Securities (Tables)

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Schedule of Available for Sale and Held to Maturity Securities Reconciliation

The amortized cost and fair value of securities are summarized in the following tables:



	September 30, 2013
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale:
U.S. Government agency securities	$	33,995	$	—	$	(3,623	)	$	30,372
Residential mortgage-backed securities	67,323		12		(2,274		)	65,061
Agency collateralized mortgage obligations	500,312		2,734		(12,014		)	491,032
Municipal securities	26,897		—		(1,211		)	25,686
Total	$	628,527	$	2,746	$	(19,122	)	$	612,151
Held to Maturity:
U.S. Government agency securities	$	149,093	$	—	$	(13,108	)	$	135,985
Residential mortgage-backed securities	16,793		1,055		—			17,848
Agency collateralized mortgage obligations	103,361		385		(2,526		)	101,220
Corporate debt securities	5,000		94		—			5,094
Municipal securities	2,977		4		(152		)	2,829
Total	$	277,224	$	1,538	$	(15,786	)	$	262,976



	December 31, 2012
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale:
U.S. Government agency securities	$	33,994	$	19	$	(252	)	$	33,761
Residential mortgage-backed securities	55,614		1,596		—			57,210
Agency collateralized mortgage obligations	547,641		9,971		(745		)	556,867
Municipal securities	26,890		381		—			27,271
Total	$	664,139	$	11,967	$	(997	)	$	675,109
Held to Maturity:
U.S. Government agency securities	$	178,926	$	700	$	(363	)	$	179,263
Residential mortgage-backed securities	23,827		1,889		—			25,716
Agency collateralized mortgage obligations	49,051		1,587		—			50,638
Corporate debt securities	15,000		13		—			15,013
Municipal securities	2,979		62		—			3,041
Total	$	269,783	$	4,251	$	(363	)	$	273,671

Amortized cost and fair value of debt securities by contractual maturity

The amortized cost and fair value of debt securities by contractual maturity at September 30, 2013 are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations.



	Available for Sale				Held to Maturity
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	—		—		5,000		5,094
Due after five years through ten years	47,482		43,453		70,000		63,648
Due after ten years	13,410		12,605		82,070		75,166
	60,892		56,058		157,070		143,908
Residential mortgage-backed securities	67,323		65,061		16,793		17,848
Agency collateralized mortgage obligations	500,312		491,032		103,361		101,220
Total	$	628,527	$	612,151	$	277,224	$	262,976

Gains (Losses) on the sales or calls of debt securities and credit losses for OTTI of investments

The following table summarizes the Company's gains and losses on the sales or calls of debt securities and credit losses recognized for the OTTI of investments:



(in thousands)	Gross Realized Gains		Gross Realized Losses			OTTI Credit Losses			Net Gains (Losses)
Three Months Ended:
September 30, 2013	$	—	$	—		$	—		$	—
September 30, 2012	5		(42		)	—			(37		)
Nine Months Ended:
September 30, 2013	$	1,183	$	(1,162	)	$	—		$	21
September 30, 2012	2,500		(1,541		)	(649		)	310

Fair value and gross unrealized losses

The following table shows the fair value and gross unrealized losses associated with the Company's investment portfolio, aggregated

by investment category and length of time that individual securities have been in a continuous unrealized loss position:



	September 30, 2013
	Less than 12 months					12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for Sale:
U.S. Government agency securities	$	30,372	$	(3,623	)	$	—	$	—	$	30,372	$	(3,623	)
Residential mortgage-backed securities	61,773		(2,274		)	—		—		61,773		(2,274		)
Agency CMOs	276,814		(12,014		)	—		—		276,814		(12,014		)
Municipal securities	25,686		(1,211		)	—		—		25,686		(1,211		)
Total	$	394,645	$	(19,122	)	$	—	$	—	$	394,645	$	(19,122	)
Held to Maturity:
U.S. Government agency securities	$	135,985	$	(13,108	)	$	—	$	—	$	135,985	$	(13,108	)
Agency CMOs	79,267		(2,526		)	—		—		79,267		(2,526		)
Municipal securities	1,723		(152		)	—		—		1,723		(152		)
Total	$	216,975	$	(15,786	)	$	—	$	—	$	216,975	$	(15,786	)



	December 31, 2012
	Less than 12 months					12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for Sale:
U.S. Government agency securities	$	24,748	$	(252	)	$	—	$	—	$	24,748	$	(252	)
Agency CMOs	53,274		(745		)	—		—		53,274		(745		)
Total	$	78,022	$	(997	)	$	—	$	—	$	78,022	$	(997	)
Held to Maturity:
U.S. Government agency securities	$	57,572	$	(363	)	$	—	$	—	$	57,572	$	(363	)
Total	$	57,572	$	(363	)	$	—	$	—	$	57,572	$	(363	)

Cumulative life credit losses recognized in earnings

The table that follows rolls forward the cumulative life-to-date credit losses which have been recognized in earnings for the private-label CMOs for the three months and nine months ended September 30, 2013 and September 30, 2012. The Company did not incur any credit losses for the private-label CMOs in 2013 and does not currently hold private-label CMOs as of September 30, 2013.



	Private-label CMOs
	Available for Sale
(in thousands)	2013		2012
Cumulative OTTI credit losses at July 1,	$	—	$	252
Additional increases for OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis	—		—
Reduction due to credit impaired securities sold	—		(112		)
Cumulative OTTI credit losses recognized for securities still held at September 30,	$	—	$	140



	Private-label CMOs
	Available for Sale
(in thousands)	2013		2012
Cumulative OTTI credit losses at January 1,	$	—	$	2,949
Additional increases for OTTI previously recognized when there is no intent to sell and no requirement to sell before recovery of amortized cost basis	—		649
Reduction due to credit impaired securities sold	—		(3,458		)
Cumulative OTTI credit losses recognized for securities still held at September 30,	$	—	$	140

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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