XML 45 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Investments (Tables)
9 Months Ended
Sep. 30, 2012
Amortized Cost and Fair Values of Securities

The amortized cost and approximate fair values of securities as of September 30, 2012 and December 31, 2011 are as follows.

 

    September 30, 2012  
          Gross     Gross        
    Amortized     Unrealized     Unrealized     Fair  
    Cost     Gains     Losses     Value  
Available for Sale Securities                                
Mortgage-backed securities                                
Government sponsored agencies   $ 179,467     $ 7,972     $ -     $ 187,439  
Collateralized mortgage obligations                                
Government sponsored agencies     125,153       3,845       (34 )     128,964  
Federal agencies     3,000       18       0       3,018  
Municipals     3,129       158       (15 )     3,272  
Small Business Administration     9       -       -       9  
Corporate obligations     24,099       397       (4,335 )     20,161  
Total   $ 334,857     $ 12,390     $ (4,384 )   $ 342,863  

 

    December 31, 2011  
          Gross     Gross        
    Amortized     Unrealized     Unrealized     Fair  
    Cost     Gains     Losses     Value  
Available for Sale Securities                                
Mortgage-backed securities                                
Government sponsored agencies   $ 198,039     $ 4,813     $ (6 )   $ 202,846  
Collateralized mortgage obligations                                
Government sponsored agencies     97,098       2,963       -       100,061  
Federal agencies     2,000       2       -       2,002  
Municipals     3,364       208       (14 )     3,558  
Small Business Administration     12       -       -       12  
Corporate obligations     27,488       -       (5,089 )     22,399  
Total   $ 328,001     $ 7,986     $ (5,109 )   $ 330,878  
Amortized Cost and Fair Value of Available for Sale Securities by Contractual Maturity

The amortized cost and fair value of available-for-sale securities at September 30, 2012, by contractual maturity, are shown below.  Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

    Available for Sale  
    Amortized     Fair  
Description Securities   Cost     Value  
Security obligations due                
One to five years   $ 17,356     $ 17,752  
Five to ten years     4,946       4,972  
After ten years     7,926       3,727  
      30,228       26,451  
Mortgage-backed securities     179,467       187,439  
Collateralized mortgage obligations     125,153       128,964  
Small Business Administration     9       9  
Totals   $ 334,857     $ 342,863  
Investments Gross Unrealized Losses and Fair Value in Continuous Unrealized Loss Position

The following tables show our investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2012 and December 31, 2011:

 

    September 30, 2012  
    Less than 12 months     12 months or more     Total  
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
    Value     Losses     Value     Losses     Value     Losses  
Available for Sale                                                
Collateralized mortgage obligations                                                
Government sponsored agencies   $ 8,010     $ (34 )   $ -     $ -     $ 8,010     $ (34 )
Municipals     876       (15 )     -       -       876       (15 )
Corporate obligations     -       -       2,408       (4,335 )     2,408       (4,335 )
Total temporarily impaired securities   $ 8,886     $ (49 )   $ 2,408     $ (4,335 )   $ 11,294     $ (4,384 )

  

    December 31, 2011  
    Less than 12 months     12 months or more     Total  
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
    Value     Losses     Value     Losses     Value     Losses  
Available for Sale                                                
Mortgage-backed securities                                                
Government sponsored agencies   $ 5,076     $ (6 )   $ -     $ -     $ 5,076     $ (6 )
Municipals     971       (14 )     -       -       971       (14 )
Corporate obligations     19,957       (790 )     2,454       (4,299 )     22,411       (5,089 )
Total temporarily impaired securities   $ 26,004     $ (810 )   $ 2,454     $ (4,299 )   $ 28,458     $ (5,109 )
Bank's Investment in Trust Preferred Securities

The following table provides additional information related to the Bank’s investment in trust preferred securities as of September 30, 2012:

 

Deal   Class     Original
Par
    Book
Value
    Fair
Value
    Unrealized
Loss
    Recognized
Losses 2012
    Lowest
Rating
  Number of
Banks/Insurance
Companies Currently
Performing
    Actual
Deferrals/Defaults (as %
of original collateral)
   

Total Projected

Defaults (as a %

of performing

collateral)a

   

Excess Subordination

(after taking into

account best estimate of

future

deferrals/defaults)b

 
                                                                 
Alesco Preferred Funding IX     A2A     $ 1,000     $ 902     $ 375     $ 527     $ -     B2     44       16.64 %     15.38 %     44.11 %
Preferred Term Securities XIII     B1       1,000       823       254       569       -     Ca     40       34.94 %     27.67 %     0.84 %
Preferred Term Securities XVIII     C       1,000       917       210       707       -     Ca     48       29.43 %     16.14 %     1.73 %
Preferred Term Securities XXVII     C1       1,000       710       200       510       -     C     34       26.61 %     22.84 %     6.09 %
U.S. Capital Funding I     B1       3,000       2,891       1,148       1,743       -     Caa1     30       15.90 %     14.84 %     1.55 %
U.S. Capital Funding III     B1       1,000       500       221       279       -     Ca     28       27.94 %     16.86 %     0.00 %
                                                                                     
Total           $ 8,000     $ 6,743     $ 2,408     $ 4,335     $ -                                      

 

 

(a) A 10% recovery is applied to all projected defaults.  A 15% recovery is applied to all projected insurance defaults.  No recovery is applied to current defaults.
   
(b) Excess subordination represents the additional defaults in excess of both current and projected defaults that the CDO can absorb before the bond experiences any credit impairment. Excess subordinated percentage is calculated by (a) determining what percentage of defaults a deal can experience before the bond has credit impairment, and (b) subtracting from this default breakage percentage both total current and expected future default percentages.
Debt Securities for which Credit Loss was Recognized in Income and Other Losses Recorded in Other Comprehensive Income

The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income.

 

    Accumulated Credit Losses
Three Months Ended
September 30,
 
    2012     2011  
Credit losses on debt securities held                
Beginning of period   $ (1,205 )   $ (1,205 )
Additions related to increases in previously recognized other-than-temporary losses for the three months ended     -       -  
                 
As of September 30,   $ (1,205 )   $ (1,205 )

  

    Accumulated Credit Losses
Nine Months Ended
September 30,
 
    2012     2011  
Credit losses on debt securities held                
Beginning of year   $ (1,205 )   $ (1,179 )
Additions related to increases in previously recognized other-than-temporary losses for the nine months ended     -       (26 )
                 
As of September 30,   $ (1,205 )   $ (1,205 )