Investment Securities (Tables)

9 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Approximate Fair Values of Securities

The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair values of the investment securities at the dates indicated were:



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at September 30, 2013
U.S. Government-sponsored agency securities	$	3,791	$	18	$	9	$	3,800
State and municipal	200,662		4,983		3,463		202,182
U.S. Government-sponsored mortgage-backed securities	397,687		6,136		5,654		398,169
Corporate obligations	6,335				5,851		484
Equity securities	1,706						1,706
Total available for sale	610,181		11,137		14,977		606,341
Held to maturity at September 30, 2013
State and municipal	115,796		498		6		116,288
U.S. Government-sponsored mortgage-backed securities	191,998		6,600		503		198,095
Total held to maturity	307,794		7,098		509		314,383
Total Investment Securities	$	917,975	$	18,235	$	15,486	$	920,724



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2012
U.S. Government-sponsored agency securities	$	4,475	$	165			$	4,640
State and municipal	148,187		10,025		$	18	158,194
U.S. Government-sponsored mortgage-backed securities	337,631		10,994		46		348,579
Corporate obligations	6,105				5,881		224
Equity securities	1,706						1,706
Total available for sale	498,104		21,184		5,945		513,343
Held to maturity at December 31, 2012
State and municipal	117,227		5,489		1		122,715
U.S. Government-sponsored mortgage-backed securities	243,793		11,681		15		255,459
Total held to maturity	361,020		17,170		16		378,174
Total Investment Securities	$	859,124	$	38,354	$	5,961	$	891,517

Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity

The amortized cost and fair value of available for sale securities and held to maturity securities at September 30, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturity Distribution at September 30, 2013:
Due in one year or less	$	8,404	$	8,591	$	1,060	$	1,061
Due after one through five years	11,972		12,481		13,116		13,324
Due after five through ten years	57,708		59,110		59,473		59,634
Due after ten years	132,704		126,284		42,147		42,269
	$	210,788	$	206,466	$	115,796	$	116,288
U.S. Government-sponsored mortgage-backed securities	397,687		398,169		191,998		198,095
Equity securities	1,706		1,706
Total Investment Securities	$	610,181	$	606,341	$	307,794	$	314,383

Gross Gains and Losses on Sales and Redemptions of Available for Sale Securities and Other Than Temporary Impairment Losses Recognized

Gross gains and losses on the sales and redemptions of available for sale securities, and other-than-temporary impairment (“OTTI”) losses recognized for the three and nine months ended September 30, 2013 and 2012 are shown below.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Sales and Redemptions of Available for Sale Securities:
Gross gains	$	—	$	843	$	487	$	2,134
Gross losses	—		—		—		—
Other-than-temporary impairment losses	—		—		—		$	—

Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position

The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2013, and December 31, 2012:



	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Temporarily Impaired Investment
Securities at September 30, 2013
U.S. Government-sponsored agency securities	$	1,439	$	9					$	1,439	$	9
State and municipal	76,681		3,467		$	239	$	2	76,920		3,469
U.S. Government-sponsored mortgage-backed securities	204,743		6,157						204,743		6,157
Corporate obligations					453		5,851		453		5,851
Total Temporarily Impaired Investment Securities	$	282,863	$	9,633	$	692	$	5,853	$	283,555	$	15,486



	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Temporarily Impaired Investment
Securities at December 31, 2012
State and municipal	$	4,524	$	19					$	4,524	$	19
U.S. Government-sponsored mortgage-backed securities	12,320		61						12,320		61
Corporate obligations					$	194	$	5,881	194		5,881
Total Temporarily Impaired Investment Securities	$	16,844	$	80	$	194	$	5,881	$	17,038	$	5,961

Investments in Debt and Equity Securities Reported Less than Historical Cost

Certain investments in debt and equity securities are reported in the financial statements at an amount less than their historical cost as indicated in the table below.



	September 30, 2013			December 31, 2012
Investments reported at less than historical cost:
Historical cost	$	299,041		$	22,999
Fair value	$	283,555		$	17,038
Percent of the Corporation's available for sale and held to maturity portfolio	31.0		%	1.9		%

Debt Securities Credit Loss Recognized in Income, and Other Losses Recorded in Other Comprehensive Income

The following table provides information about debt securities for which only a credit loss was recognized in income and other losses were recorded in other comprehensive income.



	Accumulated Credit Losses in 2013		Accumulated Credit Losses in 2012
Credit losses on debt securities held:
Balance, January 1	$	11,355	$	11,355
Additions related to other-than-temporary losses not previously recognized
Balance, September 30	$	11,355	$	11,355

- 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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