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Securities

12 Months Ended

Dec. 31, 2017

Securities [Abstract]

Securities

Note 3. Securities

The book values and approximate fair values of investment securities at December 31, 2017 and 2016 are summarized as follows:

		2017																2016
		Amortized				Fair				Unrealized								Amortized				Fair				Unrealized
($ in thousands)		Cost				Value				Gains				(Losses)				Cost				Value				Gains				(Losses)

Securities available for sale:
Government-sponsored enterprise securities		$	14,000				13,867				—				(133	)			17,497				17,490				—				(7	)
Mortgage-backed securities			297,690				295,213				246				(2,722	)			151,001				148,065				155				(3,091	)
Corporate bonds			33,792				34,190				512				(114	)			33,833				33,600				91				(324	)
Equity securities			—				—				—				—				83				174				96				(5	)
Total available for sale		$	345,482				343,270				758				(2,969	)			202,414				199,329				342				(3,427	)

Securities held to maturity:
Mortgage-backed securities		$	63,829				63,092				—				(737	)			80,585				79,283				—				(1,302	)
State and local governments			54,674				55,906				1,280				(48	)			49,128				50,912				1,815				(31	)
Total held to maturity		$	118,503				118,998				1,280				(785	)			129,713				130,195				1,815				(1,333	)

All of the Company’s mortgage-backed securities, including commercial mortgage-backed obligations, were issued by government-sponsored corporations, except for one private mortgage-backed security with a fair value of $0.5 million as of December 31, 2017.

The following table presents information regarding securities with unrealized losses at December 31, 2017:

($ in thousands)		Securities in an Unrealized Loss Position for Less than 12 Months								Securities in an Unrealized Loss Position for More than 12 Months								Total
		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
Government-sponsored enterprise securities		$	10,897				103				2,970				30				13,867				133
Mortgage-backed securities			192,702				1,582				125,060				1,877				317,762				3,459
Corporate bonds			2,500				49				935				65				3,435				114
State and local governments			7,928				48				—				—				7,928				48
Total temporarily impaired securities		$	214,027				1,782				128,965				1,972				342,992				3,754

The following table presents information regarding securities with unrealized losses at December 31, 2016:

($ in thousands)		Securities in an Unrealized Loss Position for Less than 12 Months								Securities in an Unrealized Loss Position for More than 12 Months								Total
		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
Government-sponsored enterprise securities		$	7,990				7				—				—				7,990				7
Mortgage-backed securities			196,999				3,841				19,001				552				216,000				4,393
Corporate bonds			27,027				259				935				65				27,962				324
Equity securities			—				—				7				5				7				5
State and local governments			801				31				—				—				801				31
Total temporarily impaired securities		$	232,817				4,138				19,943				622				252,760				4,760

In the above tables, all of the non-equity securities that were in an unrealized loss position at December 31, 2017 and 2016 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns. The Company has evaluated the collectability of each of these bonds and has concluded that there is no other-than-temporary impairment. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost.

The Company has also concluded that each of the equity securities in an unrealized loss position at December 31, 2016 was in such a position due to temporary fluctuations in the market prices of the securities. The Company’s policy is to record an impairment charge for any of these equity securities that remains in an unrealized loss position for twelve consecutive months unless the amount is insignificant.

The book values and approximate fair values of investment securities at December 31, 2017, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

		Securities Available for Sale								Securities Held to Maturity
		Amortized				Fair				Amortized				Fair
($ in thousands)		Cost				Value				Cost				Value

Debt securities
Due within one year		$	—				—			$	2,257				2,258
Due after one year but within five years			15,007				14,905				23,285				23,795
Due after five years but within ten years			27,785				28,042				23,502				24,219
Due after ten years			5,000				5,110				5,630				5,634
Mortgage-backed securities			297,690				295,213				63,829				63,092
Total debt securities			345,482				343,270				118,503				118,998

Equity securities			—				—				—				—
Total securities		$	345,482				343,270			$	118,503				118,998

At December 31, 2017 and 2016, investment securities with carrying values of $176,813,000 and $147,009,000, respectively, were pledged as collateral for public deposits.

In 2017, the Company received proceeds from sales of securities of $140,621,000 and recorded $235,000 in losses from the sales. In 2016, the Company received proceeds from sales of securities of $8,000 and recorded $3,000 in gains from the sales. In 2015, the Company recorded $1,000 in securities losses associated with write-downs and did not sell any securities.

Included in “other assets” in the Consolidated Balance Sheets are cost-method investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank of Richmond (“FRB”) stock totaling $31,338,000 and $19,826,000 at December 31, 2017 and 2016, respectively. The FHLB stock had a cost and fair value of $19,647,000 and $12,588,000 at December 31, 2017 and 2016, respectively, and serves as part of the collateral for the Company’s line of credit with the FHLB and is also a requirement for membership in the FHLB system. The FRB stock had a cost and fair value of $11,691,000 and $7,238,000 at December 31, 2017 and 2016, respectively, and is a requirement for FRB member bank qualification. Periodically, both the FHLB and FRB recalculate the Company’s required level of holdings, and the Company either buys more stock or redeems a portion of the stock at cost. The Company determined that neither stock was impaired at either period end.