XML 28 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Securities | 12 Months Ended
--- | ---
Dec. 31, 2017
Securities [Abstract] |
Securities |
3. | Securities
The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:
(In thousands) |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Estimated Fair Value |
As of December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 109,862 |  |  | $ | - |  |  | $ | 963 |  |  | $ | 108,899 |
State & municipal |  |  | 42,171 |  |  |  | 62 |  |  |  | 277 |  |  |  | 41,956 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 530,392 |  |  |  | 1,406 |  |  |  | 3,345 |  |  |  | 528,453 |
U.S. government agency securities |  |  | 26,363 |  |  |  | 334 |  |  |  | 223 |  |  |  | 26,474 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 496,033 |  |  |  | 254 |  |  |  | 10,114 |  |  |  | 486,173 |
U.S. government agency securities |  |  | 50,721 |  |  |  | 165 |  |  |  | 1,065 |  |  |  | 49,821 |
Other securities |  |  | 10,623 |  |  |  | 3,672 |  |  |  | 146 |  |  |  | 14,149 |
Total AFS securities |  | $ | 1,266,165 |  |  | $ | 5,893 |  |  | $ | 16,133 |  |  | $ | 1,255,925 |
As of December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 175,135 |  |  | $ | 78 |  |  | $ | 805 |  |  | $ | 174,408 |
State & municipal |  |  | 47,053 |  |  |  | 153 |  |  |  | 480 |  |  |  | 46,726 |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 513,814 |  |  |  | 3,345 |  |  |  | 2,492 |  |  |  | 514,667 |
U.S. government securities |  |  | 14,955 |  |  |  | 411 |  |  |  | 189 |  |  |  | 15,177 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 513,431 |  |  |  | 532 |  |  |  | 7,688 |  |  |  | 506,275 |
U.S. government securities |  |  | 60,822 |  |  |  | 184 |  |  |  | 708 |  |  |  | 60,298 |
Other securities |  |  | 15,849 |  |  |  | 6,394 |  |  |  | 1,504 |  |  |  | 20,739 |
Total AFS securities |  | $ | 1,341,059 |  |  | $ | 11,097 |  |  | $ | 13,866 |  |  | $ | 1,338,290 |
The components of net realized gains (losses) on the sale of AFS securities are as follows. These amounts were reclassified out of AOCI and into earnings:
|  | Years ended December 31, |
(In thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
Gross realized gains |  | $ | 2,241 |  |  | $ | 683 |  |  | $ | 3,099 |
Gross realized (losses) |  |  | (372 | ) |  |  | (1,327 | ) |  |  | (12 | )
Net AFS realized gains (losses) |  | $ | 1,869 |  |  | $ | (644 | ) |  | $ | 3,087 |
Included in net gains (losses) from sales transactions, the Company also recorded gains from calls on AFS securities of approximately $0.1 million for each of the years ended December 31, 2017, 2016 and 2015. In the year ended December 31, 2017, the Company recognized a loss of $2 thousand on HTM securities sales transactions. There were no sales of HTM securities in the year ended December 31, 2016. At December 31, 2017 and 2016, AFS and HTM securities with amortized costs totaling $1.5 billion were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at December 31, 2017 and 2016, AFS and HTM securities with an amortized cost of $231.3 million and $235.6 million, respectively, were pledged as collateral for securities sold under the repurchase agreements. The amortized cost, estimated fair value and unrealized gains (losses) of HTM securities are as follows:
(In thousands) |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Estimated Fair Value |
As of December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  | $ | 96,357 |  |  | $ | 85 |  |  | $ | 810 |  |  | $ | 95,632 |
U.S. government agency securities |  |  | 418 |  |  |  | 57 |  |  |  | - |  |  |  | 475 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 186,327 |  |  |  | 224 |  |  |  | 2,577 |  |  |  | 183,974 |
State & municipal |  |  | 200,971 |  |  |  | 1,439 |  |  |  | 620 |  |  |  | 201,790 |
Total HTM securities |  | $ | 484,073 |  |  | $ | 1,805 |  |  | $ | 4,007 |  |  | $ | 481,871 |
As of December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  | $ | 96,668 |  |  | $ | - |  |  | $ | 1,176 |  |  | $ | 95,492 |
U.S. government agency securities |  |  | 533 |  |  |  | 87 |  |  |  | - |  |  |  | 620 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprises |  |  | 225,213 |  |  |  | 1,060 |  |  |  | 1,508 |  |  |  | 224,765 |
State & municipal |  |  | 205,534 |  |  |  | 434 |  |  |  | 1,795 |  |  |  | 204,173 |
Total HTM securities |  | $ | 527,948 |  |  | $ | 1,581 |  |  | $ | 4,479 |  |  | $ | 525,050 |
At December 31, 2017 and 2016, all of the mortgaged-backed HTM securities were comprised of U.S. government agency securities. The following table sets forth information with regard to investment securities with unrealized losses segregated according to the length of time the securities had been in a continuous unrealized loss position:
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
(In thousands) |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Positions |  |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Positions |  |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Positions |
As of December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 64,653 |  |  | $ | (242 | ) |  |  | 5 |  |  | $ | 44,246 |  |  | $ | (721 | ) |  |  | 4 |  |  | $ | 108,899 |  |  | $ | (963 | ) |  |  | 9 |
State & municipal |  |  | 23,566 |  |  |  | (200 | ) |  |  | 39 |  |  |  | 5,994 |  |  |  | (77 | ) |  |  | 8 |  |  |  | 29,560 |  |  |  | (277 | ) |  |  | 47 |
Mortgage-backed |  |  | 317,630 |  |  |  | (2,381 | ) |  |  | 55 |  |  |  | 58,316 |  |  |  | (1,188 | ) |  |  | 24 |  |  |  | 375,946 |  |  |  | (3,569 | ) |  |  | 79 |
Collateralized mortgage obligations |  |  | 227,917 |  |  |  | (2,658 | ) |  |  | 35 |  |  |  | 275,303 |  |  |  | (8,521 | ) |  |  | 42 |  |  |  | 503,220 |  |  |  | (11,179 | ) |  |  | 77 |
Other securities |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,959 |  |  |  | (146 | ) |  |  | 1 |  |  |  | 2,959 |  |  |  | (146 | ) |  |  | 1 |
Total securities with unrealized losses |  | $ | 633,766 |  |  | $ | (5,481 | ) |  |  | 134 |  |  | $ | 386,818 |  |  | $ | (10,653 | ) |  |  | 79 |  |  | $ | 1,020,584 |  |  | $ | (16,134 | ) |  |  | 213 |
HTM securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed |  | $ | 15,477 |  |  | $ | (140 | ) |  |  | 2 |  |  | $ | 33,703 |  |  | $ | (670 | ) |  |  | 2 |  |  | $ | 49,180 |  |  | $ | (810 | ) |  |  | 4 |
Collateralized mortgage obligations |  |  | 118,476 |  |  |  | (1,064 | ) |  |  | 17 |  |  |  | 37,614 |  |  |  | (1,513 | ) |  |  | 6 |  |  |  | 156,090 |  |  |  | (2,577 | ) |  |  | 23 |
State & municipal |  |  | 22,387 |  |  |  | (132 | ) |  |  | 40 |  |  |  | 15,720 |  |  |  | (488 | ) |  |  | 24 |  |  |  | 38,107 |  |  |  | (620 | ) |  |  | 64 |
Total securities with unrealized losses |  | $ | 156,340 |  |  | $ | (1,336 | ) |  |  | 59 |  |  | $ | 87,037 |  |  | $ | (2,671 | ) |  |  | 32 |  |  | $ | 243,377 |  |  | $ | (4,007 | ) |  |  | 91 |
As of December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
AFS securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency |  | $ | 119,363 |  |  | $ | (805 | ) |  |  | 10 |  |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 119,363 |  |  | $ | (805 | ) |  |  | 10 |
State & municipal |  |  | 31,873 |  |  |  | (478 | ) |  |  | 55 |  |  |  | 483 |  |  |  | (2 | ) |  |  | 1 |  |  |  | 32,356 |  |  |  | (480 | ) |  |  | 56 |
Mortgage-backed |  |  | 277,524 |  |  |  | (2,668 | ) |  |  | 49 |  |  |  | 985 |  |  |  | (13 | ) |  |  | 4 |  |  |  | 278,509 |  |  |  | (2,681 | ) |  |  | 53 |
Collateralized mortgage obligations |  |  | 473,746 |  |  |  | (8,396 | ) |  |  | 57 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 473,746 |  |  |  | (8,396 | ) |  |  | 57 |
Other securities |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,363 |  |  |  | (1,504 | ) |  |  | 2 |  |  |  | 4,363 |  |  |  | (1,504 | ) |  |  | 2 |
Total securities with unrealized losses |  | $ | 902,506 |  |  | $ | (12,347 | ) |  |  | 171 |  |  | $ | 5,831 |  |  | $ | (1,519 | ) |  |  | 7 |  |  | $ | 908,337 |  |  | $ | (13,866 | ) |  |  | 178 |
HTM securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed |  | $ | 95,492 |  |  | $ | (1,176 | ) |  |  | 5 |  |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 95,492 |  |  | $ | (1,176 | ) |  |  | 5 |
Collateralized mortgage obligations |  |  | 108,587 |  |  |  | (319 | ) |  |  | 12 |  |  |  | 35,209 |  |  |  | (1,189 | ) |  |  | 4 |  |  |  | 143,796 |  |  |  | (1,508 | ) |  |  | 16 |
State & municipal |  |  | 81,984 |  |  |  | (1,795 | ) |  |  | 155 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 81,984 |  |  |  | (1,795 | ) |  |  | 155 |
Total securities with unrealized losses |  | $ | 286,063 |  |  | $ | (3,290 | ) |  |  | 172 |  |  | $ | 35,209 |  |  | $ | (1,189 | ) |  |  | 4 |  |  | $ | 321,272 |  |  | $ | (4,479 | ) |  |  | 176 |
Declines in the fair value of HTM and AFS securities below their amortized cost, less any current period credit loss, that are deemed to be OTTI are reflected in earnings as a realized loss, or in OCI. The classification is dependent upon whether the Company intends to sell the security, or whether it is more likely than not it will be required to sell the security before recovery. The OTTI shall be recognized in earnings equal to the entire difference between the investment's amortized cost basis and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the OTTI shall be separated into (a) the amount representing the credit loss and (b) the amount related to all other factors. The amount of the total OTTI related to the credit loss shall be recognized in earnings. The amount of the total OTTI related to other factors shall be recognized in OCI net of applicable taxes. In estimating OTTI losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the historical and implied volatility of the fair value of the security. Management has the ability and intent to hold the securities classified as HTM until they mature, at which time it is believed the Company will receive full value for the securities. The unrealized losses on HTM debt securities are due to increases in market interest rates over yields at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. The fair value is expected to recover as the bonds approach their maturity date or if market yields for such investments decline. Management also has the intent to hold, and will not be required to sell, the securities classified as AFS for a period of time sufficient for a recovery of cost, which may be until maturity. The unrealized losses on AFS debt securities are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. For AFS debt and equity securities, OTTI losses are recognized in earnings if the Company intends to sell the security. In other cases the Company considers the relevant factors noted above, as well as the Company's intent and ability to retain its investment for a period of time sufficient to allow for any anticipated recovery in market value and whether evidence exists to support a realizable value equal to or greater than the cost basis. Any impairment loss on an equity security is equal to the full difference between the cost basis and the fair value of the security. As of December 31, 2017 and 2016, management believes the impairments detailed in the table above are temporary. For the year ended December 31, 2017, $1.3 million of an OTTI loss on an AFS equity investment was realized in the Company’s consolidated statements of income. There were no OTTI losses realized in the Company’s consolidated statements of income for years ended December 31, 2016 and 2015. During the year ended December 31, 2017, the Company sold HTM securities with an amortized cost of $0.8 million and an unrealized loss of $2 thousand. Due to significant deterioration in the creditworthiness of the issuers of the HTM securities sold, the Company changed its intent to hold the HTM securities that were sold to maturity, which did not affect the Company's intent to hold the remainder of the HTM portfolio to maturity. There were no sales of HTM securities in the year ended December 31, 2016. The following tables set forth information with regard to contractual maturities of debt securities at December 31, 2017:
(In thousands) |  | Amortized Cost |  |  | Estimated Fair Value |
AFS debt securities: |  |  |  |  |  |
Within one year |  | $ | 63,309 |  |  | $ | 63,186 |
From one to five years |  |  | 90,119 |  |  |  | 89,275 |
From five to ten years |  |  | 178,128 |  |  |  | 177,961 |
After ten years |  |  | 923,987 |  |  |  | 911,354 |
Total AFS debt securities |  | $ | 1,255,543 |  |  | $ | 1,241,776 |
HTM debt securities: |  |  |  |  |  |  |  |
Within one year |  | $ | 31,412 |  |  | $ | 31,413 |
From one to five years |  |  | 42,363 |  |  |  | 42,588 |
From five to ten years |  |  | 174,950 |  |  |  | 174,937 |
After ten years |  |  | 235,348 |  |  |  | 232,933 |
Total HTM debt securities |  | $ | 484,073 |  |  | $ | 481,871 |
Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Except for U.S. Government securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at December 31, 2017 and 2016.

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 -URI http://asc.fasb.org/topic&trid=2196928 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=4738149 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2289146 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration