Investments (Tables)

12 Months Ended

Dec. 31, 2012

Aggregate Carrying And Approximate Market Values Of Available-For-Sale Securities


		December 31, 2012								December 31, 2011
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities available-for-sale:
U.S. Treasuries and U.S.
government agencies	$	3,792	$	96	$	-	$	3,888	$	5,868	$	173	$	-	$	6,041
Obligations of states and
political subdivisions		47,293		1,651		15		48,929		55,262		1,561		21		56,802
Mortgage-backed securities:
U.S. government agencies		279,336		7,231		85		286,482		220,815		6,966		168		227,613
Private label		3,235		37		-		3,272		5,117		45		6		5,156
Trust preferred
securities		15,402		55		2,812		12,645		48,951		941		4,735		45,157
Corporate securities		16,152		207		412		15,947		16,226		160		1,988		14,398
Total Debt Securities		365,210		9,277		3,324		371,163		352,239		9,846		6,918		355,167
Marketable equity securities		3,381		804		-		4,185		4,318		-		465		3,853
Investment funds		1,724		50		-		1,774		1,724		39		-		1,763
Total Securities
Available-for-Sale	$	370,315	$	10,131	$	3,324	$	377,122	$	358,281	$	9,885	$	7,383	$	360,783

Aggregate Carrying And Approximate Market Values Of Held-To-Maturity Securities


		December 31, 2012								December 31, 2011
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities held-to-maturity
Trust preferred securities	$	13,454	$	465	$	58	$	13,861	$	23,458	$	675	$	710	$	23,423
Total Securities
Held-to-Maturity	$	13,454	$	465	$	58	$	13,861	$	23,458	$	675	$	710	$	23,423

Other investment securities:
Non-marketable equity securities	$	11,463	$	-	$	-	$	11,463	$	11,934	$	-	$	-	$	11,934
Total Other Investment
Securities	$	11,463	$	-	$	-	$	11,463	$	11,934	$	-	$	-	$	11,934

Gross Unrealized Losses And Fair Value Of Investments


		December 31, 2012
		Less Than Twelve Months				Twelve Months or Greater				Total
(In thousands)		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss

Securities available-for-sale:
Obligations of states and political subdivisions	$	1,163	$	15	$	-	$	-	$	1,163	$	15
Mortgage-backed securities:
U.S. Government agencies		16,225		85		-		-		16,225		85
Trust preferred securities		348		51		5,836		2,761		6,184		2,812
Corporate securities		1,950		49		4,344		363		6,294		412
Total	$	19,686	$	200	$	10,180	$	3,124	$	29,866	$	3,324

Securities held-to-maturity:
Trust preferred securities	$	-	$	-	$	3,380	$	58	$	3,380	$	58


		December 31, 2011
		Less Than Twelve Months				Twelve Months or Greater				Total
(In thousands)		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss

Securities available-for-sale:
Obligations of states and political subdivisions	$	992	$	11	$	394	$	10	$	1,386	$	21
Mortgage-backed securities:
U.S. Government agencies		-		-		4,333		168		4,333		168
Private label		3,236		6		-		-		3,236		6
Trust preferred securities		6,724		520		5,402		4,215		12,126		4,735
Corporate securities		1,791		241		4,941		1,747		6,732		1,988
Marketable equity securities		3,810		465		-		-		3,810		465
Total	$	16,553	$	1,243	$	15,070	$	6,140	$	31,623	$	7,383

Securities held-to-maturity:
Trust preferred securities	$	4,823	$	212	$	8,219	$	498	$	13,042	$	710

Credit Loss Component Of OTTI On Debt Securities Recognized In Earnings


(In thousands)		Debt Securities		Equity Securities		Total

Balance at January 1, 2011	$	20,893	$	5,130	$	26,023
Additions:
Initial credit impairment		-		-		-
Additional credit impairment		355		918		1,273
Deductions:
Called		(638)		-		(638)
Balance December 31, 2011		20,610		6,048		26,658
Additions:
Initial credit impairment		-		-		-
Additional credit impairment		576		-		576
Deductions:
Sold		-		(1,235)		(1,235)
Balance December 31, 2012	$	21,186	$	4,813	$	25,999

Additional Information Of Trust Preferred Securities With Credit Rating Below Investment Grade

(Dollars in thousands)


Deal Name	Type	Class	Original Cost	Amortized Cost	Fair Value	Difference ⁽¹⁾	Lowest Credit Rating	# of issuers currently performing	Actual deferrals/defaults (as a % of original dollar)	Expected deferrals/defaults (as a % of remaining of performing collateral)		Excess Subordination as a Percentage of Current Performing Collateral ⁽⁴⁾
	Pooled trust preferred securities:
	Available for Sale:
P1	Pooled	Mezz	$ 1,115	$ 451	$ 248	(203)	Ca	12	22.8%	17.1%	(2)	33.3%
P2	Pooled	Mezz	3,944	1,197	871	(326)	Ca	12	25.9%	18.9%	(2)	8.8%
P3⁽⁵⁾	Pooled	Mezz	2,962	1,419	367	(1,052)	Caa3	22	24.5%	8.2%	(2)	12.3%
P4⁽⁶⁾	Pooled	Mezz	4,060	400	348	(52)	Ca	10	19.2%	8.2%	(3)	21.0%
P5	Pooled	Mezz	5,872	826	376	(450)	Ca	14	26.0%	22.0%	(2)	20.8%

	Held-to-Maturity:
P6	Pooled	Mezz	2,158	255	496	241	Ca	12	22.8%	17.1%	(2)	33.3%
P7	Pooled	Mezz	5,237	1,075	1,161	86	Ca	12	25.9%	18.9%	(2)	8.8%

	Single issuer trust preferred securities
	Available for sale:
S1	Single		261	235	174	(61)	NR	1	-	-
S2	Single		1,000	1,000	1,018	18	Ba3	1	-	-

	Held-to-Maturity:
S3	Single		4,000	4,000	4,000	-	NR	1	-	-
S4	Single		3,360	3,094	3,090	(4)	NR	1	-	-
S5	Single		3,564	3,531	3,586	55	NR	1	-	-


⁽¹⁾	The differences noted consist of unrealized losses recorded at December 31, 2012 and noncredit other-than-temporary impairment losses recorded subsequent to April 1, 2009 that have not been reclassified as credit losses.
⁽²⁾	Performing collateral is defined as total collateral minus all collateral that has been called, is currently deferring, or currently in default. This model for this security assumes that all collateral that is currently deferring will default with a zero recovery rate. The underlying issuers can cure, thus this bond could recover at a higher percentage upon default than zero.
⁽³⁾	Performing collateral is defined as total collateral minus all collateral that has been called, is currently deferring, or currently in default. The model for this security assumes that one of the banks that are currently deferring will cure. If additional underlying issuers cure, this bond could recover at a higher percentage.
⁽⁴⁾	Excess subordination is defined as the additional defaults/deferrals necessary in the next reporting period to deplete the entire credit enhancement (excess interest and over-collateralization) beneath our tranche within each pool to the point that would cause a "break in yield." This amount assumes that all currently performing collateral continues to perform. A break in yield means that our security would not be expected to receive all the contractual cash flows (principal and interest) by maturity. The "percent of current performing collateral" is the ratio of the "excess subordination amount" to current performing collateral—a higher percent means there is more excess subordination to absorb additional defaults/deferrals, and the better our security is protected from loss.
⁽⁵⁾	Other-than-temporary impairment losses of $11,000 were recognized during the year ended December 31, 2012. Other-than-temporary impairment losses of $115,000 were recognized during the year ended December 31, 2011.
⁽⁶⁾	Other-than-temporary impairment losses of $565,000 were recognized during the year ended December 31, 2012. Other-than-temporary impairment losses of $240,000 were recognized during the year ended December 31, 2011.

Amortized Cost And Estimated Fair Value Of Debt Securities By Contractual Maturity


(In thousands)		Cost		Estimated Fair Value
Securities Available-for-Sale
Due in one year or less		6,672		6,705
Due after one year through five years		31,265		31,680
Due after five years through ten years		55,632		57,646
Due after ten years		271,641		275,132
	$	365,210	$	371,163

Securities Held-to-Maturity
Due in one year or less		-		-
Due after one year through five years		-		-
Due after five years through ten years		-		-
Due after ten years		13,454		13,861
	$	13,454	$	13,861

Gross Gains And Losses Realized


	For the year ended December 31,
(in thousands)	2012	2011	2010

Gross realized gains	1,776	3,763	1,397
Gross realized losses	(246)	(7)	-
Investment security gains (losses)	1,530	3,756	1,397

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

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- 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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