XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

SECURITIES | 9 Months Ended
--- | ---
Sep. 30, 2017
SECURITIES |
SECURITIES | 4. SECURITIES The following tables summarize the amortized cost and estimated fair value of the available for sale and held to maturity investment securities portfolio at September 30, 2017 and December 31, 2016 and the corresponding amounts of unrealized gains and losses therein:
|  | September 30, 2017 |
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(In thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. GSE securities |  | $ | 64,994 |  |  | $ | - |  |  | $ | (766 | ) |  | $ | 64,228 |
State and municipal obligations |  |  | 91,359 |  |  |  | 430 |  |  |  | (469 | ) |  |  | 91,320 |
U.S. GSE residential mortgage-backed securities |  |  | 195,062 |  |  |  | 112 |  |  |  | (1,770 | ) |  |  | 193,404 |
U.S. GSE residential collateralized mortgage obligations |  |  | 323,427 |  |  |  | 75 |  |  |  | (4,300 | ) |  |  | 319,202 |
U.S. GSE commercial mortgage-backed securities |  |  | 6,129 |  |  |  | 41 |  |  |  | (17 | ) |  |  | 6,153 |
U.S. GSE commercial collateralized mortgage obligations |  |  | 51,211 |  |  |  | - |  |  |  | (825 | ) |  |  | 50,386 |
Other asset backed securities |  |  | 24,250 |  |  |  | - |  |  |  | (1,213 | ) |  |  | 23,037 |
Corporate bonds |  |  | 46,000 |  |  |  | - |  |  |  | (1,672 | ) |  |  | 44,328 |
Total available for sale |  |  | 802,432 |  |  |  | 658 |  |  |  | (11,032 | ) |  |  | 792,058 |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal obligations |  |  | 60,616 |  |  |  | 1,446 |  |  |  | (36 | ) |  |  | 62,026 |
U.S. GSE residential mortgage-backed securities |  |  | 11,905 |  |  |  | - |  |  |  | (175 | ) |  |  | 11,730 |
U.S. GSE residential collateralized mortgage obligations |  |  | 55,871 |  |  |  | 389 |  |  |  | (348 | ) |  |  | 55,912 |
U.S. GSE commercial mortgage-backed securities |  |  | 28,202 |  |  |  | 158 |  |  |  | (350 | ) |  |  | 28,010 |
U.S. GSE commercial collateralized mortgage obligations |  |  | 33,009 |  |  |  | 13 |  |  |  | (595 | ) |  |  | 32,427 |
Total held to maturity |  |  | 189,603 |  |  |  | 2,006 |  |  |  | (1,504 | ) |  |  | 190,105 |
Total securities |  | $ | 992,035 |  |  | $ | 2,664 |  |  | $ | (12,536 | ) |  | $ | 982,163 |
|  | December 31, 2016 |
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(In thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. GSE securities |  | $ | 64,993 |  |  | $ | - |  |  | $ | (1,344 | ) |  | $ | 63,649 |
State and municipal obligations |  |  | 117,292 |  |  |  | 212 |  |  |  | (1,339 | ) |  |  | 116,165 |
U.S. GSE residential mortgage-backed securities |  |  | 160,446 |  |  |  | 16 |  |  |  | (2,414 | ) |  |  | 158,048 |
U.S. GSE residential collateralized mortgage obligations |  |  | 373,098 |  |  |  | 149 |  |  |  | (5,736 | ) |  |  | 367,511 |
U.S. GSE commercial mortgage-backed securities |  |  | 6,337 |  |  |  | 6 |  |  |  | (36 | ) |  |  | 6,307 |
U.S. GSE commercial collateralized mortgage obligations |  |  | 56,148 |  |  |  | - |  |  |  | (956 | ) |  |  | 55,192 |
Other asset backed securities |  |  | 24,250 |  |  |  | - |  |  |  | (1,697 | ) |  |  | 22,553 |
Corporate bonds |  |  | 32,000 |  |  |  | - |  |  |  | (1,703 | ) |  |  | 30,297 |
Total available for sale |  |  | 834,564 |  |  |  | 383 |  |  |  | (15,225 | ) |  |  | 819,722 |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal obligations |  |  | 66,666 |  |  |  | 1,085 |  |  |  | (130 | ) |  |  | 67,621 |
U.S. GSE residential mortgage-backed securities |  |  | 13,443 |  |  |  | - |  |  |  | (287 | ) |  |  | 13,156 |
U.S. GSE residential collateralized mortgage obligations |  |  | 61,639 |  |  |  | 352 |  |  |  | (552 | ) |  |  | 61,439 |
U.S. GSE commercial mortgage-backed securities |  |  | 28,772 |  |  |  | 136 |  |  |  | (509 | ) |  |  | 28,399 |
U.S. GSE commercial collateralized mortgage obligations |  |  | 41,717 |  |  |  | 93 |  |  |  | (573 | ) |  |  | 41,237 |
Corporate bonds |  |  | 11,000 |  |  |  | 26 |  |  |  | - |  |  |  | 11,026 |
Total held to maturity |  |  | 223,237 |  |  |  | 1,692 |  |  |  | (2,051 | ) |  |  | 222,878 |
Total securities |  | $ | 1,057,801 |  |  | $ | 2,075 |  |  | $ | (17,276 | ) |  | $ | 1,042,600 |
The following table summarizes the amortized cost and estimated fair value by contractual maturity of the available for sale and held to maturity investment securities portfolio at September 30, 2017. 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.
|  | September 30, 2017 |
|  |  |  |  | Estimated |
(In thousands) |  | Amortized Cost |  |  | Fair Value |
Maturity |  |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |  |
Within one year |  | $ | 8,897 |  |  | $ | 8,900 |
One to five years |  |  | 97,886 |  |  |  | 97,300 |
Five to ten years |  |  | 130,905 |  |  |  | 128,893 |
Beyond ten years |  |  | 564,744 |  |  |  | 556,965 |
Total |  | $ | 802,432 |  |  | $ | 792,058 |
Held to maturity: |  |  |  |  |  |  |  |
Within one year |  | $ | 3,537 |  |  | $ | 3,534 |
One to five years |  |  | 36,367 |  |  |  | 36,634 |
Five to ten years |  |  | 55,308 |  |  |  | 56,280 |
Beyond ten years |  |  | 94,391 |  |  |  | 93,657 |
Total |  | $ | 189,603 |  |  | $ | 190,105 |
The following tables summarize securities with gross unrealized losses at September 30, 2017 and December 31, 2016, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position:
|  | September 30, 2017 |
|  | Less than 12 months |  |  | Greater than 12 months |
|  | Estimated |  |  | Gross |  |  | Estimated |  |  | Gross |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(In thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. GSE securities |  | $ | 37,659 |  |  | $ | (334 | ) |  | $ | 26,568 |  |  | $ | (432 | )
State and municipal obligations |  |  | 27,585 |  |  |  | (146 | ) |  |  | 25,204 |  |  |  | (323 | )
U.S. GSE residential mortgage-backed securities |  |  | 129,703 |  |  |  | (1,162 | ) |  |  | 25,682 |  |  |  | (608 | )
U.S. GSE residential collateralized mortgage obligations |  |  | 178,035 |  |  |  | (2,174 | ) |  |  | 114,900 |  |  |  | (2,126 | )
U.S. GSE commercial mortgage-backed securities |  |  | 2,455 |  |  |  | (17 | ) |  |  | - |  |  |  | - |
U.S. GSE commercial collateralized mortgage obligations |  |  | 25,236 |  |  |  | (364 | ) |  |  | 25,151 |  |  |  | (461 | )
Other asset backed securities |  |  | - |  |  |  | - |  |  |  | 23,037 |  |  |  | (1,213 | )
Corporate bonds |  |  | - |  |  |  | - |  |  |  | 30,328 |  |  |  | (1,672 | )
Total available for sale |  |  | 400,673 |  |  |  | (4,197 | ) |  |  | 270,870 |  |  |  | (6,835 | )
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal obligations |  |  | 2,828 |  |  |  | (29 | ) |  |  | 1,015 |  |  |  | (7 | )
U.S. GSE residential mortgage-backed securities |  |  | 5,326 |  |  |  | (57 | ) |  |  | 6,404 |  |  |  | (118 | )
U.S. GSE residential collateralized mortgage obligations |  |  | 14,488 |  |  |  | (183 | ) |  |  | 8,941 |  |  |  | (165 | )
U.S. GSE commercial mortgage-backed securities |  |  | 12,806 |  |  |  | (166 | ) |  |  | 5,679 |  |  |  | (184 | )
U.S. GSE commercial collateralized mortgage obligations |  |  | 13,785 |  |  |  | (109 | ) |  |  | 12,955 |  |  |  | (486 | )
Total held to maturity |  | $ | 49,233 |  |  | $ | (544 | ) |  | $ | 34,994 |  |  | $ | (960 | )
|  | December 31, 2016 |
|  | Less than 12 months |  |  | Greater than 12 months |
|  | Estimated |  |  | Gross |  |  | Estimated |  |  | Gross |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(In thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. GSE securities |  | $ | 63,649 |  |  | $ | (1,344 | ) |  | $ | - |  |  | $ | - |
State and municipal obligations |  |  | 78,883 |  |  |  | (1,338 | ) |  |  | 240 |  |  |  | (1 | )
U.S. GSE residential mortgage-backed securities |  |  | 140,514 |  |  |  | (2,409 | ) |  |  | 241 |  |  |  | (5 | )
U.S. GSE residential collateralized mortgage obligations |  |  | 319,197 |  |  |  | (5,221 | ) |  |  | 15,627 |  |  |  | (515 | )
U.S. GSE commercial mortgage-backed securities |  |  | 2,573 |  |  |  | (36 | ) |  |  | - |  |  |  | - |
U.S. GSE commercial collateralized mortgage obligations |  |  | 48,901 |  |  |  | (886 | ) |  |  | 6,292 |  |  |  | (70 | )
Other asset backed securities |  |  | - |  |  |  | - |  |  |  | 22,552 |  |  |  | (1,697 | )
Corporate bonds |  |  | 17,834 |  |  |  | (1,166 | ) |  |  | 12,463 |  |  |  | (537 | )
Total available for sale |  |  | 671,551 |  |  |  | (12,400 | ) |  |  | 57,415 |  |  |  | (2,825 | )
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal obligations |  |  | 21,867 |  |  |  | (130 | ) |  |  | - |  |  |  | - |
U.S. GSE residential mortgage-backed securities |  |  | 13,156 |  |  |  | (287 | ) |  |  | - |  |  |  | - |
U.S. GSE residential collateralized mortgage obligations |  |  | 31,297 |  |  |  | (455 | ) |  |  | 3,873 |  |  |  | (97 | )
U.S. GSE commercial mortgage-backed securities |  |  | 12,860 |  |  |  | (286 | ) |  |  | 5,877 |  |  |  | (223 | )
U.S. GSE commercial collateralized mortgage obligations |  |  | 22,666 |  |  |  | (372 | ) |  |  | 3,790 |  |  |  | (201 | )
Total held to maturity |  | $ | 101,846 |  |  | $ | (1,530 | ) |  | $ | 13,540 |  |  | $ | (521 | )
Other-Than-Temporary Impairment Management evaluates securities for other-than-temporary impairment (“OTTI”) quarterly and more frequently when economic or market conditions warrant. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities classified as available for sale or held to maturity are generally evaluated for OTTI under FASB ASC 320, “Accounting for Certain Investments in Debt and Equity Securities”. In determining OTTI under the FASB ASC 320 model, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) 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. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet these criteria, the amount of impairment is split into two components: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. At September 30, 2017, 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. The corporate bonds within the portfolio have all maintained an investment grade rating by either Moody’s or Standard and Poor’s. None of the unrealized losses is 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 September 30, 2017. Sales and Calls of Securities There were $26.7 million of proceeds from sales of securities with gross gains of approximately $0.3 million and gross losses of approximately $0.1 million for the three and nine months ended the September 30, 2017. There were no sales of securities for the three months ended September 30, 2016. There were $264.4 million of proceeds from sales of securities with gross gains of $1.6 million and gross losses of $1.2 million realized for the nine months ended September 30, 2016. There were no proceeds from calls of securities for the three and nine months ended the September 30, 2017. Proceeds from calls of securities were $13.3 million and $66.2 million for the three and nine months ended September 30, 2016, respectively. Pledged Securities Securities having a fair value of $522.7 million and $570.1 million at September 30, 2017 and December 31, 2016, respectively, were pledged to secure public deposits and Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) overnight borrowings. Trading Securities The Company did not hold any trading securities during the nine months ended September 30, 2017 or the year ended December 31, 2016. Restricted Securities 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 $34.2 million and $34.7 million in FHLB, ACBB and FRB stock at September 30, 2017 and December 31, 2016, respectively. These amounts were reported as restricted securities in the consolidated balance sheets.

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