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Investment Securities | 3 Months Ended
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Mar. 31, 2013
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The following table summarizes the amortized cost and estimated fair value of investment securities at March 31, 2013:
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value (Estimated)
Securities available for sale |  |  |  |  |  |  |
Mortgage-backed securities | $ | 153,477,000 |  |  | $ | 4,028,000 |  |  | $ | (308,000 | ) |  | $ | 157,197,000 |
State and political subdivisions | 122,893,000 |  |  | 5,866,000 |  |  | (1,159,000 | ) |  | 127,600,000 |
Other equity securities | 1,578,000 |  |  | 46,000 |  |  | (52,000 | ) |  | 1,572,000 |
| $ | 277,948,000 |  |  | $ | 9,940,000 |  |  | $ | (1,519,000 | ) |  | $ | 286,369,000 |
Securities to be held to maturity |  |  |  |  |  |  |
U.S. Government-sponsored agencies | $ | 60,940,000 |  |  | $ | 79,000 |  |  | $ | (289,000 | ) |  | $ | 60,730,000 |
Mortgage-backed securities | 46,604,000 |  |  | 2,634,000 |  |  | (218,000 | ) |  | 49,020,000 |
State and political subdivisions | 42,947,000 |  |  | 3,560,000 |  |  | (5,000 | ) |  | 46,502,000 |
Corporate securities | 300,000 |  |  | — |  |  | — |  |  | 300,000 |
| $ | 150,791,000 |  |  | $ | 6,273,000 |  |  | $ | (512,000 | ) |  | $ | 156,552,000 |
Restricted equity securities |  |  |  |  |  |  |
Federal Home Loan Bank Stock | $ | 12,876,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 12,876,000 |
Federal Reserve Bank Stock | 1,036,000 |  |  | — |  |  | — |  |  | 1,036,000 |
| $ | 13,912,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 13,912,000 |
The following table summarizes the amortized cost and estimated fair value of investment securities at December 31, 2012:
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value (Estimated)
Securities available for sale |  |  |  |  |  |  |
Mortgage-backed securities | $ | 164,752,000 |  |  | $ | 4,636,000 |  |  | $ | (295,000 | ) |  | $ | 169,093,000 |
State and political subdivisions | 113,069,000 |  |  | 8,074,000 |  |  | (199,000 | ) |  | 120,944,000 |
Other equity securities | 1,578,000 |  |  | 43,000 |  |  | (44,000 | ) |  | 1,577,000 |
| $ | 279,399,000 |  |  | $ | 12,753,000 |  |  | $ | (538,000 | ) |  | $ | 291,614,000 |
Securities to be held to maturity |  |  |  |  |  |  |
U.S. Government-sponsored agencies | $ | 60,919,000 |  |  | $ | 242,000 |  |  | $ | (182,000 | ) |  | $ | 60,979,000 |
Mortgage-backed securities | 39,193,000 |  |  | 2,850,000 |  |  | (19,000 | ) |  | 42,024,000 |
State and political subdivisions | 42,908,000 |  |  | 4,036,000 |  |  | — |  |  | 46,944,000 |
Corporate securities | 300,000 |  |  | — |  |  | — |  |  | 300,000 |
| $ | 143,320,000 |  |  | $ | 7,128,000 |  |  | $ | (201,000 | ) |  | $ | 150,247,000 |
Restricted equity securities |  |  |  |  |  |  |
Federal Home Loan Bank Stock | $ | 13,412,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 13,412,000 |
Federal Reserve Bank Stock | 1,036,000 |  |  | — |  |  | — |  |  | 1,036,000 |
| $ | 14,448,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,448,000 |
The following table summarizes the amortized cost and estimated fair value of investment securities at March 31, 2012:
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value (Estimated)
Securities available for sale |  |  |  |  |  |  |
Mortgage-backed securities | $ | 226,671,000 |  |  | $ | 5,805,000 |  |  | $ | (361,000 | ) |  | $ | 232,115,000 |
State and political subdivisions | 77,672,000 |  |  | 5,540,000 |  |  | (50,000 | ) |  | 83,162,000 |
Other equity securities | 1,863,000 |  |  | 44,000 |  |  | (73,000 | ) |  | 1,834,000 |
| $ | 306,206,000 |  |  | $ | 11,389,000 |  |  | $ | (484,000 | ) |  | $ | 317,111,000 |
Securities to be held to maturity |  |  |  |  |  |  |
U.S. Government-sponsored agencies | $ | 39,694,000 |  |  | $ | 37,000 |  |  | $ | (435,000 | ) |  | $ | 39,296,000 |
Mortgage-backed securities | 52,185,000 |  |  | 3,638,000 |  |  | — |  |  | 55,823,000 |
State and political subdivisions | 45,427,000 |  |  | 3,941,000 |  |  | (154,000 | ) |  | 49,214,000 |
Corporate securities | 300,000 |  |  | — |  |  | — |  |  | 300,000 |
| $ | 137,606,000 |  |  | $ | 7,616,000 |  |  | $ | (589,000 | ) |  | $ | 144,633,000 |
Restricted equity securities |  |  |  |  |  |  |
Federal Home Loan Bank Stock | $ | 13,412,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 13,412,000 |
Federal Reserve Bank Stock | 1,411,000 |  |  | — |  |  | — |  |  | 1,411,000 |
| $ | 14,823,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,823,000 |
The following table summarizes the contractual maturities of investment securities at March 31, 2013:
| Securities available for sale |  | Securities to be held to maturity
| Amortized Cost |  | Fair Value (Estimated) |  | Amortized Cost |  | Fair Value (Estimated)
Due in 1 year or less | $ | 13,854,000 |  |  | $ | 14,054,000 |  |  | $ | 3,034,000 |  |  | $ | 3,065,000 |
Due in 1 to 5 years | 24,804,000 |  |  | 25,288,000 |  |  | 22,651,000 |  |  | 23,118,000 |
Due in 5 to 10 years | 13,683,000 |  |  | 14,560,000 |  |  | 27,914,000 |  |  | 30,237,000 |
Due after 10 years | 224,029,000 |  |  | 230,895,000 |  |  | 97,192,000 |  |  | 100,132,000 |
Equity securities | 1,578,000 |  |  | 1,572,000 |  |  | — |  |  | — |
| $ | 277,948,000 |  |  | $ | 286,369,000 |  |  | $ | 150,791,000 |  |  | $ | 156,552,000 |
The following table summarizes the contractual maturities of investment securities at December 31, 2012:
| Securities available for sale |  | Securities to be held to maturity
| Amortized Cost |  | Fair Value (Estimated) |  | Amortized Cost |  | Fair Value (Estimated)
Due in 1 year or less | $ | 18,761,000 |  |  | $ | 18,926,000 |  |  | $ | 3,754,000 |  |  | $ | 3,785,000 |
Due in 1 to 5 years | 27,243,000 |  |  | 27,816,000 |  |  | 11,950,000 |  |  | 12,701,000 |
Due in 5 to 10 years | 16,686,000 |  |  | 17,666,000 |  |  | 27,461,000 |  |  | 29,986,000 |
Due after 10 years | 215,131,000 |  |  | 225,629,000 |  |  | 100,155,000 |  |  | 103,775,000 |
Equity securities | 1,578,000 |  |  | 1,577,000 |  |  | — |  |  | — |
| $ | 279,399,000 |  |  | $ | 291,614,000 |  |  | $ | 143,320,000 |  |  | $ | 150,247,000 |
The following table summarizes the contractual maturities of investment securities at March 31, 2012:
| Securities available for sale |  | Securities to be held to maturity
| Amortized Cost |  | Fair Value (Estimated) |  | Amortized Cost |  | Fair Value (Estimated)
Due in 1 year or less | $ | 5,894,000 |  |  | $ | 5,948,000 |  |  | $ | 4,663,000 |  |  | $ | 4,710,000 |
Due in 1 to 5 years | 59,887,000 |  |  | 60,971,000 |  |  | 12,173,000 |  |  | 12,940,000 |
Due in 5 to 10 years | 13,014,000 |  |  | 13,442,000 |  |  | 35,563,000 |  |  | 38,100,000 |
Due after 10 years | 225,548,000 |  |  | 234,916,000 |  |  | 85,207,000 |  |  | 88,883,000 |
Equity securities | 1,863,000 |  |  | 1,834,000 |  |  | — |  |  | — |
| $ | 306,206,000 |  |  | $ | 317,111,000 |  |  | $ | 137,606,000 |  |  | $ | 144,633,000 |
At March 31, 2013, securities with a fair value of $131,155,000 were pledged to secure public deposits, repurchase agreements, and for other purposes as required by law. This compares to securities with a fair value of $154,817,000 as of December 31, 2012 and $136,156,000 at March 31, 2012, pledged for the same purposes. Gains and losses on the sale of securities available for sale are computed by subtracting the amortized cost at the time of sale from the security's selling price, net of accrued interest to be received. The following table shows securities gains and losses for the three months March 31, 2013 and 2012:
| For the three months ended March 31,
| 2013 |  | 2012
Proceeds from sales of securities | $ | 4,965,000 |  |  | $ | 10,943,000 |
Gross realized gains | 299,000 |  |  | 812,000 |
Gross realized losses | — |  |  | (289,000 | )
Net gain | $ | 299,000 |  |  | $ | 523,000 |
Related income taxes | $ | 105,000 |  |  | $ | 183,000 |
Management reviews securities with unrealized losses for other than temporary impairment. As of March 31, 2013, there were 116 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which seven had been temporarily impaired for 12 months or more. At the present time, there have been no material changes in the credit quality of these securities resulting in other than temporary impairment, and in Management's opinion, no additional write-down for other-than-temporary impairment is warranted. Information regarding securities temporarily impaired as of March 31, 2013 is summarized below:
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value (Estimated) |  | Unrealized Losses |  | Fair Value (Estimated) |  | Unrealized Losses |  | Fair Value (Estimated) |  | Unrealized Losses
U.S. Government-sponsored agencies | $ | 35,681,000 |  |  | $ | (289,000 | ) |  | $ | — |  |  | $ | — |  |  | $ | 35,681,000 |  |  | $ | (289,000 | )
Mortgage-backed securities | 23,546,000 |  |  | (457,000 | ) |  | 1,652,000 |  |  | (69,000 | ) |  | 25,198,000 |  |  | (526,000 | )
State and political subdivisions | 30,069,000 |  |  | (1,164,000 | ) |  | — |  |  | — |  |  | 30,069,000 |  |  | (1,164,000 | )
Other equity securities | — |  |  | — |  |  | 282,000 |  |  | (52,000 | ) |  | 282,000 |  |  | (52,000 | )
| $ | 89,296,000 |  |  | $ | (1,910,000 | ) |  | $ | 1,934,000 |  |  | $ | (121,000 | ) |  | $ | 91,230,000 |  |  | $ | (2,031,000 | )
As of December 31, 2012, there were 42 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 7 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of December 31, 2012 is summarized below:
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value (Estimated) |  | Unrealized Losses |  | Fair Value (Estimated) |  | Unrealized Losses |  | Fair Value (Estimated) |  | Unrealized Losses
U.S. Government-sponsored agencies | $ | 15,817,000 |  |  | $ | (182,000 | ) |  | $ | — |  |  | $ | — |  |  | $ | 15,817,000 |  |  | $ | (182,000 | )
Mortgage-backed securities | 9,982,000 |  |  | (231,000 | ) |  | 2,534,000 |  |  | (83,000 | ) |  | 12,516,000 |  |  | (314,000 | )
State and political subdivisions | 8,621,000 |  |  | (199,000 | ) |  | — |  |  | — |  |  | 8,621,000 |  |  | (199,000 | )
Other equity securities | — |  |  | — |  |  | 222,000 |  |  | (44,000 | ) |  | 222,000 |  |  | (44,000 | )
| $ | 34,420,000 |  |  | $ | (612,000 | ) |  | $ | 2,756,000 |  |  | $ | (127,000 | ) |  | $ | 37,176,000 |  |  | $ | (739,000 | )
As of March 31, 2012, there were 42 securities with unrealized losses held in the Company's portfolio. These securities were temporarily impaired as a result of changes in interest rates reducing their fair value, of which 8 had been temporarily impaired for 12 months or more. Information regarding securities temporarily impaired as of March 31, 2012 is summarized below:
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value (Estimated) |  | Unrealized Losses |  | Fair Value (Estimated) |  | Unrealized Losses |  | Fair Value (Estimated) |  | Unrealized Losses
U.S. Government-sponsored agencies | $ | 33,514,000 |  |  | $ | (435,000 | ) |  | $ | — |  |  | $ | — |  |  | $ | 33,514,000 |  |  | $ | (435,000 | )
Mortgage-backed securities | 35,242,000 |  |  | (280,000 | ) |  | 6,608,000 |  |  | (81,000 | ) |  | 41,850,000 |  |  | (361,000 | )
State and political subdivisions | 4,924,000 |  |  | (204,000 | ) |  | — |  |  | — |  |  | 4,924,000 |  |  | (204,000 | )
Other equity securities | — |  |  | — |  |  | 253,000 |  |  | (73,000 | ) |  | 253,000 |  |  | (73,000 | )
| $ | 73,680,000 |  |  | $ | (919,000 | ) |  | $ | 6,861,000 |  |  | $ | (154,000 | ) |  | $ | 80,541,000 |  |  | $ | (1,073,000 | )
The Bank is a member of the Federal Home Loan Bank ("FHLB") of Boston, a cooperatively owned wholesale bank for housing and finance in the six New England States. As a requirement of membership in the FHLB, the Bank must own a minimum required amount of FHLB stock, calculated periodically based primarily on its level of borrowings from the FHLB. The Bank uses the FHLB for much of its wholesale funding needs. As of March 31, 2013 and 2012, and December 31, 2012, the Bank's investment in FHLB stock totaled $12,875,000, $13,412,000 and $13,412,000, respectively. FHLB stock is a non-marketable equity security and therefore is reported at cost, which equals par value.

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