XML 29 R13.htm IDEA: XBRL DOCUMENT v2.3.0.15
Investment Securities
9 Months Ended
Sep. 30, 2011
Investment Securities 
Investment Securities

 

 

4.     Investment Securities

 

Investment securities at September 30, 2011 and December 31, 2010 are as follows:

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

 

September 30, 2011

 

cost

 

gains

 

losses

 

Fair value

 

 

 

(in thousands)

 

Available for sale securities:

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

$

10

 

1

 

—

 

11

 

Municipal bonds

 

2,548

 

—

 

(38

)

2,510

 

Corporate bonds

 

43,065

 

24

 

(232

)

42,857

 

Mutual funds

 

51,456

 

2,081

 

(7,606

)

45,931

 

 

 

$

97,079

 

2,106

 

(7,876

)

91,309

 

 

 

 

 

 

 

 

 

 

 

Trading securities:

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

 

 

 

 

 

64

 

Municipal bonds

 

 

 

 

 

 

 

500

 

Corporate bonds

 

 

 

 

 

 

 

12,924

 

Common stock

 

 

 

 

 

 

 

35

 

Mutual funds

 

 

 

 

 

 

 

18,744

 

 

 

 

 

 

 

 

 

32,267

 

 

 

 

 

 

 

 

 

 

 

Total investment securities

 

 

 

 

 

 

 

123,576

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

 

 

December 31, 2010

 

cost

 

gains

 

losses

 

Fair value

 

 

 

(in thousands)

 

Available for sale securities:

 

 

 

 

 

 

 

 

 

U.S. treasury bills

 

$

56,961

 

—

 

—

 

56,961

 

Mortgage-backed securities

 

10

 

2

 

—

 

12

 

Municipal bonds

 

2,729

 

—

 

(185

)

2,544

 

Mutual funds

 

28,633

 

5,662

 

(37

)

34,258

 

 

 

$

88,333

 

5,664

 

(222

)

93,775

 

 

 

 

 

 

 

 

 

 

 

Trading securities:

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

 

 

 

 

 

4,997

 

U.S. treasury bills

 

 

 

 

 

 

 

60,958

 

Mortgage-backed securities

 

 

 

 

 

 

 

73

 

Municipal bonds

 

 

 

 

 

 

 

487

 

Corporate bonds

 

 

 

 

 

 

 

50

 

Common stock

 

 

 

 

 

 

 

201

 

Mutual funds

 

 

 

 

 

 

 

32,070

 

 

 

 

 

 

 

 

 

98,836

 

 

 

 

 

 

 

 

 

 

 

Total investment securities

 

 

 

 

 

 

 

192,611

 

 

Purchases of trading securities during the nine months ended September 30, 2011 were $23.1 million, while sales and maturities were $86.6 million for the same period.

 

A summary of available for sale debt securities and mutual funds with fair values below carrying values at September 30, 2011 and December 31, 2010 is as follows:

 

 

 

Less than 12 months

 

12 months or longer

 

Total

 

September 30, 2011

 

Fair value

 

Unrealized
losses

 

Fair
value

 

Unrealized
losses

 

Fair
value

 

Unrealized
losses

 

 

 

(in thousands)

 

Municipal bonds

 

$

—

 

—

 

2,511

 

(38

)

2,511

 

(38

)

Corporate bonds

 

24,378

 

(232

)

—

 

—

 

24,378

 

(232

)

Mutual funds

 

35,424

 

(7,588

)

322

 

(18

)

35,746

 

(7,606

)

Total temporarily impaired securities

 

$

59,802

 

(7,820

)

2,833

 

(56

)

62,635

 

(7,876

)

 

 

 

Less than 12 months

 

12 months or longer

 

Total

 

December 31, 2010

 

Fair value

 

Unrealized
losses

 

Fair
value

 

Unrealized
losses

 

Fair
value

 

Unrealized
losses

 

 

 

(in thousands)

 

Municipal bonds

 

$

—

 

—

 

2,544

 

(185

)

2,544

 

(185

)

Mutual funds

 

810

 

(10

)

313

 

(27

)

1,123

 

(37

)

Total temporarily impaired securities

 

$

810

 

(10

)

2,857

 

(212

)

3,667

 

(222

)

 

Based upon our assessment of these municipal bonds, corporate bonds and mutual funds, the time frame investments have been in a loss position, our intent to hold mutual funds until they have recovered and our history of holding bonds until maturity, we determined that a write-down was not necessary at September 30, 2011.

 

Mortgage-backed securities, municipal bonds and corporate bonds accounted for as available for sale and held as of September 30, 2011 mature as follows:

 

 

 

Amortized
cost

 

Fair value

 

 

 

(in thousands)

 

Within one year

 

$

 14,845

 

14,684

 

After one year but within 10 years

 

29,777

 

29,718

 

After 10 years

 

1,001

 

976

 

 

 

$

45,623

 

45,378

 

 

Mortgage-backed securities, municipal bonds and corporate bonds accounted for as trading and held as of September 30, 2011 mature as follows:

 

 

 

Fair value

 

 

 

(in thousands)

 

After one year but within 10 years

 

$

13,424

 

After 10 years

 

64

 

 

 

$

13,488

 

 

We determine the fair value of our investments using broad levels of inputs as defined by related accounting standards as follows:

 

·                  Level 1 — Investments are valued using quoted prices in active markets for identical securities at the reporting date.  Assets classified as Level 1 include mutual funds classified as available for sale and mutual funds and common stock classified as trading.

 

·                  Level 2 — Investments are valued using other significant observable inputs, including quoted prices in active markets for similar securities.  Assets classified as Level 2 include mortgage-backed securities, municipal bonds and corporate bonds.

 

·                  Level 3 — Investments are valued using significant unobservable inputs, including the Company’s own assumptions in determining the fair value of investments.

 

The following table summarizes investment securities recognized on our balance sheet using fair value measurements based on the differing levels of inputs:

 

 

 

September 30,

 

December 31,

 

 

 

2011

 

2010

 

 

 

(in thousands)

 

Level 1

 

$

64,710

 

189,445

 

Level 2

 

58,866

 

3,166

 

Level 3

 

—

 

—

 

Total

 

$

123,576

 

192,611