XML 33 R11.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Securities | 12 Months Ended
--- | ---
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities (In Thousands, Except Number of Securities) The amortized cost and fair value of securities held to maturity were as follows as of the dates presented:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2016 |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | $ | 14,101 |  |  | $ | 4 |  |  | $ | (187 | ) |  | $ | 13,918 |
Obligations of states and political subdivisions | 342,181 |  |  | 8,572 |  |  | (1,778 | ) |  | 348,975 |
| $ | 356,282 |  |  | $ | 8,576 |  |  | $ | (1,965 | ) |  | $ | 362,893 |
December 31, 2015 |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | $ | 101,155 |  |  | $ | 26 |  |  | $ | (1,214 | ) |  | $ | 99,967 |
Obligations of states and political subdivisions | 357,245 |  |  | 16,636 |  |  | (95 | ) |  | 373,786 |
| $ | 458,400 |  |  | $ | 16,662 |  |  | $ | (1,309 | ) |  | $ | 473,753 |
The amortized cost and fair value of securities available for sale were as follows as of the dates presented:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2016 |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | $ | 2,066 |  |  | $ | 92 |  |  | $ | — |  |  | $ | 2,158 |
Residential mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 414,019 |  |  | 1,941 |  |  | (6,643 | ) |  | 409,317 |
Government agency collateralized mortgage obligations | 171,362 |  |  | 831 |  |  | (3,367 | ) |  | 168,826 |
Commercial mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 50,628 |  |  | 696 |  |  | (461 | ) |  | 50,863 |
Government agency collateralized mortgage obligations | 2,528 |  |  | 38 |  |  | (16 | ) |  | 2,550 |
Trust preferred securities | 23,749 |  |  | — |  |  | (5,360 | ) |  | 18,389 |
Other debt securities | 22,053 |  |  | 310 |  |  | (218 | ) |  | 22,145 |
Other equity securities | — |  |  | — |  |  | — |  |  | — |
| $ | 686,405 |  |  | $ | 3,908 |  |  | $ | (16,065 | ) |  | $ | 674,248 |
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2015 |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | $ | 6,093 |  |  | $ | 126 |  |  | $ | (19 | ) |  | $ | 6,200 |
Residential mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 362,669 |  |  | 3,649 |  |  | (1,778 | ) |  | 364,540 |
Government agency collateralized mortgage obligations | 168,916 |  |  | 1,449 |  |  | (2,305 | ) |  | 168,060 |
Commercial mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 58,864 |  |  | 1,002 |  |  | (107 | ) |  | 59,759 |
Government agency collateralized mortgage obligations | 4,947 |  |  | 158 |  |  | (1 | ) |  | 5,104 |
Trust preferred securities | 24,770 |  |  | — |  |  | (5,301 | ) |  | 19,469 |
Other debt securities | 18,899 |  |  | 468 |  |  | (34 | ) |  | 19,333 |
Other equity securities | 2,500 |  |  | 1,840 |  |  | — |  |  | 4,340 |
| $ | 647,658 |  |  | $ | 8,692 |  |  | $ | (9,545 | ) |  | $ | 646,805 |
During the year ended December 31, 2016, the Company sold "other equity securities" with a carrying value of $2,842 at the time of sale for net proceeds of $4,028 resulting in a gain of $1,186. During the same period in 2015 and 2014, the Company sold securities with a carrying value at the time of sale of $1,117 and $724, respectively, for net proceeds of $1,213 and $1,099, respectively, resulting in a gain of $96 and $375, respectively. Also in 2015, the Company sold certain investments acquired from Heritage shortly after acquisition with an aggregate carrying value of $7,231 at the time of sale for net proceeds of $7,231, resulting in no gain or loss on the sale. Gross realized gains and gross realized losses on sales of securities available for sale for the years 2016, 2015 and 2014 were as follows:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
Gross gains on sales of securities available for sale | $ | 1,257 |  |  | $ | 96 |  |  | $ | 375 |
Gross losses on sales of securities available for sale | (71 | ) |  | — |  |  | — |
Gain on sales of securities available for sale, net | $ | 1,186 |  |  | $ | 96 |  |  | $ | 375 |
At December 31, 2016 and 2015, securities with a carrying value of approximately $642,447 and $679,492, respectively, were pledged to secure government, public, trust, and other deposits. Securities with a carrying value of $24,426 and $39,275 were pledged as collateral for short-term borrowings and derivative instruments at December 31, 2016 and 2015, respectively. The amortized cost and fair value of securities at December 31, 2016 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.
| Held to Maturity |  | Available for Sale
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Due within one year | $ | 11,419 |  |  | $ | 11,504 |  |  | $ | — |  |  | $ | — |
Due after one year through five years | 110,979 |  |  | 114,123 |  |  | 2,066 |  |  | 2,158 |
Due after five years through ten years | 129,883 |  |  | 131,145 |  |  | 1,047 |  |  | 1,039 |
Due after ten years | 104,001 |  |  | 106,121 |  |  | 23,749 |  |  | 18,389 |
Residential mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | — |  |  | — |  |  | 414,019 |  |  | 409,317 |
Government agency collateralized mortgage obligations | — |  |  | — |  |  | 171,362 |  |  | 168,826 |
Commercial mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | — |  |  | — |  |  | 50,628 |  |  | 50,863 |
Government agency collateralized mortgage obligations | — |  |  | — |  |  | 2,528 |  |  | 2,550 |
Other debt securities | — |  |  | — |  |  | 21,006 |  |  | 21,106 |
Other equity securities | — |  |  | — |  |  | — |  |  | — |
| $ | 356,282 |  |  | $ | 362,893 |  |  | $ | 686,405 |  |  | $ | 674,248 |
The following table presents the gross unrealized losses and fair value of investment securities, aggregated by investment category and the length of time the investments have been in a continuous unrealized loss position as of the dates presented:
| Less than 12 Months |  | 12 Months or More |  | Total
| # |  | Fair Value |  | Unrealized Losses |  | # |  | Fair Value |  | Unrealized Losses |  | # |  | Fair Value |  | Unrealized Losses
Held to Maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | 4 |  | $ | 11,915 |  |  | $ | (187 | ) |  | 0 |  | $ | — |  |  | $ | — |  |  | 4 |  | $ | 11,915 |  |  | $ | (187 | )
Obligations of states and political subdivisions | 102 |  | 83,362 |  |  | (1,778 | ) |  | 0 |  | — |  |  | — |  |  | 102 |  | 83,362 |  |  | (1,778 | )
Total | 106 |  | $ | 95,277 |  |  | $ | (1,965 | ) |  | 0 |  | $ | — |  |  | $ | — |  |  | 106 |  | $ | 95,277 |  |  | $ | (1,965 | )
December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | 10 |  | $ | 31,567 |  |  | $ | (414 | ) |  | 8 |  | $ | 38,688 |  |  | $ | (800 | ) |  | 18 |  | $ | 70,255 |  |  | $ | (1,214 | )
Obligations of states and political subdivisions | 6 |  | 4,815 |  |  | (53 | ) |  | 7 |  | 4,921 |  |  | (42 | ) |  | 13 |  | 9,736 |  |  | (95 | )
Total | 16 |  | $ | 36,382 |  |  | $ | (467 | ) |  | 15 |  | $ | 43,609 |  |  | $ | (842 | ) |  | 31 |  | $ | 79,991 |  |  | $ | (1,309 | )
| Less than 12 Months |  | 12 Months or More |  | Total
| # |  | Fair Value |  | Unrealized Losses |  | # |  | Fair Value |  | Unrealized Losses |  | # |  | Fair Value |  | Unrealized Losses
Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | 0 |  | $ | — |  |  | $ | — |  |  | 0 |  | $ | — |  |  | $ | — |  |  | 0 |  | $ | — |  |  | $ | — |
Residential mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 131 |  | 298,400 |  |  | (6,042 | ) |  | 5 |  | 11,504 |  |  | (601 | ) |  | 136 |  | 309,904 |  |  | (6,643 | )
Government agency collateralized mortgage obligations | 40 |  | 97,356 |  |  | (1,845 | ) |  | 14 |  | 33,786 |  |  | (1,522 | ) |  | 54 |  | 131,142 |  |  | (3,367 | )
Commercial mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 9 |  | 21,933 |  |  | (453 | ) |  | 2 |  | 1,101 |  |  | (8 | ) |  | 11 |  | 23,034 |  |  | (461 | )
Government agency collateralized mortgage obligations | 1 |  | 1,729 |  |  | (16 | ) |  | 0 |  | — |  |  | — |  |  | 1 |  | 1,729 |  |  | (16 | )
Trust preferred securities | 0 |  | — |  |  | — |  |  | 3 |  | 18,389 |  |  | (5,360 | ) |  | 3 |  | 18,389 |  |  | (5,360 | )
Other debt securities | 3 |  | 7,946 |  |  | (208 | ) |  | 2 |  | 2,475 |  |  | (10 | ) |  | 5 |  | 10,421 |  |  | (218 | )
Other equity securities | 0 |  | — |  |  | — |  |  | 0 |  | — |  |  | — |  |  | 0 |  | — |  |  | — |
Total | 184 |  | $ | 427,364 |  |  | $ | (8,564 | ) |  | 26 |  | $ | 67,255 |  |  | $ | (7,501 | ) |  | 210 |  | $ | 494,619 |  |  | $ | (16,065 | )
December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | 1 |  | $ | 3,981 |  |  | $ | (19 | ) |  | 0 |  | $ | — |  |  | $ | — |  |  | 1 |  | $ | 3,981 |  |  | $ | (19 | )
Residential mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 34 |  | 130,306 |  |  | (937 | ) |  | 9 |  | 27,431 |  |  | (841 | ) |  | 43 |  | 157,737 |  |  | (1,778 | )
Government agency collateralized mortgage obligations | 25 |  | 52,128 |  |  | (347 | ) |  | 16 |  | 51,574 |  |  | (1,958 | ) |  | 41 |  | 103,702 |  |  | (2,305 | )
Commercial mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 8 |  | 16,782 |  |  | (104 | ) |  | 1 |  | 814 |  |  | (3 | ) |  | 9 |  | 17,596 |  |  | (107 | )
Government agency collateralized mortgage obligations | 1 |  | 1,882 |  |  | (1 | ) |  | 0 |  | — |  |  | — |  |  | 1 |  | 1,882 |  |  | (1 | )
Trust preferred securities | 0 |  | — |  |  | — |  |  | 3 |  | 19,469 |  |  | (5,301 | ) |  | 3 |  | 19,469 |  |  | (5,301 | )
Other debt securities | 1 |  | 1,316 |  |  | (3 | ) |  | 2 |  | 3,866 |  |  | (31 | ) |  | 3 |  | 5,182 |  |  | (34 | )
Other equity securities | 0 |  | — |  |  | — |  |  | 0 |  | — |  |  | — |  |  | 0 |  | — |  |  | — |
Total | 70 |  | $ | 206,395 |  |  | $ | (1,411 | ) |  | 31 |  | $ | 103,154 |  |  | $ | (8,134 | ) |  | 101 |  | $ | 309,549 |  |  | $ | (9,545 | )
The Company does not intend to sell any of the securities in an unrealized loss position, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be maturity. Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period greater than twelve months, the Company is collecting principal and interest payments from the respective issuers as scheduled. As such, the Company did not record any other-than-temporary impairment for the years ended December 31, 2016 or 2015. The Company holds investments in pooled trust preferred securities that had a cost basis of $23,749 and $24,770 and a fair value of $18,389 and $19,469 at December 31, 2016 and 2015, respectively. The investments in pooled trust preferred securities consist of three securities representing interests in various tranches of trusts collateralized by debt issued by over 250 financial institutions. Management’s determination of the fair value of each of its holdings in pooled trust preferred securities is based on the current credit ratings, the known deferrals and defaults by the underlying issuing financial institutions and the degree to which future deferrals and defaults would be required to occur before the cash flow for the Company’s tranches is negatively impacted. In addition, management continually monitors key credit quality and capital ratios of the issuing institutions. This determination is further supported by quarterly valuations, which are performed by third parties, of each security obtained by the Company. The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments, before recovery of the investments’ amortized cost, which may be at maturity. At December 31, 2016, management did not, and does not currently, believe such securities will be settled at a price less than the amortized cost of the investment, but the Company previously concluded that it was probable that there had been an adverse change in estimated cash flows for all three trust preferred securities and recognized credit related impairment losses on these securities in 2010 and 2011. For the years ended December 31, 2016, 2015, and 2014, the Company determined the pooled trust preferred securities and their estimated cash flow were fairly valued, and no additional impairment was recognized during these periods. The Company’s analysis of the pooled trust preferred securities during 2015 supported a return to accrual status for one of the three securities (XXVI). During 2014, the Company’s analysis supported a return to accrual status for one of the other securities (XXIII). An observed history of principal and interest payments combined with improved qualitative and quantitative factors described above justified the accrual of interest on these securities. Based on the qualitative and quantitative factors described above, a return to accrual status of the remaining security (XXIV) is not justified at this time and as a result, pooled trust preferred security XXIV remains classified as a nonaccruing asset at December 31, 2016. Investment interest on this security is recorded on the cash-basis method until qualifying for return to accrual status. The following table provides information regarding the Company’s investments in pooled trust preferred securities at December 31, 2016:
Name |  | Single/ Pooled |  | Class/ Tranche |  | Amortized Cost |  | Fair Value |  | Unrealized Gain (Loss) |  | Lowest Credit Rating |  | Issuers Currently in Deferral or Default
XXIII |  | Pooled |  | B-2 |  | $ | 8,293 |  |  | $ | 5,680 |  |  | $ | (2,613 | ) |  | Baa3 |  | 17%
XXIV |  | Pooled |  | B-2 |  | 11,242 |  |  | 9,646 |  |  | (1,596 | ) |  | Caa2 |  | 24%
XXVI |  | Pooled |  | B-2 |  | 4,214 |  |  | 3,063 |  |  | (1,151 | ) |  | Ba3 |  | 19%
|  |  |  |  |  | $ | 23,749 |  |  | $ | 18,389 |  |  | $ | (5,360 | ) |  |  |  |
The following table provides a summary of the cumulative credit related losses recognized in earnings for which a portion of OTTI has been recognized in other comprehensive income:
| 2016 |  | 2015
Balance at January 1 | $ | (3,337 | ) |  | $ | (3,337 | )
Additions related to credit losses for which OTTI was not previously recognized | — |  |  | — |
Increases in credit loss for which OTTI was previously recognized | — |  |  | — |
Balance at December 31 | $ | (3,337 | ) |  | $ | (3,337 | )

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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=73527792&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=73527792&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=73527792&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=73527792&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=73527792&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration