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Investment Securities
 3 Months Ended
Mar. 31, 2013
Investment Securities [Abstract]  
Investment Securities
(4) Investment Securities

The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2013 and December 31, 2012 are as follows:

 

                                 
    Amortized     Gross
unrealized		     Gross
unrealized		        

(in thousands)

   cost     gains     losses     Fair value  

March 31, 2013

                                

U.S. Treasury

   $ 2,000     $ 23     $ 0     $ 2,023  

Government sponsored enterprises

     68,869       728       21       69,576  

Asset-backed securities

     122,624       2,594       300       124,918  

Obligations of states and political subdivisions

     34,396       1,119       41       35,474  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total available for sale securities

   $ 227,889     $ 4,464     $ 362     $ 231,991  
   

 

 

    

 

 

    

 

 

    

 

 

  

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  
   

 

 

    

 

 

    

 

 

    

 

 

  

All of the Company’s investment securities are classified as available for sale. Agency bonds and notes, agency mortgage-backed securities and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Bank (FHLB), which are U.S. government-sponsored enterprises.

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 $3,923,000 and $3,925,000 as of March 31, 2013 and December 31, 2012, respectively.

Debt securities with carrying values aggregating approximately $167,661,000 and $146,442,000 at March 31, 2013 and December 31, 2012, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law.

The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2013, 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

   $ 4,925     $ 4,992  

Due after one year through five years

     62,579       63,740  

Due after five years through ten years

     36,614       37,214  

Due after ten years

     1,147       1,127  
   

 

 

    

 

 

  

Total

     105,265       107,073  

Asset-backed securities

     122,624       124,918  
   

 

 

    

 

 

  

Total available for sale securities

   $ 227,889     $ 231,991  
   

 

 

    

 

 

  

 

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 March 31, 2013 and December 31, 2012, 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 March 31, 2013

                                                

Government sponsored enterprises

   $ 20,569     $ (21 )    $ 0     $ 0     $ 20,569     $ (21 ) 

Asset-backed securities

     42,235       (290 )      892       (10 )      43,127       (300 ) 

Obligations of states and political subdivisions

     3,802       (41 )      0       0       3,802       (41 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 66,606     $ (352 )    $ 892     $ (10 )    $ 67,498     $ (362 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(in thousands)

                                    

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 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The total available for sale portfolio consisted of approximately 403 securities at March 31, 2013. The portfolio included 47 securities, having an aggregate fair value of $67,498,000 that were in a loss position at March 31, 2013. Securities identified as temporarily impaired which have been in a loss position for 12 months or longer totaled $892,000 at fair value. The $10,000 unrealized loss included in other comprehensive income at March 31, 2013 was caused by interest rate fluctuations. 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. 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 March 31, 2013 and December 31, 2012, respectively.

The following table presents the components of investment securities gains and losses which have been recognized in earnings.

 

                 
    Three Months Ended March 31,  

(in thousands)

   2013     2012  

Gross gains realized on sales

   $ 294     $ 0  

Gross losses realized on sales

     0       0  

Other-than-temporary impairment recognized

     0       0  
   

 

 

    

 

 

  

Net realized gains

   $ 294     $ 0