XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.19.2

Securities | 6 Months Ended
--- | ---
Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities (In Thousands, Except Number of Securities) 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
June 30, 2019 |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | $ | 2,527 |  |  | $ | 20 |  |  | $ | (8 | ) |  | $ | 2,539 |
Obligations of states and political subdivisions | 169,123 |  |  | 4,891 |  |  | (17 | ) |  | 173,997 |
Residential mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 600,257 |  |  | 7,694 |  |  | (1,498 | ) |  | 606,453 |
Government agency collateralized mortgage obligations | 319,896 |  |  | 2,301 |  |  | (986 | ) |  | 321,211 |
Commercial mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 31,795 |  |  | 812 |  |  | (62 | ) |  | 32,545 |
Government agency collateralized mortgage obligations | 70,764 |  |  | 1,305 |  |  | — |  |  | 72,069 |
Trust preferred securities | 12,245 |  |  | — |  |  | (1,859 | ) |  | 10,386 |
Other debt securities | 47,651 |  |  | 1,440 |  |  | (11 | ) |  | 49,080 |
| $ | 1,254,258 |  |  | $ | 18,463 |  |  | $ | (4,441 | ) |  | $ | 1,268,280 |
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2018 |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | $ | 2,536 |  |  | $ | 13 |  |  | $ | (38 | ) |  | $ | 2,511 |
Obligations of states and political subdivisions | 200,798 |  |  | 3,038 |  |  | (567 | ) |  | 203,269 |
Residential mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 621,690 |  |  | 719 |  |  | (9,126 | ) |  | 613,283 |
Government agency collateralized mortgage obligations | 332,697 |  |  | 274 |  |  | (5,982 | ) |  | 326,989 |
Commercial mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 21,957 |  |  | 257 |  |  | (384 | ) |  | 21,830 |
Government agency collateralized mortgage obligations | 28,446 |  |  | 24 |  |  | (135 | ) |  | 28,335 |
Trust preferred securities | 12,359 |  |  | — |  |  | (1,726 | ) |  | 10,633 |
Other debt securities | 44,046 |  |  | 192 |  |  | (311 | ) |  | 43,927 |
| $ | 1,264,529 |  |  | $ | 4,517 |  |  | $ | (18,269 | ) |  | $ | 1,250,777 |
Securities sold were as follows for the period presented:
| Carrying Value |  | Net Proceeds |  | Gain/(Loss)
Three months ended June 30, 2019 |  |  |  |  |
Obligations of states and political subdivisions | $ | 320 |  |  | $ | 319 |  |  | $ | (1 | )
Residential mortgage backed securities: |  |  |  |  |
Government agency mortgage backed securities | 1,400 |  |  | 1,396 |  |  | (4 | )
Government agency collateralized mortgage obligations | 289 |  |  | 286 |  |  | (3 | )
| $ | 2,009 |  |  | $ | 2,001 |  |  | $ | (8 | )
Six months ended June 30, 2019 |  |  |  |  |
Obligations of states and political subdivisions | $ | 10,688 |  |  | $ | 10,703 |  |  | $ | 15 |
Residential mortgage backed securities: |  |  |  |  |
Government agency mortgage backed securities | 1,630 |  |  | 1,623 |  |  | (7 | )
Government agency collateralized mortgage obligations | 289 |  |  | 286 |  |  | (3 | )
| $ | 12,607 |  |  | $ | 12,612 |  |  | $ | 5 |
There were no securities sold during the three and six months ended June 30, 2018. Gross realized gains and losses on sales of securities available for sale for the three and six months ended June 30, 2019 and 2018, respectively, were as follows:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Gross gains on sales of securities available for sale | $ | 1 |  |  | $ | — |  |  | $ | 46 |  |  | $ | — |
Gross losses on sales of securities available for sale | (9 | ) |  | — |  |  | (41 | ) |  | — |
Gains on sales of securities available for sale, net | $ | (8 | ) |  | $ | — |  |  | $ | 5 |  |  | $ | — |
At June 30, 2019 and December 31, 2018, securities with a carrying value of $451,943 and $619,308, respectively, were pledged to secure government, public and trust deposits. Securities with a carrying value of $24,695 and $18,299 were pledged as collateral for short-term borrowings and derivative instruments at June 30, 2019 and December 31, 2018, respectively. The amortized cost and fair value of securities at June 30, 2019 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.
|  | Available for Sale
|  | Amortized Cost |  | Fair Value
Due within one year |  | $ | 22,688 |  |  | $ | 22,867 |
Due after one year through five years |  | 36,561 |  |  | 37,425 |
Due after five years through ten years |  | 74,683 |  |  | 77,266 |
Due after ten years |  | 59,237 |  |  | 58,731 |
Residential mortgage backed securities: |  |  |  |
Government agency mortgage backed securities |  | 600,257 |  |  | 606,453 |
Government agency collateralized mortgage obligations |  | 319,896 |  |  | 321,211 |
Commercial mortgage backed securities: |  |  |  |
Government agency mortgage backed securities |  | 31,795 |  |  | 32,545 |
Government agency collateralized mortgage obligations |  | 70,764 |  |  | 72,069 |
Other debt securities |  | 38,377 |  |  | 39,713 |
|  | $ | 1,254,258 |  |  | $ | 1,268,280 |
The following table presents the age of gross unrealized losses and fair value by investment category 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
Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | 0 |  | $ | — |  |  | $ | — |  |  | 2 |  | $ | 1,507 |  |  | $ | (8 | ) |  | 2 |  | $ | 1,507 |  |  | $ | (8 | )
Obligations of states and political subdivisions | 2 |  | 2,263 |  |  | (14 | ) |  | 3 |  | 889 |  |  | (3 | ) |  | 5 |  | 3,152 |  |  | (17 | )
Residential mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 1 |  | 762 |  |  | (1 | ) |  | 65 |  | 123,783 |  |  | (1,497 | ) |  | 66 |  | 124,545 |  |  | (1,498 | )
Government agency collateralized mortgage obligations | 1 |  | 6,092 |  |  | (6 | ) |  | 34 |  | 84,185 |  |  | (980 | ) |  | 35 |  | 90,277 |  |  | (986 | )
Commercial mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 0 |  | — |  |  | — |  |  | 3 |  | 6,004 |  |  | (62 | ) |  | 3 |  | 6,004 |  |  | (62 | )
Government agency collateralized mortgage obligations | 0 |  | — |  |  | — |  |  | 0 |  | — |  |  | — |  |  | 0 |  | — |  |  | — |
Trust preferred securities | 0 |  | — |  |  | — |  |  | 2 |  | 10,386 |  |  | (1,859 | ) |  | 2 |  | 10,386 |  |  | (1,859 | )
Other debt securities | 1 |  | 760 |  |  | (1 | ) |  | 1 |  | 1,016 |  |  | (10 | ) |  | 2 |  | 1,776 |  |  | (11 | )
Total | 5 |  | $ | 9,877 |  |  | $ | (22 | ) |  | 110 |  | $ | 227,770 |  |  | $ | (4,419 | ) |  | 115 |  | $ | 237,647 |  |  | $ | (4,441 | )
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | 0 |  | $ | — |  |  | $ | — |  |  | 2 |  | $ | 1,480 |  |  | $ | (38 | ) |  | 2 |  | $ | 1,480 |  |  | $ | (38 | )
Obligations of states and political subdivisions | 34 |  | 22,159 |  |  | (193 | ) |  | 26 |  | 16,775 |  |  | (374 | ) |  | 60 |  | 38,934 |  |  | (567 | )
Residential mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 91 |  | 354,731 |  |  | (3,945 | ) |  | 73 |  | 125,757 |  |  | (5,181 | ) |  | 164 |  | 480,488 |  |  | (9,126 | )
Government agency collateralized mortgage obligations | 24 |  | 97,451 |  |  | (840 | ) |  | 60 |  | 140,076 |  |  | (5,142 | ) |  | 84 |  | 237,527 |  |  | (5,982 | )
Commercial mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 5 |  | 6,506 |  |  | (74 | ) |  | 4 |  | 7,468 |  |  | (310 | ) |  | 9 |  | 13,974 |  |  | (384 | )
Government agency collateralized mortgage obligations | 2 |  | 9,950 |  |  | (23 | ) |  | 1 |  | 4,888 |  |  | (112 | ) |  | 3 |  | 14,838 |  |  | (135 | )
Trust preferred securities | 0 |  | — |  |  | — |  |  | 2 |  | 10,633 |  |  | (1,726 | ) |  | 2 |  | 10,633 |  |  | (1,726 | )
Other debt securities | 12 |  | 19,011 |  |  | (88 | ) |  | 3 |  | 5,621 |  |  | (223 | ) |  | 15 |  | 24,632 |  |  | (311 | )
Total | 168 |  | $ | 509,808 |  |  | $ | (5,163 | ) |  | 171 |  | $ | 312,698 |  |  | $ | (13,106 | ) |  | 339 |  | $ | 822,506 |  |  | $ | (18,269 | )
The Company evaluates its investment portfolio for other-than-temporary-impairment (“OTTI”) on a quarterly basis. Impairment is assessed at the individual security level. The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. Impairment is considered to be other-than-temporary if the Company intends to sell the investment security or if the Company does not expect to recover the entire amortized cost basis of the security before the Company is required to sell the security or before the security’s maturity. The Company does not intend to sell any securities in an unrealized loss position that it holds, 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 at 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 OTTI for the six months ended June 30, 2019 or 2018. The Company holds investments in pooled trust preferred securities that had an amortized cost basis of $12,245 and $12,359 and a fair value of $10,386 and $10,633 at June 30, 2019 and December 31, 2018, respectively. At June 30, 2019, the investments in pooled trust preferred securities consisted of two securities representing interests in various tranches of trusts collateralized by debt issued by over 150 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 before recovery of the investments’ amortized cost, 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 June 30, 2019, 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 both trust preferred securities and recognized credit related impairment losses on these securities in 2011. No additional impairment was recognized during the six months ended June 30, 2019. The following table provides information regarding the Company’s investments in pooled trust preferred securities at June 30, 2019:
Name | Single/ Pooled |  | Class/ Tranche |  | Amortized Cost |  | Fair Value |  | Unrealized Loss |  | Lowest Credit Rating |  | Issuers Currently in Deferral or Default
XXIII | Pooled |  | B-2 |  | $ | 8,199 |  |  | $ | 6,693 |  |  | $ | (1,506 | ) |  | BB |  | 15 | %
XXVI | Pooled |  | B-2 |  | 4,046 |  |  | 3,693 |  |  | (353 | ) |  | B |  | 18 | %
|  |  |  |  | $ | 12,245 |  |  | $ | 10,386 |  |  | $ | (1,859 | ) |  |  |  |
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:
| 2019 |  | 2018
Balance at January 1 | $ | (261 | ) |  | $ | (261 | )
Additions related to credit losses for which OTTI was not previously recognized | — |  |  | — |
Increases in credit loss for which OTTI was previously recognized | — |  |  | — |
Reductions for securities sold during the period | — |  |  | — |
Balance at June 30 | $ | (261 | ) |  | $ | (261 | )

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration