Investment Securities (Tables)

9 Months Ended

Sep. 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 September 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	$	74,355	$	9	$	(4,613	)	$	-	$	69,751
Mortgage-backed securities-residential		32,460		340		(961	)		-		31,839
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		164,729		2,876		(1,647	)		-		165,958
Non-agency		4,566		-		-			-		4,566
Corporate bonds		9,777		30		(214	)		-		9,593
Municipal bonds		5,514		-		(186	)		-		5,328
Other securities		3,489		920		(147	)		-		4,262
Common stocks		33		15		-			-		48
Total available for sale	$	294,923	$	4,190	$	(7,768	)	$	-	$	291,345

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 September 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 September 30, 2013
(In thousands)	Amortized cost		Fair value
Within 1 year	$	15,906	$	14,911
After 1 but within 5 years		6,443		6,394
After 5 but within 10 years		34,864		32,909
After 10 years		32,433		30,458
Mortgage-backed securities-residential		32,460		31,839
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		164,729		165,958
Non-agency		4,566		4,566
Total available for sale debt securities		291,401		287,035
No contractual maturity		3,522		4,310
Total available for sale securities	$	294,923	$	291,345

Gross realized gains and losses realized on sale of securities

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

	For the three months					For the nine months
	ended September 30,					ended September 30,
(In thousands)	2013			2012		2013			2012
Gross realized gains	$	-		$	225	$	181		$	565
Gross realized losses		(1	)		-		(112	)		(181	)
Net realized (losses) gains	$	(1	)	$	225	$	69		$	384

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 nine months
	ended September 30,				ended September 30,
(In thousands)	2013		2012		2013		2012
Other securities	$	-	$	-	$	-	$	859
Total OTTI charges	$	-	$	-	$	-	$	859

The following table presents a roll-forward of the balance of credit-related impairment losses on debt securities held at September 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 September 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 September 30, 2013 and December 31, 2012:

September 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	$	65,743	$	(4,613	)	$	-	$	-		$	65,743	$	(4,613	)
Mortgage-backed securities-residential		23,156		(961	)		-		-			23,156		(961	)
Collateralized mortgage obligations:
Issued or guaranteed by U.S. government agencies		56,816		(1,647	)		-		-			56,816		(1,647	)
Corporate bonds		5,875		(203	)		988		(11	)		6,863		(214	)
Municipal bonds		5,328		(186	)		-		-			5,328		(186	)
Other securities		297		(147	)		-		-			297		(147	)
Total available-for-sale	$	157,215	$	(7,757	)	$	988	$	(11	)	$	158,203	$	(7,768	)

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

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-Name Accounting Standards Codification

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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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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