Investment Securities (Tables)

6 Months Ended

Jun. 30, 2013

Unrealized gains on investment securities

	June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Investment Securities Available-for-Sale:
U.S. Treasury and agency securities	$	43,450	$	—	$	(1,312)	$	42,138
Federal agency obligations		14,265		30		(437)		13,858
Residential mortgage pass-through securities		48,925		682		(221)		49,386
Commercial mortgage pass-through securities		9,709		—		(288)		9,421
Obligations of U.S. states and political subdivisions		39,341		1,092		(25)		40,408
Trust preferred securities		20,620		224		(1,157)		19,687
Corporate bonds and notes		215,263		5,667		(2,128)		218,802
Asset-backed securities		19,038		243		—		19,281
Certificates of deposit		2,402		30		(29)		2,403
Equity securities		376		—		(121)		255
Other securities		4,081		68		(15)		4,134
Total	$	417,470	$	8,036	$	(5,733)	$	419,773

Investment Securities Held-to-Maturity:
Federal agency obligations	$	3,698	$	68	$	—	$	3,766
Commercial mortgage pass-through securities		4,965		—		(98)		4,867
Obligations of U.S. states and political subdivisions		118,032		2,045		(3,365)		116,712
Trust preferred securities		10,091		—		(82)		10,009
Total	$	136,786	$	2,113	$	(3,545)	$	135,354

Total investment securities	$	554,256	$	10,149	$	(9,278)	$	555,127

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Investment Securities Available-for-Sale:
U.S. Treasury and agency securities	$	11,870	$	62	$	(23)	$	11,909
Federal agency obligations		20,207		333		(5)		20,535
Residential mortgage pass-through securities		52,400		1,385		(1)		53,784
Commercial mortgage pass-through securities		9,725		244		—		9,969
Obligations of U.S. states and political subdivisions		103,193		4,653		(132)		107,714
Trust preferred securities		22,279		144		(1,174)		21,249
Corporate bonds and notes		228,681		9,095		(371)		237,405
Collateralized mortgage obligations		2,120		—		—		2,120
Asset-backed securities		19,431		311		—		19,742
Certificates of deposit		2,854		21		(10)		2,865
Equity securities		535		—		(210)		325
Other securities		9,145		68		(15)		9,198
Total	$	482,440	$	16,316	$	(1,941)	$	496,815
Investment Securities Held-to-Maturity:
Federal agency obligations	$	4,178	$	79	$	—	$	4,257
Commercial mortgage-backed securities		5,501		154		(5)		5,650
Obligations of U.S. states and political subdivisions		48,385		4,139		—		52,524
Total	$	58,064	$	4,372	$	(5)	$	62,431
Total investment securities	$	540,504	$	20,688	$	(1,946)	$	559,246

Investments classified by maturity date

	June 30, 2013
	Amortized Cost		Fair Value
	(in thousands)
Investment Securities Available-for-Sale :
Due in one year or less	$	13,077	$	13,117
Due after one year through five years		88,313		90,533
Due after five years through ten years		178,029		178,033
Due after ten years		74,960		74,894
Residential mortgage pass-through securities		48,925		49,386
Commercial mortgage pass-through securities		9,709		9,421
Equity securities		376		255
Other securities		4,081		4,134
Total	$	417,470	$	419,773
Investment Securities Held-to-Maturity :
Due after one year through five years	$	13,978	$	13,864
Due after five years through ten years		9,531		9,592
Due after ten years		108,312		107,031
Commercial mortgage pass-through securities		4,965		4,867
Total	$	136,786	$	135,354

Total investment securities	$	554,256	$	555,127

Schedule of Realized Gains and Losses

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Gross gains on sales of investment securities	$	600	$	653	$	1,032	$	1,648
Gross losses on sales of investment securities		—		—		89		—
Net gains on sales of investment securities	$	600	$	653	$	943	$	1,648

Schedule of OTTI Charges for period

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2013		2012		2013		2012
Other than temporary impairment charges	$	—	$	28	$	—	$	28
Principal losses on a variable rate CMO		—		112		24		170
Total other-than-temporary impairment charges	$	—	$	140	$	24	$	198

Schedule of preferred security and associated ratings

Deal Name	Single Issuer or Pooled	Class/ Tranche		Amortized Cost		Fair Value		Gross Unrealized Gain (Loss)		Lowest Credit Rating Assigned	Number of Banks Currently Performing			Deferrals and Defaults as % of Original Collateral			Expected Deferral/Defaults as % of Remaining Performing Collateral

	(dollars in thousands)
Countrywide Capital IV	Single		—	$	1,770	$	1,772	$	2	BB+		1			None			None
Countrywide Capital V	Single		—		2,747		2,768		21	BB+		1			None			None
Countrywide Capital V	Single		—		250		252		2	BB+		1			None			None
Citigroup Cap IX	Single		—		992		1,001		9	BB		1			None			None
Citigroup Cap IX	Single		—		1,906		1,931		25	BB		1			None			None
Citigroup Cap XI	Single		—		246		249		3	BB		1			None			None
Nationsbank Cap Trust III	Single		—		1,573		1,260		(313)	BB+		1			None			None
Morgan Stanley Cap Trust IV	Single		—		2,500		2,490		(10)	BB+		1			None			None
Morgan Stanley Cap Trust IV	Single		—		1,742		1,742		—	BB+		1			None			None
Saturns — GS 2004-04	Single		—		535		546		11	BB+		1			None			None
Goldman Sachs	Single		—		1,000		953		(47)	BB+		1			None			None
Stifel Financial	Single		—		4,500		4,651		151	BBB-		1			None			None
ALESCO Preferred Funding VII	Pooled		C1		859		72		(787)	Ca		47 of 61	(1)		35.9	%		34.5	%
Total				$	20,620	$	19,687	$	(933)

Credit loss portion of OTTI recognized in earnings on debt securities

	Six Months Ended June 30, 2013		Year Ended December 31, 2012
	(in thousands)
Balance of credit-related OTTI at January 1,	$	4,450	$	6,539
Addition:
Credit losses on investment securities for which other-than-temporary impairment was not previously recognized		24		870
Reduction:
Credit losses on investment securities sold during the period		(2,114)		(2,959)
Balance of credit-related OTTI at period end	$	2,360	$	4,450

Schedule of unrealized losses not recognized in income

	June 30, 2013
	Total				Less than 12 Months				12 Months or Longer
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
Investment Securities Available-for-Sale:
U.S. Treasury and agency securities	$	42,138	$	(1,312)	$	42,138	$	(1,312)	$	—	$	—
Federal agency obligations		9,709		(437)		9,709		(437)		—		—
Residential mortgage pass-through securities		10,045		(221)		10,045		(221)		—		—
Commercial mortgage pass-through securities		9,421		(288)		9,421		(288)		—		—
Obligations of U.S. states and political subdivisions		2,226		(25)		2,226		(25)		—		—
Trust preferred securities		6,517		(1,157)		5,184		(58)		1,333		(1,099)
Corporate bonds and notes		52,520		(2,128)		50,554		(2,096)		1,966		(32)
Certificates of deposit		807		(29)		807		(29)		—		—
Equity securities		255		(121)		—		—		255		(121)
Other securities		985		(15)		—		—		985		(15)
Total		134,623		(5,733)		130,084		(4,466)		4,539		(1,267)
Investment Securities Held-to-Maturity:
Commercial mortgage pass-through securities		4,867		(98)		4,399		(92)		468		(6)
Obligations of U.S. states and political subdivisions		67,011		(3,365)		67,011		(3,365)		—		—
Corporate bonds and notes		10,009		(82)		10,009		(82)		—		—
Total		81,887		(3,545)		81,419		(3,539)		468		(6)
Total Temporarily Impaired Securities	$	216,510	$	(9,278)	$	211,503	$	(8,005)	$	5,007	$	(1,273)

	December 31, 2012
	Total				Less than 12 Months				12 Months or Longer
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
Investment Securities Available-for-Sale:
U.S. Treasury and agency securities	$	4,460	$	(23)	$	4,460	$	(23)	$	—	$	—
Federal agency obligation		877		(5)		877		(5)		—		—
Residential mortgage pass-through securities		1,669		(1)		1,669		(1)		—		—
Obligations of U.S. states and political subdivisions		18,360		(132)		18,360		(132)		—		—
Trust preferred securities		11,740		(1,174)		10,494		(18)		1,246		(1,156)
Corporate bonds and notes		26,440		(371)		18,244		(134)		8,196		(237)
Certificates of deposit		388		(10)		388		(10)		—		—
Equity securities		325		(210)		—		—		325		(210)
Other securities		985		(15)		—		—		985		(15)
Total		65,244		(1,941)		54,492		(323)		10,752		(1,618)
Investment Securities Held-to-Maturity:
Commercial mortgage-backed securities		932		(5)		932		(5)		—		—
Total		932		(5)		932		(5)		—		—
Total Temporarily Impaired Securities	$	66,176	$	(1,946)	$	55,424	$	(328)	$	10,752	$	(1,618)

- 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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