Impairment of Investment Securities (Tables)

9 Months Ended

Sep. 30, 2013

Impairment of Investment Securities Disclosure [Abstract]

Schedule of Unrealized Losses and Estimated Fair Values

The following table presents the gross unrealized losses and estimated fair values at December 31, 2012 by investment category and time frame for which securities have been in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or More						Total
	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses				Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	—	$	—		$	13	$	—		(a)	$	13	$	—
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	76,296		(392		)	21		—			(a)	76,317		(392		)
Other Government-Sponsored Enterprises	59,303		(72		)	—		—				59,303		(72		)
Pooled Trust Preferred Collateralized Debt Obligations	—		—			23,316		(28,496		)		23,316		(28,496		)
Total Securities Available for Sale	$	135,599	$	(464	)	$	23,350	$	(28,496	)		$	158,949	$	(28,960	)

(a) Gross unrealized losses related to these types of securities are less than $1 thousand.

The following table presents the gross unrealized losses and estimated fair values at September 30, 2013 by investment category and time frame for which securities have been in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or More					Total
	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	2,092	$	(16	)	$	—	$	—		$	2,092	$	(16	)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	580,232		(22,258		)	—		—			580,232		(22,258		)
Other Government-Sponsored Enterprises	183,075		(1,894		)	—		—			183,075		(1,894		)
Pooled Trust Preferred Collateralized Debt Obligations	34		(23		)	22,603		(23,440		)	22,637		(23,463		)
Total Securities Available for Sale	$	765,433	$	(24,191	)	$	22,603	$	(23,440	)	$	788,036	$	(47,631	)

Pooled Trust Preferred Collateralized Debt Obligations

The following table provides information related to our pooled trust preferred collateralized debt obligations as of September 30, 2013:

Deal	Class	Book Value		Estimated Fair Value		Unrealized Gain (Loss)			Moody’s/ Fitch Ratings	Number of Banks	Deferrals and Defaults as a % of Current Collateral		Excess Subordination as a % of Current Performing Collateral
(dollars in thousands)
Pre TSL I	Senior	$	2	$	2	$	—		Aa3/AAA	9	33.33	%	—	%	*
Pre TSL IV	Mezzanine	1,830		1,266		(564		)	Caa2/B	6	18.05		56.91
Pre TSL V	Mezzanine	57		34		(23		)	C/-	3	100.00		—
Pre TSL VII	Mezzanine	2,722		2,818		96			Ca/C	15	52.80		—
Pre TSL VIII	Mezzanine	1,927		1,093		(834		)	C/C	30	58.01		—
Pre TSL IX	Mezzanine	2,295		1,133		(1,162		)	Caa1/C	44	27.04		6.44
Pre TSL X	Mezzanine	1,367		1,330		(37		)	Caa3(Ca)/C	47	34.92		—
Pre TSL XII	Mezzanine	5,380		2,958		(2,422		)	Caa3/C	69	30.17		—
Pre TSL XIII	Mezzanine	12,468		7,051		(5,417		)	Caa3(Ca)/C	61	29.99		16.38
Pre TSL XIV	Mezzanine	13,537		6,211		(7,326		)	Ca/C	59	37.00		35.64
MMCap I	Mezzanine	644		495		(149		)	Ca/C	11	58.76		—
MM Comm IX	Mezzanine	6,595		1,066		(5,529		)	Ca/D	27	44.41		—
Total		$	48,824	$	25,457	$	(23,367	)

Cumulative Roll Forward of Credit Losses Recognized in Earnings for Debt Securities held and not Intended to be Sold

The following table provides a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold:

	For the Three-Months Ended September 30						For the Nine-Months Ended September 30
	2013			2012			2013			2012
	(dollars in thousands)
Balance, beginning (a)	$	42,699		$	44,230		$	43,274		$	44,736
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized	—			—			—			—
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized	—			—			—			—
Increases in cash flows expected to be collected, recognized over the remaining life of the security (b)	(1,326		)	(436		)	(1,901		)	(942		)
Balance, ending	$	41,373		$	43,794		$	41,373		$	43,794

(a) The beginning balance represents credit related losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.

(b) Represents the increase in cash flows recognized in interest income during the period.