XML 26 R10.htm IDEA: XBRL DOCUMENT
v3.7.0.1

SECURITIES | 12 Months Ended
--- | ---
Dec. 31, 2016
SECURITIES |
SECURITIES | 2. SECURITIES The following table summarizes the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio and the corresponding amounts of gross unrealized gains and losses therein:
|  | December 31, |
|  | 2016 |  |  | 2015 |
(In thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. GSE securities |  | $ | 64,993 |  |  | $ | — |  |  | $ | (1,344 | ) |  | $ | 63,649 |  |  | $ | 63,238 |  |  | $ | — |  |  | $ | (564 | ) |  | $ | 62,674 |
State and municipal obligations |  |  | 117,292 |  |  |  | 212 |  |  |  | (1,339 | ) |  |  | 116,165 |  |  |  | 87,830 |  |  |  | 427 |  |  |  | (322 | ) |  |  | 87,935 |
U.S. GSE residential mortgage-backed securities |  |  | 160,446 |  |  |  | 16 |  |  |  | (2,414 | ) |  |  | 158,048 |  |  |  | 201,297 |  |  |  | 237 |  |  |  | (1,270 | ) |  |  | 200,264 |
U.S. GSE residential collateralized mortgage obligations |  |  | 373,098 |  |  |  | 149 |  |  |  | (5,736 | ) |  |  | 367,511 |  |  |  | 321,253 |  |  |  | 513 |  |  |  | (3,888 | ) |  |  | 317,878 |
U.S. GSE commercial mortgage-backed securities |  |  | 6,337 |  |  |  | 6 |  |  |  | (36 | ) |  |  | 6,307 |  |  |  | 12,491 |  |  |  | 7 |  |  |  | (80 | ) |  |  | 12,418 |
U.S. GSE commercial collateralized mortgage obligations |  |  | 56,148 |  |  |  | — |  |  |  | (956 | ) |  |  | 55,192 |  |  |  | 64,809 |  |  |  | 9 |  |  |  | (620 | ) |  |  | 64,198 |
Other asset backed securities |  |  | 24,250 |  |  |  | — |  |  |  | (1,697 | ) |  |  | 22,553 |  |  |  | 24,250 |  |  |  | — |  |  |  | (1,879 | ) |  |  | 22,371 |
Corporate bonds |  |  | 32,000 |  |  |  | — |  |  |  | (1,703 | ) |  |  | 30,297 |  |  |  | 33,000 |  |  |  | — |  |  |  | (535 | ) |  |  | 32,465 |
Total available for sale |  |  | 834,564 |  |  |  | 383 |  |  |  | (15,225 | ) |  |  | 819,722 |  |  |  | 808,168 |  |  |  | 1,193 |  |  |  | (9,158 | ) |  |  | 800,203 |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. GSE securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7,466 |  |  |  | 1 |  |  |  | — |  |  |  | 7,467 |
State and municipal obligations |  |  | 66,666 |  |  |  | 1,085 |  |  |  | (130 | ) |  |  | 67,621 |  |  |  | 64,878 |  |  |  | 1,715 |  |  |  | (113 | ) |  |  | 66,480 |
U.S. GSE residential mortgage-backed securities |  |  | 13,443 |  |  |  | — |  |  |  | (287 | ) |  |  | 13,156 |  |  |  | 7,609 |  |  |  | — |  |  |  | (106 | ) |  |  | 7,503 |
U.S. GSE residential collateralized mortgage obligations |  |  | 61,639 |  |  |  | 352 |  |  |  | (552 | ) |  |  | 61,439 |  |  |  | 60,933 |  |  |  | 617 |  |  |  | (498 | ) |  |  | 61,052 |
U.S. GSE commercial mortgage-backed securities |  |  | 28,772 |  |  |  | 136 |  |  |  | (509 | ) |  |  | 28,399 |  |  |  | 23,056 |  |  |  | 210 |  |  |  | (313 | ) |  |  | 22,953 |
U.S. GSE commercial collateralized mortgage obligations |  |  | 41,717 |  |  |  | 93 |  |  |  | (573 | ) |  |  | 41,237 |  |  |  | 33,409 |  |  |  | 282 |  |  |  | (185 | ) |  |  | 33,506 |
Corporate bonds |  |  | 11,000 |  |  |  | 26 |  |  |  | — |  |  |  | 11,026 |  |  |  | 11,000 |  |  |  | 42 |  |  |  | — |  |  |  | 11,042 |
Total held to maturity |  |  | 223,237 |  |  |  | 1,692 |  |  |  | (2,051 | ) |  |  | 222,878 |  |  |  | 208,351 |  |  |  | 2,867 |  |  |  | (1,215 | ) |  |  | 210,003 |
Total securities |  | $ | 1,057,801 |  |  | $ | 2,075 |  |  | $ | (17,276 | ) |  | $ | 1,042,600 |  |  | $ | 1,016,519 |  |  | $ | 4,060 |  |  | $ | (10,373 | ) |  | $ | 1,010,206 |
The following table summarizes securities with gross unrealized losses at December 31, 2016 and 2015, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position:
|  | December 31, |
|  | 2016 |  |  | 2015 |
|  | Less than 12 months |  |  | Greater than 12 months |  |  | Less than 12 months |  |  | Greater than 12 months |
|  | Estimated |  |  | Gross |  |  | Estimated |  |  | Gross |  |  | Estimated |  |  | Gross |  |  | Estimated |  |  | Gross |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(In thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. GSE securities |  | $ | 63,649 |  |  | $ | (1,344 | ) |  | $ | — |  |  | $ | — |  |  | $ | 37,759 |  |  | $ | (235 | ) |  | $ | 24,914 |  |  | $ | (329 | )
State and municipal obligations |  |  | 78,883 |  |  |  | (1,338 | ) |  |  | 240 |  |  |  | (1 | ) |  |  | 39,621 |  |  |  | (298 | ) |  |  | 5,118 |  |  |  | (24 | )
U.S. GSE residential mortgage-backed securities |  |  | 140,514 |  |  |  | (2,409 | ) |  |  | 241 |  |  |  | (5 | ) |  |  | 136,025 |  |  |  | (1,224 | ) |  |  | 1,510 |  |  |  | (46 | )
U.S. GSE residential collateralized mortgage obligations |  |  | 319,197 |  |  |  | (5,221 | ) |  |  | 15,627 |  |  |  | (515 | ) |  |  | 187,543 |  |  |  | (1,781 | ) |  |  | 66,830 |  |  |  | (2,107 | )
U.S. GSE commercial mortgage-backed securities |  |  | 2,573 |  |  |  | (36 | ) |  |  | — |  |  |  | — |  |  |  | 8,594 |  |  |  | (80 | ) |  |  | — |  |  |  | — |
U.S. GSE commercial collateralized mortgage obligations |  |  | 48,901 |  |  |  | (886 | ) |  |  | 6,292 |  |  |  | (70 | ) |  |  | 51,178 |  |  |  | (503 | ) |  |  | 10,034 |  |  |  | (117 | )
Other asset backed securities |  |  | — |  |  |  | — |  |  |  | 22,552 |  |  |  | (1,697 | ) |  |  | — |  |  |  | — |  |  |  | 22,371 |  |  |  | (1,879 | )
Corporate bonds |  |  | 17,834 |  |  |  | (1,166 | ) |  |  | 12,463 |  |  |  | (537 | ) |  |  | 27,640 |  |  |  | (360 | ) |  |  | 4,825 |  |  |  | (175 | )
Total available for sale |  |  | 671,551 |  |  |  | (12,400 | ) |  |  | 57,415 |  |  |  | (2,825 | ) |  |  | 488,360 |  |  |  | (4,481 | ) |  |  | 135,602 |  |  |  | (4,677 | )
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal obligations |  |  | 21,867 |  |  |  | (130 | ) |  |  | — |  |  |  | — |  |  |  | 18,375 |  |  |  | (113 | ) |  |  | — |  |  |  | — |
U.S. GSE residential mortgage-backed securities |  |  | 13,156 |  |  |  | (287 | ) |  |  | — |  |  |  | — |  |  |  | 7,503 |  |  |  | (106 | ) |  |  | — |  |  |  | — |
U.S. GSE residential collateralized mortgage obligations |  |  | 31,297 |  |  |  | (455 | ) |  |  | 3,873 |  |  |  | (97 | ) |  |  | 15,918 |  |  |  | (149 | ) |  |  | 15,679 |  |  |  | (349 | )
U.S. GSE commercial mortgage-backed securities |  |  | 12,860 |  |  |  | (286 | ) |  |  | 5,877 |  |  |  | (223 | ) |  |  | 13,982 |  |  |  | (313 | ) |  |  | — |  |  |  | — |
U.S. GSE commercial collateralized mortgage obligations |  |  | 22,666 |  |  |  | (372 | ) |  |  | 3,790 |  |  |  | (201 | ) |  |  | 7,912 |  |  |  | (8 | ) |  |  | 3,813 |  |  |  | (177 | )
Corporate bonds |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total held to maturity |  | $ | 101,846 |  |  | $ | (1,530 | ) |  | $ | 13,540 |  |  | $ | (521 | ) |  | $ | 63,690 |  |  | $ | (689 | ) |  | $ | 19,492 |  |  | $ | (526 | )
Unrealized losses on securities have not been recognized into income, as the losses on these securities would be expected to dissipate as they approach their maturity dates. The Company evaluates securities for OTTI quarterly and more frequently when economic or market concerns warrant. Consideration is given to the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, whether the market decline was affected by macroeconomic conditions, and whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its entities and whether downgrades by bond rating agencies have occurred. At December 31, 2016, substantially all of the securities in an unrealized loss position had a fixed interest rate and the cause of the temporary impairment was directly related to changes in interest rates. The Company generally views changes in fair value caused by changes in interest rates as temporary, which is consistent with its experience. Other asset backed securities are comprised of student loan backed bonds which are guaranteed by the U.S. Department of Education for 97% to 100% of principal. Additionally, the bonds have credit support of 3% to 5% and have maintained their Aaa Moody’s rating during the time the Bank has owned them. None of the unrealized losses are related to credit losses. The Company does not have the intent to sell these securities and it is more likely than not that it will not be required to sell the securities before their anticipated recovery. Therefore, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2016. The following table sets forth the estimated fair value, amortized cost and contractual maturities of the securities portfolio at December 31, 2016. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | December 31, 2016 |
|  | Within |  |  | After One but |  |  | After Five but |  |  | After |  |  |  |
|  | One Year |  |  | Within Five Years |  |  | Within Ten Years |  |  | Ten Years |  |  | Total |
|  | Estimated |  |  |  |  |  | Estimated |  |  |  |  |  | Estimated |  |  |  |  |  | Estimated |  |  |  |  |  | Estimated |  |  |  |
|  | Fair |  |  | Amortized |  |  | Fair |  |  | Amortized |  |  | Fair |  |  | Amortized |  |  | Fair |  |  | Amortized |  |  | Fair |  |  | Amortized |
(In thousands) |  | Value |  |  | Cost |  |  | Value |  |  | Cost |  |  | Value |  |  | Cost |  |  | Value |  |  | Cost |  |  | Value |  |  | Cost |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. GSE securities |  | $ | — |  |  | $ | — |  |  | $ | 26,593 |  |  | $ | 26,994 |  |  | $ | 37,056 |  |  | $ | 37,999 |  |  | $ | — |  |  | $ | — |  |  | $ | 63,649 |  |  | $ | 64,993 |
State and municipal obligations |  |  | 14,635 |  |  |  | 14,638 |  |  |  | 50,964 |  |  |  | 51,473 |  |  |  | 42,921 |  |  |  | 43,461 |  |  |  | 7,645 |  |  |  | 7,720 |  |  |  | 116,165 |  |  |  | 117,292 |
U.S. GSE residential mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 16,124 |  |  |  | 16,227 |  |  |  | 141,924 |  |  |  | 144,219 |  |  |  | 158,048 |  |  |  | 160,446 |
U.S. GSE residential collateralized mortgage obligations |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 9,263 |  |  |  | 9,361 |  |  |  | 358,248 |  |  |  | 363,737 |  |  |  | 367,511 |  |  |  | 373,098 |
U.S. GSE commercial mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,307 |  |  |  | 6,337 |  |  |  | — |  |  |  | — |  |  |  | 6,307 |  |  |  | 6,337 |
U.S. GSE commercial collateralized mortgage obligations |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 55,192 |  |  |  | 56,148 |  |  |  | 55,192 |  |  |  | 56,148 |
Other asset backed securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 22,553 |  |  |  | 24,250 |  |  |  | 22,553 |  |  |  | 24,250 |
Corporate bonds |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 30,297 |  |  |  | 32,000 |  |  |  | — |  |  |  | — |  |  |  | 30,297 |  |  |  | 32,000 |
Total available for sale |  |  | 14,635 |  |  |  | 14,638 |  |  |  | 77,557 |  |  |  | 78,467 |  |  |  | 141,968 |  |  |  | 145,385 |  |  |  | 585,562 |  |  |  | 596,074 |  |  |  | 819,722 |  |  |  | 834,564 |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal obligations |  |  | 9,631 |  |  |  | 9,635 |  |  |  | 16,982 |  |  |  | 16,818 |  |  |  | 39,133 |  |  |  | 38,361 |  |  |  | 1,875 |  |  |  | 1,852 |  |  |  | 67,621 |  |  |  | 66,666 |
U.S. GSE residential mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,688 |  |  |  | 1,701 |  |  |  | 11,468 |  |  |  | 11,742 |  |  |  | 13,156 |  |  |  | 13,443 |
U.S. GSE residential collateralized mortgage obligations |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7,389 |  |  |  | 7,394 |  |  |  | 54,050 |  |  |  | 54,245 |  |  |  | 61,439 |  |  |  | 61,639 |
U.S. GSE commercial mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | 5,016 |  |  |  | 5,063 |  |  |  | 14,568 |  |  |  | 14,621 |  |  |  | 8,815 |  |  |  | 9,088 |  |  |  | 28,399 |  |  |  | 28,772 |
U.S. GSE commercial collateralized mortgage obligations |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,930 |  |  |  | 5,129 |  |  |  | 36,307 |  |  |  | 36,588 |  |  |  | 41,237 |  |  |  | 41,717 |
Corporate bonds |  |  | 11,026 |  |  |  | 11,000 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 11,026 |  |  |  | 11,000 |
Total held to maturity |  |  | 20,657 |  |  |  | 20,635 |  |  |  | 21,998 |  |  |  | 21,881 |  |  |  | 67,708 |  |  |  | 67,206 |  |  |  | 112,515 |  |  |  | 113,515 |  |  |  | 222,878 |  |  |  | 223,237 |
Total securities |  | $ | 35,292 |  |  | $ | 35,273 |  |  | $ | 99,555 |  |  | $ | 100,348 |  |  | $ | 209,676 |  |  | $ | 212,591 |  |  | $ | 698,077 |  |  | $ | 709,589 |  |  | $ | 1,042,600 |  |  | $ | 1,057,801 |
There were $264.4 million of proceeds on sales of available for sale securities with gross gains of approximately $1.6 million and gross losses of approximately $1.2 million realized in 2016. There were $75.8 million of proceeds on sales of available for sale securities with gross gains of approximately $0.5 million and gross losses of approximately $0.5 million realized in 2015. There were $361.0 million of proceeds on sales of available for sale securities with gross gains of approximately $1.2 million and gross losses of approximately $2.3 million realized in 2014. Securities having a fair value of $570.1 million and $611.0 million at December 31, 2016 and 2015, respectively, were pledged to secure public deposits and FHLB and FRB overnight borrowings. The Company did not hold any trading securities during the years ended December 31, 2016 and 2015. The Bank is a member of the FHLB of New York. Members are required to own a particular amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is a member of the Atlantic Central Banker’s Bank (“ACBB”) and is required to own ACBB stock. The Bank is also a member of the FRB system and required to own FRB stock. FHLB, ACBB and FRB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank owned $34.7 million and $24.8 million in FHLB, ACBB and FRB stock at December 31, 2016 and 2015, respectively. These amounts were reported as restricted securities in the consolidated balance sheets. As of December 31, 2016 and 2015, there was no issuer, other than the U.S. Government and its sponsored entities, where the Bank had invested holdings that exceeded 10% of consolidated stockholders’ equity.

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