Investments (Tables)
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6 Months Ended |
Jun. 30, 2013
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Investments [Abstract] |
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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 |
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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 |
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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 |
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| | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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 |
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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 |
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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 | | |
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| | |
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| | | |
| | | | Available for sale: | | | | | | |
| | |
| | |
| | | | |
| | |
| | |
| | | |
| S5 | | | Single | | | | 261 |
| | 235 |
| | 278 |
| | 43 |
| | NR | | 1 |
| | — |
| | — |
| | | |
| | | | Held to Maturity: | | | | | | |
| | |
| | |
| | | | |
| | |
| | |
| | | |
| S9 | | | Single | | | | 4,000 |
| | 4,000 |
| | 4,000 |
| | — |
| | NR | | 1 |
| | — |
| | — |
| | | |
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| | (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. |
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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 |
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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 |
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