XML 63 R10.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Securities | 9 Months Ended
--- | ---
Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract] |
Securities |
|  | September 30, 2015
(Dollar amounts in thousands) |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
U.S. Government agencies |  | $ | 11,059 |  |  | $ | 61 |  |  | $ | — |  |  | $ | 11,120 |
Mortgage Backed Securities - Residential |  | 188,184 |  |  | 6,391 |  |  | (235 | ) |  | 194,340 |
Mortgage Backed Securities - Commercial |  | 10 |  |  | — |  |  | — |  |  | 10 |
Collateralized Mortgage Obligations |  | 453,593 |  |  | 4,019 |  |  | (3,703 | ) |  | 453,909 |
State and Municipal Obligations |  | 204,279 |  |  | 7,438 |  |  | (377 | ) |  | 211,340 |
Collateralized Debt Obligations |  | 9,715 |  |  | 5,402 |  |  | — |  |  | 15,117 |
TOTAL |  | $ | 866,840 |  |  | $ | 23,311 |  |  | $ | (4,315 | ) |  | $ | 885,836 |
|  | December 31, 2014
(Dollar amounts in thousands) |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
U.S. Government agencies |  | $ | 1,411 |  |  | $ | 56 |  |  | $ | — |  |  | $ | 1,467 |
Mortgage Backed Securities-residential |  | 180,673 |  |  | 7,593 |  |  | (330 | ) |  | 187,936 |
Mortgage Backed Securities-commercial |  | 17 |  |  | — |  |  | — |  |  | 17 |
Collateralized mortgage obligations |  | 489,765 |  |  | 2,513 |  |  | (7,623 | ) |  | 484,655 |
State and municipal |  | 198,875 |  |  | 9,019 |  |  | (219 | ) |  | 207,675 |
Collateralized debt obligations |  | 10,205 |  |  | 5,115 |  |  | (17 | ) |  | 15,303 |
TOTAL |  | $ | 880,946 |  |  | $ | 24,296 |  |  | $ | (8,189 | ) |  | $ | 897,053 |
Contractual maturities of debt securities at September 30, 2015 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and equity securities are shown separately.
|  | Available-for-Sale
|  | Amortized |  | Fair
(Dollar amounts in thousands) |  | Cost |  | Value
Due in one year or less |  | $ | 3,399 |  |  | $ | 3,426 |
Due after one but within five years |  | 40,291 |  |  | 41,512 |
Due after five but within ten years |  | 88,042 |  |  | 91,552 |
Due after ten years |  | 93,321 |  |  | 101,087 |
|  | 225,053 |  |  | 237,577 |
Mortgage-backed securities and collateralized mortgage obligations |  | 641,787 |  |  | 648,259 |
TOTAL |  | $ | 866,840 |  |  | $ | 885,836 |
There were $9 thousand in gross gains and no losses from investment sales realized by the Corporation for the three months ended September 30, 2015. For the nine months ended September 30, 2015 there were $23 thousand in gross gains and no losses. For the nine months ended September 30, 2014 there were $1 thousand in gross losses on sales of investment securities. There were no gains or losses on investment securities in the third quarter of 2014. The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at September 30, 2015 and December 31, 2014.
|  | September 30, 2015
|  | Less Than 12 Months |  | More Than 12 Months |  |  |  | Total
|  |  |  | Unrealized |  |  |  | Unrealized |  |  |  | Unrealized
(Dollar amounts in thousands) |  | Fair Value |  | Losses |  | Fair Value |  | Losses |  | Fair Value |  | Losses
Mortgage Backed Securities - Residential |  | $ | 18,372 |  |  | $ | (180 | ) |  | $ | 19,957 |  |  | $ | (55 | ) |  | $ | 38,329 |  |  | $ | (235 | )
Collateralized mortgage obligations |  | 147,188 |  |  | (3,318 | ) |  | 55,710 |  |  | (385 | ) |  | 202,898 |  |  | (3,703 | )
State and municipal obligations |  | 4,372 |  |  | (101 | ) |  | 23,387 |  |  | (276 | ) |  | 27,759 |  |  | (377 | )
Total temporarily impaired securities |  | $ | 169,932 |  |  | $ | (3,599 | ) |  | $ | 99,054 |  |  | $ | (716 | ) |  | $ | 268,986 |  |  | $ | (4,315 | )
|  | December 31, 2014
|  | Less Than 12 Months |  | More Than 12 Months |  |  |  | Total
|  |  |  | Unrealized |  |  |  | Unrealized |  |  |  | Unrealized
(Dollar amounts in thousands) |  | Fair Value |  | Losses |  | Fair Value |  | Losses |  | Fair Value |  | Losses
Mortgage Backed Securities - Residential |  | $ | — |  |  | $ | — |  |  | $ | 23,849 |  |  | $ | (330 | ) |  | $ | 23,849 |  |  | $ | (330 | )
Collateralized mortgage obligations |  | 50,832 |  |  | (128 | ) |  | 264,940 |  |  | (7,495 | ) |  | 315,772 |  |  | (7,623 | )
State and municipal obligations |  | 6,500 |  |  | (35 | ) |  | 10,547 |  |  | (184 | ) |  | 17,047 |  |  | (219 | )
Collateralized Debt Obligations |  | — |  |  | — |  |  | 200 |  |  | (17 | ) |  | 200 |  |  | (17 | )
Total temporarily impaired securities |  | $ | 57,332 |  |  | $ | (163 | ) |  | $ | 299,536 |  |  | $ | (8,026 | ) |  | $ | 356,868 |  |  | $ | (8,189 | )
Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under FASB ASC 320, Investments - Debt and Equity Securities. However, certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, that had credit ratings at the time of purchase of below AA are evaluated using the model outlined in FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets. When OTTI occurs under either model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. Gross unrealized losses on investment securities were $4.3 million as of September 30, 2015 and $8.2 million as of December 31, 2014. A majority of these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer. Based upon our review of the issuers, we do not believe these investments to be other than temporarily impaired. Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery. There are three collateralized debt obligations securities with previously recorded OTTI but there is no OTTI in 2015 or 2014. Management has consistently used Standard & Poors pricing to value these investments. There are a number of other pricing sources available to determine fair value for these investments. These sources utilize a variety of methods to determine fair value. The result is a wide range of estimates of fair value for these securities. The Standard & Poors pricing ranges from 44.9 to 63.8 while Moody Investor Service pricing ranges from 7.2 to 16.3, with others falling somewhere in between. We recognize that the Standard & Poors pricing utilized is an estimate, but have been consistent in using this source and its estimate of fair value. The table below presents a rollforward of the credit losses recognized in earnings for the three and nine month periods ended September 30, 2015 and 2014:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollar amounts in thousands) |  | 2015 |  | 2014 |  | 2015 |  | 2014
Beginning balance |  | $ | 13,995 |  |  | $ | 14,079 |  |  | $ | 14,050 |  |  | $ | 14,079 |
Increases to the amount related to the credit |  |  |  |  |  |  |  |  |  |  |  |
Loss for which other-than-temporary was previously recognized |  | — |  |  | — |  |  | — |  |  | — |
Reductions for increases in cash flows collected |  | — |  |  | (29 | ) |  | (55 | ) |  | (29 | )
Amounts realized for securities sold during the period |  | — |  |  | — |  |  | — |  |  | — |
Ending balance |  | $ | 13,995 |  |  | $ | 14,050 |  |  | $ | 13,995 |  |  | $ | 14,050 |

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