Investments (Tables)

9 Months Ended

Sep. 30, 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):



	September 30, 2013
Available-for-Sale Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Debt securities:
U.S. Government agencies	$	16,410	$	198	$	(29	)	$	16,579
Obligations of states and political subdivisions	186,818		4,598		(6,821		)	184,595
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	203,728		1,295		(1,662		)	203,361
Private label residential mortgage backed securities	4,718		954		—			5,672
Other equity securities	7,596		30		—			7,626
	$	419,270	$	7,075	$	(8,512	)	$	417,833



	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 September 30, 2013 and 2012 are shown below (in thousands):



	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
Available-for-Sale Securities	2013		2012			2013			2012
Proceeds from sales or calls	$	1,575	$	31,055		$	37,428		$	38,554
Gross realized gains from sales or calls	—		1,128			1,401			1,694
Gross realized losses from sales or calls	—		(285		)	(268		)	(407		)

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):



	September 30, 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	$	3,039	$	(29	)	$	—	$	—		$	3,039	$	(29	)
Obligations of states and political subdivisions	101,937		(6,510		)	2,597		(311		)	104,534		(6,821		)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	83,339		(1,339		)	21,806		(323		)	105,145		(1,662		)
	$	188,315	$	(7,878	)	$	24,403	$	(634	)	$	212,718	$	(8,512	)



	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 September 30, 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	$	1,471	1,684		$	213	D	Fitch	14.18	20.07	51.00	97.25	—
CWALT 1	515		562		47		D	Fitch	15.68	22.85	46.29	100.73	—
CWALT 2	219		220		1		D	Fitch	17.67	22.34	46.93	101.38	(1.55	)
FHAMS	1,296		1,713		417		D	Fitch	15.84	20.18	40.88	95.00	(1.16	)
BAALT	2		20		18		C	Fitch	15.01	11.47	36.58	97.24	0.92
ABFS	124		262		138		D	S&P	7.41	40.10	46.75	97.46	—
CWALT 3	50		52		2		B1	Moodys	24.13	10.37	43.71	94.47	11.21
CONHE	36		57		21		B	S&P	3.65	8.26	46.75	86.39	—
	$	3,713	$	4,570	$	857

Credit losses recorded in earnings

The following tables provide a roll forward for the three and nine month periods ended September 30, 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 Three Months Ended September 30,				For the Nine Months Ended September 30,
(In thousands)	2013		2012		2013		2012
Beginning balance	$	800	$	783	$	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	$	800	$	783

Investments by contractual maturity



September 30, 2013	Amortized Cost		Estimated Fair Value
Within one year	$	115	$	115
After one year through five years	12,804		13,658
After five years through ten years	24,758		25,645
After ten years	149,141		145,177
	186,818		184,595
Investment securities not due at a single maturity date:
U.S. Government agencies	16,410		16,579
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	203,728		203,361
Private label residential mortgage backed securities	4,718		5,672
Other equity securities	7,596		7,626
	$	419,270	$	417,833

- 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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