XML 95 R10.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Investment Securities | 9 Months Ended
--- | ---
Sep. 30, 2015
Investment Securities | Note 2. Investment Securities The following tables present the amortized cost and aggregate fair value of available-for-sale securities, including gross unrealized gains and losses, as of the dates indicated:
|  | September 30, 2015 |
|  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 32,173 |  |  | $ | 80 |  |  | $ | (577 | ) |  | $ | 31,676 |
Municipal securities |  |  | 127,705 |  |  |  | 4,038 |  |  |  | (655 | ) |  |  | 131,088 |
Single issue trust preferred securities |  |  | 55,867 |  |  |  | — |  |  |  | (6,433 | ) |  |  | 49,434 |
Corporate securities |  |  | 70,798 |  |  |  | — |  |  |  | (144 | ) |  |  | 70,654 |
Certificates of deposit |  |  | 5,000 |  |  |  | — |  |  |  | — |  |  |  | 5,000 |
Mortgage-backed Agency securities |  |  | 94,432 |  |  |  | 427 |  |  |  | (734 | ) |  |  | 94,125 |
Equity securities |  |  | 222 |  |  |  | 13 |  |  |  | — |  |  |  | 235 |
Total |  | $ | 386,197 |  |  | $ | 4,558 |  |  | $ | (8,543 | ) |  | $ | 382,212 |
|  | December 31, 2014 |
|  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |
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 |
The following tables present the amortized cost and aggregate fair value of held-to-maturity securities, including gross unrealized gains and losses, as of the dates indicated:
|  | September 30, 2015 |
|  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 61,895 |  |  | $ | 366 |  |  | $ | — |  |  | $ | 62,261 |
Municipal securities |  |  | 190 |  |  |  | 1 |  |  |  | — |  |  |  | 191 |
Corporate securities |  |  | 10,511 |  |  |  | 67 |  |  |  | — |  |  |  | 10,578 |
Total |  | $ | 72,596 |  |  | $ | 434 |  |  | $ | — |  |  | $ | 73,030 |
|  | December 31, 2014 |
|  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |
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 |
The following table presents the amortized cost and aggregate fair value of available-for-sale securities and held-to-maturity securities, by contractual maturity, as of September 30, 2015. 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) |  | Amortized Cost |  |  | Fair Value |
Available-for-sale securities |  |  |  |  |  |  |  |
Due within one year |  | $ | 56,044 |  |  | $ | 55,956 |
Due after one year but within five years |  |  | 20,108 |  |  |  | 20,137 |
Due after five years but within ten years |  |  | 75,932 |  |  |  | 78,955 |
Due after ten years |  |  | 134,459 |  |  |  | 127,804 |
|  |  | 286,543 |  |  |  | 282,852 |
Mortgage-backed securities |  |  | 94,432 |  |  |  | 94,125 |
Certificates of deposit |  |  | 5,000 |  |  |  | 5,000 |
Equity securities |  |  | 222 |  |  |  | 235 |
Total |  | $ | 386,197 |  |  | $ | 382,212 |
Held-to-maturity securities |  |  |  |  |  |  |  |
Due within one year |  | $ | 190 |  |  | $ | 191 |
Due after one year but within five years |  |  | 72,406 |  |  |  | 72,839 |
Due after five years but within ten years |  |  | — |  |  |  | — |
Due after ten years |  |  | — |  |  |  | — |
Total |  | $ | 72,596 |  |  | $ | 73,030 |
The following table presents the proceeds from sales of available-for-sale securities and the gross realized gains and losses on those sales in the periods indicated:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Gross realized gains |  | $ | 26 |  |  | $ | 746 |  |  | $ | 292 |  |  | $ | 2,257 |
Gross realized losses |  |  | (65 | ) |  |  | (426 | ) |  |  | (141 | ) |  |  | (1,951 | )
Net gain (loss) on sale of securities |  | $ | (39 | ) |  | $ | 320 |  |  | $ | 151 |  |  | $ | 306 |
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:
|  | September 30, 2015 |
|  | Less than 12 Months |  |  | 12 Months or longer |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | — |  |  | $ | — |  |  | $ | 24,670 |  |  | $ | (577 | ) |  | $ | 24,670 |  |  | $ | (577 | )
Municipal securities |  |  | 13,702 |  |  |  | (172 | ) |  |  | 10,222 |  |  |  | (483 | ) |  |  | 23,924 |  |  |  | (655 | )
Single issue trust preferred securities |  |  | — |  |  |  | — |  |  |  | 49,434 |  |  |  | (6,433 | ) |  |  | 49,434 |  |  |  | (6,433 | )
Corporate securities |  |  | 62,257 |  |  |  | (144 | ) |  |  | — |  |  |  | — |  |  |  | 62,257 |  |  |  | (144 | )
Mortgage-backed Agency securities |  |  | 14,367 |  |  |  | (99 | ) |  |  | 39,126 |  |  |  | (635 | ) |  |  | 53,493 |  |  |  | (734 | )
Total |  | $ | 90,326 |  |  | $ | (415 | ) |  | $ | 123,452 |  |  | $ | (8,128 | ) |  | $ | 213,778 |  |  | $ | (8,543 | )
|  | December 31, 2014 |
|  | Less than 12 Months |  |  | 12 Months or longer |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 | )
There were no unrealized losses related to held-to-maturity securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of September 30, 2015. 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 December 31, 2014.
|  | December 31, 2014 |
|  | Less than 12 Months |  |  | 12 Months or longer |  |  | Total |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 | )
As of September 30, 2015, there were 108 securities in an unrealized loss position, and their combined depreciation in value represented 1.88% of the investment securities portfolio. As of December 31, 2014, there were 97 individual securities in an unrealized loss position, and their combined depreciation in value represented 3.21% of the investment securities portfolio. The Company reviews its investment portfolio quarterly for indications of OTTI. Debt securities not beneficially owned by the Company include securities issued from the U.S. Department of the Treasury (“Treasury”), municipal securities, single issue trust preferred securities, corporate securities, and certificates of deposit. For debt securities not beneficially owned, the Company analyzes factors such as the severity and duration of the impairment, adverse conditions within the issuing industry, prospects for the issuer, performance of the security, changes in rating by rating agencies, and other qualitative factors to determine if the impairment will be recovered. If the evaluation suggests that the impairment will not be recovered, the Company calculates the present value of the security to determine the amount of OTTI. The security is then written down to its current present value and the Company calculates and records the amount of the loss due to credit factors in earnings through noninterest income and the amount due to other factors in stockholders’ equity through OCI. Temporary impairment on these securities is primarily related to changes in benchmark interest rates, changes in pricing in the credit markets, destabilization in the Eurozone, and other current economic factors. During the three and nine months ended September 30, 2015 and 2014, the Company incurred no OTTI charges related to debt securities not beneficially owned. Debt securities beneficially owned by the Company consist of mortgage-backed securities (“MBS”). For debt securities beneficially owned, the Company analyzes the cash flows for each applicable security to determine if an adverse change in cash flows expected to be collected has occurred. If the projected value of cash flows at the current reporting date is less than the present value previously projected, and less than the current book value, an adverse change has occurred. The Company then compares the current present value of cash flows to the current net book value to determine the credit-related portion of the OTTI. The credit-related OTTI is recorded in earnings through noninterest income and any remaining noncredit-related OTTI is recorded in stockholders’ equity through OCI. During the three and nine months ended September 30, 2015, the Company incurred no credit-related OTTI charges related to debt securities beneficially owned. During the three months ended September 30, 2014, the Company incurred credit-related OTTI charges associated with debt securities beneficially owned of $219 thousand. During the nine months ended September 30, 2014, the Company incurred credit-related OTTI charges associated with debt securities beneficially owned of $705 thousand. These charges were associated with a non-Agency MBS that was sold in November 2014. 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:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance(1) |  | $ | — |  |  | $ | 8,284 |  |  | $ | — |  |  | $ | 7,798 |
Additions for credit losses on securities previously recognized |  |  | — |  |  |  | 219 |  |  |  | — |  |  |  | 705 |
Ending balance |  | $ | — |  |  | $ | 8,503 |  |  | $ | — |  |  | $ | 8,503 |
(1) | The beginning balance includes credit related losses included in OTTI charges recognized on debt securities in prior periods.
For equity securities, the Company considers its intent to hold or sell the security before recovery, the severity and duration of the decline in fair value of the security below its cost, the financial condition and near-term prospects of the issuer, and whether the decline appears to be related to issuer, general market, or industry conditions to determine if the impairment will be recovered. If the Company deems the impairment other-than-temporary in nature, the security is written down to its current present value and the OTTI loss is charged to earnings. During the three and nine months ended September 30, 2015, the Company incurred no OTTI charges related to equity holdings. During the three months ended September 30, 2014, the Company incurred no OTTI charges related to equity holdings. During the nine months ended September 30, 2014, the Company incurred OTTI charges related to certain equity holdings of $32 thousand. The carrying amount of securities pledged for various purposes totaled $243.75 million as of September 30, 2015, and $268.78 million as of December 31, 2014.

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