SECURITIES

The amortized cost and fair value of securities are as follows:

Securities Available For Sale:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2013
U.S. government-sponsored entities	$	353,703	$	1,240	$	(125	)	$	354,818
Residential mortgage-backed securities:
Agency mortgage-backed securities		227,465		6,823		—			234,288
Agency collateralized mortgage obligations		500,955		4,072		(692	)		504,335
Non-agency collateralized mortgage obligations		2,386		27		—			2,413
States of the U.S. and political subdivisions		20,382		1,045		—			21,427
Collateralized debt obligations		35,226		888		(12,785	)		23,329
Other debt securities		21,786		764		(907	)		21,643

Total debt securities		1,161,903		14,859		(14,509	)		1,162,253
Equity securities		1,554		543		(23	)		2,074

	$	1,163,457	$	15,402	$	(14,532	)	$	1,164,327

December 31, 2012
U.S. government-sponsored entities	$	352,910	$	1,676	$	(129	)	$	354,457
Residential mortgage-backed securities:
Agency mortgage-backed securities		267,575		7,575		—			275,150
Agency collateralized mortgage obligations		465,574		4,201		(228	)		469,547
Non-agency collateralized mortgage obligations		2,679		50		—			2,729
States of the U.S. and political subdivisions		23,592		1,232		—			24,824
Collateralized debt obligations		34,765		967		(13,276	)		22,456
Other debt securities		21,790		695		(972	)		21,513

Total debt securities		1,168,885		16,396		(14,605	)		1,170,676
Equity securities		1,554		462		(9	)		2,007

	$	1,170,439	$	16,858	$	(14,614	)	$	1,172,683

Securities Held To Maturity:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2013
U.S. Treasury	$	503	$	174	$	—		$	677
U.S. government-sponsored entities		43,611		301		(98	)		43,814
Residential mortgage-backed securities:
Agency mortgage-backed securities		692,631		23,986		(21	)		716,596
Agency collateralized mortgage obligations		221,081		1,392		(352	)		222,121
Non-agency collateralized mortgage obligations		9,180		107		(2	)		9,285
Commercial mortgage-backed securities		1,023		28		—			1,051
States of the U.S. and political subdivisions		142,022		5,191		(12	)		147,201
Collateralized debt obligations		505		—		(27	)		478

	$	1,110,556	$	31,179	$	(512	)	$	1,141,223


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2012
U.S. Treasury	$	503	$	188	$	—		$	691
U.S. government-sponsored entities		28,731		280		(99	)		28,912
Residential mortgage-backed securities:
Agency mortgage-backed securities		780,022		28,783		(1	)		808,804
Agency collateralized mortgage obligations		133,976		1,266		—			135,242
Non-agency collateralized mortgage obligations		14,082		130		—			14,212
Commercial mortgage-backed securities		1,024		39		—			1,063
States of the U.S. and political subdivisions		147,713		6,099		—			153,812
Collateralized debt obligations		512		—		(35	)		477

	$	1,106,563	$	36,785	$	(135	)	$	1,143,213

The Corporation classifies securities as trading securities when management intends to sell such securities in the near term. Such securities are carried at fair value, with unrealized gains (losses) reflected through the consolidated statements of comprehensive income. The Corporation classified certain securities acquired in conjunction with the Parkvale acquisition as trading securities. The Corporation both acquired and sold these trading securities during the quarter in which the acquisition occurred. As of March 31, 2013 and December 31, 2012, the Corporation did not hold any trading securities.

Gross gains and gross losses were realized on securities as follows:


	Three Months Ended March 31,
	2013			2012
Gross gains	$	1,032		$	349
Gross losses		(348	)		(241	)

	$	684		$	108

As of March 31, 2013, the amortized cost and fair value of securities, by contractual maturities, were as follows:


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	4,904	$	4,909	$	4,863	$	4,921
Due from one to five years		268,114		269,946		17,960		18,297
Due from five to ten years		105,308		106,050		86,216		88,238
Due after ten years		52,771		40,312		77,602		80,714

		431,097		421,217		186,641		192,170
Residential mortgage-backed securities:
Agency mortgage-backed securities		227,465		234,288		692,631		716,596
Agency collateralized mortgage obligations		500,955		504,335		221,081		222,121
Non-agency collateralized mortgage obligations		2,386		2,413		9,180		9,285
Commercial mortgage-backed securities		—		—		1,023		1,051
Equity securities		1,554		2,074		—		—

	$	1,163,457	$	1,164,327	$	1,110,556	$	1,141,223

Maturities may differ from contractual terms because borrowers may have the right to call or prepay obligations with or without penalties. Periodic payments are received on mortgage-backed securities based on the payment patterns of the underlying collateral.

At March 31, 2013 and December 31, 2012, securities with a carrying value of $781,014 and $725,450, respectively, were pledged to secure public deposits, trust deposits and for other purposes as required by law. Securities with a carrying value of $760,932 and $795,812 at March 31, 2013 and December 31, 2012, respectively, were pledged as collateral for short-term borrowings.

Following are summaries of the fair values and unrealized losses of securities, segregated by length of impairment:

Securities available for sale:


	Less than 12 Months							12 Months or More							Total
	#		Fair Value		Unrealized Losses			#		Fair Value		Unrealized Losses			#		Fair Value		Unrealized Losses
March 31, 2013
U.S. government-sponsored entities		2	$	34,872	$	(125	)		—	$	—	$	—			2	$	34,872	$	(125	)
Residential mortgage-backed securities:
Agency collateralized mortgage obligations		9		157,723		(692	)		—		—		—			9		157,723		(692	)
Collateralized debt obligations		1		1,045		(227	)		13		12,938		(12,558	)		14		13,983		(12,785	)
Other debt securities		—		—		—			4		5,967		(907	)		4		5,967		(907	)
Equity securities		1		639		(23	)		—		—		—			1		639		(23	)

		13	$	194,279	$	(1,067	)		17	$	18,905	$	(13,465	)		30	$	213,184	$	(14,532	)

December 31, 2012
U.S. government-sponsored entities		3	$	44,868	$	(129	)		—	$	—	$	—			3	$	44,868	$	(129	)
Residential mortgage-backed securities:
Agency collateralized mortgage obligations		3		47,174		(228	)		—		—		—			3		47,174		(228	)
Collateralized debt obligations		7		8,708		(909	)		9		5,532		(12,367	)		16		14,240		(13,276	)
Other debt securities		—		—		—			4		5,899		(972	)		4		5,899		(972	)
Equity securities		1		654		(9	)		—		—		—			1		654		(9	)

		14	$	101,404	$	(1,275	)		13	$	11,431	$	(13,339	)		27	$	112,835	$	(14,614	)

Securities held to maturity:


	Less than 12 Months							12 Months or More							Total
	#		Fair Value		Unrealized Losses			#		Fair Value		Unrealized Losses			#		Fair Value		Unrealized Losses
March 31, 2013
U.S. government-sponsored entities		1	$	14,902	$	(98	)		—	$	—	$	—			1	$	14,902	$	(98	)
Residential mortgage-backed securities:
Agency mortgage-backed securities		1		1,394		(21	)		—		—		—			1		1,394		(21	)
Agency collateralized mortgage obligations		5		94,133		(352	)		—		—		—			5		94,133		(352	)
Non-agency collateralized mortgage obligations		1		1,306		(2	)		—		—		—			1		1,306		(2	)
States of the U.S. and political Subdivisions		4		6,496		(12	)		—		—		—			4		6,496		(12	)
Collateralized debt obligations		—		—		—			1		477		(27	)		1		477		(27	)

		12	$	118,231	$	(485	)		1	$	477	$	(27	)		13	$	118,708	$	(512	)

December 31, 2012
U.S. government-sponsored entities		1	$	14,901	$	(99	)		—	$	—	$	—			1	$	14,901	$	(99	)
Residential mortgage-backed securities:
Agency mortgage-backed securities		1		1,424		(1	)		—		—		—			1		1,424		(1	)
Collateralized debt obligations		—		—		—			1		477		(35	)		1		477		(35	)

		2	$	16,325	$	(100	)		1	$	477	$	(35	)		3	$	16,802	$	(135	)

The Corporation does not intend to sell the debt securities and it is not more likely than not the Corporation will be required to sell the securities before recovery of their amortized cost basis.

The Corporation’s unrealized losses on collateralized debt obligations (CDOs) relate to investments in trust preferred securities (TPS). The Corporation’s portfolio of TPS consists of single-issuer and pooled securities. The single-issuer securities are primarily from money-center and large regional banks and are included in other debt securities. The pooled securities consist of securities issued primarily by banks and thrifts, with some of the pools including a limited number of insurance companies. Investments in pooled securities are all in mezzanine tranches except for three investments in senior tranches, and are secured by over-collateralization or default protection provided by subordinated tranches. The non-credit portion of unrealized losses on investments in TPS is attributable to temporary illiquidity and the uncertainty affecting these markets, as well as changes in interest rates.

Other-Than-Temporary Impairment

The Corporation evaluates its investment securities portfolio for other-than-temporary impairment (OTTI) on a quarterly basis. Impairment is assessed at the individual security level. The Corporation considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis.

When impairment of an equity security is considered to be other-than-temporary, the security is written down to its fair value and an impairment loss is recorded as a loss within non-interest income in the consolidated statement of comprehensive income. When impairment of a debt security is considered to be other-than-temporary, the amount of the OTTI recorded as a loss within non-interest income and thereby recognized in earnings depends on whether the Corporation intends to sell the security or whether it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis.

If the Corporation intends to sell the debt security or more likely than not will be required to sell the security before recovery of its amortized cost basis, OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value.

If the Corporation does not intend to sell the debt security and it is not more likely than not the Corporation will be required to sell the security before recovery of its amortized cost basis, OTTI shall be separated into the amount representing credit loss and the amount related to all other market factors. The amount related to credit loss shall be recognized in earnings. The amount related to other market factors shall be recognized in other comprehensive income, net of applicable taxes.

The Corporation performs its OTTI evaluation process in a consistent and systematic manner and includes an evaluation of all available evidence. Documentation of the process is as extensive as necessary to support a conclusion as to whether a decline in fair value below cost or amortized cost is temporary or other-than-temporary and includes documentation supporting both observable and unobservable inputs and a rationale for conclusions reached. In making these determinations for pooled TPS, the Corporation consults with third-party advisory firms to provide additional valuation assistance.

This process considers factors such as the severity, length of time and anticipated recovery period of the impairment, recoveries or additional declines in fair value subsequent to the balance sheet date, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions in its industry, and the issuer’s financial condition, repayment capacity, capital strength and near-term prospects.

For debt securities, the Corporation also considers the payment structure of the debt security, the likelihood of the issuer being able to make future payments, failure of the issuer of the security to make scheduled interest and principal payments, whether the Corporation has made a decision to sell the security and whether the Corporation’s cash or working capital requirements or contractual or regulatory obligations indicate that the debt security will be required to be sold before a forecasted recovery occurs. For equity securities, the Corporation also considers its intent and ability to retain the security for a period of time sufficient to allow for a recovery in fair value. Among the factors that the Corporation considers in determining its intent and ability to retain the security is a review of its capital adequacy, interest rate risk position and liquidity. The assessment of a security’s ability to recover any decline in fair value, the ability of the issuer to meet contractual obligations, the Corporation’s intent and ability to retain the security, and whether it is more likely than not the Corporation will be required to sell the security before recovery of its amortized cost basis require considerable judgment.

Debt securities with credit ratings below AA at the time of purchase that are repayment-sensitive securities are evaluated using the guidance of ASC 325, Investments—Other. All other securities are required to be evaluated under ASC 320, Investments – Debt Securities.

The Corporation invested in TPS issued by special purpose vehicles (SPVs) that hold pools of collateral consisting of trust preferred and subordinated debt securities issued by banks, bank holding companies, thrifts and insurance companies. The securities issued by the SPVs are generally segregated into several classes known as tranches. Typically, the structure includes senior, mezzanine and equity tranches. The equity tranche represents the first loss position. The Corporation generally holds interests in mezzanine tranches. Interest and principal collected from the collateral held by the SPVs are distributed with a priority that provides the highest level of protection to the senior-most tranches. In order to provide a high level of protection to the senior tranches, cash flows are diverted to higher-level tranches if the principal and interest coverage tests are not met.

The Corporation prices its holdings of TPS using Level 3 inputs in accordance with ASC 820, Fair Value Measurements and Disclosures, and guidance issued by the SEC. In this regard, the Corporation evaluates current available information in estimating the future cash flows of these securities and determines whether there have been favorable or adverse changes in estimated cash flows from the cash flows previously projected. The Corporation considers the structure and term of the pool and the financial condition of the underlying issuers. Specifically, the evaluation incorporates factors such as over-collateralization and interest coverage tests, interest rates and appropriate risk premiums, the timing and amount of interest and principal payments and the allocation of payments to the various tranches. Current estimates of cash flows are based on the most recent trustee reports, announcements of deferrals or defaults, and assumptions regarding expected future default rates, prepayment and recovery rates and other relevant information. In constructing these assumptions, the Corporation considers the following:

•

that current defaults would have no recovery;

•

that some individually analyzed deferrals will cure at rates varying from 10% to 90% after the deferral period ends;

•

recent historical performance metrics, including profitability, capital ratios, loan charge-offs and loan reserve ratios, for the underlying institutions that would indicate a higher probability of default by the institution;

•

that institutions identified as possessing a higher probability of default would recover at a rate of 10% for banks and 15% for insurance companies;

•

that financial performance of the financial sector continues to be affected by the economic environment resulting in an expectation of additional deferrals and defaults in the future;

•

whether the security is currently deferring interest; and

•

the external rating of the security and recent changes to its external rating.

The primary evidence utilized by the Corporation is the level of current deferrals and defaults, the level of excess subordination that allows for receipt of full principal and interest, the credit rating for each security and the likelihood that future deferrals and defaults will occur at a level that will fully erode the excess subordination based on an assessment of the underlying collateral. The Corporation combines the results of these factors considered in estimating the future cash flows of these securities to determine whether there has been an adverse change in estimated cash flows from the cash flows previously projected.

The Corporation’s portfolio of TPS consists of 24 pooled issues, primarily obtained through acquisitions, and five single-issuer securities. Three of the pooled issues are senior tranches; the remaining 21 are mezzanine tranches. At March 31, 2013, the 24 pooled TPS had an estimated fair value of $23,807 while the single-issuer TPS had an estimated fair value of $6,999. The Corporation has concluded from the analysis performed at March 31, 2013 that it is probable that the Corporation will collect all contractual principal and interest payments on all of its single-issuer and pooled TPS sufficient to recover the amortized cost basis of the securities.

At March 31, 2013, all five single-issuer TPS are current in regards to their principal and interest payments. Of the 24 pooled TPS, four are accruing interest based on the coupon rate, 18 are accreting income based on future expected cash flows and the remaining two are on non-accrual status. Income of $813 and $133 was recognized on pooled TPS for the three months ended March 31, 2013 and 2012, respectively.

The Corporation did not recognize any impairment losses on securities for the three months ended March 31, 2013 and 2012.

The following table presents a summary of the cumulative credit-related OTTI charges recognized as components of earnings for securities for which a portion of an OTTI is recognized in other comprehensive income:


	Collateralized Debt Obligations		Residential Non-Agency CMOs			Total
For the Three Months Ended March 31, 2013
Beginning balance	$	17,155	$	212		$	17,367
Loss where impairment was not previously recognized		—		—			—
Additional loss where impairment was previously recognized		—		—			—
Reduction due to credit impaired securities sold		—		(212	)		(212	)

Ending balance	$	17,155	$	—		$	17,155

For the Three Months Ended March 31, 2012
Beginning balance	$	18,369	$	29		$	18,398
Loss where impairment was not previously recognized		—		—			—
Additional loss where impairment was previously recognized		—		—			—
Reduction due to credit impaired securities sold		—		—			—

Ending balance	$	18,369	$	29		$	18,398

TPS continue to experience price volatility as the secondary market for such securities remains limited. Write-downs, when required, are based on an individual security’s credit performance and its ability to make its contractual principal and interest payments. Should credit quality deteriorate to a greater extent than projected, it is possible that additional write-downs may be required. The Corporation monitors actual deferrals and defaults as well as expected future deferrals and defaults to determine if there is a high probability for expected losses and contractual shortfalls of interest or principal, which could warrant further impairment. The Corporation evaluates its entire TPS portfolio each quarter to determine if additional write-downs are warranted.

The following table provides information relating to the Corporation’s TPS as of March 31, 2013:


Deal Name	Class		Current Par Value		Amortized Cost		Fair Value		Unrealized Gain (Loss)			Lowest Credit Ratings		Number of Issuers Currently Performing		Actual Defaults (as a percent of original collateral)		Actual Deferrals (as a percent of original collateral)		Projected Recovery Rates on Current Deferrals (1)		Expected Defaults (%) (2)		Excess Subordination (as a percent of current collateral) (3)
Pooled TPS:
P1		C1	$	5,500	$	2,491	$	1,103	$	(1,388	)		C		42		22		12		46		17		0.00
P2		C1		4,889		2,972		972		(2,000	)		C		42		17		14		38		15		0.00
P3		C1		5,561		4,260		1,292		(2,968	)		C		47		13		9		31		16		0.00
P4		C1		3,994		3,039		943		(2,096	)		C		52		16		6		37		16		0.00
P5		B3		2,000		739		327		(412	)		C		15		29		10		46		11		0.00
P6		B1		3,028		2,419		826		(1,593	)		C		49		14		21		44		10		0.00
P7		C		5,048		776		388		(388	)		C		34		14		28		39		13		0.00
P8		C		2,011		788		185		(603	)		C		43		16		12		36		17		0.00
P9		A4L		2,000		645		228		(417	)		C		25		16		14		44		11		0.00

Total OTTI				34,031		18,129		6,264		(11,865	)				349		17		14		40		15

P10		SNR		488		505		478		(27	)		A2		8		15		11		51		11		103.71
P11		C1		5,219		1,012		1,047		35			C		42		22		12		46		17		0.00
P12		A2A		5,000		2,124		1,896		(228	)		B+		43		17		14		38		15		44.37
P13		C1		4,781		1,225		1,111		(114	)		C		47		13		9		31		16		0.00
P14		C1		5,260		1,179		1,242		63			C		52		16		6		37		16		0.00
P15		C1		5,190		979		1,189		210			C		59		15		12		35		17		4.20
P16		C1		3,206		370		537		167			C		44		19		6		27		18		0.00
P17		C		3,339		601		638		37			C		35		15		13		26		16		0.00
P18		B		2,069		633		541		(92	)		C		33		13		24		34		14		17.67
P19		B2		5,000		2,199		2,540		341			CCC		22		0		4		10		13		42.23
P20		B		4,051		939		963		24			C		40		16		12		36		17		11.80
P21		A1		3,523		2,094		2,015		(79	)		BB-		47		21		6		40		15		51.55
P22		B		5,000		1,271		1,044		(227	)		C		15		18		6		44		11		0.00
P23		C1		5,531		1,291		1,111		(180	)		C		26		15		12		36		10		0.00
P24		C1		5,606		1,180		1,191		11			C		26		16		9		43		11		0.00

Total Not OTTI				63,263		17,602		17,543		(59	)				539		16		10		36		15

Total Pooled TPS			$	97,294	$	35,731	$	23,807	$	(11,924	)				888		16		11		38		15


Deal Name	Class	Current Par Value		Amortized Cost		Fair Value		Unrealized Gain (Loss)			Lowest Credit Ratings		Number of Issuers Currently Performing		Actual Defaults (as a percent of original collateral)	Actual Deferrals (as a percent of original collateral)	Projected Recovery Rates on Current Deferrals (1)	Expected Defaults (%) (2)	Excess Subordination (as a percent of current collateral) (3)
Single Issuer TPS:
S1		$	2,000	$	1,953	$	1,533	$	(420	)		BB		1
S2			2,000		1,921		1,664		(257	)		BBB		1
S3			1,000		955		1,033		78			BB+		1
S4			2,000		2,000		1,985		(15	)		BB+		1
S5			1,000		999		784		(215	)		BB		1
Total Single Issuer TPS		$	8,000	$	7,828	$	6,999	$	(829	)				5

Total TPS		$	105,294	$	43,559	$	30,806	$	(12,753	)				893

(1)	Some current deferrals are expected to cure at rates varying from 10% to 90% after five years.

(2)	Expected future defaults as a percent of remaining performing collateral.

(3)	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.

States of the U.S. and Political Subdivisions

The Corporation’s municipal bond portfolio of $163,449 as of March 31, 2013 is highly rated with an average entity specific rating of AA and 98.8% of the portfolio rated A or better. General obligation bonds comprise 99.5% of the portfolio. Geographically, municipal bonds support the Corporation’s footprint as 77.1% of the securities are from municipalities located throughout Pennsylvania. The average holding size of the securities in the municipal bond portfolio is $997. In addition to the strong stand-alone ratings, 69.1% of the municipalities have purchased credit enhancement insurance to strengthen the creditworthiness of their issue. Management also reviews the credit profile of each issuer on a quarterly basis.

Non-Agency CMOs

The Corporation purchased $161,151 of non-agency CMOs from 2003 through 2005. The book value of these CMOs was $9,180 at March 31, 2013. At the time of purchase, these securities were all rated AAA, with an original average LTV ratio of 66.1% and original average credit score of 724. At origination, the credit support, or the amount of loss the collateral pool could absorb before the AAA securities would incur a credit loss, ranged from 2.0% to 7.0%. Since the time of these original purchases, all of which are classified as held to maturity, three holdings have been sold and one holding has paid off. The Corporation acquired and retained $60 of non-agency CMOs from a previous acquisition and acquired $42,810 and retained $4,238 of non-agency CMOs from the Parkvale acquisition. These acquired and retained securities are classified as available for sale and had a book value of $2,386 at March 31, 2013. Paydowns during the first three months of 2013 amounted to $1,680, an annualized paydown rate of 40.1%. The credit support at March 31, 2013 varied by holding and ranged between 5.8% to 21.3%, due to paydowns, continued good credit performance and the sale of one non-agency CMO having a book value of $3,529 during the first quarter of 2013. National delinquencies, an early warning sign of potential default, have been increasing for the past five years. Overall, the rate of delinquencies on the Corporation’s holdings continued to increase modestly during the first three months of 2013, but at a slower pace. All non-agency CMO holdings are current with regards to principal and interest.

The Corporation monitors the underlying collateral performance of these non-agency CMOs for delinquencies, foreclosures and defaults. They also factor in trends in bankruptcies and housing values to ultimately arrive at an expected loss for a given piece of defaulted collateral. Since 2008, the collateral performance on many of these types of securities has deteriorated, resulting in downgrades by the rating agencies. For the Corporation’s portfolio, all ten non-agency CMOs have been downgraded since their original purchase date, but nine remain investment grade.

The Corporation determines its credit-related losses by running scenario analysis on the underlying collateral. This analysis applies default assumptions to delinquencies already in the pipeline, projects future defaults based in part on the historical trends for the collateral, applies a rate of severity and estimates prepayment rates. Because of the limited historical trends for the collateral, multiple default scenarios were analyzed including scenarios that significantly elevate defaults over the next 12 - 18 months. Based on the results of the analysis, the Corporation’s management concluded that there are currently no credit-related losses in its non-agency CMO portfolio. The one non-agency CMO that incurred a credit-related loss in 2012 was sold in March 2013 and resulted in a net loss on sale of $348, which was recognized in the first quarter of 2013.

The following table provides information relating to the Corporation’s non-agency CMOs as of March 31, 2013:


													Subordination Data
					Credit Rating				Credit Support %				Delinquency %												%
Security	Original Year		Book Value (1)		S&P		Moody’s		Original		Current		30 Day		60 Day		90 Day		% Foreclosure		% OREO		% Bankruptcy		Total Delinquency		% LTV		Credit Score
1		2003	$	1,386		AA+		n/a		2.5		6.9		3.2		0.4		1.3		1.3		0.2		1.2		7.6		50.5		733
2		2003		1,308		A+		n/a		4.3		17.4		3.5		1.8		1.9		4.4		0.6		1.4		13.5		54.1		708
3		2003		675		AA-		n/a		2.0		8.1		1.5		0.3		3.4		1.5		0.3		0.4		7.3		45.8		740
4		2003		605		AA+		n/a		2.7		21.0		1.8		0.0		0.0		2.2		2.0		2.4		8.3		48.1		n/a
5		2003		2,364		BBB+		n/a		2.5		5.8		1.2		0.6		0.6		2.8		0.0		0.5		5.8		50.0		729
6		2004		2,340		A+		Ba3		7.0		21.3		2.4		0.8		3.1		10.8		0.5		3.6		21.2		54.5		689
7		2004		1,238		A+		n/a		5.3		10.4		1.0		0.7		2.1		4.1		0.0		0.9		8.8		45.0		731
8		2004		697		n/a		A1		2.5		11.5		0.0		0.0		0.0		6.6		0.0		0.0		6.6		53.9		727
9		2004		931		AA+		Baa2		4.4		10.0		1.4		0.6		0.8		3.2		0.4		1.3		7.7		53.5		733

			$	11,544						3.9		12.5																51.1		720

(1)	One acquired available for sale non-agency CMO with a March 31, 2013 book value of $22 is not included in the above table. The bond rating at acquisition was AAA and is now Baa2. This non-agency CMO is current with regards to principal and interest.