Investment Securities (Tables)

6 Months Ended

Jun. 30, 2013

Amortized cost, gross unrealized gains and losses, and fair value of available-for-sale investment securities

The carrying value and fair value of investment securities AFS at June 30, 2013 are as follows:

			Included in Accumulated Other Comprehensive Loss (AOCL)
					Gross unrealized losses
(In thousands)	Amortized cost		Gross unrealized gains		Non-OTTI in AOCL			Non-credit related OTTI in AOCL		Fair value
U.S. government agencies	$	74,354		18		(3,200	)	$	-	$	71,172
Mortgage-backed securities-residential		33,271		375		(724	)		-		32,922
Collateralized mortgage obligations-residential		178,476		2,958		(925	)		-		180,509
Corporate bonds		9,785		37		(92	)		-		9,730
Municipal bonds		5,519		-		(188	)		-		5,331
Other securities		3,676		880		(149	)		-		4,407
Common stocks		33		13		-			-		46
Total available for sale	$	305,114	$	4,281	$	(5,278	)	$	-	$	304,117

The carrying value and fair value of investment securities AFS at December 31, 2012 are as follows:

			Included in Accumulated Other Comprehensive Loss (AOCL)
					Gross unrealized losses
(In thousands)	Amortized cost		Gross unrealized gains		Non-OTTI in AOCL			Non-credit related OTTI in AOCL		Fair value
U.S. government agencies	$	66,371	$	151	$	(78	)	$	-	$	66,444
Mortgage-backed securities-residential		30,038		518		(47	)		-		30,509
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		229,556		5,031		(611	)		-		233,976
Non-agency		1,007		4		-			-		1,011
Corporate bonds		7,477		32		(72	)		-		7,437
Municipal bonds		5,645		-		(30	)		-		5,615
Other securities		3,752		520		(108	)		-		4,164
Common stocks		33		14		-			-		47
Total available for sale	$	343,879	$	6,270	$	(946	)	$	-	$	349,203

Amortized cost and fair value of investment securities, by contractual maturity

The amortized cost and fair value of investment securities at June 30, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	As of June 30, 2013
(In thousands)	Amortized cost		Fair value
Within 1 year	$	15,906	$	15,301
After 1 but within 5 years		5,445		5,406
After 5 but within 10 years		35,874		34,413
After 10 years		32,433		31,113
Mortgage-backed securities-residential		33,271		32,922
Collateralized mortgage obligations-residential		178,476		180,509
Total available for sale debt securities		301,405		299,664
No contractual maturity		3,709		4,453
Total available for sale securities	$	305,114	$	304,117

Gross realized gains and losses realized on sale of securities

The following table summarizes gross realized gains and losses realized on the sale of securities recognized in earnings in the periods indicated:

	For the three months						For the six months
	ended June 30,						ended June 30,
(In thousands)	2013			2012			2013			2012
Gross realized gains	$	43		$	29		$	181		$	340
Gross realized losses		(18	)		(9	)		(111	)		(181	)
Net realized gains	$	25		$	20		$	70		$	159

Schedule of credit related impairment losses on debt securities held, for portion of OTTI was recognized in other comprehensive income

The following table summarizes OTTI losses on securities recognized in earnings in the periods indicated:

	For the three months				For the six months
	ended June 30,				ended June 30,
(In thousands)	2013		2012		2013		2012
Other securities	$	-	$	859	$	-	$	859
Total OTTI charges	$	-	$	859	$	-	$	859

The following table presents a roll-forward of the balance of credit-related impairment losses on debt securities held at June 30, 2013 and 2012 for which a portion of OTTI was recognized in other comprehensive income:

(In thousands)	2013			2012
Balance at January 1,	$	173		$	173
Reductions for securities sold during the period (realized)		(173	)		-
Balance at June 30,	$	-		$	173

Investment securities in a continuous unrealized loss position

The tables below indicate the length of time individual securities have been in a continuous unrealized loss position at June 30, 2013 and December 31, 2012:

June 30, 2013	Less than 12 months					12 months or longer					Total
(In thousands)	Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses
U.S. government agencies	$	58,159	$	(3,200	)	$	-	$	-		$	58,159	$	(3,200	)
Mortgage-backed securities-residential		19,201		(724	)		-		-			19,201		(724	)
Collateralized mortgage obligations-residential		39,185		(920	)		2,642		(5	)		41,827		(925	)
Corporate bonds		4,035		(50	)		958		(42	)		4,993		(92	)
Municipal bonds		5,331		(188	)		-		-			5,331		(188	)
Other securities		270		(50	)		205		(99	)		475		(149	)
Total available-for-sale	$	126,181	$	(5,132	)	$	3,805	$	(146	)	$	129,986	$	(5,278	)

December 31, 2012	Less than 12 months					12 months or longer					Total
(In thousands)	Fair value		Gross unrealized losses			Fair value		Gross unrealized losses			Fair value		Gross unrealized losses
U.S. government agencies	$	23,818	$	(78	)	$	-	$	-		$	23,818	$	(78	)
Mortgage-backed securities-residential		7,280		(47	)		-		-			7,280		(47	)
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		44,937		(592	)		3,975		(19	)		48,912		(611	)
Corporate bonds		2,165		(13	)		941		(59	)		3,106		(72	)
Municipal bonds		4,597		(21	)		882		(9	)		5,479		(30	)
Other securities		289		(38	)		255		(70	)		544		(108	)
Total available-for-sale	$	83,086	$	(789	)	$	6,053	$	(157	)	$	89,139	$	(946	)

- 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.

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

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

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

-Publisher FASB

-Name Accounting Standards Codification

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-Name Accounting Standards Codification

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-Publisher FASB

-Name Accounting Standards Codification

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

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-Name Accounting Standards Codification

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-Subparagraph a, b

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- 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.

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