XML 24 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Securities | 9 Months Ended
--- | ---
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities Available-for-Sales Securities The following table summarizes available-for-sale securities held by the Company at September 30, 2018:
| Available-for-Sale Securities
September 30, 2018 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
(in thousands) |  |  |  |  |  |  |
Obligations of U.S. Government sponsored entities | $ | 498,837 |  |  | $ | 0 |  |  | $ | 13,104 |  |  | $ | 485,733 |
Obligations of U.S. states and political subdivisions | 86,517 |  |  | 33 |  |  | 1,788 |  |  | 84,762 |
Mortgage-backed securities – residential, issued by |  |  |  |  |  |  |
U.S. Government agencies | 114,417 |  |  | 143 |  |  | 5,404 |  |  | 109,156 |
U.S. Government sponsored entities | 658,195 |  |  | 205 |  |  | 29,596 |  |  | 628,804 |
Non-U.S. Government agencies or sponsored entities | 42 |  |  | 0 |  |  | 0 |  |  | 42 |
U.S. corporate debt securities | 2,500 |  |  | 0 |  |  | 325 |  |  | 2,175 |
Total available-for-sale securities | $ | 1,360,508 |  |  | $ | 381 |  |  | $ | 50,217 |  |  | $ | 1,310,672 |
The following table summarizes available-for-sale securities held by the Company at December 31, 2017:
| Available-for-Sale Securities
December 31, 2017 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
(in thousands) |  |  |  |  |  |  |
Obligations of U.S. Government sponsored entities | $ | 507,248 |  |  | $ | 278 |  |  | $ | 3,333 |  |  | $ | 504,193 |
Obligations of U.S. states and political subdivisions | 91,659 |  |  | 281 |  |  | 421 |  |  | 91,519 |
Mortgage-backed securities – residential, issued by |  |  |  |  |  |  |
U.S. Government agencies | 139,747 |  |  | 659 |  |  | 2,671 |  |  | 137,735 |
U.S. Government sponsored entities | 667,767 |  |  | 1,045 |  |  | 12,634 |  |  | 656,178 |
Non-U.S. Government agencies or sponsored entities | 75 |  |  | 0 |  |  | 0 |  |  | 75 |
U.S. corporate debt securities | 2,500 |  |  | 0 |  |  | 338 |  |  | 2,162 |
Total debt securities | 1,408,996 |  |  | 2,263 |  |  | 19,397 |  |  | 1,391,862 |
Equity securities | 1,000 |  |  | 0 |  |  | 87 |  |  | 913 |
Total available-for-sale securities | $ | 1,409,996 |  |  | $ | 2,263 |  |  | $ | 19,484 |  |  | $ | 1,392,775 |
Held-to-Maturity Securities The following table summarizes held-to-maturity securities held by the Company at September 30, 2018:
| Held-to-Maturity Securities
September 30, 2018 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
(in thousands) |  |  |  |  |  |  |
Obligations of U.S. Government sponsored entities | $ | 131,407 |  |  | $ | 0 |  |  | $ | 3,040 |  |  | $ | 128,367 |
Obligations of U.S. states and political subdivisions | 9,829 |  |  | 36 |  |  | 0 |  |  | 9,865 |
Total held-to-maturity debt securities | $ | 141,236 |  |  | $ | 36 |  |  | $ | 3,040 |  |  | $ | 138,232 |
The following table summarizes held-to-maturity securities held by the Company at December 31, 2017:
| Held-to-Maturity Securities
December 31, 2017 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
(in thousands) |  |  |  |  |  |  |
Obligations of U.S. Government sponsored entities | $ | 131,707 |  |  | $ | 1,103 |  |  | $ | 90 |  |  | $ | 132,720 |
Obligations of U.S. states and political subdivisions | 7,509 |  |  | 93 |  |  | 7 |  |  | 7,595 |
Total held-to-maturity debt securities | $ | 139,216 |  |  | $ | 1,196 |  |  | $ | 97 |  |  | $ | 140,315 |
The Company may from time to time sell investment securities from its available-for-sale portfolio. Realized gains on available-for-sale securities were $30,000 and $327,000 for the three and nine months ended September 30, 2018 and $3,000 for the same periods during 2017. Realized losses on available-for-sale securities were $0 and $3,000 for the three and nine months ended September 30, 2018 and $426,000 for the same periods during 2017. The sales of available-for-sale investment securities were the result of general investment portfolio and interest rate risk management. The Company also recognized losses of $14,000 and $34,000 for the three and nine months ended September 30, 2018, on equity securities, reflecting the change in fair value. The following table summarizes available-for-sale securities that had unrealized losses at September 30, 2018:
| Less than 12 Months |  | 12 Months or Longer |  | Total
(in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Obligations of U.S. Government sponsored entities | $ | 298,473 |  |  | $ | 6,017 |  |  | $ | 187,260 |  |  | $ | 7,087 |  |  | $ | 485,733 |  |  | $ | 13,104 |
Obligations of U.S. states and political subdivisions | 52,521 |  |  | 687 |  |  | 22,773 |  |  | 1,101 |  |  | 75,294 |  |  | 1,788 |
Mortgage-backed securities – residential, issued by |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies | 9,338 |  |  | 284 |  |  | 93,660 |  |  | 5,120 |  |  | 102,998 |  |  | 5,404 |
U.S. Government sponsored entities | 142,152 |  |  | 4,221 |  |  | 471,869 |  |  | 25,375 |  |  | 614,021 |  |  | 29,596 |
U.S. corporate debt securities | 0 |  |  | 0 |  |  | 2,175 |  |  | 325 |  |  | 2,175 |  |  | 325 |
Total available-for-sale securities | $ | 502,484 |  |  | $ | 11,209 |  |  | $ | 777,737 |  |  | $ | 39,008 |  |  | $ | 1,280,221 |  |  | $ | 50,217 |
The following table summarizes available-for-sale securities that had unrealized losses at December 31, 2017:
| Less than 12 Months |  | 12 Months or Longer |  | Total
(in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Obligations of U.S. Government sponsored entities | $ | 319,545 |  |  | $ | 2,301 |  |  | $ | 39,791 |  |  | $ | 1,032 |  |  | $ | 359,336 |  |  | $ | 3,333 |
Obligations of U.S. states and political subdivisions | 39,571 |  |  | 219 |  |  | 11,729 |  |  | 202 |  |  | 51,300 |  |  | 421 |
Mortgage-backed securities – residential, issued by |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies | 33,056 |  |  | 452 |  |  | 86,562 |  |  | 2,219 |  |  | 119,618 |  |  | 2,671 |
U.S. Government sponsored entities | 208,524 |  |  | 1,941 |  |  | 410,767 |  |  | 10,693 |  |  | 619,291 |  |  | 12,634 |
U.S. corporate debt securities | 0 |  |  | 0 |  |  | 2,163 |  |  | 338 |  |  | 2,163 |  |  | 338 |
Equity securities | 0 |  |  | 0 |  |  | 913 |  |  | 87 |  |  | 913 |  |  | 87 |
Total available-for-sale securities | $ | 600,696 |  |  | $ | 4,913 |  |  | $ | 551,925 |  |  | $ | 14,571 |  |  | $ | 1,152,621 |  |  | $ | 19,484 |
Beginning January 1, 2018, upon adoption of ASU 2016-01, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in the consolidated statement of income. For periods prior to adoption, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax. The following table summarizes held-to-maturity securities that had unrealized losses at September 30, 2018.
| Less than 12 Months |  | 12 Months or Longer |  | Total
(in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Obligations of U.S. Government sponsored entities | $ | 123,589 |  |  | $ | 2,818 |  |  | $ | 4,778 |  |  | $ | 222 |  |  | $ | 128,367 |  |  | $ | 3,040 |
Total held-to-maturity securities | $ | 123,589 |  |  | $ | 2,818 |  |  | $ | 4,778 |  |  | $ | 222 |  |  | $ | 128,367 |  |  | $ | 3,040 |
The following table summarizes held-to-maturity securities that had unrealized losses at December 31, 2017.
| Less than 12 Months |  | 12 Months or Longer |  | Total
(in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Obligations of U.S. Government sponsored entities | $ | 20,505 |  |  | $ | 90 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 20,505 |  |  | $ | 90 |
Obligations of U.S. states and political subdivisions | 5,094 |  |  | 7 |  |  | 0 |  |  | 0 |  |  | 5,094 |  |  | 7 |
Total held-to-maturity securities | $ | 25,599 |  |  | $ | 97 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 25,599 |  |  | $ | 97 |
The gross unrealized losses reported for residential mortgage-backed securities relate to investment securities issued by U.S. government sponsored entities such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and U.S. government agencies such as Government National Mortgage Association. The total gross unrealized losses, shown in the tables above, were primarily attributable to changes in interest rates and levels of market liquidity, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell other-than-temporarily impaired investment securities that are in an unrealized loss position until recovery of unrealized losses (which may be until maturity), and it is not more-likely-than not that the Company will be required to sell the investment securities, before recovery of their amortized cost basis, which may be at maturity. Accordingly, as of September 30, 2018, and December 31, 2017, management has determined that the unrealized losses detailed in the tables above are not other-than-temporary. Ongoing Assessment of Other-Than-Temporary Impairment On a quarterly basis, the Company performs an assessment to determine whether there have been any events or economic circumstances indicating that a security with an unrealized loss has suffered other-than-temporary impairment (“OTTI”). A debt security is considered impaired if the fair value is less than its amortized cost basis (including any previous OTTI charges) at the reporting date. If impaired, the Company then assesses whether the unrealized loss is other-than-temporary. An unrealized loss on a debt security is generally deemed to be other-than-temporary and a credit loss is deemed to exist if the present value, discounted at the security’s effective rate, of the expected future cash flows is less than the amortized cost basis of the debt security. As a result, the credit loss component of an other-than-temporary impairment write-down for debt securities is recorded in earnings while the remaining portion of the impairment loss is recognized, net of tax, in other comprehensive income (loss) provided that the Company does not intend to sell the underlying debt security and it is more-likely-than not that the Company would not have to sell the debt security prior to recovery of the unrealized loss, which may be to maturity. If the Company intended to sell any securities with an unrealized loss or it is more-likely-than not that the Company would be required to sell the investment securities, before recovery of their amortized cost basis, then the entire unrealized loss would be recorded in earnings. The Company considers the following factors in determining whether a credit loss exists.
• | The length of time and the extent to which the fair value has been less than the amortized cost basis;
• | The level of credit enhancement provided by the structure which includes, but is not limited to, credit subordination positions, excess spreads, overcollateralization, protective triggers;
• | Changes in the near term prospects of the issuer or underlying collateral of a security, such as changes in default rates, loss severities given default and significant changes in prepayment assumptions;
• | The level of excess cash flow generated from the underlying collateral supporting the principal and interest payments of the debt securities; and
• | Any adverse change to the credit conditions of the issuer or the security such as credit downgrades by the rating agencies.
As a result of the other-than-temporarily impairment review process, the Company does not consider any investment security held at September 30, 2018 to be other-than-temporarily impaired. The amortized cost and estimated fair value of debt securities by contractual maturity are shown in the following table. 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. Mortgage-backed securities are shown separately since they are not due at a single maturity date.
September 30, 2018 |  |  |
(in thousands) | Amortized Cost |  | Fair Value
Available-for-sale securities: |  |  |
Due in one year or less | $ | 87,756 |  |  | $ | 87,434 |
Due after one year through five years | 320,407 |  |  | 313,052 |
Due after five years through ten years | 167,362 |  |  | 160,599 |
Due after ten years | 12,329 |  |  | 11,585 |
Total | 587,854 |  |  | 572,670 |
Mortgage-backed securities | 772,654 |  |  | 738,002 |
Total available-for-sale debt securities | $ | 1,360,508 |  |  | $ | 1,310,672 |
December 31, 2017 |  |  |
(in thousands) | Amortized Cost |  | Fair Value
Available-for-sale securities: |  |  |
Due in one year or less | $ | 51,909 |  |  | $ | 51,932 |
Due after one year through five years | 368,846 |  |  | 367,377 |
Due after five years through ten years | 162,061 |  |  | 160,374 |
Due after ten years | 18,591 |  |  | 18,192 |
Total | 601,407 |  |  | 597,875 |
Mortgage-backed securities | 807,589 |  |  | 793,988 |
Total available-for-sale debt securities | $ | 1,408,996 |  |  | $ | 1,391,863 |
September 30, 2018 |  |  |
(in thousands) | Amortized Cost |  | Fair Value
Held-to-maturity securities: |  |  |
Due in one year or less | $ | 9,247 |  |  | $ | 9,253 |
Due after one year through five years | 81,686 |  |  | 79,931 |
Due after five years through ten years | 50,303 |  |  | 49,048 |
Total held-to-maturity debt securities | $ | 141,236 |  |  | $ | 138,232 |
December 31, 2017 |  |  |
(in thousands) | Amortized Cost |  | Fair Value
Held-to-maturity securities: |  |  |
Due in one year or less | $ | 5,980 |  |  | $ | 5,979 |
Due after one year through five years | 51,936 |  |  | 52,227 |
Due after five years through ten years | 81,300 |  |  | 82,109 |
Total held-to-maturity debt securities | $ | 139,216 |  |  | $ | 140,315 |
The Company also holds non-marketable Federal Home Loan Bank New York (“FHLBNY”) stock, non-marketable Federal Home Loan Bank Pittsburgh (“FHLBPITT”) stock and non-marketable Atlantic Community Bankers Bank stock ("ACBB"), all of which are required to be held for regulatory purposes and for borrowing availability. The required investment in FHLB stock is tied to the Company’s borrowing levels with the FHLB. Holdings of FHLBNY stock, FHLBPITT stock, and ACBB stock totaled $35.0 million, $13.4 million and $95,000 at September 30, 2018, respectively. These securities are carried at par, which is also cost. The FHLBNY and FHLBPITT continue to pay dividends and repurchase stock. Quarterly, we evaluate our investment in the FHLB for impairment. We evaluate recent and long-term operating performance, liquidity, funding and capital positions, stock repurchase history, dividend history and impact of legislative and regulatory changes. Based on our most recent evaluation, as of September 30, 2018, we have determined that no impairment write-downs are currently required.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration