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Securities
 3 Months Ended
Mar. 31, 2013
Available-for-sale Securities [Abstract]  
Securities
Securities
The following table summarizes the amortized cost, gross unrealized gains and losses and the resulting fair value of securities available for sale:
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
 
(in thousands)
March 31, 2013
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
502,652

 
$
15,484

 
$
(6,181
)
 
$
511,955

State and municipal securities
 
256,608

 
19,586

 
(589
)
 
275,605

U.S. government agency and government-sponsored enterprise securities
 
201,680

 
828

 
(981
)
 
201,527

U.S. government securities
 
19,811

 
—

 
(105
)
 
19,706

Other securities
 
3,324

 
87

 
(42
)
 
3,369

Total
 
$
984,075

 
$
35,985

 
$
(7,898
)
 
$
1,012,162

December 31, 2012
 

 

 

 

U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
561,076

 
$
16,719

 
$
(5,426
)
 
$
572,369

State and municipal securities
 
265,070

 
20,893

 
(388
)
 
285,575

U.S. government agency and government-sponsored enterprise securities
 
120,085

 
851

 
(435
)
 
120,501

U.S. government securities
 
19,804

 
39

 
(15
)
 
19,828

Other securities
 
3,324

 
104

 
(36
)
 
3,392

Total
 
$
969,359

 
$
38,606

 
$
(6,300
)
 
$
1,001,665


The scheduled contractual maturities of investment securities available for sale at March 31, 2013 are presented as follows:
 
 
March 31, 2013
 
 
Amortized Cost
 
Fair Value
 
 
(in thousands)
Due within one year
 
$
17,771

 
$
18,025

Due after one year through five years
 
158,054

 
161,996

Due after five years through ten years
 
244,429

 
249,097

Due after ten years
 
560,497

 
579,677

Other securities with no stated maturity
 
3,324

 
3,367

Total investment securities available-for-sale
 
$
984,075

 
$
1,012,162


The following table summarizes, as of March 31, 2013, the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law:
 
 
Carrying Amount
 
 
(in thousands)
To Washington and Oregon State to secure public deposits
 
$
282,025

To Federal Reserve Bank to secure borrowings
 
45,405

Other securities pledged
 
44,948

Total securities pledged as collateral
 
$
372,378


The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, 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 More
 
Total
 
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
 
(in thousands)
March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
160,587

 
(5,914
)
 
11,250

 
(267
)
 
171,837

 
(6,181
)
State and municipal securities
 
21,513

 
(584
)
 
210

 
(5
)
 
21,723

 
(589
)
U.S. government agency and government-sponsored enterprise securities
 
137,814

 
(981
)
 
—

 
—

 
137,814

 
(981
)
U.S. government securities
 
19,706

 
(105
)
 
—

 
—

 
19,706

 
(105
)
Other securities
 
—

 
—

 
958

 
(42
)
 
958

 
(42
)
Total
 
339,620

 
(7,584
)
 
12,418

 
(314
)
 
352,038

 
(7,898
)
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
167,739

 
(5,090
)
 
12,204

 
(336
)
 
179,943

 
(5,426
)
State and municipal securities
 
20,413

 
(383
)
 
210

 
(5
)
 
20,623

 
(388
)
U.S. government agency and government-sponsored enterprise securities
 
56,600

 
(435
)
 
—

 
—

 
56,600

 
(435
)
U.S. government securities
 
9,914

 
(15
)
 
—

 
—

 
9,914

 
(15
)
Other securities
 
—

 
—

 
964

 
(36
)
 
964

 
(36
)
Total
 
254,666

 
(5,923
)
 
13,378

 
(377
)
 
268,044

 
(6,300
)

At March 31, 2013, there were 18 U.S. government agency and government-sponsored enterprise mortgage-backed securities & collateralized mortgage obligations securities in an unrealized loss position, of which one was in a continuous loss position for 12 months or more. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2013.
At March 31, 2013, there were 15 state and municipal government securities in an unrealized loss position, of which one was in a continuous loss position for 12 months or more. The unrealized losses on state and municipal securities were caused by interest rate changes or widening of market spreads subsequent to the purchase of the individual securities. Management monitors published credit ratings of these securities for adverse changes. As of March 31, 2013, none of the rated obligations of state and local government entities held by the Company had a below investment grade credit rating. Because the credit quality of these securities are investment grade and the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2013.
At March 31, 2013, there were 11 U.S. government agency and government-sponsored enterprise securities in an unrealized loss position, of which none were in a continuous loss position for 12 months or more. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not currently intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2013.
At March 31, 2013, there were two U.S. government securities in an unrealized loss position, neither of which was in a continuous loss position for 12 months or more. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not currently intend to sell this security nor does the Company consider it more likely than not that it will be required to sell this security before the recovery of amortized cost basis, which may be maturity, the Company does not consider this investment to be other-than-temporarily impaired at March 31, 2013.
At March 31, 2013, there was one other security, a mortgage-backed securities fund in a continuous unrealized loss position for 12 months or more. The decline in fair value is attributable to changes in interest rates and the additional risk premium investors are demanding for investment securities with these characteristics. The Company does not consider this investment to be other-than-temporarily impaired at March 31, 2013 as it has the intent and ability to hold the investment for sufficient time to allow for recovery in the market value.