Investments (Tables)

6 Months Ended

Jun. 30, 2013

Investments [Abstract]

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

The amortized cost and estimated fair values of the Company's securities are shown in the following table (in thousands):

	June 30, 2013								December 31, 2012
	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	$	2,857	$	68	$	—	$	2,925	$	3,792	$	96	$	—	$	3,888
Obligations of states and
political subdivisions	43,155		908		74		43,989		47,293		1,651		15		48,929
Mortgage-backed securities:
U.S. government agencies	251,565		3,356		3,665		251,256		279,336		7,231		85		286,482
Private label	2,675		22		21		2,676		3,235		37		—		3,272
Trust preferred
securities	13,614		572		2,479		11,707		15,402		55		2,812		12,645
Corporate securities	9,780		245		181		9,844		16,152		207		412		15,947
Total Debt Securities	323,646		5,171		6,420		322,397		365,210		9,277		3,324		371,163
Marketable equity  securities	3,381		1,490		—		4,871		3,381		804		—		4,185
Investment funds	1,525		—		11		1,514		1,724		50		—		1,774
Total Securities
Available-for-Sale	$	328,552	$	6,661	$	6,431	$	328,782	$	370,315	$	10,131	$	3,324	$	377,122

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

	June 30, 2013								December 31, 2012
	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	$	4,293	$	1,658	$	—	$	5,951	$	13,454	$	465	$	58	$	13,861
Total Securities
Held-to-Maturity	$	4,293	$	1,658	$	—	$	5,951	$	13,454	$	465	$	58	$	13,861
Other investment securities:
Non-marketable equity securities	$	13,344	$	—	$	—	$	13,344	$	11,463	$	—	$	—	$	11,463
Total Other Investment
Securities	$	13,344	$	—	$	—	$	13,344	$	11,463	$	—	$	—	$	11,463

Gross Unrealized Losses And Fair Value Of Investments

The following table shows the gross unrealized losses and fair value of the Company’s investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	June 30, 2013
	Less Than Twelve Months				Twelve Months or Greater				Total
	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	$	2,583	$	66	$	851	$	8	$	3,434	$	74
Mortgage-backed securities:
U.S. Government agencies	138,569		3,665		—		—		138,569		3,665
Private label	1,781		21		—		—		1,781		21
Trust preferred securities	3,136		312		4,979		2,167		8,115		2,479
Corporate securities	6,534		181		—		—		6,534		181
Investment funds	1,489		11		—		—		1,489		11
Total	$	154,092	$	4,256	$	5,830	$	2,175	$	159,922	$	6,431

	December 31, 2012
	Less Than Twelve Months				Twelve Months or Greater				Total
	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	$	1,163	$	15	$	—	$	—	$	1,163	$	15
Mortgage-backed securities:
U.S. Government agencies	16,225		85		—		—		16,225		85
Trust preferred securities	348		51		5,836		2,761		6,184		2,812
Corporate securities	1,950		49		4,344		363		6,294		412
Total	$	19,686	$	200	$	10,180	$	3,124	$	29,866	$	3,324
Securities held-to-maturity:
Trust preferred securities	$	—	$	—	$	3,380	$	58	$	3,380	$	58

Credit Loss Component Of OTTI On Debt Securities Recognized In Earnings

The following table presents a progression of the credit loss component of OTTI on debt and equity securities recognized in earnings during the six months ended June 30, 2013 and for the year ended December 31, 2012 (in thousands).  The credit loss component represents the difference between the present value of expected future cash flows and the amortized cost basis of the security.  The credit component of OTTI recognized in earnings during a period is presented in two parts based upon whether the credit impairment in the current period is the first time the security was credit impaired (initial credit impairment) or if there is additional credit impairment on a security that was credit impaired in previous periods.

	Debt Securities		Equity Securities			Total
Balance at January 1, 2012	$	20,610	$	6,048		$	26,658
Additions:
Initial credit impairment	—		—			—
Additional credit impairment	576		—			576
Deductions:
Called	—		(1,235		)	(1,235		)
Balance at December 31, 2012	21,186		4,813			25,999
Additions:
Initial credit impairment	—		—			—
Additional credit impairment	—		—			—
Deductions:
Sold	—		—			—
Balance at June 30, 2013	$	21,186	$	4,813		$	25,999

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

The following table presents additional information about the Company’s trust preferred securities with a credit rating of below investment grade as of June 30, 2013 (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	$	1,087	$	425	$	385	(40	)	Ca	9	19.5	%	14.2	%	(2)	28.4	%
P2		Pooled	Mezz	3,110		436		886		450		Ca	8	25.9	%	7.1	%	(2)	36.5	%
P3	(5)	Pooled	Mezz	2,962		1,419		324		(1,095	)	Caa3	22	25.5	%	8.2	%	(2)	13.0	%
P4	(6)	Pooled	Mezz	4,060		400		106		(294	)	Ca	9	19.2	%	8.2	%	(3)	23.0	%
P5		Pooled	Mezz	6,046		826		470		(356	)	Ca	10	26.0	%	21.0	%	(2)	15.6	%
		Held to Maturity:
P6		Pooled	Mezz	2,102		220		769		549		Ca	9	19.5	%	14.2	%	(2)	28.4	%
P7		Pooled	Mezz	4,130		73		1,182		1,109		Ca	8	25.9	%	7.1	%	(2)	36.5	%
		Single issuer trust preferredsecurities
		Available for sale:
S5		Single		261		235		278		43		NR	1	—		—
		Held to Maturity:
S9		Single		4,000		4,000		4,000		—		NR	1	—		—

(1) The differences noted consist of unrealized losses recorded at June 30, 2013 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 is currently deferring will cure.  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) No other-than-temporary impairment losses were recognized during the six months ended June 30, 2013.  Other-than-temporary impairment losses of $11,000 were recognized during the year ended December 31, 2012.

(6) No other-than-temporary impairment losses were recognized during the six months ended June 30, 2013.  Other-than-temporary impairment losses of $565,000 were recognized during the year ended December 31, 2012.

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

	Cost		Estimated Fair Value
Securities Available-for-Sale
Due in one year or less	$	6,024	$	6,033
Due after one year through five years	23,148		23,475
Due after five years through ten years	41,376		42,611
Due after ten years	253,098		250,278
	$	323,646	$	322,397
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	4,293		5,951
	$	4,293	$	5,951

Gross Gains And Losses Realized

Gross gains and gross losses realized by the Company from investment security transactions are summarized in the table below (in thousands). The specific identification method is used to determine the cost basis of securities sold.

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2013		2012			2013		2012
Gross realized gains	$	9	$	946		$	93	$	946
Gross realized losses	—		(114		)	—		(145		)
Net investment security gains	$	9	$	832		$	93	$	801