Investment Securities (Tables)

3 Months Ended

Mar. 31, 2013

Amortized Cost and Approximate Fair Values of Securities

The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair values of the investment securities at the dates indicated were:



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at March 31, 2013
U.S. Government-sponsored agency securities	$	4,228	$	159			$	4,387
State and municipal	151,379		8,615		$	122	159,872
U.S. Government-sponsored mortgage-backed securities	357,307		9,444		216		366,535
Corporate obligations	6,173				5,806		367
Equity securities	1,706						1,706
Total available for sale	520,793		18,218		6,144		532,867
Held to maturity at March 31, 2013
State and municipal	112,390		4,120		1		116,509
U.S. Government-sponsored mortgage-backed securities	224,306		10,687		63		234,930
Total held to maturity	336,696		14,807		64		351,439
Total Investment Securities	$	857,489	$	33,025	$	6,208	$	884,306



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2012
U.S. Government-sponsored agency securities	$	4,475	$	165			$	4,640
State and municipal	148,187		10,025		$	18	158,194
U.S. Government-sponsored mortgage-backed securities	337,631		10,994		46		348,579
Corporate obligations	6,105				5,881		224
Equity securities	1,706						1,706
Total available for sale	498,104		21,184		5,945		513,343
Held to maturity at December 31, 2012
State and municipal	117,227		5,489		1		122,715
U.S. Government-sponsored mortgage-backed securities	243,793		11,681		15		255,459
Total held to maturity	361,020		17,170		16		378,174
Total Investment Securities	$	859,124	$	38,354	$	5,961	$	891,517

Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity

The amortized cost and fair value of available for sale securities and held to maturity securities at March 31, 2013, 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				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturity Distribution at March 31, 2013:
Due in one year or less	$	2,811	$	2,866	$	1,755	$	1,759
Due after one through five years	15,341		16,043		4,929		5,295
Due after five through ten years	55,107		58,080		55,406		57,228
Due after ten years	88,521		87,637		50,300		52,227
	$	161,780	$	164,626	$	112,390	$	116,509
U.S. Government-sponsored mortgage-backed securities	357,307		366,535		224,306		234,930
Equity securities	1,706		1,706
Total Investment Securities	$	520,793	$	532,867	$	336,696	$	351,439

Gross Gains and Losses on Sales and Redemptions of Available for Sale Securities and Other Than Temporary Impairment Losses Recognized

Gross gains and losses on the sales and redemptions of available for sale securities, and other-than-temporary impairment (“OTTI”) losses recognized for the three months ended March 31, 2013 and 2012 are shown below.



	Three Months Ended March 31,
	2013		2012
Sales and Redemptions of Available for Sale Securities:
Gross gains	$	248	$	789
Gross losses	—		—
Other-than-temporary impairment losses	—		—

Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position

The following table shows the Corporation’s 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 March 31, 2013, and December 31, 2012:



	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Temporarily Impaired Investment
Securities at March 31, 2013
State and municipal	$	10,702	$	123					$	10,702	$	123
U.S. Government-sponsored mortgage-backed securities	27,183		279						27,183		279
Corporate obligations					$	336	$	5,806	336		5,806
Total Temporarily Impaired Investment Securities	$	37,885	$	402	$	336	$	5,806	$	38,221	$	6,208



	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Temporarily Impaired Investment
Securities at December 31, 2012
State and municipal	$	4,524	$	19					$	4,524	$	19
U.S. Government-sponsored mortgage-backed securities	12,320		61						12,320		61
Corporate obligations					$	194	$	5,881	194		5,881
Total Temporarily Impaired Investment Securities	$	16,844	$	80	$	194	$	5,881	$	17,038	$	5,961

Investments in Debt and Equity Securities Reported Less than Historical Cost

Certain investments in debt and equity securities are reported in the financial statements at an amount less than their historical cost as indicated in the table below.



	March 31, 2013			December 31, 2012
Investments reported at less than historical cost:
Historical cost	$	44,428		$	22,999
Fair value	$	38,221		$	17,038
Percent of the Corporation's available for sale and held to maturity portfolio	4.4		%	1.9		%

Debt Securities Credit Loss 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 were recorded in other comprehensive income.



	Accumulated Credit Losses in 2013		Accumulated Credit Losses in 2012
Credit losses on debt securities held:
Balance, January 1	$	11,355	$	11,355
Additions related to other-than-temporary losses not previously recognized
Balance, March 31	$	11,355	$	11,355

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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