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Securities (Tables)
 3 Months Ended
Mar. 31, 2013
Securities [Abstract]  
Amortized cost and fair value of securities available for sale, with unrealized gains and losses
The amortized cost and fair value of securities available for sale, with unrealized gains and losses follows:

   
March 31, 2013
 
  Amortized   
Gross Unrealized
   
Gross Unrealized
      
(In thousands)
 
Cost
   
Gains
   
(Losses)
   
Fair Value
 
Obligations of U.S. Government corporations and agencies
 
$
37,051
   
$
669
   
$
(26
)
 
$
37,694
 
Obligations of states and political subdivisions
   
6,785
     
547
     
-
     
7,332
 
Corporate bonds
   
3,826
     
-
     
(3,513
)
   
313
 
Mutual funds
   
348
     
14
     
-
     
362
 
   
$
48,010
   
$
1,230
   
$
(3,539
)
 
$
45,701
 
 
 
December 31, 2012
 
   
Amortized
 
Gross Unrealized
   
Gross Unrealized
         
 
Cost
 
Gains
   
(Losses)
   
Fair Value
 
Obligations of U.S. Government corporations and agencies
$
39,240
 
$
794
   
$
(20
)  
$
40,014
 
Obligations of states and political subdivisions
 
6,786
   
604
     
-
     
7,390
 
Corporate bonds
 
3,836
   
-
     
(3,511
)    
325
 
Mutual funds
 
346
   
17
      -     
363
 
 
$
50,208
 
$
1,415
   
$
(3,531
)  
$
48,092
 
 
Amortized cost and fair value of securities available for sale, by contractual maturity
The amortized cost and fair value of securities available for sale, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties.

 
March 31, 2013
 
(In thousands)
 
Amortized Cost
   
Fair Value
 
Due in one year or less
 
$
-
   
$
-
 
Due after one year through five years
   
11,051
     
11,088
 
Due after five years through ten years
   
11,958
     
12,588
 
Due after ten years
   
24,653
     
21,663
 
Equity securities
   
348
     
362
 
   
$
48,010
   
$
45,701
 
 
Securities with continuous unrealized loss position
The following table shows the Company securities with gross unrealized losses and fair value, 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, respectively.
 
 
(In thousands)
 
Less than 12 Months
 
12 Months or More
 
Total
 
March 31, 2013
 
Fair Value
   
Unrealized
(Losses)
 
Fair Value
   
Unrealized
(Losses)
 
Fair Value
   
Unrealized
(Losses)
 
                               
Obligations of U.S. Government, corporations and agencies
 
$
7,508
   
$
(26
)
 
$
-
   
$
-
   
$
7,508
   
$
(26
)
Corporate bonds
   
-
     
-
     
313
     
(3,513
)
   
313
     
(3,513
)
Total temporary impaired securities
 
$
7,508
   
$
(26
)
 
$
313
   
$
(3,513
)
 
$
7,821
   
$
(3,539
)
 
 
Less than 12 Months
 
12 Months or More
 
Total
 
December 31, 2012
Fair Value
 
Unrealized (Losses)
 
Fair Value
   
Unrealized
(Losses)
 
Fair Value
   
Unrealized
(Losses)
 
                                           
Obligations of U.S. Government, corporations and agencies
$
2,165
$
(20
)
 
$
-
   
$
-
   
$
2,165
   
$
(20
)
Corporate bonds
 
-
 
-
     
325
     
(3,511
)
   
325
     
(3,511
)
Total temporary impaired securities
$
2,165
$
(20
)
 
$
325
   
$
(3,511
)
 
$
2,490
   
$
(3,531
)
 
Pooled trust preferred securities
Additional information regarding each of the pooled trust preferred securities as of March 31, 2013 follows:
 
(Dollars in thousands)
Cost, net of
OTTI loss
   
Fair Value
   
Percent of
Underlying
Collateral
Performing
   
Percent of
Underlying
Collateral in
Deferral
   
Percent of
Underlying
Collateral in
Default
 
Estimated
incremental
defaults required
to break yield (1)
Current
Moody's
Rating
 
Cumulative
Amount of
OTTI Loss
   
Cumulative Other
Comprehensive
Loss, net of tax
benefit
 
                                                         
$
361
    $
32
     
65.2
%
   
6.8
%
   
28.0
%
broken
Ca
 
$
599
    $
216
 
 
1,600
     
234
     
68.3
%
   
15.3
%
   
16.4
%
8.6%
Ca
   
357
     
902
 
 
1,303
     
28
     
64.0
%
   
28.2
%
   
7.8
%
broken
Ca
   
697
     
842
 
 
562
     
19
     
66.0
%
   
23.0
%
   
11.0
%
broken
C
   
438
     
358
 
$
3,826
    $
313
                               
$
2,091
    $
2,318
 

(1)
A break in yield for a given tranche investment means that defaults and/or deferrals have reached such a level that the specific tranche would not receive all of the contractual principal and interest cash flow by its maturity, resulting in not a temporary shortfall, but an actual loss. This column represents the percentage of additional defaults among the currently performing and deferred collateral that would result in OTTI loss.
Amount related to credit losses recognized in earnings
The following roll forward reflects the amount related to credit losses recognized in earnings (in accordance with FASB Accounting Standards Codification ("ASC") 320-10-35-34D):

(In thousands)
Beginning balance as of December 31, 2012
 
$
2,115
 
Add: Amount related to the credit loss for which an other-than- temporary impairment was not previously recognized
   
-
 
Add: Increases to the amount related to the credit loss for which an other-than temporary impairment was previously recognized
   
-
 
Less: Realized losses for securities sold
   
-
 
Less: Securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis.
   
-
 
Less: Increases in cash flows expected to be collected that are recognized over the remaining life of the security (See FASB ASC 320-10-35-35)
   
(24
)
Ending balance as of March 31, 2013
 
$
2,091