Investments (Tables)

9 Months Ended

Sep. 30, 2012

Aggregate Carrying And Approximate Market Values Of Available-For-Sale Securities


		September 30, 2012								December 31, 2011
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities available-for-sale:
U.S. Treasuries and U.S.
government agencies	$	4,310	$	105	$	-	$	4,415	$	5,868	$	173	$	-	$	6,041
Obligations of states and
political subdivisions		48,334		1,814		15		50,133		55,262		1,561		21		56,802
Mortgage-backed securities:
U.S. government agencies		285,678		8,695		45		294,328		220,815		6,966		168		227,613
Private label		3,583		43		-		3,626		5,117		45		6		5,156
Trust preferred
securities		18,405		201		3,098		15,508		48,951		941		4,735		45,157
Corporate securities		16,178		251		466		15,963		16,226		160		1,988		14,398
Total Debt Securities		376,488		11,109		3,624		383,973		352,239		9,846		6,918		355,167
Marketable equity securities		3,381		551		11		3,921		4,318		-		465		3,853
Investment funds		1,724		68		-		1,792		1,724		39		-		1,763
Total Securities
Available-for-Sale	$	381,593	$	11,728	$	3,635	$	389,686	$	358,281	$	9,885	$	7,383	$	360,783

Aggregate Carrying And Approximate Market Values Of Held-To-Maturity Securities


		September 30, 2012								December 31, 2011
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities held-to-maturity
Trust preferred securities	$	13,444	$	283	$	69	$	13,658	$	23,458	$	675	$	710	$	23,423
Total Securities
Held-to-Maturity	$	13,444	$	283	$	69	$	13,658	$	23,458	$	675	$	710	$	23,423

Other investment securities:
Non-marketable equity securities	$	11,459	$	-	$	-	$	11,459	$	11,934	$	-	$	-	$	11,934
Total Other Investment
Securities	$	11,459	$	-	$	-	$	11,459	$	11,934	$	-	$	-	$	11,934

Gross Unrealized Losses And Fair Value Of Investments


		September 30, 2012
		Less Than Twelve Months				Twelve Months or Greater				Total
(In thousands)		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss

Securities available-for-sale:
Obligations of states and political subdivisions	$	1,482	$	15	$	-	$	-	$	1,482	$	15
Mortgage-backed securities:
U.S. Government agencies		16,440		35		2,830		10		19,270		45
Trust preferred securities		-		-		5,497		3,098		5,497		3,098
Corporate securities		4,070		258		2,165		208		6,235		466
Marketable equity securities		127		11		-		-		127		11
Total	$	22,119	$	319	$	10,492	$	3,316	$	32,611	$	3,635

Securities held-to-maturity:
Trust preferred securities	$	-	$	-	$	3,372	$	69	$	3,372	$	69


		December 31, 2011
		Less Than Twelve Months				Twelve Months or Greater				Total
(In thousands)		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss

Securities available-for-sale:
Obligations of states and political subdivisions	$	992	$	11	$	394	$	10	$	1,386	$	21
Mortgage-backed securities:
U.S. Government agencies		-		-		4,333		168		4,333		168
Private label		3,236		6		-		-		3,236		6
Trust preferred securities		6,724		520		5,402		4,215		12,126		4,735
Corporate securities		1,791		241		4,941		1,747		6,732		1,988
Marketable equity securities		3,810		465		-		-		3,810		465
Total	$	16,553	$	1,243	$	15,070	$	6,140	$	31,623	$	7,383

Securities held-to-maturity:
Trust preferred securities	$	4,823	$	212	$	8,219	$	498	$	13,042	$	710

Credit Loss Component Of OTTI On Debt Securities Recognized In Earnings


(In thousands)		Debt Securities		Equity Securities		Total

Balance at January 1, 2011	$	20,893	$	5,130	$	26,023
Additions:						-
Initial credit impairment		-		-		-
Additional credit impairment		355		918		1,273
Deductions:						-
Called		(638)		-		(638)
Balance December 31, 2011		20,610		6,048		26,658
Additions:
Initial credit impairment		-		-		-
Additional credit impairment		576		-		576
Deductions:
Sold		-		(1,235)		(1,235)
Balance September 30, 2012	$	21,186	$	4,813	$	25,999

Additional Information Of Trust Preferred Securities With Credit Rating Below Investment Grade

(Dollars in thousands)


Deal Name	Type	Class	Original Cost	Amortized Cost	Fair Value	Difference ⁽¹⁾	Lowest Credit Rating	# of issuers currently performing	Actual deferrals/defaults (as a % of original dollar)	Expected deferrals/defaults (as a % of remaining of performing collateral)		Excess Subordination as a Percentage of Current Performing Collateral ⁽⁴⁾
	Pooled trust preferred securities:
	Other-than-temporarily impaired
	Available for Sale:
P1	Pooled	Mezz	$ 1,115	$ 451	$ 175	(276)	Ca	12	22.8%	17.1%	(2)	33.3%
P2	Pooled	Mezz	3,944	1,197	892	(305)	Ca	12	25.9%	15.8%	(2)	8.3%
P3⁽⁵⁾	Pooled	Mezz	2,962	1,419	350	(1,069)	Caa3	24	24.5%	21.5%	(2)	0.2%
P4⁽⁶⁾	Pooled	Mezz	4,060	400	400	-	Ca	10	19.2%	23.0%	(3)	0.0%
P5	Pooled	Mezz	5,872	826	366	(460)	Ca	14	26.0%	22.0%	(2)	20.8%

	Held to Maturity:
P6	Pooled	Mezz	2,158	246	349	103	Ca	12	22.8%	17.1%	(2)	33.3%
P7	Pooled	Mezz	5,237	1,068	1,189	121	Ca	12	25.9%	15.8%	(2)	8.3%

	Single issuer trust preferred securities
	Available for sale:
S1	Single		261	235	163	(72)	NR	1	-	-
S2	Single		1,000	1,000	1,036	36	B2	1	-	-

	Held to Maturity:
S3	Single		4,000	4,000	4,000	-	NR	1	-	-
S4	Single		3,360	3,098	3,075	(23)	NR	1	-	-
S5	Single		3,564	3,532	3,533	1	NR	1	-	-


⁽¹⁾	The differences noted consist of unrealized losses recorded at September 30, 2012 and noncredit other-than-temporary impairment losses recorded subsequent to April 1, 2009 that have not been reclassified as credit losses.
⁽²⁾	Performing collateral is defined as total collateral minus all collateral that has been called, is currently deferring, or currently in default. This model for this security assumes that all collateral that is currently deferring will default with a zero recovery rate. The underlying issuers can cure, thus this bond could recover at a higher percentage upon default than zero.
⁽³⁾	Performing collateral is defined as total collateral minus all collateral that has been called, is currently deferring, or currently in default. The model for this security assumes that one of the banks that are currently deferring will cure by June 2013. If additional underlying issuers cure, this bond could recover at a higher percentage.
⁽⁴⁾	Excess subordination is defined as the additional defaults/deferrals necessary in the next reporting period to deplete the entire credit enhancement (excess interest and over-collateralization) beneath our tranche within each pool to the point that would cause a "break in yield." This amount assumes that all currently performing collateral continues to perform. A break in yield means that our security would not be expected to receive all the contractual cash flows (principal and interest) by maturity. The "percent of current performing collateral" is the ratio of the "excess subordination amount" to current performing collateral—a higher percent means there is more excess subordination to absorb additional defaults/deferrals, and the better our security is protected from loss.
⁽⁵⁾	Other-than-temporary impairment losses of $11,000 were recognized during the nine months ended September 30, 2012. Other-than-temporary impairment losses of $115,000 were recognized during the year ended December 31, 2011.
⁽⁶⁾	Other-than-temporary impairment losses of $565,000 were recognized during the nine months ended September 30, 2012. Other-than-temporary impairment losses of $240,000 were recognized during the year ended December 31, 2011.

Amortized Cost And Estimated Fair Value Of Debt Securities By Contractual Maturity


(In thousands)		Cost		Estimated Fair Value
Securities Available-for-Sale
Due in one year or less		7,229		7,275
Due after one year through five years		33,449		33,844
Due after five years through ten years		46,821		48,827
Due after ten years		288,989		294,027
	$	376,488	$	383,973

Securities Held-to-Maturity
Due in one year or less		-		-
Due after one year through five years		-		-
Due after five years through ten years		-		-
Due after ten years		13,444		13,658
	$	13,444	$	13,658

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-1

-Paragraph 21

-Subparagraph a, b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 320

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS115-1/124-1

-Paragraph 17

-Subparagraph a, b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 7

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 19, 20, 21

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 320

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 9

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

+ Details

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 9

-URI http://asc.fasb.org/extlink&oid=6435544&loc=d3e41834-113960

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5086-111524

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 137

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 7

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 10

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 320

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 320

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

+ Details

- 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.

+ References+ Details