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Investment Securities
 12 Months Ended
Dec. 31, 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 December 31, 2012 and 2011, respectively.

 

                 

(in thousands)

   2012     2011  

U.S. Treasury

   $ 2,030     $ 2,054  

Government sponsored enterprises

     55,180       70,314  

Asset-backed securities

     107,872       107,329  

Obligations of states and political subdivisions

     35,164       34,109  
   

 

 

    

 

 

  

Total available for sale securities

   $ 200,246     $ 213,806  
   

 

 

    

 

 

  

All of the 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. The Company does not invest in subprime originated mortgage-backed or collateralized debt obligation instruments.

Investment securities that are classified as restricted equity securities primarily consist of Federal Home Loan Bank stock and the Company’s interest in statutory trusts. These securities are reported at cost in other assets in the amount of $3,925,000 and $4,385,000 as of December 31, 2012 and 2011, respectively.

 

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

 

                                 

(in thousands)

   Amortized
cost		     Gross
unrealized
gains		     Gross
unrealized
losses		     Fair value  

December 31, 2012

                                

U.S. Treasury

   $ 2,000     $ 30     $ 0     $ 2,030  

Government sponsored enterprises

     54,327       853       0       55,180  

Asset-backed securities

     104,607       3,276       11       107,872  

Obligations of states and political subdivisions

     33,959       1,222       17       35,164  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale securities

   $ 194,893     $ 5,381     $ 28     $ 200,246  
   

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average yield at end of period

     2.54 %                         

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  
   

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average yield at end of period

     2.89 %                         

The amortized cost and fair value of debt securities classified as available-for-sale at December 31, 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.

 

                 
    Amortized     Fair  

(in thousands)

   cost     value  

Due in one year or less

   $ 3,919     $ 3,951  

Due after one year through five years

     63,985       65,154  

Due after five years through ten years

     20,478       21,340  

Due after ten years

     1,904       1,929  
   

 

 

    

 

 

  

Total

     90,286       92,374  

Asset-backed securities

     104,607       107,872  
   

 

 

    

 

 

  

Total available for sale securities

   $ 194,893     $ 200,246  
   

 

 

    

 

 

  

Debt securities with carrying values aggregating approximately $146,442,000 and $172,447,000 at December 31, 2012 and 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 December 31, 2012 and 2011, were as follows:

 

                                                 
    Less than 12 months     12 months or more     Total  
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  

(in thousands)

   Value     Losses     Value     Losses     Value     Losses  

At December 31, 2012

                                                

Government sponsored enterprises

   $ 1,044     $ 0     $ 0     $ 0     $ 1,044     $ 0  

Asset-backed securities

     4,729       (11 )      0       0       4,729       (11 ) 

Obligations of states and political subdivisions

     2,114       (17 )      150       0       2,264       (17 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 7,887     $ (28 )    $ 150     $ 0     $ 8,037     $ (28 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
             

(in thousands)

                                    

At December 31, 2011

                                                

Government sponsored enterprises

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

Asset-backed securities

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

Obligations of states and political subdivisions

     229       (1 )      150       0       379       (1 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The total available for sale portfolio consisted of approximately 380 securities at December 31, 2012. The portfolio included 14 securities, having an aggregate fair value of $8,037,000 that were in a loss position at December 31, 2012. Securities identified as temporarily impaired which have been in a loss position for 12 months or longer totaled $150,000 at fair value. The $98 unrealized loss included in other comprehensive income at December 31, 2012 was caused by interest rate fluctuations. The total available for sale portfolio consisted of approximately 365 securities at December 31, 2011. The portfolio included 20 securities, having an aggregate fair value of $18,220,000 that were in a loss position at December 31, 2011. Securities identified as temporarily impaired which have been in a loss position for 12 months or longer totaled $150,000 at fair value. The $294 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 December 31, 2012 and 2011, respectively.

The table presents proceeds from sales of securities and the components of investment securities gains and losses which have been recognized in earnings as follows:

 

                         

(in thousands)

   2012     2011     2010  

Proceeds from sales of available for sales securities

   $ 790     $ 0     $ 0  
   

 

 

    

 

 

    

 

 

  

Gains realized on sales

     26       0       0  

Losses realized on sales

     0       0       0  

Other-than-temporary impairment recognized

     0       0       0  
   

 

 

    

 

 

    

 

 

  

Investment securities gains

   $ 26     $ 0     $ 0