XML 34 R9.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Investment Securities | 3 Months Ended
--- | ---
Mar. 31, 2014
Investments Debt And Equity Securities [Abstract] |
Investment Securities | Note 2 — Investment Securities The following is a summary of investment securities available for sale as of March 31, 2014 and December 31, 2013:
|  | Amortized Cost |  |  | Gross Unrealized Gain |  |  | Gross Unrealized Loss |  |  | Estimated Fair Value |
|  | (In thousands) |
March 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities (1) |  | $ | 228,363 |  |  | $ | 86 |  |  | $ | 4,084 |  |  | $ | 224,365 |
Collateralized mortgage obligations (1) |  |  | 149,269 |  |  |  | 123 |  |  |  | 1,361 |  |  |  | 148,031 |
U.S. government agency securities |  |  | 90,855 |  |  |  | 3 |  |  |  | 4,880 |  |  |  | 85,978 |
Municipal bonds-tax exempt |  |  | 4,365 |  |  |  | 67 |  |  |  | — |  |  |  | 4,432 |
Municipal bonds-taxable |  |  | 22,036 |  |  |  | 160 |  |  |  | 521 |  |  |  | 21,675 |
Corporate bonds |  |  | 21,014 |  |  |  | 20 |  |  |  | 128 |  |  |  | 20,906 |
SBA loan pool securities |  |  | 13,569 |  |  |  | — |  |  |  | 867 |  |  |  | 12,702 |
Other securities |  |  | 3,030 |  |  |  | — |  |  |  | 129 |  |  |  | 2,901 |
Total securities available for sale |  | $ | 532,501 |  |  | $ | 459 |  |  | $ | 11,970 |  |  | $ | 520,990 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities (1) |  | $ | 222,768 |  |  | $ | 317 |  |  | $ | 6,026 |  |  | $ | 217,059 |
Collateralized mortgage obligations (1) |  |  | 130,636 |  |  |  | 274 |  |  |  | 3,217 |  |  |  | 127,693 |
U.S. government agency securities |  |  | 90,852 |  |  |  | — |  |  |  | 7,316 |  |  |  | 83,536 |
Municipal bonds-tax exempt |  |  | 13,857 |  |  |  | 110 |  |  |  | 30 |  |  |  | 13,937 |
Municipal bonds-taxable |  |  | 33,361 |  |  |  | 73 |  |  |  | 1,080 |  |  |  | 32,354 |
Corporate bonds |  |  | 21,013 |  |  |  | 8 |  |  |  | 186 |  |  |  | 20,835 |
U.S. treasury bills |  |  | 19,998 |  |  |  | — |  |  |  | 1 |  |  |  | 19,997 |
SBA loan pool securities |  |  | 13,598 |  |  |  | — |  |  |  | 969 |  |  |  | 12,629 |
Other securities |  |  | 3,030 |  |  |  | — |  |  |  | 144 |  |  |  | 2,886 |
Total securities available for sale |  | $ | 549,113 |  |  | $ | 782 |  |  | $ | 18,969 |  |  | $ | 530,926 |
(1) | Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities
The amortized cost and estimated fair value of investment securities as of March 31, 2014, by contractual maturity, are shown below. Although mortgage-backed securities and collateralized mortgage obligations have contractual maturities through 2063, expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | Available for Sale |
|  | Amortized Cost |  |  | Estimated Fair Value |
|  | (In thousands) |
Within one year |  | $ | 699 |  |  | $ | 737 |
Over one year through five years |  |  | 30,847 |  |  |  | 30,693 |
Over five years through ten years |  |  | 86,380 |  |  |  | 82,511 |
Over ten years |  |  | 36,943 |  |  |  | 34,653 |
Mortgage-backed securities |  |  | 228,363 |  |  |  | 224,365 |
Collateralized mortgage obligations |  |  | 149,269 |  |  |  | 148,031 |
Total |  | $ | 532,501 |  |  | $ | 520,990 |
FASB ASC 320, “Investments – Debt and Equity Securities,” requires us to periodically evaluate our investments for other-than-temporary impairment (“OTTI”). There was no OTTI charge during the three months ended March 31, 2014. Gross unrealized losses on investment securities available for sale, the estimated fair value of the related securities and the number of securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows as of March 31, 2014 and December 31, 2013:
|  | Holding Period |
|  | Less Than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Gross Unrealized Loss |  |  | Estimated Fair Value |  |  | Number of Securities |  |  | Gross Unrealized Loss |  |  | Estimated Fair Value |  |  | Number of Securities |  |  | Gross Unrealized Loss |  |  | Estimated Fair Value |  |  | Number of Securities |
|  | (In thousands, except number of securities) |
March 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 889 |  |  | $ | 104,423 |  |  |  | 29 |  |  | $ | 3,195 |  |  | $ | 74,226 |  |  |  | 27 |  |  | $ | 4,084 |  |  | $ | 178,649 |  |  |  | 56 |
Collateralized mortgage obligations |  |  | 519 |  |  |  | 65,206 |  |  |  | 15 |  |  |  | 842 |  |  |  | 20,383 |  |  |  | 9 |  |  |  | 1,361 |  |  |  | 85,589 |  |  |  | 24 |
U.S. government agency securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,880 |  |  |  | 80,979 |  |  |  | 30 |  |  |  | 4,880 |  |  |  | 80,979 |  |  |  | 30 |
Municipal bonds-tax exempt |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Municipal bonds-taxable |  |  | 3 |  |  |  | 1,744 |  |  |  | 1 |  |  |  | 518 |  |  |  | 12,907 |  |  |  | 11 |  |  |  | 521 |  |  |  | 14,651 |  |  |  | 12 |
Corporate bonds |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 128 |  |  |  | 11,856 |  |  |  | 3 |  |  |  | 128 |  |  |  | 11,856 |  |  |  | 3 |
SBA loan pool securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 867 |  |  |  | 12,701 |  |  |  | 4 |  |  |  | 867 |  |  |  | 12,701 |  |  |  | 4 |
Other securities |  |  | — |  |  |  | 4 |  |  |  | 1 |  |  |  | 129 |  |  |  | 2,896 |  |  |  | 5 |  |  |  | 129 |  |  |  | 2,900 |  |  |  | 6 |
Total |  | $ | 1,411 |  |  | $ | 171,377 |  |  |  | 46 |  |  | $ | 10,559 |  |  | $ | 215,948 |  |  |  | 89 |  |  | $ | 11,970 |  |  | $ | 387,325 |  |  |  | 135 |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 3,437 |  |  | $ | 170,324 |  |  |  | 51 |  |  | $ | 2,589 |  |  | $ | 30,947 |  |  |  | 12 |  |  | $ | 6,026 |  |  | $ | 201,271 |  |  |  | 63 |
Collateralized mortgage obligations |  |  | 2,353 |  |  |  | 87,026 |  |  |  | 27 |  |  |  | 864 |  |  |  | 14,657 |  |  |  | 7 |  |  |  | 3,217 |  |  |  | 101,683 |  |  |  | 34 |
U.S. government agency securities |  |  | 3,942 |  |  |  | 50,932 |  |  |  | 19 |  |  |  | 3,374 |  |  |  | 32,606 |  |  |  | 12 |  |  |  | 7,316 |  |  |  | 83,538 |  |  |  | 31 |
Municipal bonds-tax exempt |  |  | 30 |  |  |  | 8,562 |  |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 30 |  |  |  | 8,562 |  |  |  | 5 |
Municipal bonds-taxable |  |  | 787 |  |  |  | 22,817 |  |  |  | 16 |  |  |  | 293 |  |  |  | 3,813 |  |  |  | 4 |  |  |  | 1,080 |  |  |  | 26,630 |  |  |  | 20 |
Corporate bonds |  |  | 9 |  |  |  | 5,024 |  |  |  | 1 |  |  |  | 177 |  |  |  | 11,803 |  |  |  | 3 |  |  |  | 186 |  |  |  | 16,827 |  |  |  | 4 |
U.S. treasury bills |  |  | 1 |  |  |  | 19,996 |  |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 19,996 |  |  |  | 2 |
SBA loan pool securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 969 |  |  |  | 12,629 |  |  |  | 4 |  |  |  | 969 |  |  |  | 12,629 |  |  |  | 4 |
Other securities |  |  | 48 |  |  |  | 1,957 |  |  |  | 3 |  |  |  | 96 |  |  |  | 929 |  |  |  | 3 |  |  |  | 144 |  |  |  | 2,886 |  |  |  | 6 |
Total |  | $ | 10,607 |  |  | $ | 366,638 |  |  |  | 124 |  |  | $ | 8,362 |  |  | $ | 107,384 |  |  |  | 45 |  |  | $ | 18,969 |  |  | $ | 474,022 |  |  |  | 169 |
All individual securities that have been in a continuous unrealized loss position for 12 months or longer as of March 31, 2014 and December 31, 2013 had investment grade ratings upon purchase. The issuers of these securities have not established any cause for default on these securities and the various rating agencies have reaffirmed these securities’ long-term investment grade status as of March 31, 2014 and December 31, 2013. These securities have fluctuated in value since their purchase dates as market interest rates have fluctuated. FASB ASC 320 requires other-than-temporarily impaired investment securities to be written down when fair value is below amortized cost in circumstances where: (1) an entity has the intent to sell a security; (2) it is more likely than not that an entity will be required to sell the security before recovery of its amortized cost basis; or (3) an entity does not expect to recover the entire amortized cost basis of the security. If an entity intends to sell a security or if it is more likely than not the entity will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If an entity does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and the amount related to all other factors, which is recognized in other comprehensive income. The Company does not intend to sell these securities and it is not more likely than not that we will be required to sell the investments before the recovery of its amortized cost basis. In addition, the unrealized losses on municipal and corporate bonds are not considered other-than-temporarily impaired as the bonds are rated investment grade and there are no credit quality concerns with the issuers. Interest payments have been made as scheduled, and management believes this will continue in the future and that the bonds will be repaid in full as scheduled. Therefore, in management’s opinion, all securities that have been in a continuous unrealized loss position for the past 12 months or longer as of March 31, 2014 and December 31, 2013 were not other-than-temporarily impaired, and therefore, no impairment charges as of March 31, 2014 and December 31, 2013 were warranted. Realized gains and losses on sales of investment securities, proceeds from sales of investment securities and tax expense on sales of investment securities were as follows for the periods indicated:
|  | Three Months Ended March 31, |
|  | 2014 |  |  | 2013 |
|  | (In thousands) |
Gross realized gains on sales of investment securities |  | $ | 1,421 |  |  | $ | 9 |
Gross realized losses on sales of investment securities |  |  | — |  |  |  | — |
Net realized gains on sales of investment securities |  | $ | 1,421 |  |  | $ | 9 |
Proceeds from sales of investment securities |  | $ | 85,234 |  |  | $ | 9,000 |
Tax expense on sales of investment securities |  | $ | 597 |  |  | $ | 4 |
For the three months ended March 31, 2014, there was a $1.4 million net gain in earnings resulting from the sale of investment securities that had previously been recorded as net unrealized gains of $59,000 in comprehensive income. For the three months ended March 31, 2013, there was a $9,000 net gain in earnings resulting from the redemption of investment securities that had previously been recorded as net unrealized gains of $34,000 in comprehensive income. Investment securities available for sale with par values of $36.9 million and $47.6 million as of March 31, 2014 and December 31, 2013, respectively, were pledged to secure Federal Home Loan Bank (“FHLB”) advances, public deposits and for other purposes as required or permitted by law.

X
- 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 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 Reference 2: 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=27724398&loc=d3e27357-111563 Reference 3: 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 4: 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 5: 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=27724398&loc=d3e27232-111563 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=27724398&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 10 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563 Reference 9: 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 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration