Investments (Tables)

9 Months Ended

Sep. 30, 2012

Investments, Debt and Equity Securities [Abstract]

Available-for-sale securities reconciliation

The following table sets forth the carrying values and estimated fair values of our investment securities portfolio at the dates indicated (in thousands):



	September 30, 2012
Available-for-Sale Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Debt securities:
U.S. Government agencies	$	2,317	$	1	$	—		$	2,318
Obligations of states and political subdivisions	$	126,656	$	11,050	$	(69	)	$	137,637
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	207,740		3,108		(713		)	210,135
Private label residential mortgage backed securities	6,728		261		(311		)	6,678
Other equity securities	7,596		444		—			8,040
	$	351,037	$	14,864	$	(1,093	)	$	364,808



	December 31, 2011
Available-for-Sale Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Debt securities:
U.S. Government agencies	$	149	$	—	$	—		$	149
Obligations of states and political subdivisions	101,030		7,732		(331		)	108,431
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	204,222		1,402		(1,080		)	204,544
Private label residential mortgage backed securities	8,408		245		(1,255		)	7,398
Other equity securities	7,596		295		—			7,891
	$	321,405	$	9,674	$	(2,666	)	$	328,413

Realized gains and losses

Proceeds and gross realized gains (losses) from the sales or calls of investment securities for the periods ended September 30, 2012 and 2011 are shown below (in thousands):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Available-for-Sale Securities	2012			2011			2012			2011
Proceeds from sales or calls	$	31,055		$	12,171		$	38,554		$	43,580
Gross realized gains from sales or calls	1,128			288			1,694			1,027
Gross realized losses from sales or calls	(285		)	(65		)	(407		)	(778		)

Securities in a continuous unrealized loss position

Investment securities with unrealized losses as of the dates indicated are summarized and classified according to the duration of the loss period as follows (in thousands):



	September 30, 2012
	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Available-for-Sale Securities	Value		Losses			Value		Losses			Value		Losses
Debt securities:
Obligations of states and political subdivisions	$	5,216	$	(69	)	$	—	$	—		$	5,216	$	(69	)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	62,457		(487		)	14,855		(226		)	77,312		(713		)
Private label residential mortgage backed securities	—		—			3,023		(311		)	3,023		(311		)
	$	67,673	$	(556	)	$	17,878	$	(537	)	$	85,551	$	(1,093	)



	December 31, 2011
	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Available-for-Sale Securities	Value		Losses			Value		Losses			Value		Losses
Debt securities:
Obligations of states and political subdivisions	$	1,194	$	(20	)	$	2,598	$	(311	)	$	3,792	$	(331	)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	105,902		(1,080		)	—		—			105,902		(1,080		)
Private label residential mortgage backed securities	32		(1		)	4,917		(1,254		)	4,949		(1,255		)
	$	107,128	$	(1,101	)	$	7,515	$	(1,565	)	$	114,643	$	(2,666	)

Summary of credit ratings for below investment grade investments

PLRMBS as of September 30, 2012 with credit ratings below investment grade are summarized in the table below (dollars in thousands):



Description	Book Value		Market Value		Unrealized Gain (Loss)			Rating	Agency	12 Month Historical Prepayment Rates %	Projected Default Rates %	Projected Severity Rates %	Original Purchase Price %	Current Credit Enhancement %
PHHAM	$	1,984	1,841		$	(143	)	D	Fitch	11.39	21.60	51.00	97.25	—
CWALT 1	690		648		(42		)	C	Fitch	12.77	26.80	58.20	100.73	3.23
CWALT 2	310		264		(46		)	D	Fitch	12.37	28.70	58.50	101.38	(0.58	)
FHAMS	1,799		1,873		74			D	Fitch	12.46	17.80	47.80	95.00	(0.43	)
BAALT	93		60		(33		)	CC	Fitch	11.09	11.70	51.00	97.24	3.14
ABFS	255		208		(47		)	D	S&P	8.28	8.85	65.00	97.46	—
CONHE	46		70		24			B3	Moodys	13.00	6.12	67.33	86.39	—
TOTALS	$	5,177	$	4,964	$	(213	)

Credit losses recorded in earnings

The following tables provide a roll forward for the three and nine month periods ended September 30, 2012 and 2011 of investment securities credit losses recorded in earnings. The beginning balance represents the credit loss component for which OTTI occurred on debt securities in prior periods. Additions represent the first time a debt security was credit impaired or when subsequent credit impairments have occurred on securities for which OTTI credit losses have been previously recognized.



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In thousands)	2012		2011		2012		2011
Beginning balance	$	783	$	767	$	783	$	1,387
Amounts related to credit loss for which an OTTI charge was not previously recognized	—		—		—		31
Increases to the amount related to credit loss for which OTTI was previously recognized	—		—		—		—
Realized losses for securities sold	—		16		—		(635		)
Ending balance	$	783	$	783	$	783	$	783

Investments by contractual maturity



September 30, 2012	Amortized Cost		Estimated Fair Value
Within one year	$	150	$	151
After one year through five years	10,362		11,365
After five years through ten years	16,868		18,755
After ten years	99,276		107,366
	126,656		137,637
Investment securities not due at a single maturity date:
U.S. Government agencies	2,317		2,318
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	207,740		210,135
Private label residential mortgage backed securities	6,728		6,678
Other equity securities	7,596		8,040
	$	351,037	$	364,808

- 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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