Investment Securities Available-for-sale (Tables)

3 Months Ended

Mar. 31, 2013

Investment Securities Available-for-Sale

The following table is a summary of investment securities available for sale:


	(Amounts in thousands)
March 31, 2013	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value

U.S. Treasury securities	$ 111	$ 10	$ -	$ 121
U.S. Government agencies and corporations	4,987	9	-	4,996
Obligations of states and political subdivisions	40,323	1,796	85	42,034
U.S. Government-sponsored mortgage-backed securities	87,429	1,894	669	88,654
U.S. Government-sponsored collateralized mortgage obligations	28,206	323	60	28,469
Trust preferred securities	13,885	-	5,199	8,686

Total debt securities	174,941	4,032	6,013	172,960
Federal Home Loan Bank (FHLB) stock	2,823	-	-	2,823
Federal Reserve Bank (FRB) stock	226	-	-	226

Total regulatory stock	3,049	-	-	3,049

Total investment securities available-for-sale	$ 177,990	$ 4,032	$ 6,013	$ 176,009

	(Amounts in thousands)
December 31, 2012	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value

U.S. Treasury securities	$ 113	$ 10	$ -	$ 123
U.S. Government agencies and corporations	8,038	27	-	8,065
Obligations of states and political subdivisions	40,374	1,973	31	42,316
U.S. Government-sponsored mortgage-backed securities	90,858	2,071	590	92,339
U.S. Government-sponsored collateralized mortgage obligations	30,917	300	75	31,142
Trust preferred securities	13,883	-	6,271	7,612

Total debt securities	184,183	4,381	6,967	181,597
Federal Home Loan Bank (FHLB) stock	2,823	-	-	2,823
Federal Reserve Bank (FRB) stock	226	-	-	226

Total regulatory stock	3,049	-	-	3,049

Total investment securities available-for-sale	$ 187,232	$ 4,381	$ 6,967	$ 184,646

Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities at March 31, 2013, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	(Amounts in thousands)
	Amortized Cost	Fair Value

Due in one year or less	$ 172	$ 177
Due after one year through five years	6,639	6,726
Due after five years through ten years	6,007	6,347
Due after ten years	46,488	42,587

Total	59,306	55,837
U.S. Government-sponsored mortgage-backed and related securities	115,635	117,123

Total debt securities	$ 174,941	$ 172,960

Proceeds and Gains or Losses Realized on Securities Sold or Called

The table below sets forth the proceeds and gains or losses realized on securities sold or called for the three months ended:


	(Amounts in thousands)
	March 31,

	2013	2012

Proceeds on securities called	$ 5,000	2,246
Gross realized gains	-	7
Gross realized losses	-	-

Fair Value of Securities with Unrealized Losses and an Aging of those Unrealized Losses

The following is a summary of the fair value of securities with unrealized losses and an aging of those unrealized losses at March 31, 2013:


	(Amounts in thousands)
	Less than 12 Months		12 Months or More			Total

	Fair Value	Unrealized Losses		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses

U.S. Government-sponsored mortgage-backed and related securities	$ -	$ -		$ 44,417	$ 669		$ 44,417	$ 669
U.S. Government-sponsored collateralized mortgage obligations	-	-		4,118	60		4,118	60
Obligations of states and political subdivisions	6,097	85		-	-		6,097	85
Trust preferred securities	-	-		8,686	5,199		8,686	5,199

Total	$ 6,097	$ 85		$ 57,221	$ 5,928		$ 63,318	$ 6,013

The above table comprises 47 investment securities where the fair value is less than the related amortized cost.

The following is a summary of the fair value of securities with unrealized losses and an aging of those unrealized losses at December 31, 2012:

	(Amounts in thousands)
	Less than 12 Months		12 Months or More		Total

	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses

U.S. Government-sponsored mortgage-backed and related securities	$ -	$ -	$ 47,358	$ 590	$ 47,358	$ 590
U.S. Government-sponsored collateralized mortgage obligations	-	-	4,825	75	4,825	75
Obligations of states and political subdivisions	4,176	31	-	-	4,176	31
Trust preferred securities	-	-	7,612	6,271	7,612	6,271

Total	$ 4,176	$ 31	$ 59,795	$ 6,936	$ 63,971	$ 6,967

Other-than-Temporarily Impairment Losses


	(Amounts in thousands)
	March 31,
	2013	2012
Trust preferred securities:
Net impairment losses recognized in earnings (before tax)	$ -	$ 171

Impairment losses recognized in other comprehensive income (before tax)	$ -	$ 136

Losses Recognized in Earnings for Trust Preferred Securities Held

The following provides a cumulative rollforward of credit losses recognized in earnings for trust preferred securities held for the three months ended:


	(Amounts in thousands)
	March 31,
	2013	2012
Beginning balance	$ 351	$ 10,674
Reduction for debt securities for which other-than-temporary impairment has been previously recognized and there is no related other comprehensive income	-	-
Credit losses on debt securities for which other-than-temporary impairment has not been previously recognized	-	-
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized	-	171
Sale of debt securities	-	-

Ending balance	$ 351	$ 10,845

- 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 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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