Investment Securities (Tables)

12 Months Ended

Dec. 31, 2014

Amortized Cost and Fair Value of Held-to-Maturity Securities, Including Gross Unrealized Gains and Losses

The following tables present the amortized cost and fair value of available-for-sale securities, including gross unrealized gains and losses, as of the dates indicated:


	December 31, 2014
(Amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		OTTI in AOCI⁽¹⁾
U.S. Agency securities	$	34,604	$	11	$	(1,017	)	$	33,598	$	—
Municipal securities		134,784		4,823		(692	)		138,915		—
Single issue trust preferred securities		55,822		—		(9,685	)		46,137		—
Corporate securities		5,000		109		—			5,109		—
Mortgage-backed Agency securities		102,506		470		(857	)		102,119		—
Equity securities		226		19		(6	)		239		—

Total	$	332,942	$	5,432	$	(12,257	)	$	326,117	$	—


	December 31, 2014
(Amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		OTTI in AOCI⁽¹⁾
U.S. Treasury securities	$	9,708	$	—	$	(695	)	$	9,013	$	—
Municipal securities		147,049		1,868		(4,637	)		144,280		—
Single issue trust preferred securities		55,764		—		(9,530	)		46,234		—
Corporate securities		5,000		—		(129	)		4,871		—
Mortgage-backed securities:
Agency		306,319		2,575		(8,508	)		300,386		—
Non-Agency Alt-A residential		12,543		—		(2,754	)		9,789		(2,754	)

Total mortgage-backed securities		318,862		2,575		(11,262	)		310,175		(2,754	)
Equity securities		5,259		24		(36	)		5,247		—

Total	$	541,642	$	4,467	$	(26,289	)	$	519,820	$	(2,754	)

(1)	Other-than-temporary impairment in accumulated other comprehensive income

Amortized Cost, Fair Value, and Weighted-Average Yield of Securities by Contractual Maturity

The following table presents the amortized cost, fair value, and weighted-average yield of held-to-maturity securities, by contractual maturity, as of December 31, 2014. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.


(Amounts in thousands)	U.S. Agency Securities			Municipal Securities			Corporate Notes			Total			Tax Equivalent Purchase Yield⁽¹⁾
Amortized cost maturity:
Within one year	$	—		$	190		$	—		$	190			8.13	%
After one year through five years		46,987			189			10,582			57,758			1.15	%
After five years through ten years		—			—			—			—			—
After ten years		—			—			—			—			—

Total amortized cost	$	46,987		$	379		$	10,582		$	57,948

Tax equivalent purchase yield		1.01	%		8.17	%		1.64	%		1.17	%
Average contractual maturity (in years)		2.83			0.83			3.56			2.95

Fair value maturity:
Within one year	$	—		$	193		$	—		$	193
After one year through five years		46,955			193			10,548			57,696
After five years through ten years		—			—			—			—
After ten years		—			—			—			—

Total fair value	$	46,955		$	386		$	10,548		$	57,889

(1)	Fully taxable equivalent at the rate of 35%.

Amortized Cost and Fair Value of Held-to-Maturity Securities, Including Gross Unrealized Gains and Losses

The following tables present the amortized cost and fair value of held-to-maturity securities, including gross unrealized gains and losses, as of the dates indicated:


	December 31, 2014
(Amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Agency securities	$	46,987	$	22	$	(54	)	$	46,955
Municipal securities		379		7		—			386
Corporate securities		10,582		—		(34	)		10,548

Total	$	57,948	$	29	$	(88	)	$	57,889


	December 31, 2013
(Amounts in thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Municipal securities	$	568	$	11	$	—		$	579

Total	$	568	$	11	$	—		$	579

Amortized Cost and Fair Value of Municipal Securities by State, Including Gross Unrealized Gains and Losses

The following table presents municipal securities, by state, for the states where the largest volume of these securities are held in the Company’s portfolio. The table also presents the amortized cost and fair value of the municipal securities, including gross unrealized gains and losses, as of the dates indicated.


	December 31, 2014
(Amounts in thousands)	Percent of Municipal Portfolio			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
New York		10.62	%	$	14,064	$	730	$	—		$	14,794
Minnesota		8.34	%		11,188		463		(30	)		11,621
Wisconsin		8.30	%		11,340		244		(16	)		11,568
Ohio		8.14	%		11,145		337		(148	)		11,334
Connecticut		8.02	%		10,775		393		—			11,168
New Jersey		7.96	%		10,567		515		—			11,082
Massachusetts		7.18	%		9,653		393		(38	)		10,008
Texas		6.35	%		8,770		214		(133	)		8,851
Other		35.09	%		47,661		1,541		(327	)		48,875

Total		100.00	%	$	135,163	$	4,830	$	(692	)	$	139,301


	December 31, 2013
(Amounts in thousands)	Percent of Municipal Portfolio			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
New York		11.34	%	$	16,161	$	294	$	(28	)	$	16,427
Minnesota		8.56	%		12,504		174		(279	)		12,399
New Jersey		8.18	%		11,565		306		(25	)		11,846
Connecticut		7.86	%		11,406		91		(109	)		11,388
Wisconsin		7.83	%		11,815		118		(584	)		11,349
Ohio		7.45	%		11,299		135		(637	)		10,797
Massachusetts		6.85	%		10,102		119		(295	)		9,926
Texas		6.24	%		9,483		134		(576	)		9,041
Other		35.68	%		53,282		508		(2,104	)		51,686

Total		100.00	%	$	147,617	$	1,879	$	(4,637	)	$	144,859

Available-For-Sale Securities in Continuous Unrealized Loss Position

The following tables present the fair values and unrealized losses for available-for-sale securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of the dates indicated:


	December 31, 2014
	Less than 12 Months					12 Months or longer					Total
(Amounts in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Agency securities	$	—	$	—		$	29,448	$	(1,017	)	$	29,448	$	(1,017	)
Municipal securities		1,112		(8	)		25,007		(684	)		26,119		(692	)
Single issue trust preferred securities		—		—			46,137		(9,685	)		46,137		(9,685	)
Mortgage-backed Agency securities		2,778		(3	)		45,790		(854	)		48,568		(857	)
Equity securities		150		(6	)		—		—			150		(6	)

Total	$	4,040	$	(17	)	$	146,382	$	(12,240	)	$	150,422	$	(12,257	)


	December 31, 2013
	Less than 12 Months					12 Months or longer					Total
(Amounts in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury securities	$	9,013	$	(695	)	$	—	$	—		$	9,013	$	(695	)
Municipal securities		57,950		(4,147	)		3,049		(490	)		60,999		(4,637	)
Single issue trust preferred securities		—		—			46,234		(9,530	)		46,234		(9,530	)
Corporate securities		4,871		(129	)		—		—			4,871		(129	)
Mortgage-backed securities:
Agency		114,047		(4,361	)		55,706		(4,147	)		169,753		(8,508	)
Non-Agency Alt-A residential		—		—			9,789		(2,754	)		9,789		(2,754	)

Total mortgage-backed securities		114,047		(4,361	)		65,495		(6,901	)		179,542		(11,262	)
Equity securities		4,976		(24	)		20		(12	)		4,996		(36	)

Total	$	190,857	$	(9,356	)	$	114,798	$	(16,933	)	$	305,655	$	(26,289	)

Held to Maturity Securities in Continuous Unrealized Loss Position

The following table presents the fair values and unrealized losses for held-to-maturity securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of the date indicated. There were no held-to-maturity securities in a continuous unrealized loss position as of December 31, 2013 or 2012.


	December 31, 2014
	Less than 12 Months					12 Months or longer				Total
(Amounts in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Agency securities	$	28,188	$	(54	)	$	—	$	—	$	28,188	$	(54	)
Corporate securities		10,548		(34	)		—		—		10,548		(34	)

Total	$	38,736	$	(88	)	$	—	$	—	$	38,736	$	(88	)

Net Loss or Gain from Sale of Securities

The following table presents the components of the Company’s net loss or gain from the sale of securities in the periods indicated:


	Year Ended December 31,
(Amounts in thousands)	2014			2013			2012
Gross realized gains	$	2,257		$	553		$	723
Gross realized losses		(3,642	)		(154	)		(240	)

Net (loss) gain on sale of securities	$	(1,385	)	$	399		$	483

Credit Losses Recognized in Earnings for Debt Securities Where Portion of OTTI Recognized in OCI

The following table presents the activity for credit-related losses recognized in earnings on debt securities where a portion of an OTTI was recognized in OCI for the periods indicated:


	Year Ended December 31,
(Amounts in thousands)	2014			2013		2012
Beginning balance ⁽¹⁾	$	7,798		$	7,478	$	6,536
Additions for credit losses on securities previously recognized		705			320		942
Reduction for securities sold/realized losses		(8,503	)		—		—

Ending balance	$	—		$	7,798	$	7,478

(1)	The beginning balance includes credit related losses included in OTTI charges recognized on debt securities in prior periods.

Held-to-maturity Securities

Amortized Cost, Fair Value, and Weighted-Average Yield of Securities by Contractual Maturity

The following table presents the amortized cost, fair value, and weighted-average yield of available-for-sale securities, by contractual maturity, as of December 31, 2014. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.


(Amounts in thousands)	U.S. Agency Securities			Municipal Securities			Corporate Notes			Total			Tax Equivalent Purchase Yield⁽¹⁾
Amortized cost maturity:
Within one year	$	—		$	2,466		$	—		$	2,466			4.07	%
After one year through five years		3			6,069			—			6,072			6.04	%
After five years through ten years		3,156			45,137			5,000			53,293			4.55	%
After ten years		31,445			81,112			55,822			168,379			2.94	%

Amortized cost	$	34,604		$	134,784		$	60,822			230,210

Mortgage-backed securities											102,506			1.49	%
Equity securities											226			8.20	%

Total amortized cost										$	332,942

Tax equivalent purchase yield		1.95	%		4.67	%		1.45	%		3.40	%
Average contractual maturity (in years)		16.76			9.89			12.55			11.62

Fair value maturity:
Within one year	$	—		$	2,470		$	—		$	2,470
After one year through five years		3			6,229			—			6,232
After five years through ten years		3,099			47,207			5,109			55,415
After ten years		30,496			83,009			46,137			159,642

Fair value	$	33,598		$	138,915		$	51,246			223,759

Mortgage-backed securities											102,119
Equity securities											239

Total fair value										$	326,117

(1)	Fully taxable equivalent at the rate of 35%.

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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