities credit losses recorded in earnings. The beginning balance represents the credit loss component for which OTTI occurred on debt securities in prior periods.  Additions represent the first time a debt security was credit impaired or when subsequent credit impairments have occurred on securities for which OTTI credit losses have been previously recognized.
 
 
 
For the Quarter
Ended March 31,
(In thousands)
 
2013
 
2012
Beginning balance
 
$
783

 
$
783

Amounts related to credit loss for which an OTTI charge was not previously recognized
 
17

 
—

Increases to the amount related to credit loss for which OTTI was previously recognized
 
—

 
—

Realized losses for securities sold
 
—

 
—

Ending balance
 
$
800

 
$
783
Investments by contractual maturity
March 31, 2013
 
Amortized Cost
 
Estimated Fair
Value
Within one year
 
$
150

 
$
151

After one year through five years
 
11,280

 
12,258

After five years through ten years
 
19,073

 
20,776

After ten years
 
119,340

 
124,680

 
 
149,843

 
157,865

Investment securities not due at a single maturity date:
 
 

 
 

U.S. Government agencies
 
14,894

 
14,948

U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
 
179,915

 
181,000

Private label residential mortgage backed securities
 
5,707

 
6,257

Other equity securities
 
7,596

 
7,892

 
 
$
357,955

 
$
367,962