XML 20 R9.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Securities | 9 Months Ended
--- | ---
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities The following is a summary of securities available for sale as of September 30, 2018 and December 31, 2017:
| Amortized Cost |  | Gross Unrealized Gain |  | Gross Unrealized Loss |  | Estimated Fair Value
| (in thousands)
September 30, 2018 |  |  |  |  |  |  |
Mortgage-backed securities (1) | $ | 308,054 |  |  | $ | 51 |  |  | $ | 9,719 |  |  | $ | 298,386 |
Collateralized mortgage obligations (1) | 121,541 |  |  | 6 |  |  | 3,892 |  |  | 117,655 |
U.S. government agency securities | 7,499 |  |  | — |  |  | 147 |  |  | 7,352 |
Municipal bonds-tax exempt | 111,328 |  |  | 9 |  |  | 2,059 |  |  | 109,278 |
U.S. treasury securities | 39,675 |  |  | — |  |  | 110 |  |  | 39,565 |
Total securities available for sale | $ | 588,097 |  |  | $ | 66 |  |  | $ | 15,927 |  |  | $ | 572,236 |
December 31, 2017 |  |  |  |  |  |  |
Mortgage-backed securities (1) | $ | 306,166 |  |  | $ | 145 |  |  | $ | 2,702 |  |  | $ | 303,609 |
Collateralized mortgage obligations (1) | 119,658 |  |  | 8 |  |  | 1,898 |  |  | 117,768 |
U.S. government agency securities | 7,499 |  |  | — |  |  | 85 |  |  | 7,414 |
Municipal bonds-tax exempt | 125,601 |  |  | 1,943 |  |  | 69 |  |  | 127,475 |
U.S. treasury securities | 152 |  |  | — |  |  | — |  |  | 152 |
Mutual funds | 22,916 |  |  | — |  |  | 530 |  |  | 22,386 |
Total securities available for sale | $ | 581,992 |  |  | $ | 2,096 |  |  | $ | 5,284 |  |  | $ | 578,804 |
(1) | Collateralized by residential mortgages and guaranteed by U.S. government sponsored entities.
The amortized cost and estimated fair value of securities as of September 30, 2018, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities.
| Available for Sale
| Amortized Cost |  | Estimated Fair Value
| (in thousands)
Within one year | $ | 18,067 |  |  | $ | 18,027 |
Over one year through five years | 116,744 |  |  | 114,401 |
Over five years through ten years | 228,679 |  |  | 222,171 |
Over ten years | 224,607 |  |  | 217,637 |
Total | $ | 588,097 |  |  | $ | 572,236 |
Gross unrealized losses on 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 September 30, 2018 and December 31, 2017:
| 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)
September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities | $ | 2,484 |  |  | $ | 109,384 |  |  | 44 |  |  | $ | 7,235 |  |  | $ | 183,568 |  |  | 72 |  |  | $ | 9,719 |  |  | $ | 292,952 |  |  | 116 |
Collateralized mortgage obligations | 453 |  |  | 26,235 |  |  | 7 |  |  | 3,439 |  |  | 89,706 |  |  | 47 |  |  | 3,892 |  |  | 115,941 |  |  | 54 |
U.S. government agency securities | — |  |  | — |  |  | — |  |  | 147 |  |  | 7,352 |  |  | 3 |  |  | 147 |  |  | 7,352 |  |  | 3 |
Municipal bonds-tax exempt | 1,811 |  |  | 98,667 |  |  | 43 |  |  | 248 |  |  | 7,034 |  |  | 4 |  |  | 2,059 |  |  | 105,701 |  |  | 47 |
U.S. treasury securities | 110 |  |  | 39,565 |  |  | 5 |  |  | — |  |  | — |  |  | — |  |  | 110 |  |  | 39,565 |  |  | 5 |
Total | $ | 4,858 |  |  | $ | 273,851 |  |  | 99 |  |  | $ | 11,069 |  |  | $ | 287,660 |  |  | 126 |  |  | $ | 15,927 |  |  | $ | 561,511 |  |  | 225 |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities | $ | 1,855 |  |  | $ | 197,621 |  |  | 66 |  |  | $ | 847 |  |  | $ | 56,998 |  |  | 25 |  |  | $ | 2,702 |  |  | $ | 254,619 |  |  | 91 |
Collateralized mortgage obligations | 773 |  |  | 65,726 |  |  | 20 |  |  | 1,125 |  |  | 49,986 |  |  | 32 |  |  | 1,898 |  |  | 115,712 |  |  | 52 |
U.S. government agency securities | 15 |  |  | 1,484 |  |  | 1 |  |  | 70 |  |  | 5,930 |  |  | 2 |  |  | 85 |  |  | 7,414 |  |  | 3 |
Municipal bonds-tax exempt | 48 |  |  | 11,541 |  |  | 6 |  |  | 21 |  |  | 2,737 |  |  | 2 |  |  | 69 |  |  | 14,278 |  |  | 8 |
Mutual funds | — |  |  | — |  |  | — |  |  | 530 |  |  | 22,382 |  |  | 6 |  |  | 530 |  |  | 22,382 |  |  | 6 |
Total | $ | 2,691 |  |  | $ | 276,372 |  |  | 93 |  |  | $ | 2,593 |  |  | $ | 138,033 |  |  | 67 |  |  | $ | 5,284 |  |  | $ | 414,405 |  |  | 160 |
All individual securities that have been in a continuous unrealized loss position for 12 months or longer as of September 30, 2018 and December 31, 2017 included securities with issuers which have not established any cause for default on these securities. These securities have fluctuated in value since their purchase dates as market interest rates have fluctuated. The Company does not intend to sell these securities and it is more likely than not that we will not be required to sell the securities before the recovery of their amortized cost basis. Interest payments have been made as scheduled, and management believes this will continue in the future and that the securities 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 September 30, 2018 and December 31, 2017 were not other-than-temporarily impaired, and therefore, no impairment charges as of September 30, 2018 and December 31, 2017 were warranted. Realized gains and losses on sales of securities and proceeds from sales of securities were as follows for the periods indicated:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (in thousands)
Gross realized gains on sales of securities | $ | 19 |  |  | $ | 267 |  |  | $ | 87 |  |  | $ | 1,473 |
Gross realized losses on sales of securities | — |  |  | — |  |  | (957 | ) |  | — |
Net realized (losses) gains on sales of securities | $ | 19 |  |  | $ | 267 |  |  | $ | (870 | ) |  | $ | 1,473 |
Proceeds from sales of securities | $ | 3,426 |  |  | $ | 17,644 |  |  | $ | 34,751 |  |  | $ | 70,333 |
In January 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825). This new guidance, among other provisions, amends accounting related to the classification and measurement of investments in equity securities. We adopted this guidance, as required, in the first quarter of 2018. ASU 2016-01 requires the amounts reported in accumulated other comprehensive income for equity securities that exist as of the date of adoption previously classified as available-for-sale be reclassified to retained earnings. The Company reduced the balance of securities by $529,000 as of January 1, 2018, representing the loss related to all of our mutual fund equity securities, which resulted in a net reduction of retained earnings of $382,000 and an increase of $147,000 in net deferred tax assets based on the transition requirements of this standard. For the three months ended September 30, 2018 and 2017, there was a $19,000 and $267,000 net gain in earnings resulting from the sale of securities, respectively. Net unrealized gains of $21,000 and $227,000 related to these sold securities had previously been recorded in accumulated other comprehensive income as of the beginning of the period in 2018 and 2017, respectively. During the nine months ended September 30, 2018, there was $87,000 in gains included in earnings resulting from sale of securities which had $116,000 in previously recorded unrealized gains in accumulated other comprehensive income. Additionally, during the nine months ended September 30, 2018, we sold all of our mutual fund equity securities with gross realized losses of $957,000. The Company recorded a $428,000 net loss in earnings resulting from the sale of these securities in the three months ended March 31, 2018. The remaining loss of $529,000 related to these sold securities was recorded as a transition adjustment upon adoption of ASU 2016-01 as of the beginning of the period as described in the preceding paragraph. There was a $1.5 million net gain in earnings resulting from sales of securities during the nine months ended September 30, 2017, that had previously been recorded as net unrealized gains of $971,000 in comprehensive income. Securities available for sale with market values of $29.7 million and $130.1 million as of September 30, 2018 and December 31, 2017, respectively, were pledged to secure public deposits and for other purposes as required or permitted by law.

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