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Securities (Tables)
 6 Months Ended
Jun. 30, 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:

 
 
June 30, 2013
 
 
 
Amortized
  
Gross Unrealized
  
Gross Unrealized
  
 
(In thousands)
 
Cost
  
Gains
  
(Losses)
  
Fair Value
 
Obligations of U.S. Government corporations and agencies
 
$
40,897
  
$
328
  
$
(435
)
 
$
40,790
 
Obligations of states and political subdivisions
  
6,784
   
326
   
(2
)
  
7,108
 
Corporate bonds
  
3,843
   
-
   
(3,488
)
  
355
 
Mutual funds
  
349
   
3
   
-
   
352
 
 
 
$
51,873
  
$
657
  
$ 
(3,925
)
 
$
48,605
 

 
 
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.

 
 
June 30, 2013
 
(In thousands)
 
Amortized Cost
  
Fair Value
 
Due in one year or less
 
$
-
  
$
-
 
Due after one year through five years
  
12,047
   
11,973
 
Due after five years through ten years
  
12,660
   
12,957
 
Due after ten years
  
26,816
   
23,323
 
Equity securities
  
350
   
352
 
 
 
$
51,873
  
$
48,605
 
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 June 30, 2013 and December 31, 2012, respectively.

(In thousands)
 
Less than 12 Months
  
12 Months or More
  
Total
 
June 30, 2013
 
Fair Value
  
Unrealized
(Losses)
  
Fair Value
  
Unrealized
(Losses)
  
Fair Value
  
Unrealized
(Losses)
 
 
 
  
  
  
  
  
 
Obligations of U.S. Government, corporations and agencies
 
$
21,249
  
$ 
(435
)
 
$
-
  
$
-
  
$
21,249
  
$ 
(435
)
Obligations of states and political subdivisions
  
493
   
(2
)
  
-
   
-
   
493
   
(2
)
Corporate bonds
  
-
   
-
   
355
   
(3,488
)
  
355
   
(3,448
)
Total temporary impaired securities
 
$
21,742
  
$ 
(437
)
 
$
355
  
$ 
(3,488
)
 
$
22,097
  
$ 
(3,925
)
 
(In thousands)
 
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
)
Obligations of states and political subdivisions
  
-
   
-
   
-
   
-
   
-
   
-
 
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 June 30, 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
 
  
  
  
  
  
  
  
  
 
$
359
  
$
32
   
65.10
%
  
5.90
%
  
29.00
%
 
broken
  
Ca
  
$
592
  
$
216
 
 
1,604
   
260
   
70.20
%
  
13.00
%
  
16.80
%
  
8.5
%
 
Ca
   
352
   
887
 
 
1,313
   
34
   
63.00
%
  
29.00
%
  
8.00
%
 
broken
  
Ca
   
687
   
844
 
 
567
   
29
   
69.20
%
  
19.80
%
  
11.00
%
 
broken
   C 
 
  
433
   
355
 
$
3,843
  
$
355
                      
$
2,064
  
$
2,302
 

(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

(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)
  
(51
)
Ending balance as of June 30, 2013
 
$
2,064