Investment Securities

9 Months Ended

Sep. 30, 2013

Investments Debt And Equity Securities [Abstract]

Investment Securities

9. Investment Securities

The amortized cost, gross unrealized gains, gross unrealized losses and estimated fair values of investment securities at September 30, 2013 and December 31, 2012 are as follows:

			September 30, 2013
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
			(In thousands)
Available for sale:
U.S. Government sponsored enterprises	$	102,423	$	2	$	1,325	$	101,100
Corporate equity securities		44		0		1		43
Mortgage-backed securities		65		3		0		68
Total investment securities available for sale	$	102,532	$	5	$	1,326	$	101,211
Held to maturity:
Mortgage-backed securities	$	725	$	35	$	0	$	760
Total investment securities held to maturity	$	725	$	35	$	0	$	760

			December 31, 2012
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
			(In thousands)
Available for sale:
U.S. Government sponsored enterprises	$	83,956	$	118	$	3	$	84,071
Corporate equity securities		44		0		0		44
Mortgage-backed securities		1,146		37		0		1,183
Total investment securities available for sale	$	85,146	$	155	$	3	$	85,298
Held to maturity:
Mortgage-backed securities	$	903		54		0		957
Total investment securities held to maturity	$	903	$	54	$	0	$	957

The amortized cost and estimated fair value of investment securities at September 30, 2013 by contractual term to maturity are shown below.

	Available for Sale				Held to Maturity
	Amortized cost		Estimated fair value		Amortized cost		Estimated fair value
			(In thousands)
Due in one year or less	$	0	$	0	$	0	$	0
Due after one year through five years		96,424		95,297		0		0
Due after five years through ten years		5,999		5,803		0		0
Due after ten years		0		0		0		0
Subtotal		102,423		101,100		0		0
Mortgage-backed securities		65		68		725		760
Corporate equity securities		44		43		0		0
Total	$	102,532	$	101,211	$	725	$	760

Proceeds from sales of investment securities during the nine months ended September 30, 2013, totaled $24.0 million, resulting in gross realized gains of $61,000, and for the nine months ended September 30, 2012, proceeds from sales totaled $8,000, resulting in gross realized gains of $1,000.

At September 30, 2013 and December 31, 2012, there were $90.1 million and $3.0 million securities in an unrealized loss position less than twelve months and no securities in an unrealized loss position more than twelve months, respectively. The table below indicates the length of time individual securities have been in a continuous unrealized loss position at September 30, 2013 and December 31, 2012.

	September 30, 2013
	Less than 12 months						More than 12 months
(In thousands)	Fair value		Unrealized losses		No. of Securities		Fair value		Unrealized losses		No. of Securities
Available for sale:
U.S. Government sponsored enterprises	$	90,101	$	1,325		43	$	0	$	0	$	0
Corporate equity securities		43		1		1		0		0		0
Total	$	90,145	$	1,326		44	$	0	$	0		0

	December 31, 2012
	Less than 12 months						More than 12 months
(In thousands)	Fair value		Unrealized losses		No. of Securities		Fair value		Unrealized losses		No. of Securities
Available for sale:
U.S. Government sponsored enterprises	$	2,995	$	3		1	$	0	$	0		0
Total	$	2,995	$	3		1	$	0	$	0		0

Management has the intent and ability to hold these securities for the foreseeable future and the decline in the fair value is primarily due to an increase in market interest rates. The fair values are expected to recover as securities approach maturity dates.

At September 30, 2013 and December 31, 2012 approximately $11.4 and $10.0 million, respectively, of investment securities were pledged in accordance with federal and state requirements to secure deposits and repurchase agreements.