XML 38 R10.htm IDEA: XBRL DOCUMENT
v3.8.0.1

SECURITIES | 12 Months Ended
--- | ---
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | Trading Securities As of December 31, 2017 and December 31, 2016 the Company had trading securities of $1.3 million and $804,000, respectively. These securities are held in a rabbi trust and will be used for future payments associated with the Company's non-qualified 401(k) Restoration Plan and Non-qualified Deferred Compensation Plan. Available for Sale and Held to Maturity Securities The following table presents a summary of the amortized cost, gross unrealized holding gains and losses and fair value of securities available for sale and securities held to maturity for the periods indicated:
| December 31, 2017 |  | December 31, 2016
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value |  | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value
| (Dollars in thousands)
Available for sale securities |  |  |  |  |  |  |  |  |
U.S. government agency securities | $ | 35,475 |  | $ | 86 |  | $ | (131 | ) | $ | 35,430 |  |  | $ | 24,006 |  | $ | 238 |  | $ | — |  | $ | 24,244 |
Agency mortgage-backed securities | 214,934 |  | 1,897 |  | (1,067 | ) | 215,764 |  |  | 173,268 |  | 2,852 |  | (736 | ) | 175,384 |
Agency collateralized mortgage obligations | 124,098 |  | 78 |  | (2,164 | ) | 122,012 |  |  | 101,094 |  | 106 |  | (1,332 | ) | 99,868 |
State, county, and municipal securities | 2,237 |  | 37 |  | — |  | 2,274 |  |  | 3,743 |  | 50 |  | — |  | 3,793 |
Single issuer trust preferred securities issued by banks | 2,012 |  | 4 |  | — |  | 2,016 |  |  | 2,311 |  | 3 |  | (3 | ) | 2,311 |
Pooled trust preferred securities issued by banks and insurers | 2,179 |  | — |  | (539 | ) | 1,640 |  |  | 2,200 |  | — |  | (616 | ) | 1,584 |
Small business administration pooled securities | 47,852 |  | 44 |  | (118 | ) | 47,778 |  |  | 37,561 |  | — |  | (372 | ) | 37,189 |
Equity securities | 19,432 |  | 1,594 |  | (442 | ) | 20,584 |  |  | 19,183 |  | 641 |  | (553 | ) | 19,271 |
Total available for sale securities | 448,219 |  | 3,740 |  | (4,461 | ) | 447,498 |  |  | 363,366 |  | 3,890 |  | (3,612 | ) | 363,644 |
Held to maturity securities |  |  |  |  |  |  |  |  |
U.S. treasury securities | 1,006 |  | 29 |  | — |  | 1,035 |  |  | 1,007 |  | 47 |  | — |  | 1,054 |
Agency mortgage-backed securities | 204,768 |  | 1,791 |  | (736 | ) | 205,823 |  |  | 156,088 |  | 2,274 |  | (858 | ) | 157,504 |
Agency collateralized mortgage obligations | 262,998 |  | 397 |  | (4,987 | ) | 258,408 |  |  | 297,445 |  | 1,002 |  | (3,797 | ) | 294,650 |
Single issuer trust preferred securities issued by banks | 1,500 |  | 29 |  | — |  | 1,529 |  |  | 1,500 |  | 44 |  | — |  | 1,544 |
Small business administration pooled securities | 27,416 |  | 183 |  | (200 | ) | 27,399 |  |  | 31,036 |  | 189 |  | (327 | ) | 30,898 |
Total held to maturity securities | 497,688 |  | 2,429 |  | (5,923 | ) | 494,194 |  |  | 487,076 |  | 3,556 |  | (4,982 | ) | 485,650 |
Total | $ | 945,907 |  | $ | 6,169 |  | $ | (10,384 | ) | $ | 941,692 |  |  | $ | 850,442 |  | $ | 7,446 |  | $ | (8,594 | ) | $ | 849,294 |
When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The actual maturities of certain securities may differ from the contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. A schedule of the contractual maturities of securities available for sale and securities held to maturity as of December 31, 2017 is presented below:
| Available for Sale |  | Held to Maturity
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
| (Dollars in thousands)
Due in one year or less | $ | 3,213 |  |  | $ | 3,215 |  |  | $ | — |  |  | $ | — |
Due after one year to five years | 49,241 |  |  | 49,312 |  |  | 15,636 |  |  | 15,711 |
Due after five to ten years | 107,417 |  |  | 107,402 |  |  | 16,801 |  |  | 17,098 |
Due after ten years | 268,916 |  |  | 266,985 |  |  | 465,251 |  |  | 461,385 |
Total debt securities | 428,787 |  |  | 426,914 |  |  | 497,688 |  |  | 494,194 |
Equity securities | 19,432 |  |  | 20,584 |  |  | — |  |  | — |
Total | $ | 448,219 |  |  | $ | 447,498 |  |  | $ | 497,688 |  |  | $ | 494,194 |
Inclusive in the table above is $9.4 million of callable securities at December 31, 2017. The carrying value of securities pledged to secure public funds, trust deposits, repurchase agreements and for other purposes, as required or permitted by law, was $547.2 million and $482.1 million at December 31, 2017 and 2016, respectively. At December 31, 2017 and 2016, the Company had no investments in obligations of individual states, counties, or municipalities, which exceeded 10% of stockholders’ equity. Other-Than-Temporary Impairment The Company continually reviews investment securities for the existence of OTTI, taking into consideration current market conditions, the extent and nature of changes in fair value, issuer rating changes and trends, the credit worthiness of the obligor of the security, volatility of earnings, current analysts’ evaluations, the Company’s intent to sell the security, whether it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery, as well as other qualitative factors. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. The following tables show the gross unrealized losses and fair value of the Company’s investments in an unrealized loss position, which the Company has not deemed to be OTTI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
|  |  | December 31, 2017
|  |  | Less than 12 months |  | 12 months or longer |  | Total
Description of securities | # of holdings |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
|  |  | (Dollars in thousands)
U.S. government agency securities | 4 |  |  | $ | 24,343 |  |  | $ | (131 | ) |  | $ | — |  |  | $ | — |  |  | $ | 24,343 |  |  | $ | (131 | )
Agency mortgage-backed securities | 84 |  |  | $ | 235,411 |  |  | $ | (1,493 | ) |  | $ | 14,886 |  |  | $ | (310 | ) |  | $ | 250,297 |  |  | $ | (1,803 | )
Agency collateralized mortgage obligations | 42 |  |  | 178,142 |  |  | (1,579 | ) |  | 159,506 |  |  | (5,572 | ) |  | 337,648 |  |  | (7,151 | )
Pooled trust preferred securities issued by banks and insurers | 1 |  |  | — |  |  | — |  |  | 1,640 |  |  | (539 | ) |  | 1,640 |  |  | (539 | )
Small business administration pooled securities | 4 |  |  | 34,553 |  |  | (223 | ) |  | 9,647 |  |  | (95 | ) |  | 44,200 |  |  | (318 | )
Equity securities | 28 |  |  | 3,290 |  |  | (39 | ) |  | 7,619 |  |  | (403 | ) |  | 10,909 |  |  | (442 | )
Total temporarily impaired securities | 163 |  |  | $ | 475,739 |  |  | $ | (3,465 | ) |  | $ | 193,298 |  |  | $ | (6,919 | ) |  | $ | 669,037 |  |  | $ | (10,384 | )
|  |  | December 31, 2016
|  |  | Less than 12 months |  | 12 months or longer |  | Total
Description of securities | # of holdings |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
|  |  | (Dollars in thousands)
Agency mortgage-backed securities | 57 |  |  | $ | 137,949 |  |  | $ | (1,594 | ) |  | $ | — |  |  | $ | — |  |  | $ | 137,949 |  |  | $ | (1,594 | )
Agency collateralized mortgage obligations | 32 |  |  | 243,051 |  |  | (3,140 | ) |  | 47,403 |  |  | (1,989 | ) |  | 290,454 |  |  | (5,129 | )
Single issuer trust preferred securities issued by banks and insurers | 1 |  |  | — |  |  | — |  |  | 1,036 |  |  | (3 | ) |  | 1,036 |  |  | (3 | )
Pooled trust preferred securities issued by banks and insurers | 1 |  |  | — |  |  | — |  |  | 1,583 |  |  | (616 | ) |  | 1,583 |  |  | (616 | )
Small business administration pooled securities | 5 |  |  | 59,846 |  |  | (699 | ) |  | — |  |  | — |  |  | 59,846 |  |  | (699 | )
Equity securities | 25 |  |  | 3,625 |  |  | (77 | ) |  | 6,334 |  |  | (476 | ) |  | 9,959 |  |  | (553 | )
Total temporarily impaired securities | 121 |  |  | $ | 444,471 |  |  | $ | (5,510 | ) |  | $ | 56,356 |  |  | $ | (3,084 | ) |  | $ | 500,827 |  |  | $ | (8,594 | )
The Company does not intend to sell these investments and has determined based upon available evidence that it is more likely than not that the Company will not be required to sell the security before the recovery of its amortized cost basis. As a result, the Company does not consider these investments to be OTTI. The Company made this determination by reviewing various qualitative and quantitative factors regarding each investment category, such as current market conditions, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, and current analysts’ evaluations. As a result of the Company’s review of these qualitative and quantitative factors, the causes of the impairments listed in the table above by category are as follows at December 31, 2017:
• | U.S. Government Agency Securities, Agency Mortgage-Backed Securities, Agency Collateralized Mortgage Obligations and Small Business Administration Pooled Securities: These portfolios have contractual terms that generally do not permit the issuer to settle the securities at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. Government or one of its agencies.
• | Pooled Trust Preferred Securities: This portfolio consists of one below investment grade security which is performing. The unrealized loss on this security is attributable to the illiquid nature of the trust preferred market in the current economic and regulatory environment. Management evaluates collateral credit and instrument structure, including current and expected deferral and default rates and timing. In addition, discount rates are determined by evaluating comparable spreads observed currently in the market for similar instruments.
• | Equity Securities: This portfolio consists of mutual funds and other equity investments. During some periods, the mutual funds in the Company’s investment portfolio may have unrealized losses resulting from market fluctuations as well as the risk premium associated with that particular asset class. For example, emerging market equities tend to trade at a higher risk premium than U.S. government bonds and thus, will fluctuate to a greater degree on both the upside and the downside. In the context of a well-diversified portfolio, however, the correlation amongst the various asset classes represented by the funds serves to minimize downside risk. The Company evaluates each mutual fund in the portfolio regularly and measures performance on both an absolute and relative basis. A reasonable recovery period for positions with an unrealized loss is based on management’s assessment of general economic data, trends within a particular asset class, valuations, earnings forecasts and bond durations. The Company has the ability and intent to hold these equity securities until a recovery of fair value.
There was no OTTI recorded for the years ended December 31, 2017, 2016 or 2015. Additionally, there was no cumulative credit related component of OTTI as of December 31, 2017, 2016 and 2015, as securities with $10.0 million of cumulative credit related OTTI were sold during 2015.

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 Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=82896770&loc=d3e26626-111562 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.4) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=82897076&loc=d3e27232-111563 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=82896770&loc=d3e26610-111562 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=82897076&loc=d3e27161-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.2,12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_MarketableSecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration