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Investment Securities | 9 Months Ended
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Sep. 30, 2013
Investment Securities [Abstract] |
Investment Securities |
(2) | Investment Securities
Investment securities as of September 30, 2013 and December 31, 2012 are summarized as follows:
September 30, 2013 |  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Securities Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government Agencies Mortgage-Backed |  | $ | 262,423 |  |  | $ | 199 |  |  | $ | (10,556 | ) |  | $ | 252,066 |
State, County & Municipal |  |  | 4,129 |  |  |  | 17 |  |  |  | (72 | ) |  |  | 4,074 |
Corporate Obligations |  |  | 1,000 |  |  |  | 82 |  |  |  | -- |  |  |  | 1,082 |
Asset-Backed Securities |  |  | 367 |  |  |  | -- |  |  |  | (235 | ) |  |  | 132 |
|  | $ | 267,919 |  |  | $ | 298 |  |  | $ | (10,863 | ) |  | $ | 257,354 |
Securities Held to Maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State, County and Municipal |  | $ | 39 |  |  | $ | -- |  |  | $ | -- |  |  | $ | 39 |
December 31, 2012 |  |  |  |  | Gross |  |  | Gross |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Securities Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government Agencies Mortgage-Backed |  | $ | 263,187 |  |  | $ | 835 |  |  | $ | (962 | ) |  | $ | 263,060 |
State, County & Municipal |  |  | 3,974 |  |  |  | 34 |  |  |  | (4 | ) |  |  | 4,004 |
Corporate Obligations |  |  | 1,000 |  |  |  | 105 |  |  |  | -- |  |  |  | 1,105 |
Asset-Backed Securities |  |  | 366 |  |  |  | -- |  |  |  | (234 | ) |  |  | 132 |
|  | $ | 268,527 |  |  | $ | 974 |  |  | $ | (1,200 | ) |  | $ | 268,301 |
Securities Held to Maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State, County and Municipal |  | $ | 41 |  |  | $ | 1 |  |  | $ | -- |  |  | $ | 42 |
The amortized cost and fair value of investment securities as of September 30, 2013, by contractual maturity, are shown hereafter. Expected maturities will differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.
|  | Securities |
|  | Available for Sale |  |  | Held to Maturity |
|  | Amortized Cost |  |  | Fair Value |  |  | Amortized Cost |  |  | Fair Value |
Due In One Year or Less |  | $ | 273 |  |  | $ | 276 |  |  | $ | -- |  |  | $ | -- |
Due After One Year Through Five Years |  |  | 2,599 |  |  |  | 2,694 |  |  |  | 39 |  |  |  | 39 |
Due After Five Years Through Ten Years |  |  | 1,604 |  |  |  | 1,582 |  |  |  | -- |  |  |  | -- |
Due After Ten Years |  |  | 1,020 |  |  |  | 736 |  |  |  | -- |  |  |  | -- |
|  |  | 5,496 |  |  |  | 5,288 |  |  |  | 39 |  |  |  | 39 |
Mortgage-Backed Securities |  |  | 262,423 |  |  |  | 252,066 |  |  |  | -- |  |  |  | -- |
|  | $ | 267,919 |  |  | $ | 257,354 |  |  | $ | 39 |  |  | $ | 39 |
Proceeds from the sale of investments available for sale during the first nine months of 2013 totaled $36,217 compared to $161,811 for the first nine months of 2012. The sale of investments available for sale during the first nine months of 2013 resulted in gross realized gains of $191 and losses of $(193). The sale of investments available for sale during the first nine months of 2012 resulted in gross realized gains of $2,204 and losses of $(137). This was offset by other than temporary impairment charges of $(60). Nonaccrual securities are securities for which principal and interest are doubtful of collection in accordance with original terms and for which accruals of interest have been discontinued due to payment delinquency. Fair value of securities on nonaccrual status totaled $132 and $132 as of September 30, 2013 and December 31, 2012, respectively. Investment securities having a carry value approximating $93,350 and $117,451 as of September 30, 2013 and December 31, 2012, respectively, were pledged to secure public deposits and for other purposes. Information pertaining to securities with gross unrealized losses at September 30, 2013 and December 31, 2012 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:
|  | Less Than 12 Months |  |  | 12 Months or Greater |  |  | Total |
|  |  |  |  | Gross |  |  |  |  |  | Gross |  |  |  |  |  | Gross |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
September 30, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government Agencies Mortgage-Backed |  | $ | 221,584 |  |  | $ | (10,456 | ) |  | $ | 5,453 |  |  | $ | (100 | ) |  | $ | 227,037 |  |  | $ | (10,556 | )
State, County and Municipal |  |  | 1,669 |  |  |  | (72 | ) |  |  | -- |  |  |  | -- |  |  |  | 1,669 |  |  |  | (72 | )
Asset-Backed Securities |  |  | -- |  |  |  | -- |  |  |  | 132 |  |  |  | (235 | ) |  |  | 132 |  |  |  | (235 | )
|  | $ | 223,253 |  |  | $ | (10,528 | ) |  | $ | 5,585 |  |  | $ | (335 | ) |  | $ | 228,838 |  |  | $ | (10,863 | )
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government Agencies Mortgage-Backed |  | $ | 142,104 |  |  | $ | (962 | ) |  | $ | -- |  |  | $ | -- |  |  | $ | 142,104 |  |  | $ | (962 | )
State, County and Municipal |  |  | 1,431 |  |  |  | (4 | ) |  |  | -- |  |  |  | -- |  |  |  | 1,431 |  |  |  | (4 | )
Asset-Backed Securities |  |  | -- |  |  |  | -- |  |  |  | 132 |  |  |  | (234 | ) |  |  | 132 |  |  |  | (234 | )
|  | $ | 143,535 |  |  | $ | (966 | ) |  | $ | 132 |  |  | $ | (234 | ) |  | $ | 143,667 |  |  | $ | (1,200 | )
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At September 30, 2013, the debt securities with unrealized losses have depreciated 4.53 percent from the Company’s amortized cost basis. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations, except for asset-backed securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The company believes the unrealized losses on investments in municipal obligations, collateralized mortgage obligations and mortgage-backed securities as of September 30, 2013, were due to market conditions, not reduced estimated cash flows. There was a significant increase in market interest rates in June 2013 and rates continued to rise slightly during the third quarter of 2013, particularly in the longer part of the interest rate curve. This caused a measurable decline in the fair market value of the bond portfolio. The Company does not intend to sell these securities, does not anticipate that these securities will be required to be sold before anticipated recovery, and expects full principal and interest to be collected. Therefore, the Company did not consider these investments to have OTTI at September 30, 2013. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other than temporary. However, the Company did own one asset-backed security at September 30, 2013 which has been in a continuous unrealized loss position for more than twelve months. This investment is comprised of one issuance of a trust preferred security, has a book value of $367 and an unrealized loss of $235. Management evaluates this investment on a quarterly basis utilizing a third-party valuation model. The Company does not intend to sell this investment, nor does the Company consider it likely that it will be required to sell the investment prior to recovery of the remaining fair value.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 3, 19, 20, 21, 22, 137 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 + Details
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