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Investment Securities
 9 Months Ended
Sep. 30, 2012
Investment Securities [Abstract]  
Investment Securities
(4)   Investment Securities

A summary of investment securities by major category, at fair value, consisted of the following at September 30, 2012 and December 31, 2011.

 

                 

(in thousands)

   September 30,
2012		     December 31,
2011		  

U.S. treasury

   $ 2,036     $ 2,054  

Government sponsored enterprises

     66,327       70,314  

Asset-backed securities

     113,207       107,329  

Obligations of states and political subdivisions

     35,218       34,109  
   

 

 

    

 

 

  

Total available for sale securities

   $ 216,788     $ 213,806  
   

 

 

    

 

 

  

All of our Company’s investment securities are classified as available for sale, as discussed in more detail below. Asset backed securities include agency mortgage-backed securities, which are guaranteed by government sponsored agencies such as the FHLMC, FNMA and GNMA. Our Company does not invest in subprime originated mortgage-backed or collateralized debt obligation instruments.

Investment securities which are classified as restricted equity securities primarily consist of Federal Home Loan Bank stock and our Company’s interest in statutory trusts. These securities are reported at cost in other assets in the amount of $4,285,000 and $4,385,000, as of September 30, 2012 and December 31, 2011 respectively.

 

The amortized cost and fair value of debt securities classified as available-for-sale at September 30, 2012 and December 31, 2011 are as follows:

 

                                 

(in thousands)

   Amortized
cost		     Gross
unrealized
gains		     Gross
unrealized
losses		     Fair value  

September 30, 2012

                                
         

U.S. Treasury

   $ 2,000     $ 36     $ 0     $ 2,036  

Government sponsored enterprises

     65,400       927       0       66,327  

Asset-backed securities

     109,340       3,873       7       113,206  

Obligations of states and political subdivisions

     33,887       1,337       5       35,219  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale securities

   $ 210,627     $ 6,173     $ 12     $ 216,788  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

                                 

(in thousands)

   Amortized
cost		     Gross
unrealized
gains		     Gross
unrealized
losses		     Fair value  

December 31, 2011

                                
         

U.S. Treasury

   $ 2,000     $ 54     $ 0     $ 2,054  

Government sponsored enterprises

     69,703       629       18       70,314  

Asset-backed securities

     103,806       3,547       24       107,329  

Obligations of states and political subdivisions

     32,716       1,394       1       34,109  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale securities

   $ 208,225     $ 5,624     $ 43     $ 213,806  
   

 

 

    

 

 

    

 

 

    

 

 

  

The amortized cost and fair value of debt securities classified as available-for-sale at September 30, 2012, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.

 

                 

(in thousands)

   Amortized
cost		     Fair
value		  

Due in one year or less

   $ 3,459     $ 3,484  

Due after one year through five years

     74,943       76,232  

Due after five years through ten years

     22,022       22,966  

Due after ten years

     863       900  
   

 

 

    

 

 

  
      101,287       103,582  

Asset-backed securities

     109,340       113,206  
   

 

 

    

 

 

  

Total

   $ 210,627     $ 216,788  
   

 

 

    

 

 

  

Debt securities with carrying values aggregating approximately $167,592,000 and $172,447,000 at September 30, 2012 and December 31, 2011, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law.

Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2012 and December 31, 2011, were as follows:

 

 

                                                         
    Less than 12 months     12 months or more           Total  

(in thousands)

   Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		     Number of
Investment
Positions		     Fair
Value		     Unrealized
Losses		  

At September 30, 2012

                                                        

Asset-backed securities

   $ 5,257     $ (7 )    $ 0     $ 0       5     $ 5,257     $ (7 ) 

Obligations of states and political subdivisions

     2,189       (5 )      150       0       7       2,339       (5 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 7,446     $ (12 )    $ 150     $ 0       12     $ 7,596     $ (12 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
         
    Less than 12 months     12 months or more           Total  

(in thousands)

   Fair
Value		     Unrealized
Losses		     Fair
Value		     Unrealized
Losses		     Number of
Investment
Positions		     Fair
Value		     Unrealized
Losses		  

At December 31, 2011

                                                        

Government sponsored enterprises

   $ 13,250     $ (18 )    $ 0     $ 0       13     $ 13,250     $ (18 ) 

Asset-backed securities

     4,591       (24 )      0       0       5       4,591       (24 ) 

Obligations of states and political subdivisions

     229       (1 )      150       0       2       379       (1 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    $ 18,070     $ (43 )    $ 150     $ 0       20     $ 18,220     $ (43 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Our Company’s available for sale portfolio consisted of approximately 390 securities at September 30, 2012. One of these securities with an unrealized loss of $164 had been in the loss position for 12 months or longer. The unrealized loss included in other comprehensive income at September 30, 2012 was caused by interest rate fluctuations. Our Company’s available for sale portfolio consisted of approximately 365 securities at December 31, 2011. One of these securities with an unrealized loss of $294 had been in the loss position for 12 months or longer. The unrealized loss included in other comprehensive income at December 31, 2011 was caused by interest rate fluctuations. Because the decline in fair value is attributable to changes in interest rates and not credit quality these investments were not considered other-than-temporarily impaired at September 30, 2012 and December 31, 2011, respectively.

During the three and nine months ended September 30, 2012, there was a $26,000 realized gain from sales of securities recognized in earnings. During the three and nine months ended September 30, 2011, there were no proceeds from sales of securities and no components of investment securities gains and losses which have been recognized in earnings.