Securities (Tables)

9 Months Ended

Sep. 30, 2012

Investments, Debt and Equity Securities [Abstract]

Reconciliation of fair value of securities

The following table presents a summary of the amortized cost, gross unrealized holding gains and losses, other-than-temporary impairment recorded in other comprehensive income and fair value of securities available for sale and securities held to maturity for the periods below:

	September 30, 2012												December 31, 2011
	Amortized Cost		Gross Unrealized Gains		Unrealized Losses Other			Other-Than- Temporary Impairment			Fair Value		Amortized Cost		Gross Unrealized Gains		Unrealized Losses Other			Other-Than- Temporary Impairment			Fair Value
	(Dollars In Thousands)
AVAILABLE FOR SALE SECURITIES:
U.S. Government Agency Securities	$	20,055	$	852	$	—		$	—		$	20,907	$	—	$	—	$	—		$	—		$	—
Agency Mortgage-Backed Securities	196,930		14,833		(18		)	—			211,745		222,349		16,042		—			—			238,391
Agency Collateralized Mortgage Obligations	72,621		826		(75		)	—			73,372		52,927		874		—			—			53,801
Private Mortgage-Backed Securities	3,935		—		—			177			4,112		6,215		—		—			(105		)	6,110
Single Issuer Trust Preferred Securities Issued by Banks	—		—		—			—			—		5,000		—		(790		)	—			4,210
Pooled Trust Preferred Securities Issued by Banks and Insurers	8,451		—		(2,464		)	(2,935		)	3,052		8,505		—		(2,518		)	(3,167		)	2,820
Marketable Equity Securities	9,764		219		(15		)	—			9,968		—		—		—			—			—
TOTAL AVAILABLE FOR SALE SECURITIES	$	311,756	$	16,730	$	(2,572	)	$	(2,758	)	$	323,156	$	294,996	$	16,916	$	(3,308	)	$	(3,272	)	$	305,332
HELD TO MATURITY SECURITIES:
U.S. Treasury Securities	$	1,013	$	130	$	—		$	—		$	1,143	$	1,014	$	103	$	—		$	—		$	1,117
Agency Mortgage-Backed Securities	81,523		5,239		—			—			86,762		109,553		4,406		—			—			113,959
Agency Collateralized Mortgage Obligations	91,845		2,924		—			—			94,769		77,804		2,494		—			—			80,298
State, County, and Municipal Securities	915		14		—			—			929		3,576		34		—			—			3,610
Single Issuer Trust Preferred Securities Issued by Banks	6,538		63		—			—			6,601		8,000		15		(669		)	—			7,346
Corporate Debt Securities	5,008		242		—			—			5,250		5,009		155		—			—			5,164
TOTAL HELD TO MATURITY SECURITIES	$	186,842	$	8,612	$	—		$	—		$	195,454	$	204,956	$	7,207	$	(669	)	$	—		$	211,494
TOTAL	$	498,598	$	25,342	$	(2,572	)	$	(2,758	)	$	518,610	$	499,952	$	24,123	$	(3,977	)	$	(3,272	)	$	516,826

Summary of gross gains on available for sale securities

When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The following table shows the gross gains realized on available for sale securities for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
	(Dollars in Thousands)
GROSS GAINS REALIZED ON AVAILABLE FOR SALE SECURITIES	$	—	$	—	$	—	$	723

Schedule of contractual maturities of securities

A schedule of the contractual maturities of securities available for sale and securities held to maturity as of September 30, 2012 is presented below:

	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in Thousands)
DUE IN ONE YEAR OR LESS	$	340	$	357	$	239	$	241
DUE AFTER ONE YEAR TO FIVE YEARS	1,414		1,521		6,548		6,877
DUE AFTER FIVE TO TEN YEARS	71,549		75,974		1,013		1,143
DUE AFTER TEN YEARS	228,689		235,336		179,042		187,193
TOTAL DEBT SECURITIES	$	301,992	$	313,188	$	186,842	$	195,454
MARKETABLE EQUITY SECURITIES	$	9,764	$	9,968	$	—	$	—
TOTAL	$	311,756	$	323,156	$	186,842	$	195,454

Schedule of gross unrealized losses and fair value of investments

The following tables show the gross unrealized losses and fair value of the Company’s investments in an unrealized loss position, which the Company has not deemed to be OTTI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

	September 30, 2012
		Less than 12 months					12 months or longer					Total
	# of holdings	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars In Thousands)
AGENCY MORTGAGE-BACKED SECURITIES	1	$	3,843	$	(18	)	$	—	$	—		$	3,843	$	(18	)
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS	1	9,888		(75		)	—		—			9,888		(75		)
POOLED TRUST PREFERRED SECURITIES ISSUED BY BANKS AND INSURERS	2	—		—			2,118		(2,464		)	2,118		(2,464		)
MARKETABLE EQUITY SECURITIES	11	531		(15		)	—		—			531		(15		)
TOTAL TEMPORARILY IMPAIRED SECURITIES	15	$	14,262	$	(108	)	$	2,118	$	(2,464	)	$	16,380	$	(2,572	)

	December 31, 2011
		Less than 12 months				12 months or longer					Total
	# of holdings	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars In Thousands)
SINGLE ISSUER TRUST PREFERRED SECURITIES ISSUED BY BANKS AND INSURERS	2	$	—	$	—	$	8,617	$	(1,459	)	$	8,617	$	(1,459	)
POOLED TRUST PREFERRED SECURITIES ISSUED BY BANKS AND INSURERS	2	—		—		2,117		(2,518		)	2,117		(2,518		)
TOTAL TEMPORARILY IMPAIRED SECURITIES	4	$	—	$	—	$	10,734	$	(3,977	)	$	10,734	$	(3,977	)

Schedule of pertinent information

The following tables summarize pertinent information as of September 30, 2012, that was considered by management in determining if OTTI existed:

	Class	Amortized Cost (1)		Gross Unrealized Gain/(Loss)			Non-Credit Related  Other- Than-Temporary Impairment			Fair Value		Total Cumulative Credit Related Other-Than- Temporary Impairment			Total Cumulative Other-Than- Temporary impairment to Date
	(Dollars in Thousands)
POOLED TRUST PREFERRED SECURITIES:
Pooled Trust Preferred Security A	C1	$	1,283	$	—		$	(1,040	)	$	243	$	(3,676	)	$	(4,716	)
Pooled Trust Preferred Security B	D	—		—			—			—		(3,481		)	(3,481		)
Pooled Trust Preferred Security C	C1	506		—			(361		)	145		(482		)	(843		)
Pooled Trust Preferred Security D	D	—		—			—			—		(990		)	(990		)
Pooled Trust Preferred Security E	C1	2,080		—			(1,534		)	546		(1,368		)	(2,902		)
Pooled Trust Preferred Security F	B	1,893		(1,306		)	—			587		—			—
Pooled Trust Preferred Security G	A1	2,689		(1,158		)	—			1,531		—			—
TOTAL POOLED TRUST PREFERRED SECURITIES		$	8,451	$	(2,464	)	$	(2,935	)	$	3,052	$	(9,997	)	$	(12,932	)
PRIVATE MORTGAGE BACKED SECURITIES:
Private Mortgage-Backed Securities—One	2A1	$	2,599	$	—		$	95		$	2,694	$	(765	)	$	(670	)
Private Mortgage-Backed Securities—Two	A19	1,336		—			82			1,418		(85		)	(3		)
TOTAL PRIVATE MORTGAGE-BACKED SECURITIES		$	3,935	$	—		$	177		$	4,112	$	(850	)	$	(673	)
TOTAL		$	12,386	$	(2,464	)	$	(2,758	)	$	7,164	$	(10,847	)	$	(13,605	)

(1) The amortized cost reflects previously recorded OTTI charges recognized in earnings for the applicable securities.

Summary of percentage of pertinent information

	Class	Number of Performing Banks and Insurance Cos. in Issuances (Unique)	Current Deferrals/ Defaults/Losses (As a % of Original  Collateral)	Total Projected Defaults/Losses (as a % of Performing Collateral)	Excess Subordination (After Taking  into Account Best Estimate of Future Deferrals/ Defaults/Losses) (1)	Lowest credit Ratings to date (2)
POOLED TRUST PREFERRED SECURITIES:
Trust Preferred Security A	C1	56	33.25%	20.88%	—%	C (Fitch)
Trust Preferred Security B	D	56	33.25%	20.88%	—%	C (Fitch)
Trust Preferred Security C	C1	48	31.00%	18.89%	0.71%	C (Fitch)
Trust Preferred Security D	D	48	31.00%	18.89%	—%	C (Fitch)
Trust Preferred Security E	C1	47	27.54%	16.93%	2.54%	C (Fitch)
Trust Preferred Security F	B	34	26.61%	22.84%	28.51%	CC (Fitch)
Trust Preferred Security G	A1	34	26.61%	22.84%	52.56%	CCC+ (S&P)
PRIVATE MORTGAGE BACKED SECURITIES:
Private Mortgage-Backed Securities—One	2A1	N/A	5.59%	13.49%	—%	C (Fitch)
Private Mortgage-Backed Securities—Two	A19	N/A	3.42%	6.44%	—%	CC (Fitch)

(1) Excess subordination represents the additional default/losses in excess of both current and projected defaults/losses that the security can absorb before the security experiences any credit impairment.

(2) The Company reviewed credit ratings provided by S&P, Moody’s and Fitch in its evaluation of issuers.

Summary of cumulative credit related component of OTTI

The following table shows the cumulative credit related component of OTTI for the periods indicated:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
	(Dollars in Thousands)
BALANCE AT BEGINNING OF PERIOD	$	(10,847	)	$	(10,704	)	$	(10,771	)	$	(10,528	)
ADD:
Incurred on Securities not Previously Impaired	—			—			—			—
Incurred on Securities Previously Impaired	—			(28		)	(76		)	(204		)
LESS:
Realized Gain/Loss on Sale of Securities	—			—			—			—
Reclassification Due to Changes in Company’s Intent	—			—			—			—
Increases in Cash Flow Expected to be Collected	—			—			—			—
BALANCE AT END OF PERIOD	$	(10,847	)	$	(10,732	)	$	(10,847	)	$	(10,732	)