Investment Securities Available For Sale (Tables)

6 Months Ended

Jun. 30, 2013

Major Components of Securities Available for Sale and Comparison of Amortized Cost, Estimated Fair Market Values, and Gross Unrealized Gains and Losses

The following table sets forth the major components of securities available for sale and compares the amortized costs and estimated fair market values of, and the gross unrealized gains and losses on, these securities at June 30, 2013 and December 31, 2012:


(Dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
Securities available for sale at June 30, 2013:
Mortgage backed securities issued by U.S. agencies⁽¹⁾	$	64,883	$	22	$	(2,271	)	$	62,634
Collateralized mortgage obligations issued by non-agency⁽¹⁾		2,309		60		(61	)		2,308
Asset backed securities⁽²⁾		2,247		—		(1,472	)		775
Mutual funds⁽³⁾		4,233		—		—			4,233

Total securities available for sale	$	73,672	$	82	$	(3,804	)	$	69,950

Securities available for sale at December 31, 2012:
Mortgage-backed securities issued by U.S. agencies⁽¹⁾	$	78,053	$	553	$	(160	)	$	78,446
Collateralized mortgage obligations issued by non-agency⁽¹⁾		2,599		87		(61	)		2,625
Asset backed securities⁽²⁾		2,247		—		(1,347	)		900
Mutual funds⁽³⁾		4,407		—		—			4,407

Total securities available for sale	$	87,306	$	640	$	(1,568	)	$	86,378

⁽¹⁾	Secured by closed-end first lien 1-4 family residential mortgages.

⁽²⁾	Comprised of a security that represents an interest in a pool of trust preferred securities issued by U.S.-based banks and insurance companies.

⁽³⁾	Consists primarily of mutual fund investments in closed-end first lien 1-4 family residential mortgages.

Amortized Costs and Estimated Fair Values of Securities Available for Sale by Contractual Maturities and Historical Prepayments based on Prior Twelve Months of Principal Payments

Expected maturities will differ from contractual maturities and historical prepayments, particularly with respect to collateralized mortgage obligations, primarily because prepayment rates are affected by changes in conditions in the interest rate market and, therefore, future prepayment rates may differ from historical prepayment rates.


	At June 30, 2013 Maturing in
(Dollars in thousands)	One year or less			Over one year through five years			Over five years through ten years			Over ten Years			Total
Securities available for sale, amortized cost	$	11,443		$	32,600		$	17,803		$	11,826		$	73,672
Securities available for sale, estimated fair value		11,113			31,723			17,096			10,018			69,950
Weighted average yield		1.28	%		1.51	%		1.49	%		1.36	%		1.45	%

	At December 31, 2012 Maturing in
(Dollars in thousands)	One year or less			Over one year through five years			Over five years through ten years			Over ten Years			Total
Securities available for sale, amortized cost	$	11,679		$	35,038		$	24,738		$	15,851		$	87,306
Securities available for sale, estimated fair value		11,788			35,264			24,747			14,579			86,378
Weighted average yield		1.59	%		1.62	%		1.62	%		1.43	%		1.58	%

Gross Unrealized Losses and Fair Values of Investments

The table below indicates, as of June 30, 2013, the gross unrealized losses and fair values of our investments, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.


	Securities with Unrealized Loss at June 30, 2013
	Less than 12 months					12 months or more					Total
Dollars in thousands	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Mortgage backed securities issued by U.S. agencies	$	61,183		(2,270	)		38		(1	)		61,221		(2,271	)
Collateralized mortgage obligations issued by non-agency		—		—			1,065		(61	)		1,065		(61	)
Asset backed securities		—		—			775		(1,472	)		775		(1,472	)

Total temporarily impaired securities	$	61,183	$	(2,270	)	$	1,878	$	(1,534	)	$	63,061	$	(3,804	)

OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsTableTextBlock

The table below presents a roll-forward of OTTI where a portion attributable to non-credit related factors was recognized in other comprehensive loss for the six months ended June 30, 2013:


(Dollars in thousands)	Gross Other- Than- Temporary Impairments			Other-Than- Temporary Impairments Included in Other Comprehensive Loss			Net Other-Than Temporary Impairments Included in Retained Earnings (Deficit)
Balance – December 31, 2012	$	(1,995	)	$	(1,264	)	$	(731	)
Additions for credit losses on securities for which an OTTI was not previously recognized		(44	)		(44	)		—

Balance – March 31, 2013	$	(2,039	)	$	(1,308	)	$	(731	)

Additions for credit losses on securities for which an OTTI was not previously recognized		(105	)		(105	)		—

Balance – June 30, 2013	$	(2,144	)	$	(1,413	)	$	(731	)

Impairment Losses on Other-Than-Temporary Impairments Securities

Set forth below is additional information regarding impairment losses that we recognized in earnings for the six months ended June 30, 2013 and 2012:


Impairment Losses on OTTI Securities	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Dollars in thousands)	2013		2012		2013		2012
Asset backed securities	$	0	$	—	$	0	$	77

Total impairment loss recognized in earnings	$	0	$	—	$	0	$	77

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- 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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