Investment Securities (Tables)

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Schedule of securities available for sale

The amortized cost, gross unrealized gains and losses, and fair values of investment securities at the dates indicated were as follows:

Securities Available for Sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
September 30, 2013
U.S. Treasury and U.S. Government-sponsored agencies	$	6,116	$	4	$	(49	)	$	6,071
Municipal securities	51,157		883		(1,653		)	50,387
Mortgage backed securities and collateralized mortgage obligations-residential:
U.S. Government-sponsored agencies	110,618		1,065		(915		)	110,768
Total	$	167,891	$	1,952	$	(2,617	)	$	167,226
December 31, 2012
U.S. Treasury and U.S. Government-sponsored agencies	$	11,016	$	19	$	—		$	11,035
Municipal securities	45,537		1,943		(120		)	47,360
Mortgage backed securities and collateralized mortgage obligations-residential:
U.S. Government agencies	84,598		1,593		(293		)	85,898
Total	$	141,151	$	3,555	$	(413	)	$	144,293

Schedule of securities held to maturity

Securities Held to Maturity
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
September 30, 2013
U.S. Treasury and U.S. Government-sponsored agencies	$	1,698	$	180	$	—		$	1,878
Municipal securities	25,521		215		(136		)	25,600
Mortgage backed securities and collateralized mortgage obligations-residential:
U.S. Government-sponsored agencies	6,814		177		(187		)	6,804
Private residential collateralized mortgage obligations	1,080		181		(34		)	1,227
Total	$	35,113	$	753	$	(357	)	$	35,509

Securities Held to Maturity
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
December 31, 2012
U.S. Treasury and U.S. Government-sponsored agencies	$	1,740	$	284	$	—		$	2,024
Municipal securities	2,946		212		—			3,158
Mortgage backed securities and collateralized mortgage obligations-residential:
U.S. Government-sponsored agencies	4,245		277		—			4,522
Private residential collateralized mortgage obligations	1,168		193		(55		)	1,306
Total	$	10,099	$	966	$	(55	)	$	11,010

Schedule of maturities of investment securities

The amortized cost and fair value of securities at September 30, 2013, by contractual maturity, are set forth below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	2,865	$	2,869	$	1,939	$	1,941
Due after one year through three years	1,704		1,719		5,764		5,797
Due after three years through five years	7,736		7,853		3,974		4,001
Due after five years through ten years	50,004		50,031		13,050		13,330
Due after ten years	105,582		104,754		10,386		10,440
Total	$	167,891	$	167,226	$	35,113	$	35,509

Schedule of fair value and unrealized losses of available for sale investment securities

Available for sale investment securities with unrealized losses as of September 30, 2013 and December 31, 2012 were as follows:

	September 30, 2013
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
U.S. Treasury and U.S. Government-sponsored agencies	$	2,042	$	(49	)	$	—	$	—		$	2,042	$	(49	)
Municipal securities	25,061		(1,653		)	—		—			25,061		(1,653		)
Mortgage backed securities and collateralized mortgage obligations-residential:
U.S. Government-sponsored agencies	36,222		(833		)	6,348		(82		)	42,570		(915		)
Total	$	63,325	$	(2,535	)	$	6,348	$	(82	)	$	69,673	$	(2,617	)

	December 31, 2012
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Municipal securities	$	7,843	$	(120	)	—		—			$	7,843	$	(120	)
Mortgage backed securities and collateralized mortgage obligations-residential:
U.S. Government-sponsored agencies	31,197		(248		)	3,779		(45		)	34,976		(293		)
Total	$	39,040	$	(368	)	$	3,779	$	(45	)	$	42,819	$	(413	)

Schedule of fair value and unrealized losses of held to maturity investment securities

Held to maturity investment securities with unrealized losses as of September 30, 2013 and December 31, 2012 were as follows:

	September 30, 2013
	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Municipal securities	$	11,560	$	(136	)	$	—	$	—		$	11,560	$	(136	)
Mortgage backed securities and collateralized mortgage obligations-residential:
U.S. Government-sponsored agencies	2,366		(187		)	—		—			2,366		(187		)
Private residential collateralized mortgage obligations	229		(7		)	162		(27		)	391		(34		)
Total	$	14,155	$	(330	)	$	162	$	(27	)	$	14,317	$	(357	)

	December 31, 2012
	Less than 12 Months				12 Months or Longer					Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
Mortgage backed securities and collateralized mortgage obligations-residential:
Private residential collateralized mortgage obligations	$	—	$	—	$	317	$	(55	)	$	317	$	(55	)
Total	$	—	$	—	$	317	$	(55	)	$	317	$	(55	)

Schedule of other-than-temporary impairment losses investment securities

The following table summarizes activity for the nine months ended September 30, 2013 and 2012 related to the amount of other-than-temporary impairments related to credit losses on held to maturity securities:

	Life-to-Date Gross  Other- Than-Temporary Impairments		Life-to-Date Other-Than- Temporary Impairments Included in Other Comprehensive (Loss) Income		Life-to-Date Net Other- Than- Temporary Impairments Included in Earnings
	(In thousands)
December 31, 2011	$	2,435	$	1,100	$	1,335
Subsequent impairments	112		52		60
September 30, 2012	$	2,547	$	1,152	$	1,395
December 31, 2012	$	2,565	$	1,152	$	1,413
Subsequent impairments	26		—		26
September 30, 2013	$	2,591	$	1,152	$	1,439

Schedule of residential collateralized mortgage obligation securities

Details of private residential collateralized mortgage obligation securities received from the redemption-in-kind election as of September 30, 2013 were as follows:

															Current Ratings
Type of Security	Par Value		Amortized Cost		Fair Value (2)		Aggregate Unrealized Gain (Loss)		Year-to- date Change in Unrealized Gain		Year-to- date Impairment Charge		Life-to- date Impairment Charge (1)		AAA		AA		A		BBB		Below Investment Grade
	(Dollars in thousands)
Alt-A	$	758	$	249	$	260	$	11	$	22	$	21	$	675	—	%	—	%	—	%	—	%	100	%
Prime	1,288		831		967		136		5		5		764		—	%	—	%	—	%	9	%	91	%
Totals	$	2,046	$	1,080	$	1,227	$	147	$	27	$	26	$	1,439	—	%	—	%	—	%	7	%	93	%

(1) Life-to-date impairment charge represents impairment charges recognized in earnings subsequent to redemption of the Fund.

(2) Level two valuation assumptions were used to determine the fair value of held to maturity securities in the Fund.

Scheduled of amortized cost and fair value of securities pledged as collateral

The following table summarizes the amortized cost and fair value of available for sale and held to maturity securities that are pledged as collateral for the following obligations at September 30, 2013 and December 31, 2012:

	September 30, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Washington and Oregon state to secure public deposits	$	65,872	$	66,558	$	53,642	$	56,300
Federal Reserve Bank and FHLB to secure borrowing arrangements	—		—		6,231		6,245
Repurchase agreements	23,761		23,613		17,479		17,705
Total	$	89,633	$	90,171	$	77,352	$	80,250