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Investments
12 Months Ended
Dec. 31, 2012
Investments [Abstract]  
Investments
INVESTMENTS
 
The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available for sale:
 
 
December 31, 2012
(in thousands)
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
Available for sale securities:
 
 
 
 
 
 
 
    Obligations of U.S. Government-sponsored enterprises
$
149,039

 
$
3,329

 
$

 
$
152,368

    Obligations of states and political subdivisions
51,202

 
2,279

 
(478
)
 
53,003

    Residential mortgage-backed securities
427,221

 
7,884

 
(264
)
 
434,841

 
$
627,462

 
$
13,492

 
$
(742
)
 
$
640,212

 
 
 
 
 
 
 
 
 
December 31, 2011
(in thousands)
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
Available for sale securities:
 
 
 
 
 
 
 
    Obligations of U.S. Government-sponsored enterprises
$
126,305

 
$
678

 
$
(66
)
 
$
126,917

    Obligations of states and political subdivisions
38,489

 
1,729

 
(381
)
 
39,837

    Residential mortgage-backed securities
422,761

 
5,269

 
(1,602
)
 
426,428

 
$
587,555

 
$
7,676

 
$
(2,049
)
 
$
593,182



At December 31, 2012, and December 31, 2011, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than the U.S. Government agencies and sponsored enterprises. The residential mortgage-backed securities are all issued by U.S. Government-sponsored enterprises. Available for sale securities having a fair value of $359.3 million and $287.8 million at December 31, 2012, and December 31, 2011, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions.
 
The amortized cost and estimated fair value of debt securities classified as available for sale at December 31, 2012, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 3 years.
 
(in thousands)
Amortized Cost
 
Estimated Fair Value
Due in one year or less
$
2,701

 
$
2,728

Due after one year through five years
161,850

 
165,719

Due after five years through ten years
29,087

 
30,585

Due after ten years
6,603

 
6,339

Mortgage-backed securities
427,221

 
434,841

 
$
627,462

 
$
640,212



The following table represents a summary of available-for-sale investment securities that had an unrealized loss:
 
 
December 31, 2012
Less than 12 months
 
12 months or more
 
Total
(in thousands)
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
Obligations of states and political subdivisions
$
6,434

 
$
122

 
$
3,389

 
$
356

 
$
9,823

 
$
478

Residential mortgage-backed securities
40,471

 
143

 
11,266

 
121

 
51,737

 
264

 
$
46,905

 
$
265

 
$
14,655

 
$
477

 
$
61,560

 
$
742

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2011
Less than 12 months
 
12 months or more
 
Total
(in thousands)
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
Obligations of U.S. Government-sponsored enterprises
$
23,389

 
$
66

 
$

 
$

 
$
23,389

 
$
66

Obligations of states and political subdivisions
1,503

 
8

 
3,027

 
373

 
4,530

 
381

Residential mortgage-backed securities
86,954

 
1,598

 
4,203

 
4

 
91,157

 
1,602

 
$
111,846

 
$
1,672

 
$
7,230

 
$
377

 
$
119,076

 
$
2,049



The unrealized losses at both December 31, 2012, and December 31, 2011, were primarily attributable to changes in market interest rates since the securities were purchased. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, (4) structure of the security and (5) the intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in market value. At December 31, 2012, management performed its quarterly analysis of all securities with an unrealized loss and concluded no individual securities were other-than-temporarily impaired.
 
The gross gains and gross losses realized from sales of available for sale investment securities were as follows:
 
 
December 31,
(in thousands)
2012
 
2011
 
2010
Gross gains realized
$
1,399

 
$
1,450

 
$
1,987

Gross losses realized
(243
)
 

 

Proceeds from sales
110,876

 
84,456

 
126,987



Other Investments, At Cost
As a member of the FHLB system administered by the Federal Housing Finance Board, the Bank is required to maintain a minimum investment in the capital stock of its respective FHLB consisting of membership stock and activity-based stock. The FHLB capital stock of $7.6 million is recorded at cost, and is included in other investments in the consolidated balance sheets, which represents redemption value. The Bank also has a $1.3 million investment in the FHLB of San Francisco. The remaining amounts in Other investments include the Company's investment in unconsolidated trusts used to issue preferred securities to third parties (see Note 12-Subordinated Debentures) and various private equity investments.