Securities (Tables)

3 Months Ended

Mar. 31, 2013

Securities [Abstract]

Securities available for sale

Securities available for sale consist of the following:

	Amortized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
March 31, 2013
U.S. agency	$	8,120	$	-	$	14	$	8,106
U.S. agency residential mortgage-backed		192,538		1,536		67		194,007
Private label residential mortgage-backed		8,573		1		1,009		7,565
Obligations of states and political subdivisions		70,318		828		243		70,903
Trust preferred		2,898		-		533		2,365
Corporate		989		-		1		988
Total	$	283,436	$	2,365	$	1,867	$	283,934
December 31, 2012
U.S. agency	$	30,620	$	70	$	23	$	30,667
U.S. agency residential mortgage-backed		126,151		1,264		3		127,412
Private label residential mortgage-backed		9,070		-		876		8,194
Obligations of states and political subdivisions		38,384		736		69		39,051
Trust preferred		4,704		-		1,615		3,089
Total	$	208,929	$	2,070	$	2,586	$	208,413

Investments in a continuous unrealized loss position

Our investments' gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position follows:

	Less Than Twelve Months				Twelve Months or More				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(In thousands)
March 31, 2013
U.S. agency	$	8,106	$	14	$	-	$	-	$	8,106	$	14
U.S. agency residential mortgage-backed		60,230		66		236		1		60,466		67
Private label residential mortgage-backed		-		-		7,323		1,009		7,323		1,009
Obligations of states and political subdivisions		23,506		213		1,228		30		24,734		243
Trust preferred		-		-		2,365		533		2,365		533
Corporate		988		1		-		-		988		1
Total	$	92,830	$	294	$	11,152	$	1,573	$	103,982	$	1,867
December 31, 2012
U.S. agency	$	8,097	$	23	$	-	$	-	$	8,097	$	23
U.S. agency residential mortgage-backed		-		-		457		3		457		3
Private label residential mortgage-backed		-		-		8,192		876		8,192		876
Obligations of states and political subdivisions		7,384		69		-		-		7,384		69
Trust preferred		-		-		3,089		1,615		3,089		1,615
Total	$	15,481	$	92	$	11,738	$	2,494	$	27,219	$	2,586

Unrealized losses largely attributable to credit spread

The unrealized losses are largely attributable to credit spread widening on these securities since their acquisition.  The increase in unrealized losses during the quarter was primarily attributed to one issue while the other six issues remained relatively stable during the quarter.  The underlying loans within these securities include Jumbo (72%) and Alt A (28%) at March 31, 2013.

	March 31, 2013					December 31, 2012
			Net					Net
	Fair		Unrealized			Fair		Unrealized
	Value		Gain (Loss)			Value		Gain (Loss)
	(In thousands)
Private label residential mortgage-backed
Jumbo	$	5,274	$	(683	)	$	6,041	$	(594	)
Alt-A		2,049		(326	)		2,153		(282	)

Trust preferred securities

The following table breaks out our trust preferred securities in further detail as of March 31, 2013 and December 31, 2012:

	March 31, 2013					December 31, 2012
			Net					Net
	Fair		Unrealized			Fair		Unrealized
	Value		Gain (Loss)			Value		Gain (Loss)
	(In thousands)
Trust preferred securities
Rated issues	$	1,618	$	(280	)	$	1,581	$	(316	)
Unrated issues - no OTTI		747		(253	)		1,508		(1,299	)

Credit losses recognized in earnings on securities available for sale

A roll forward of credit losses recognized in earnings on securities available for sale for the three month periods ended March 31, follows:

	2013		2012
	(In thousands)
Balance at beginning of year	$	1,809	$	1,470
Additions to credit losses on securities for which no previous OTTI  was recognized		-		-
Increases to credit losses on securities for which OTTI was reviously recognized		-		177
Total	$	1,809	$	1,647

Amortized cost and fair value of securities available for sale by contractual maturity

The amortized cost and fair value of securities available for sale at March 31, 2013, by contractual maturity, follow. The actual maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
	Cost		Value
	(In thousands)
Maturing within one year	$	1,976	$	1,975
Maturing after one year but within five years		19,358		19,514
Maturing after five years but within ten years		20,595		20,890
Maturing after ten years		40,396		39,983
		82,325		82,362
U.S. agency residential mortgage-backed		192,538		194,007
Private label residential mortgage-backed		8,573		7,565
Total	$	283,436	$	283,934

Gains and losses realized on sale of securities available for sale

Gains and losses realized on the sale of securities available for sale are determined using the specific identification method and are recognized on a trade-date basis.  A summary of proceeds from the sale of securities available for sale and gains and losses for the three month periods ended March 31, follows:

			Realized
	Proceeds		Gains		Losses(1)
	(In thousands)
2013	$	1,800	$	-	$	7
2012		9,206		692		-

(1) Losses in 2013 and 2012 exclude zero and $0.177 million, respectively of credit related OTTI recognizedn earnings.