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Investment Securities (Tables)
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12 Months Ended |
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Dec. 31, 2012
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| Investments, Debt and Equity Securities [Abstract] |
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| Available For Sale And Held For Maturity Securities [Table Text Block] |
The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at December 31, 2012 and December 31, 2011 were as follows (in thousands): | | | | | | | | | | | | | | | | | December 31, 2012 | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized (Losses) | | Fair Value | Available-for-sale: | | | | | | | | U.S. Treasury securities and obligations of U.S. government corporations & agencies | $ | 180,851 |
| | $ | 1,321 |
| | $ | (3 | ) | | $ | 182,169 |
| Obligations of states and political subdivisions | 53,064 |
| | 3,163 |
| | (20 | ) | | 56,207 |
| Mortgage-backed securities: GSE residential | 252,310 |
| | 7,162 |
| | (12 | ) | | 259,460 |
| Trust preferred securities | 4,974 |
| | — |
| | (4,389 | ) | | 585 |
| Other securities | 9,663 |
| | 225 |
| | — |
| | 9,888 |
| Total available-for-sale | $ | 500,862 |
| | $ | 11,871 |
| | $ | (4,424 | ) | | $ | 508,309 |
| December 31, 2011 | | | | | | | | Available-for-sale: | | | | | | | | U.S. Treasury securities and obligations of U.S. government corporations & agencies | $ | 164,812 |
| | $ | 1,294 |
| | $ | (40 | ) | | $ | 166,066 |
| Obligations of states and political subdivisions | 38,828 |
| | 2,374 |
| | — |
| | 41,202 |
| Mortgage-backed securities: GSE residential | 254,930 |
| | 6,940 |
| | (37 | ) | | 261,833 |
| Trust preferred securities | 5,625 |
| | — |
| | (4,906 | ) | | 719 |
| Other securities | 9,561 |
| | — |
| | (465 | ) | | 9,096 |
| Total available-for-sale | $ | 473,756 |
| | $ | 10,608 |
| | $ | (5,448 | ) | | $ | 478,916 |
| Held-to-maturity: | | | | | | | | Obligations of states and political subdivisions | $ | 51 |
| | $ | — |
| | $ | — |
| | $ | 51 |
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The trust preferred securities are three trust preferred pooled securities issued by First Tennessee Financial (“FTN”). The unrealized losses of these securities, which have maturities ranging from eighteen years to twenty-six years, are primarily due to their long-term nature, a lack of demand or inactive market for these securities, and concerns regarding the underlying financial institutions that have issued the trust preferred securities. See the heading “Trust Preferred Securities” below for further information regarding these securities. |
| Realized Gains and Losses From Sale of Securities |
realized gains and losses and income tax expense and benefit were as follows during the years ended December 31, 2012, 2011 and 2010 (in thousands):
| | | | | | | | | | | | | | 2012 | | 2011 | | 2010 | Proceeds from sales | $ | 30,500 |
| | $ | 18,891 |
| | $ | 10,936 |
| Gross gains | 934 |
| | 486 |
| | 543 |
| Gross losses | — |
| | — |
| | — |
| Income tax expense | 364 |
| | 189 |
| | 212 |
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| Investments Classified by Contractual Maturity Date |
The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, at December 31, 2012 and the weighted average yield for each range of maturities (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | | | One year or less | | After 1 through 5 years | | After 5 through 10 years | | After ten years | | Total | Available-for-sale: | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 98,367 |
| | $ | 82,093 |
| | $ | 1,709 |
| | $ | — |
| | $ | 182,169 |
| Obligations of state and political subdivisions | 770 |
| | 29,734 |
| | 23,952 |
| | 1,751 |
| | 56,207 |
| Mortgage-backed securities: GSE residential | 8,434 |
| | 218,584 |
| | 32,442 |
| | — |
| | 259,460 |
| Trust preferred securities | — |
| | — |
| | — |
| | 585 |
| | 585 |
| Other securities | — |
| | 9,828 |
| | — |
| | 60 |
| | 9,888 |
| Total investments | $ | 107,571 |
| | $ | 340,239 |
| | $ | 58,103 |
| | $ | 2,396 |
| | $ | 508,309 |
| Weighted average yield | 1.93 | % | | 2.52 | % | | 2.77 | % | | 3.28 | % | | 2.45 | % | Full tax-equivalent yield | 1.95 | % | | 2.76 | % | | 3.85 | % | | 3.81 | % | | 2.74 | % |
The weighted average yields are calculated on the basis of the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax-equivalent yields have been calculated using a 35% tax rate. With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at December 31, 2012. |
| Fair value of investments with sustained gross unrealized losses |
The following table presents the aging of gross unrealized losses and fair value by investment category as of December 31, 2012 and 2011 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 months | | 12 months or more | | Total | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | December 31, 2012 | | | | | | | | | | | | U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 10,997 |
| | $ | (3 | ) | | $ | — |
| | $ | — |
| | $ | 10,997 |
| | $ | (3 | ) | Obligations of states and political subdivisions | 1,969 |
| | (20 | ) | | — |
| | — |
| | 1,969 |
| | (20 | ) | Mortgage-backed securities: GSE residential | 697 |
| | (12 | ) | | — |
| | — |
| | 697 |
| | (12 | ) | Trust preferred securities | — |
| | — |
| | 585 |
| | (4,389 | ) | | 585 |
| | (4,389 | ) | Other securities | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total | $ | 13,663 |
| | $ | (35 | ) | | $ | 585 |
| | $ | (4,389 | ) | | $ | 14,248 |
| | $ | (4,424 | ) | December 31, 2011 | |
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| U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 19,960 |
| | $ | (40 | ) | | $ | — |
| | $ | — |
| | $ | 19,960 |
| | $ | (40 | ) | Obligations of states and political subdivisions | 690 |
| | — |
| | — |
| | — |
| | 690 |
| | — |
| Mortgage-backed securities: GSE residential | 15,231 |
| | (37 | ) | | — |
| | — |
| | 15,231 |
| | (37 | ) | Trust preferred securities | — |
| | — |
| | 719 |
| | (4,906 | ) | | 719 |
| | (4,906 | ) | Other securities | 7,190 |
| | (372 | ) | | 1,907 |
| | (93 | ) | | 9,096 |
| | (465 | ) | Total | $ | 43,071 |
| | $ | (449 | ) | | $ | 2,626 |
| | $ | (4,999 | ) | | $ | 45,696 |
| | $ | (5,448 | ) |
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| Trust Preferred Securities [Table Text Block] |
Following are the details for each of the three currently impaired trust preferred securities as of December 31, 2012 (in thousands): | | | | | | | | | | | | | | | | | | Book Value | | Market Value | | Unrealized Gains (Losses) | | Other-than- temporary Impairment Recorded To-date | PreTSL I | $ | 513 |
| | $ | 297 |
| | $ | (216 | ) | | $ | (691 | ) | PreTSL II | 809 |
| | 219 |
| | (590 | ) | | (2,187 | ) | PreTSL XXVIII | 3,652 |
| | 69 |
| | (3,583 | ) | | (1,111 | ) | Total | $ | 4,974 |
| | $ | 585 |
| | $ | (4,389 | ) | | $ | (3,989 | ) |
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| Credit Losses Recognized on Investments |
Credit Losses Recognized on Investments
As described above, some of the Company’s investments in trust preferred securities have experienced fair value deterioration due to credit losses but are not otherwise other-than-temporarily impaired. The following table provides information about those trust preferred securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the years ended December 31, 2012, 2011 and 2010 (in thousands).
| | | | | | | | | | | | | | Accumulated Credit Losses as of December 31: | | 2012 | | 2011 | | 2010 | Credit losses on trust preferred securities held: | | | | | | Beginning of period | $ | 4,116 |
| | $ | 3,230 |
| | $ | 1,812 |
| Additions related to OTTI losses not previously recognized | — |
| | — |
| | — |
| Reductions due to sales / (recoveries) | (127 | ) | | — |
| | — |
| Reductions due to change in intent or likelihood of sale | — |
| | — |
| | — |
| Additions related to increases in previously recognized OTTI losses | — |
| | 886 |
| | 1,418 |
| Reductions due to increases in expected cash flows | — |
| | — |
| | — |
| End of period | $ | 3,989 |
| | $ | 4,116 |
| | $ | 3,230 |
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| Maturities of Investment Securities |
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.
| | | | | | | | | | | | Amortized Cost | | Estimated Fair Value | Available-for-sale: | | | | | Due in one year or less | | $ | 98,706 |
| | $ | 99,137 |
| Due after one-five years | | 119,277 |
| | 121,655 |
| Due after five-ten years | | 23,836 |
| | 25,661 |
| Due after ten years | | 6,733 |
| | 2,396 |
| | | 248,552 |
| | 248,849 |
| Mortgage-backed securities: GSE residential | | 252,310 |
| | 259,460 |
| Total available-for-sale | | $ | 500,862 |
| | $ | 508,309 |
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