Investment and Mortgage-backed Securities

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investment and Mortgage-backed Securities

6.       Investment and Mortgage-backed Securities

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of investment securities at March 31, 2014 and December 31, 2013 are shown below.

			March 31, 2014
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
	(In thousands)
Available for Sale:
U.S. Government agency securities	$	145,071	$	-	$	8,520	$	136,551
Municipal obligations		3,034		108		66		3,076
Corporate securities		758		317		-		1,075
	$	148,863	$	425	$	8,586	$	140,702
			December 31, 2013
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		gains		losses		value
		(In thousands)
Available for Sale:
U.S. Government agency securities	$	160,063	$	-	$	11,714	$	148,349
Municipal obligations		3,035		83		103		3,015
Corporate securities		1,920		658		-		2,578
	$	165,018	$	741	$	11,817	$	153,942

The amortized cost of investment securities at March 31, 2014, by contractual term to maturity, are shown below.

	March 31,
	2014
	(In thousands)
One to five years	$	29,444
Five to ten years		65,363
More than ten years		53,298
		148,105
Corporate securities		758
	$	148,863

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of mortgage-backed securities at March 31, 2014 and December 31, 2013 are shown below.

	March 31, 2014
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		holding gains		holding losses		value
	(In thousands)
Available for sale:
Federal Home Loan Mortgage Corporation adjustable-rate participation certificates	$	665	$	58	$	1	$	722
Federal National Mortgage Association adjustable-rate participation certificates		5,727		69		1		5,795
Government National Mortgage Association adjustable-rate participation certificates		2,522		91		-		2,613
	$	8,914	$	218	$	2	$	9,130
Held to maturity:
Federal Home Loan Mortgage Corporation adjustable-rate participation certificates	$	239	$	9	$	-	$	248
Federal National Mortgage Association adjustable-rate participation certificates		196		6		-		202
Government National Mortgage Association adjustable-rate participation certificates		2,560		106		-		2,666
	$	2,995	$	121	$	-	$	3,116
	December 31, 2013
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		holding gains		holding losses		value
		(In thousands)
Available for sale:
Federal Home Loan Mortgage Corporation adjustable-rate participation certificates	$	677	$	34	$	1	$	710
Federal National Mortgage Association adjustable-rate participation certificates		5,940		40		36		5,944
Government National Mortgage Association adjustable-rate participation certificates		2,622		85		-		2,707
	$	9,239	$	159	$	37	$	9,361

			December 31, 2013
			Gross		Gross		Estimated
	Amortized		unrealized		unrealized		fair
	cost		holding gains		holding losses		value
	(In thousands)
Held to maturity:
Federal Home Loan Mortgage Corporation adjustable-rate participation certificates	$	253	$	8	$	-	$	261
Federal National Mortgage Association adjustable-rate participation certificates		212		6		-		218
Government National Mortgage Association adjustable-rate participation certificates		2,651		100		-		2,751
	$	3,116	$	114	$	-	$	3,230

The amortized cost of mortgage-backed securities, including those designated as available for sale, at March 31, 2014, by contractual terms to maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may generally prepay obligations without prepayment penalties.

	March 31,
	2014
	(In thousands)
Due in one year or less	$	800
Due in one year through five years		3,361
Due in five years through ten years		4,594
Due in more than ten years		3,154
	$	11,909

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at March 31, 2014:

	Less than 12 months								12 months or longer						Total
Description of	Number of		Fair		Unrealized			Number of	Fair		Unrealized		Number of		Fair		Unrealized
securities	investments		value		losses			investments	value		losses		investments		value		losses
							(Dollars in thousands)
U.S. Government agency securities		14	$	73,744	$	4,297		12	$	62,807	$	4,223		26	$	136,551	$	8,520
Municipal obligations		-		-		-		1		649		66		1		649		66
Corporate stocks		-		-		-		-		-		-		-		-		-
Mortgage-backed securities		6		17		1		7		102		1		13		119		2
Total temporarily impaired securities		20	$	73,761	$	4,298		20	$	63,558	$	4,290		40	$	137,319	$	8,588

Management does not intend to sell any of the debt securities with an unrealized loss and does not believe that it is more likely than not that we will be required to sell a security in an unrealized loss position prior to a recovery in value. The decline in the fair value is primarily due to an increase in market interest rates. The fair values are expected to recover as securities approach maturity dates. The Corporation has evaluated these securities and has determined that the decline in their values is temporary.