Securities

3 Months Ended

Mar. 31, 2013

Investments debt and equity securities [Abstract]

Investments In Debt And Marketable Equity Securities And Certain Trading Assets Disclosure Text Block

NOTE 4: SECURITIES

At March 31, 2013 and December 31,2012, respectively, all securities within the scope of ASC 320, Investments – Debt and Equity Securities,were classified as available-for-sale. The fair value and amortized cost for securities available-for-sale by contractual maturityat March 31, 2013 and December 31,2012, respectively, are presented below.

			1 year	1 to 5	5 to 10	After 10	Fair	Gross Unrealized		Amortized
(Dollars in thousands)			or less	years	years	years	Value	Gains	Losses	Cost
March 31, 2013
Agency obligations (a)		$	—	—	20,026	24,171	44,197	127	276	$	44,346
Agency RMBS (a)			—	—	4,327	146,115	150,442	2,723	124		147,843
State and political subdivisions			—	1,865	23,083	49,972	74,920	4,423	—		70,497
Trust preferred securities			—	—	—	660	660	128	161		693
	Total available-for-sale	$	—	1,865	47,436	220,918	270,219	7,401	561	$	263,379

December 31, 2012
Agency obligations (a)		$	—	—	20,065	19,460	39,525	187	19	$	39,357
Agency RMBS (a)			—	—	4,700	136,760	141,460	3,012	162		138,610
State and political subdivisions			111	1,830	21,006	54,891	77,838	5,222	—		72,616
Trust preferred securities			—	—	—	652	652	113	154		693
	Total available-for-sale	$	111	1,830	45,771	211,763	259,475	8,534	335	$	251,276
(a) Includes securities issued by U.S. government agencies or government sponsored entities.

Securities with aggregate fair values of $156.7million and $134.0 million at March 31,2013 and December 31, 2012, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase, Federal Home Loan Bank (“FHLB”) advances, and for other purposes required or permitted by law.

Included in other assets are cost-method investments. The carrying amounts of cost-method investments were$2.3million and $3.0 million at March 31,2013 and December 31, 2012, respectively. Cost-method investments primarily include non-marketable equity investments, such as FHLB of Atlanta stock and Federal Reserve Bank (“FRB”) stock.

Gross Unrealized Losses and Fair Value

The fair values and gross unrealized losses on securities at March 31,2013 and December 31, 2012, respectively, segregated by those securities that have been in an unrealized loss position for less than 12 months and 12 months or longer, are presented below.

			Less than 12 Months		12 Months or Longer			Total
			Fair	Unrealized	Fair	Unrealized		Fair	Unrealized
(Dollars in thousands)			Value	Losses	Value	Losses		Value	Losses
March 31, 2013:
Agency obligations		$	24,673	276	—	—	$	24,673	276
Agency RMBS			25,554	124	—	—		25,554	124
Trust preferred securities			—	—	339	161	$	339	161
	Total	$	50,227	400	339	161	$	50,566	561

December 31, 2012:
Agency obligations		$	9,966	19	—	—	$	9,966	19
Agency RMBS			25,207	162	—	—		25,207	162
Trust preferred securities			—	—	346	154		346	154
	Total	$	35,173	181	346	154	$	35,519	335

For the securities in the previous table, the Company does not have the intent to sell and has determined it is not more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis, which may be maturity. On a quarterly basis, the Company assesses each security for credit impairment. For debt securities, the Company evaluates, where necessary, whether credit impairment exists by comparing the present value of the expected cash flows to the securities' amortized cost basis. For cost-method investments, the Company evaluates whether an event or change in circumstances has occurred during the reporting period that may have a significant adverse effect on the fair value of the investment.

In determining whether a loss is temporary, the Company considers all relevant information including:

• the length of time and the extent to which the fair value has been less than the amortized cost basis;
• adverse conditions specifically related to the security, an industry, or a geographic area (for example, changes in the financial condition of the issuer of the security, or in the case of an asset-backed debt security, in the financial condition of the underlying loan obligors, including changes in technology or the discontinuance of a segment of the business that may affect the future earnings potential of the issuer or underlying loan obligors of the security or changes in the quality of the credit enhancement);
• the historical and implied volatility of the fair value of the security;
• the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future;
• failure of the issuer of the security to make scheduled interest or principal payments;
• any changes to the rating of the security by a rating agency; and
• recoveries or additional declines in fair value subsequent to the balance sheet date.

Agency obligations

The unrealized losses associated with agency obligations were primarily driven by changes in interest rates and not due to the credit quality of the securities. These securities were issued by U.S. government agencies or government-sponsored entities and did not have any credit losses given the explicit government guarantee or other government support.

Agency residential mortgage-backed securities (“RMBS”)

The unrealized losses associated with agency RMBS were primarily driven by changes in interest rates and not due to the credit quality of the securities. These securities were issued by U.S. government agencies or government-sponsored entities and did not have any credit losses given the explicit government guarantee or other government support.

Securities of U.S. states and political subdivisions

The unrealized losses associated with securities of U.S. states and political subdivisions were primarily driven by changes in interest rates and were not due to the credit quality of the securities. Some of these securities are guaranteed by a bond insurer, but management did not rely on the guarantee in making its investment decision. These securities will continue to be monitored as part of the Company's quarterly impairment analysis, but are expected to perform even if the rating agencies reduce the credit rating of the bond insurers. As a result, the Company expects to recover the entire amortized cost basis of these securities.

Trust preferred securities

The unrealized losses associated with individual issuer trust preferred securities were related to securities issued on behalf of individual community bank holding companies. Management evaluates the financial performance ofindividual community bank holding companies on a quarterly basis to determine if it is probable that such issuer can make all contractual principal and interest payments. Based upon its evaluation, the Company expects to recover the remaining amortized cost basis of these securities.

Cost-method investments

At March 31, 2013, cost-method investments with an aggregate cost of $2.3 million were not evaluated for impairment because the Company did not identify any events or changes in circumstances that may have a significant adverse effect on the fair value of these cost-method investments.

The carrying values of the Company's investment securities could decline in the future if the financial condition of individual issuers of trust preferred securities, or the credit quality of other securities deteriorate and the Company determines it is probable that it will not recover the entire amortized cost basis for the security. As a result, there is a risk that significant other-than-temporary impairment charges may occur in the future.

Other-Than-Temporarily Impaired Securities

The following table presents a roll-forward of the credit loss component of the amortized cost of debt securities that the Company has written down for other-than-temporary impairment and has recognized the credit component of the loss in earnings (referred to as “credit-impaired” debt securities). Other-than-temporary impairmentsrecognized in earnings for the quarters ended March 31,2013and 2012 for credit-impaired debt securities are presented as additions in two components based upon whether the current period is the first time the debt security was credit-impaired (initial credit impairment) or is not the first time the debt security was credit-impaired (subsequent credit impairments). The credit loss component is reduced if the Company sells, intends to sell, or believesit will be required to sell previously credit-impaired debt securities. Additionally, the credit loss component is reduced if the Company receives cash flows in excess of what it expected to receive over the remaining life of the credit-impaired debt security, the security matures orthe security is fully written-down and deemed worthless. Changes in the credit loss component of credit-impaired debt securities for the quarters ended March 31,2013and 2012 were as follows:

				Quarter ended March 31,
(Dollars in thousands)				2013		2012
Balance, beginning of period			$	1,257	$	3,276
	Additions:
		Subsequent credit impairments		—		130
	Reductions:
		Securities sold		—		2,149
Balance, end of period			$	1,257	$	1,257

Other-Than-TemporaryImpairment

The following table presents details of the other-than-temporary impairment related to securities

					Quarter ended March 31,
(Dollars in thousands)					2013		2012
Other-than-temporary impairment charges (included in earnings):
	Debt securities:
		Individual issuer trust preferred securities		$	—	$	130
			Total debt securities		—		130
Total other-than-temporary impairment charges (included in earnings)				$	—	$	130

Realized Gains and Losses
The following table presents the gross realized gains and losses on sales and other-than-temporary impairment charges
related to securities.
			Quarter ended March 31,
(Dollars in thousands)			2013		2012
Gross realized gains		$	161	$	473
Gross realized losses			—		(164)
Other-than-temporary impairment charges			—		(130)
	Realized gains, net	$	161	$	179