Investments (Tables)

12 Months Ended

Dec. 31, 2012

Amortized cost and fair value of AFS securities and corresponding amounts of gross unrealized gains and losses

The amortized cost and fair value of our AFS securities and the corresponding amounts of gross unrealized gains and losses were as follows:

			Gross Unrealized								Estimated
	Amortized				Losses 1 Year			Losses Greater			Fair
	Cost		Gains		Or Less			Than 1 Year			Value
December 31, 2012	(in thousands)
Agency mortgage-backed securities	$	20,378	$	27	$	(278	)	$	-		$	20,127
Non-agency mortgage-backed securities	$	3,273		19		-			(519	)		2,773
Total	$	23,651	$	46	$	(278	)	$	(519	)	$	22,900

December 31, 2011	(in thousands)
Agency mortgage-backed securities	$	53	$	6	$	-		$	-		$	59
Non-agency mortgage-backed securities		3,939		-		-			(1,006	)		2,933
Total	$	3,992	$	6	$	-		$	(1,006	)	$	2,992

Amortized cost and fair value of mortgage-backed securities by contractual maturity

The amortized cost and fair value of mortgage-backed securities by contractual maturity, at December 31, 2012, are shown below. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	December 31, 2012
	Amortized Cost		Fair Value
	(In thousands)
Due after ten years	$	23,651	$	22,900

Gain (loss) on sales of available for sale securities

Sales of available for sale securities were as follows:

	Twelve Months Ended December 31,
	2012		2011
	(in thousands)
Proceeds	$	-	$	1,118
Gross gains		-		3
Gross losses		-		(37	)

Aggregate fair value and gross unrealized loss in continuous unrealized loss position

The following table summarizes the aggregate fair value and gross unrealized loss by length of time those investments have been continuously in an unrealized loss position:

	December 31, 2012
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
December 31, 2012	(in thousands)
Agency mortgage-backed securities	$	17,685	$	(278	)	$	-	$	-		$	17,685	$	(278	)
Non-agency mortgage-backed securities	$	-	$	-		$	2,137		(519	)	$	2,137		(519	)
Total	$	17,685	$	(278	)	$	2,137	$	(519	)	$	19,822	$	(797	)

	December 31, 2011
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
December 31, 2011	(in thousands)
Non-agency mortgage-backed securities	$	-	$	-		$	2,933	$	(1,006	)	$	2,933	$	(1,006	)
Total	$	-	$	-		$	2,933	$	(1,006	)	$	2,933	$	(1,006	)

Cumulative roll forward of credit losses recognized in earnings

The following table presents the cumulative roll forward of credit losses recognized in earnings relating to the Company's non-U.S. agency mortgage backed securities:

	Twelve Months Ended
	December 31,
	2012		2011
	(in thousands)
Estimated credit losses, beginning balance	$	256	$	160
Additions for credit losses not previously recognized		164		96
Reduction for increases in cash flows		-		-
Reduction for realized losses		-		-
Estimated credit losses, ending balance	$	420	$	256

- 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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