Investment Securities

15 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

NOTE D – INVESTMENT SECURITIES

The amortized cost and fair values of securities classified as available for sale and held to maturity are as follows:


	Amortized Cost		Unrealized
	Amortized Cost		Gain		Losses		Fair Value
Securities Available for Sale

December 31, 2013:
Debt Securities:
Government-sponsored enterprises	$	2,099	$	-	$	(248)	$	1,851
Government-sponsored and government- guaranteed mortgage-backed securities		236,004		4,836		(4,386)		236,454
Municipal bonds		25,902		269		(1,453)		24,718
Corporate bonds		1,125		481		-		1,606

Total	$	265,130	$	5,586	$	(6,087)	$	264,629


Securities Available for Sale

December 31, 2012:
Debt Securities:
Government-sponsored enterprises	$	3,234	$	2	$	(3)	$	3,233
Government-sponsored and government- guaranteed mortgage-backed securities		248,370		9,836		(444)		257,762
Private label mortgage-backed securities		2,568		54		(56)		2,566
Municipal bonds		28,713		595		(481)		28,827
Corporate bonds		1,290		644		-		1,934

Total	$	284,175	$	11,131	$	(984)	$	294,322


	Amortized Cost		Unrealized
	Amortized Cost		Gain		Losses		Fair Value
Securities Held to Maturity
December 31, 2013:
Government-sponsored and government- guaranteed mortgage-backed securities	$	78,686	$	1,130	$	(767)	$	79,049
Private label mortgage-backed securities		50		1		-		51
Industrial revenue bonds		26,361		-		-		26,361
State of Israel bonds		175		-		-		175
Municipal bonds		5,913		166		-		6,079

Total	$	111,185	$	1,297	$	(767)	$	111,715

Securities Held to Maturity
December 31, 2012:
Government-sponsored and government- guaranteed mortgage-backed securities	$	57,986	$	2,214	$	-	$	60,200
Private label mortgage-backed securities		79		2		-		81
Industrial revenue bonds		18,847		-		-		18,847
State of Israel bonds		150		-		-		150
Municipal bonds		5,924		472		-		6,396

Total	$	82,986	$	2,688	$	-	$	85,674

The Company’s portfolio of mortgage-backed securities, which represent interests in pools of residential mortgage loans, consists of securities issued by the Federal Home Loan Mortgage Corporation (Freddie Mac), the Federal National Mortgage Association (Fannie Mae), and the Government National Mortgage Association (Ginnie Mae), all of which are federal government owned or sponsored agencies.

As of December 31, 2013, the Bank has pledged securities with an amortized cost of $124,699 and a fair value of $126,347 to secure municipal deposits, reverse repurchase agreements, treasury, tax and loan deposits at the Federal Reserve Bank of Boston and customers’ repurchase agreements. Additionally, there is a blanket lien on certain securities to collateralize borrowings from the FHLBB, as discussed further in Note H.

Gross unrealized losses and fair values at December 31, 2013 and 2012 aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position follow:


	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses
2013:
Securities Available for Sale
Debt Securities:
Government-sponsored enterprises	$	1,851	$	(248)	$	-	$	-		5	$	1,851	$	(248)
Government-sponsored and government- guaranteed mortgage-backed securities		101,067		(3,206)		32,066		(1,180)		132		133,133		(4,386)
Municipal bonds		8,208		(476)		10,963		(977)		47		19,171		(1,453)

Total	$	111,126	$	(3,930)	$	43,029	$	(2,157)		184	$	154,155	$	(6,087)

Securities Held to Maturity
Government-sponsored and government- guaranteed mortgage-backed securities	$	36,488	$	(767)	$	-	$	-		10	$	36,488	$	(767)

Total	$	36,488	$	(767)	$	-	$	-		10	$	36,488	$	(767)


	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses
2012:
Securities Available for Sale
Debt Securities:
Government-sponsored enterprises	$	1,998	$	(3)	$	-	$	-		5	$	1,998	$	(3)
Government-sponsored and government- guaranteed mortgage-backed securities		41,537		(444)		-		-		81		41,537		(444)
Private label mortgage-backed securities		1,671		(56)		-		-		9		1,671		(56)
Municipal bonds		16,293		(481)		-		-		38		16,293		(481)

Total	$	61,499	$	(984)	$	-	$	-		133	$	61,499	$	(984)

There were no securities classified as held to maturity in an unrealized loss position as of December 31, 2012.

Management evaluated the securities in the preceding tables and has determined that no declines in the fair value of the Company’s security portfolio are deemed to represent other-than-temporary impairment (“OTTI”) as of December 31, 2013. In 2012, management recognized a pre-tax, non-cash OTTI charge of $165 for on a corporate bond. Management based its assessment on the issuer’s credit rating, credit outlook, payment status and financial condition, the length of time the bond had been in a loss position, the size of the loss position and other meaningful information. The OTTI charge was credit related and charged to earnings, with no amount recognized in other comprehensive income. Management has concluded that no other securities have experienced impairments that are other-than-temporary.

In its evaluation, management considered the types of securities, including if the securities were U.S. Government issued, the credit rating on the securities, credit outlook, payment status and financial condition, the length of time the bond has been in a loss position, the size of the loss position, our intent and ability to hold the securities to expected recovery of value and other meaningful information. The Company does not intend to sell any impaired debt securities and is unlikely to be required to sell any impaired security before its maturity or market price recovery.

Realized gains and losses and the proceeds from sales of securities available for sale are as follows for the years ended December 31:


	2013		2012		2011
Proceeds from sales/calls	$	6,262	$	7,846	$	2,500
Gross gains		309		267		1
Gross losses		(82)		(13)		-

The scheduled maturities of debt securities held to maturity and available for sale at December 31, 2013, are shown below. Actual maturities will differ from contractual maturities because issuers generally have the right to call or prepay obligations with or without call or prepayment penalties.


	At December 31, 2013
	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	-	$	-	$	125	$	125
Due from one year to five years		2,096		2,155		810		843
Due from five years to ten years		15,870		15,237		1,534		1,582
Due after ten years		11,160		10,783		29,980		30,065

		29,126		28,175		32,449		32,615
Mortgage-backed securities		236,004		236,454		78,736		79,100

	$	265,130	$	264,629	$	111,185	$	111,715

Maturities are based on the final contractual payment dates, and do not reflect the impact of potential prepayments or early redemptions. Such securities have been classified within the category that represents the final maturity date.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 9

-URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-Glossary Debt Security

-URI http://asc.fasb.org/extlink&oid=6509901

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

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-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

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-URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

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-URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

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-URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563

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-Publisher FASB

-Name Accounting Standards Codification

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+ Details

United Financial Bancorp, Inc. 10-K