Securities (Tables)

6 Months Ended

Jun. 30, 2014

Securities [Abstract]

Securities available for sale

Securities available for sale consist of the following:

	Amortized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
June 30, 2014
U.S. agency	$	31,495	$	170	$	85	$	31,580
U.S. agency residential mortgage-backed		248,930		1,402		465		249,867
U.S. agency commercial mortgage-backed		17,731		71		44		17,758
Private label residential mortgage-backed		6,802		173		345		6,630
Other asset backed		37,530		58		58		37,530
Obligations of states and political subdivisions		153,488		945		2,088		152,345
Corporate		19,824		116		19		19,921
Trust preferred		2,906		-		411		2,495
Total	$	518,706	$	2,935	$	3,515	$	518,126
December 31, 2013
U.S. agency	$	32,106	$	44	$	342	$	31,808
U.S. agency residential mortgage-backed		202,649		1,343		532		203,460
Private label residential mortgage-backed		7,294		112		618		6,788
Other asset backed		45,369		10		194		45,185
Obligations of states and political subdivisions		157,966		496		4,784		153,678
Corporate		19,120		43		26		19,137
Trust preferred		2,902		-		477		2,425
Total	$	467,406	$	2,048	$	6,973	$	462,481

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)
June 30, 2014
U.S. agency	$	6,079	$	10	$	8,044	$	75	$	14,123	$	85
U.S. agency residential mortgage-backed		91,491		318		20,514		147		112,005		465
U.S. agency commercial mortgage-backed		10,624		44		-		-		10,624		44
Private label residential mortgage-backed		-		-		4,491		345		4,491		345
Other asset backed		18,345		58		-		-		18,345		58
Obligations of states and political subdivisions		51,974		1,070		26,541		1,018		78,515		2,088
Corporate		2,740		19		-		-		2,740		19
Trust preferred		-		-		2,495		411		2,495		411
Total	$	181,253	$	1,519	$	62,085	$	1,996	$	243,338	$	3,515
December 31, 2013
U.S. agency	$	16,715	$	342	$	-	$	-	$	16,715	$	342
U.S. agency residential mortgage-backed		78,256		532		-		-		78,256		532
Private label residential mortgage-backed		407		6		4,602		612		5,009		618
Other asset backed		33,862		194		-		-		33,862		194
Obligations of states and political subdivisions		103,942		4,645		4,805		139		108,747		4,784
Corporate		7,105		26		-		-		7,105		26
Trust preferred		-		-		2,425		477		2,425		477
Total	$	240,287	$	5,745	$	11,832	$	1,228	$	252,119	$	6,973

Unrealized losses largely attributable to credit spread

The unrealized losses are largely attributable to credit spread widening on these securities since their acquisition.  The underlying loans within these securities include Jumbo (68%) and Alt A (32%) at June 30, 2014.

	June 30, 2014					December 31, 2013
			Net					Net
	Fair		Unrealized			Fair		Unrealized
	Value		Gain (Loss)			Value		Loss
	(In thousands)
Private label residential mortgage-backed
Jumbo	$	4,520	$	(211	)	$	4,687	$	(441	)
Alt-A		2,110		39			2,101		(65	)

Private label residential mortgage backed securities below investment grade

At June 30, 2014 three below investment grade private label residential mortgage-backed securities had credit related OTTI and are summarized as follows:

			Super		Senior
	Senior		Senior		Support
	Security		Security		Security		Total
	(In thousands)
As of June 30, 2014
Fair value	$	2,459	$	1,722	$	42	$	4,223
Amortized cost		2,548		1,592		-		4,140
Non-credit unrealized loss		89		-		-		89
Unrealized gain		-		130		42		172
Cumulative credit related OTTI		748		457		380		1,585
Credit related OTTI recognized in our Condensed Consolidated Statements of Operations
For the three months ended June 30,
2014	$	-	$	-	$	-	$	-
2013		26		-		-		26
For the six months ended June 30,
2014		-		-		-		-
2013		26		-		-		26

Trust preferred securities

The following table breaks out our trust preferred securities in further detail as of June 30, 2014 and December 31, 2013:

	June 30, 2014					December 31, 2013
			Net					Net
	Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss
	(In thousands)
Trust preferred securities
Rated issues	$	1,693	$	(213	)	$	1,600	$	(302	)
Unrated issues		802		(198	)		825		(175	)

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 and six month periods ending June 30, follows:

	Three months ended				Six months ended
	June 30,				June 30,
	2014		2013		2014		2013
	(In thousands)
Balance at beginning of period	$	1,835	$	1,809	$	1,835	$	1,809
Additions to credit losses on securities for which no previous OTTI was recognized		-		-		-		-
Increases to credit losses on securities for which OTTI was previously recognized		-		26		-		26
Balance at end of period	$	1,835	$	1,835	$	1,835	$	1,835

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 June 30, 2014, by contractual maturity, follow:

	Amortized		Fair
	Cost		Value
	(In thousands)
Maturing within one year	$	18,937	$	18,994
Maturing after one year but within five years		72,390		72,741
Maturing after five years but within ten years		43,186		43,415
Maturing after ten years		73,200		71,191
		207,713		206,341
U.S. agency residential mortgage-backed		248,930		249,867
U.S. agency commercial mortgage-backed		17,731		17,758
Private label residential mortgage-backed		6,802		6,630
Other asset backed		37,530		37,530
Total	$	518,706	$	518,126

Gains and losses realized on sale of securities available for sale

A summary of proceeds from the sale of securities available for sale and gains and losses for the six month periods ending June 30, follows:

			Realized
	Proceeds		Gains (1)		Losses (2)
	(In thousands)
2014	$	5,126	$	2	$	-
2013		2,940		15		7

(1) Gains in 2014 exclude $0.053 million of unrealized gain related to a U.S. Treasury short position. 

(2) Losses in 2013 exclude $0.026 of credit related to OTTI recognized in earnings.