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Note 4 - Debt and Equity Securities | 9 Months Ended
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Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract] |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 4. Debt and Equity Securities The Company’s investments in equity securities that have readily determinable fair values and all investments in debt securities are classified in one of the following three categories and accounted for accordingly: (1) trading securities, (2) securities available for sale and (3) securities held-to-maturity. The Company did not hold any trading securities at September 30, 2015 and December 31, 2014. The Company did not hold any securities held-to-maturity at December 31, 2014. Securities available for sale are recorded at fair value. The following table summarizes the Company’s portfolio of securities held-to-maturity at September 30, 2015:
|  | Amortized Cost |  | Fair Value |  | Gross Unrealized Gains |  | Gross Unrealized Losses
|  | (In thousands)
Securites held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipals |  | $ | 6,220 |  |  | $ | 6,220 |  |  | $ | - |  |  | $ | - |
Total |  | $ | 6,220 |  |  | $ | 6,220 |  |  | $ | - |  |  | $ | - |
During the three months ended June 30, 2015, the Company transferred municipal bonds with an amortized cost and fair value of $4.5 million from available for sale to held-to-maturity. The transferred securities had a weighted average term to maturity of approximately seven months at the time of transfer. The following table summarizes the Company’s portfolio of securities available for sale at September 30, 2015:
|  | Amortized Cost |  | Fair Value |  | Gross Unrealized Gains |  | Gross Unrealized Losses
|  | (In thousands)
Securites available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | $ | 115,959 |  |  | $ | 114,063 |  |  | $ | 424 |  |  | $ | 2,320 |
Municipals |  |  | 128,363 |  |  |  | 132,486 |  |  |  | 4,163 |  |  |  | 40 |
Mutual funds |  |  | 21,358 |  |  |  | 21,358 |  |  |  | - |  |  |  | - |
Other |  |  | 50,683 |  |  |  | 50,594 |  |  |  | - |  |  |  | 89 |
Total other securities |  |  | 316,363 |  |  |  | 318,501 |  |  |  | 4,587 |  |  |  | 2,449 |
REMIC and CMO |  |  | 487,677 |  |  |  | 493,688 |  |  |  | 6,880 |  |  |  | 869 |
GNMA |  |  | 12,179 |  |  |  | 12,446 |  |  |  | 355 |  |  |  | 88 |
FNMA |  |  | 168,966 |  |  |  | 171,191 |  |  |  | 2,744 |  |  |  | 519 |
FHLMC |  |  | 12,518 |  |  |  | 12,719 |  |  |  | 201 |  |  |  | - |
Total mortgage-backed securities |  |  | 681,340 |  |  |  | 690,044 |  |  |  | 10,180 |  |  |  | 1,476 |
Total securities available for sale |  | $ | 997,703 |  |  | $ | 1,008,545 |  |  | $ | 14,767 |  |  | $ | 3,925 |
Mortgage-backed securities shown in the table above include two private issue collateralized mortgage obligations (“CMOs”) that are collateralized by commercial real estate mortgages with amortized cost and fair value of $9.0 million at September 30, 2015. The following table summarizes the Company’s portfolio of securities available for sale at December 31, 2014:
|  | Amortized Cost |  | Fair Value |  | Gross Unrealized Gains |  | Gross Unrealized Losses
|  | (In thousands)
Securites available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | $ | 90,719 |  |  | $ | 91,273 |  |  | $ | 1,268 |  |  | $ | 714 |
Municipals |  |  | 145,864 |  |  |  | 148,896 |  |  |  | 3,093 |  |  |  | 61 |
Mutual funds |  |  | 21,118 |  |  |  | 21,118 |  |  |  | - |  |  |  | - |
Other |  |  | 7,098 |  |  |  | 7,090 |  |  |  | - |  |  |  | 8 |
Total other securities |  |  | 264,799 |  |  |  | 268,377 |  |  |  | 4,361 |  |  |  | 783 |
REMIC and CMO |  |  | 504,207 |  |  |  | 505,768 |  |  |  | 6,188 |  |  |  | 4,627 |
GNMA |  |  | 13,862 |  |  |  | 14,159 |  |  |  | 421 |  |  |  | 124 |
FNMA |  |  | 169,956 |  |  |  | 170,367 |  |  |  | 2,128 |  |  |  | 1,717 |
FHLMC |  |  | 14,505 |  |  |  | 14,639 |  |  |  | 142 |  |  |  | 8 |
Total mortgage-backed securities |  |  | 702,530 |  |  |  | 704,933 |  |  |  | 8,879 |  |  |  | 6,476 |
Total securities available for sale |  | $ | 967,329 |  |  | $ | 973,310 |  |  | $ | 13,240 |  |  | $ | 7,259 |
Mortgage-backed securities shown in the table above include three private issue CMOs that are collateralized by commercial real estate mortgages with an amortized cost and fair value of $12.4 million at December 31, 2014. The following table represents the activity related to the credit loss component recognized in earnings on debt securities held by the Company for which a portion of OTTI was recognized in accumulated other comprehensive income (loss) (“AOCI”) for the periods indicated:
|  | For the three months ended September 30, |  | For the nine months ended September 30,
|  | 2015 |  | 2014 |  | 2015 |  | 2014
|  | (In thousands)
Beginning balance |  | $ | - |  |  | $ | 3,738 |  |  | $ | - |  |  | $ | 3,738 |
Recognition of actual losses |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
OTTI charges due to credit loss recorded in earnings |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Securities sold during the period |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Securities where there is an intent to sell or requirement to sell |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Ending balance |  | $ | - |  |  | $ | 3,738 |  |  | $ | - |  |  | $ | 3,738 |
The following table represents the gross gains and gross losses realized from the sale of securities available for sale for the periods indicated:
|  | For the three months ended September 30, |  | For the nine months ended September 30,
|  | 2015 |  | 2014 |  | 2015 |  | 2014
|  | (In thousands)
Gross gains from the sale of securities |  | $ | 2,666 |  |  | $ | 5,247 |  |  | $ | 2,899 |  |  | $ | 5,247 |
Gross losses from the sale of securities |  |  | (2,563 | ) |  |  | (31 | ) |  |  | (2,732 | ) |  |  | (31 | )
Net gains from the sale of securities |  | $ | 103 |  |  | $ | 5,216 |  |  | $ | 167 |  |  | $ | 5,216 |
Realized gains and losses on the sales of securities are determined using the specific identification method. The following table details the amortized cost and fair value of the Company’s securities classified as held-to-maturity at September 30, 2015, by contractual maturity.
|  | Amortized Cost |  | Fair Value
|  | (In thousands)
Securities held-to-maturity:(1) |  |  |  |  |  |  |  |
Due in one year or less |  | $ | 6,140 |  |  | $ | 6,140 |
Due after one year through five years |  |  | 80 |  |  |  | 80 |
Total securities held-to-maturity |  | $ | 6,220 |  |  | $ | 6,220 |
(1) |  | Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
The following table details the amortized cost and fair value of the Company’s securities classified as available for sale at September 30, 2015, by contractual maturity.
|  | Amortized Cost |  | Fair Value
|  | (In thousands)
Securities available for sale:(1) |  |  |  |  |  |  |  |
Due in one year or less |  | $ | 27,317 |  |  | $ | 27,371 |
Due after one year through five years |  |  | - |  |  |  | - |
Due after five years through ten years |  |  | 76,934 |  |  |  | 76,186 |
Due after ten years |  |  | 212,112 |  |  |  | 214,944 |
Total other securities |  |  | 316,363 |  |  |  | 318,501 |
Mortgage-backed securities |  |  | 681,340 |  |  |  | 690,044 |
Total securities available for sale |  | $ | 997,703 |  |  | $ | 1,008,545 |
(1) |  | Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
The following table shows the Company’s available for sale securities with gross unrealized losses and their fair value aggregated by category and length of time the individual securities had been in a continuous unrealized loss position at September 30, 2015:
|  | Total |  | Less than 12 months |  | 12 months or more
|  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
|  | (In thousands)
Corporate |  | $ | 77,680 |  |  | $ | 2,320 |  |  | $ | 77,680 |  |  | $ | 2,320 |  |  | $ | - |  |  | $ | - |
Municipals |  |  | 5,233 |  |  |  | 40 |  |  |  | 5,233 |  |  |  | 40 |  |  |  | - |  |  |  | - |
Other |  |  | 43,710 |  |  |  | 89 |  |  |  | 43,413 |  |  |  | 86 |  |  |  | 297 |  |  |  | 3 |
Total other securities |  |  | 126,623 |  |  |  | 2,449 |  |  |  | 126,326 |  |  |  | 2,446 |  |  |  | 297 |  |  |  | 3 |
REMIC and CMO |  |  | 93,464 |  |  |  | 869 |  |  |  | 44,618 |  |  |  | 266 |  |  |  | 48,846 |  |  |  | 603 |
GNMA |  |  | 7,364 |  |  |  | 88 |  |  |  | 7,364 |  |  |  | 88 |  |  |  | - |  |  |  | - |
FNMA |  |  | 53,570 |  |  |  | 519 |  |  |  | 26,367 |  |  |  | 158 |  |  |  | 27,203 |  |  |  | 361 |
Total mortgage-backed securities |  |  | 154,398 |  |  |  | 1,476 |  |  |  | 78,349 |  |  |  | 512 |  |  |  | 76,049 |  |  |  | 964 |
Total securities available for sale |  | $ | 281,021 |  |  | $ | 3,925 |  |  | $ | 204,675 |  |  | $ | 2,958 |  |  | $ | 76,346 |  |  | $ | 967 |
OTTI losses on impaired securities must be fully recognized in earnings if an investor has the intent to sell the debt security or if it is more likely than not that the investor will be required to sell the debt security before recovery of its amortized cost. However, even if an investor does not expect to sell a debt security, the investor must evaluate the expected cash flows to be received and determine if a credit loss has occurred. In the event that a credit loss has occurred, only the amount of impairment associated with the credit loss is recognized in earnings in the Consolidated Statements of Income. Amounts relating to factors other than credit losses are recorded in AOCI within Stockholders’ Equity. The Company reviewed each investment that had an unrealized loss at September 30, 2015. An unrealized loss exists when the current fair value of an investment is less than its amortized cost basis. Unrealized losses on available for sale securities, that are deemed to be temporary, are recorded in AOCI, net of tax. Unrealized losses that are considered to be other-than-temporary are split between credit related and noncredit related impairments, with the credit related impairment being recorded as a charge against earnings and the noncredit related impairment being recorded in AOCI, net of tax. Corporate: The unrealized losses in Corporate securities at September 30, 2015 consist of losses on 11 Corporate securities. The unrealized losses were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at September 30, 2015. Municipal Securities: The unrealized losses in Municipal securities at September 30, 2015, consist of losses on two Municipal securities. The unrealized losses were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at September 30, 2015. Other Securities: The unrealized losses in Other securities at September 30, 2015, consist of a loss on one single issuer trust preferred security and five Collateralized Loan Obligation (“CLO”) securities. The unrealized loss on the single issuer trust preferred was caused by market interest volatility, a significant widening of credit spreads across markets for these securities and illiquidity and uncertainty in the financial markets. This security is currently rated below investment grade. It is not anticipated that this security would be settled at a price that is less than the amortized cost of the Company’s investment. This security is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell this security and it is more likely than not the Company will not be required to sell this security before recovery of the security’s amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the security. Therefore, the Company did not consider this investment to be other-than-temporarily impaired at September 30, 2015. The unrealized losses in CLO securities were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at September 30, 2015. REMIC and CMO: The unrealized losses in Real Estate Mortgage Investment Conduit (“REMIC”) and Collateralized Mortgage Obligation (“CMO”) securities at September 30, 2015 consist of one issue from the Federal Home Loan Mortgage Corporation (“FHLMC”), eight issues from the Federal National Mortgage Association (“FNMA”) and four issues from Government National Mortgage Association (“GNMA”). The unrealized losses on the REMIC and CMO securities issued by FHLMC, FNMA and GNMA were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms, and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements, and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at September 30, 2015. GNMA: The unrealized losses in GNMA securities at September 30, 2015 consist of a loss on one security. The unrealized loss was caused by movements in interest rates. It is not anticipated that this security would be settled at a price that is less than the amortized cost of the Company’s investment. This security is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell this security and it is more likely than not the Company will not be required to sell the security before recovery of the security’s amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the security. Therefore, the Company did not consider this security to be other-than-temporarily impaired at September 30, 2015. FNMA: The unrealized losses in FNMA securities at September 30, 2015 consist of losses on nine securities. The unrealized losses were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes will cause the sale of the securities. Therefore, the Company did not consider these investments to be other-than-temporarily impaired at September 30, 2015. The following table shows the Company’s available for sale securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities had been in a continuous unrealized loss position, at December 31, 2014.
|  | Total |  | Less than 12 months |  | 12 months or more
|  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
|  | (In thousands)
Corporate |  | $ | 39,287 |  |  | $ | 714 |  |  | $ | 9,573 |  |  | $ | 428 |  |  | $ | 29,714 |  |  | $ | 286 |
Municipals |  |  | 8,810 |  |  |  | 61 |  |  |  | 3,546 |  |  |  | 11 |  |  |  | 5,264 |  |  |  | 50 |
Other |  |  | 292 |  |  |  | 8 |  |  |  | - |  |  |  | - |  |  |  | 292 |  |  |  | 8 |
Total other securities |  |  | 48,389 |  |  |  | 783 |  |  |  | 13,119 |  |  |  | 439 |  |  |  | 35,270 |  |  |  | 344 |
REMIC and CMO |  |  | 216,190 |  |  |  | 4,627 |  |  |  | 77,382 |  |  |  | 399 |  |  |  | 138,808 |  |  |  | 4,228 |
GNMA |  |  | 8,358 |  |  |  | 124 |  |  |  | - |  |  |  | - |  |  |  | 8,358 |  |  |  | 124 |
FNMA |  |  | 95,148 |  |  |  | 1,717 |  |  |  | - |  |  |  | - |  |  |  | 95,148 |  |  |  | 1,717 |
FHLMC |  |  | 6,773 |  |  |  | 8 |  |  |  | 6,773 |  |  |  | 8 |  |  |  | - |  |  |  | - |
Total mortgage-backed securities |  |  | 326,469 |  |  |  | 6,476 |  |  |  | 84,155 |  |  |  | 407 |  |  |  | 242,314 |  |  |  | 6,069 |
Total securities available for sale |  | $ | 374,858 |  |  | $ | 7,259 |  |  | $ | 97,274 |  |  | $ | 846 |  |  | $ | 277,584 |  |  | $ | 6,413 |

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- 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 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 8: 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 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563 + Details
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