XML 64 R10.htm IDEA: XBRL DOCUMENT v3.3.0.814
INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES

NOTE 2 – INVESTMENT SECURITIES

 

Investment Portfolio Composition. The amortized cost and related market value of investment securities available-for-sale were as follows:

 

   September 30, 2015  December 31, 2014
   Amortized
Cost		  Unrealized
Gains		  Unrealized
Losses		  Market
Value		  Amortized
Cost		  Unrealized
Gain		  Unrealized
Losses		  Market
Value
Available for Sale                                        
U.S. Government Treasury  $242,659   $1,330   $—     $243,989   $185,830   $220   $19   $186,031 
U.S. Government Agency   104,763    428    115    105,076    95,950    289    142    96,097 
States and Political Subdivisions   83,971    283    14    84,240    48,405    65    82    48,388 
Mortgage-Backed Securities   1,897    174    —      2,071    2,094    193    —      2,287 
Equity Securities(1)   8,695    —      —      8,695    8,745    —      —      8,745 
Total  $441,985   $2,215   $129   $444,071   $341,024   $767   $243   $341,548 
                                         
Held to Maturity                                        
U.S. Government Treasury  $134,670   $757   $—     $135,427   $76,179   $144   $6   $76,317 
U.S. Government Agency   10,060    35    —      10,095    19,807    29    19    19,817 
States and Political Subdivisions   18,676    57    1    18,732    26,717    36    6    26,747 
Mortgage-Backed Securities   30,558    96    68    30,586    40,878    33    380    40,531 
Total  $193,964   $945   $69   $194,840   $163,581   $242   $411   $163,412 
                                         
Total Investment Securities  $635,949   $3,160   $198   $638,911   $504,605   $1,009   $654   $504,960 
                                         
(1)Includes Federal Home Loan Bank, Federal Reserve Bank, and FNBB, Inc. stock recorded at cost of $3.7 million, $4.8 million, and $0.2 million, respectively, as of September 30, 2015 and Federal Home Loan Bank, Federal Reserve Bank, and Bankers Bancorporation of Florida, Inc. stock recorded at cost of $3.9 million, $4.8 million, and $0.1 million, respectively, as of December 31, 2014.

 

Securities with a carrying value of $243.8 million and $337.9 million at September 30, 2015 and December 31, 2014, respectively, were pledged to secure public deposits and for other purposes.

 

The Bank, as a member of the Federal Home Loan Bank of Atlanta (“FHLB”), is required to own capital stock in the FHLB based generally upon the balances of residential and commercial real estate loans, and FHLB advances.  FHLB stock which is included in other securities is pledged to secure FHLB advances.  No ready market exists for this stock, and it has no quoted market value; however, redemption of this stock has historically been at par value.

 

Maturity Distribution. As of September 30, 2015, the Company's investment securities had the following maturity distribution based on contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations. Mortgage-backed securities and certain amortizing U.S. government agency securities are shown separately because they are not due at a certain maturity date.

 

   Available for Sale  Held to Maturity
(Dollars in Thousands)  Amortized
Cost		  Market
Value		  Amortized
Cost		  Market
Value
Due in one year or less  $59,038   $59,115   $29,291   $29,385 
Due after one through five years   299,404    300,992    134,115    134,869 
Mortgage-Backed Securities   1,897    2,071    30,558    30,586 
U.S. Government Agency   72,951    73,198    —      —   
Equity Securities   8,695    8,695    —      —   
Total  $441,985   $444,071   $193,964   $194,840 

 

Unrealized Losses on Investment Securities. The following table summarizes the investment securities with unrealized losses as of September 30, 2015, aggregated by major security type and length of time in a continuous unrealized loss position:

 

   Less Than
12 Months		  Greater Than
12 Months		  Total
(Dollars in Thousands)  Market
Value		  Unrealized
Losses		  Market
Value		  Unrealized
Losses		  Market
Value		  Unrealized
Losses
September 30, 2015                  
    Available for Sale                              
    U.S. Government Agency  $11,909   $50   $11,409   $65   $23,318   $115 
    States and Political Subdivisions   12,690    13    604    1    13,294    14 
    Total  $24,599   $63   $12,013   $66   $36,612   $129 

 

Held to Maturity

                              
    States and Political Subdivisions  $926   $1   $—     $—     $926   $1 
    Mortgage-Backed Securities   2,691    19    13,235    49    15,926    68 
    Total  $3,617   $20   $13,235   $49   $16,852   $69 
                               
    December 31, 2014                              
Available for Sale                              
    U.S. Government Treasury  $35,838   $19   $—     $—     $35,838   $19 
    U.S. Government Agency   18,160    54    18,468    88    36,628    142 
    States and Political Subdivisions   16,497    77    505    5    17,002    82 
    Total  $70,495   $150   $18,973   $93   $89,468   $243 

 

Held to Maturity

                              
    U.S. Government Treasury  $15,046   $6   $—     $—     $15,046   $6 
    U.S. Government Agency   10,002    19    —      —      10,002    19 
    States and Political Subdivisions   3,788    6    —      —      3,788    6 
    Mortgage-Backed Securities   15,066    149    18,155    231    33,221    380 
    Total  $43,902   $180   $18,155   $231   $62,057   $411 
                               

Management evaluates securities for other than temporary impairment at least quarterly, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to: 1) the length of time and the extent to which the fair value has been less than amortized cost, 2) the financial condition and near-term prospects of the issuer, and 3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in cost. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by rating agencies have occurred, regulatory issues, and analysts’ reports.

 

Approximately $12.0 million of investment securities, with an unrealized loss of approximately $66,000, have been in a loss position for greater than 12 months. These debt securities are in a loss position because they were acquired when the general level of interest rates was lower than that on September 30, 2015. The Company believes that the unrealized losses in these debt securities are temporary in nature and that the full principal will be collected as anticipated. Because the declines in the market value of these investments are attributable to changes in interest rates and not credit quality and because the Company does not intend to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired as of September 30, 2015.