Investment Securities Available for Sale and Other Investments (Tables)

9 Months Ended

Sep. 30, 2012

Investment Securities Available for Sale and Other Investments [Abstract]

Comparison of amortized cost and fair value of securities available for sale

Following is a comparison of the amortized cost and fair value of securities available-for-sale, as of September 30, 2012 and December 31, 2011:

(In thousands)			Gross		Gross			Fair Value
September 30, 2012:	Amortized		Unrealized		Unrealized			(Carrying
Securities available for sale:	Cost		Gains		Losses			Amount)
U.S. Government agencies	$	24,319	$	1,066	$	(1	)	$	25,384
U.S. Government collateralized mortgage obligations		3,659		293		0			3,952
Residential mortgage obligations		9,208		0		(394	)		8,814
Mutual Funds		4,000		7					4,007
Total securities available for sale	$	41,186	$	1,366	$	(395	)	$	42,157

			Gross		Gross			Fair Value
December 31, 2011:	Amortized		Unrealized		Unrealized			(Carrying
Securities available for sale:	Cost		Gains		Losses			Amount)
U.S. Government agencies	$	23,680	$	1,377	$	(7	)	$	25,050
U.S. Government collateralized mortgage obligations		5,010		425		0			5,435
Residential mortgage obligations		10,238		0		(2,265	)		7,973
Total securities available for sale	$	38,928	$	1,802	$	(2,272	)	$	38,458

Contractual maturities on collateralized mortgage obligation cannot be anticipated due to allowed paydowns

The amortized cost and fair value of securities available for sale at September 30, 2012, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed paydowns.

	September 30, 2012
	Amortized		Fair Value
(In thousands)	Cost		(Carrying Amount)
Due in one year or less	$	7,603	$	7,633
Due after one year through five years		9,285		9,349
Due after five years through ten years		3,021		3,278
Due after ten years		8,411		9,132
Collateralized mortgage obligations		12,866		12,765
	$	41,186	$	42,157

Summary of temporarily impaired investment securities

The following summarizes temporarily impaired investment securities:

	Less than 12 Months					12 Months or More							Total
(In thousands)	Fair Value					Fair Value					Fair Value
September 30, 2012:	(Carrying		Unrealized			(Carrying		Unrealized			(Carrying		Unrealized
Securities available for sale:	Amount)		Losses			Amount)		Losses			Amount)		Losses
U.S. Government agencies	$	5,142	$	(1	)	$	0	$	0		$	5,142	$	(1	)
U.S. Government agency collateral mortgage obligations		0		0			0		0			0		0
Residential mortgage obligations		0		0			9,208		(394	)		9,208		(394	)
Total impaired securities	$	5,142	$	(1	)	$	9,208	$	(394	)	$	14,350	$	(395	)

December 31, 2011:
Securities available for sale:
U.S. Government agencies	$	2,143	$	(7	)	$	0	$	0		$	2,143	$	(7	)
U.S. Government agency collateral mortgage obligations		0		0			0		0			0		0
Residential mortgage obligations		0		0			7,994		(2,265	)		7,994		(2,265	)
Total impaired securities	$	2,143	$	(7	)	$	7,994	$	(2,265	)	$	10,137	$	(2,272	)

The following table details the three private label mortgage-backed securities with other-than-temporary-impairment, their credit rating at September 30, 2012, the related credit losses recognized in earnings during the quarter, and impairment losses in other comprehensive loss:

September 30, 2012 (in 000's)	RALI 2006-QS1G A10			RALI 2006 QS8 A1			CWALT 2007- 8CB A9
	Rated D			Rated D			Rated CCC			Total
Amortized cost – before OTTI	$	3,611		$	1,101		$	6,747		$	11,459

Credit loss		(771	)		(232	)		(1,248	)		(2,251	)
Other impairment (OCI)		(124	)		(5	)		(265	)		(394	)
Carrying amount – September 30, 2012	$	2,716		$	864		$	5,234		$	8,814

Total impairment - September 30, 2012	$	(895	)	$	(237	)	$	(1,513	)	$	(2,645	)

The total other comprehensive loss (OCI) balance of $394,000 in the above table is included in unrealized losses of 12 months or more at September 30, 2012.

The following table summarizes amounts related to credit losses recognized in earnings for the nine months and quarters ended September 30, 2012 and 2011.

	Nine months ended			Nine months ended			Three Months Ended			Three Months Ended
(in thousands)	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Beginning balance - credit losses		2,257		$	1,507		$	2,277		$	1,507
Additions:
Initial credit impairments		0			0			0			0
Subsequent credit impairments		284			308			113			308
Reductions:
For securities sold or credit losses realized on principal payments		(290	)		(79	)		(139	)		(79	)
Due to change in intent or requirement to sell					0			0			0
For increase expected in cash flows					0			0			0
Ending balance - credit losses	$	2,251		$	1,736		$	2,251		$	1,736

- 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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