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Investment Securities | 3 Months Ended
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Mar. 31, 2016
Investment Securities |
Note 3. | 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:
|  | March 31, 2016 |
|  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 30,737 |  |  | $ | 89 |  |  | $ | (257 | ) |  | $ | 30,569 |
Municipal securities |  |  | 122,587 |  |  |  | 5,317 |  |  |  | (59 | ) |  |  | 127,845 |
Single issue trust preferred securities |  |  | 55,897 |  |  |  | — |  |  |  | (11,809 | ) |  |  | 44,088 |
Corporate securities |  |  | 70,343 |  |  |  | — |  |  |  | (92 | ) |  |  | 70,251 |
Mortgage-backed Agency securities |  |  | 65,778 |  |  |  | 282 |  |  |  | (416 | ) |  |  | 65,644 |
Equity securities |  |  | 66 |  |  |  | 6 |  |  |  | — |  |  |  | 72 |
Total securities available for sale |  | $ | 345,408 |  |  | $ | 5,694 |  |  | $ | (12,633 | ) |  | $ | 338,469 |
|  | December 31, 2015 |
|  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 31,414 |  |  | $ | 39 |  |  | $ | (751 | ) |  | $ | 30,702 |
Municipal securities |  |  | 124,880 |  |  |  | 4,155 |  |  |  | (357 | ) |  |  | 128,678 |
Single issue trust preferred securities |  |  | 55,882 |  |  |  | — |  |  |  | (8,050 | ) |  |  | 47,832 |
Corporate securities |  |  | 70,571 |  |  |  | — |  |  |  | (238 | ) |  |  | 70,333 |
Certificates of deposit |  |  | 5,000 |  |  |  | — |  |  |  | — |  |  |  | 5,000 |
Mortgage-backed Agency securities |  |  | 84,576 |  |  |  | 155 |  |  |  | (1,175 | ) |  |  | 83,556 |
Equity securities |  |  | 66 |  |  |  | 6 |  |  |  | — |  |  |  | 72 |
Total securities available for sale |  | $ | 372,389 |  |  | $ | 4,355 |  |  | $ | (10,571 | ) |  | $ | 366,173 |
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:
|  | March 31, 2016 |
|  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 61,831 |  |  | $ | 374 |  |  | $ | (8 | ) |  | $ | 62,197 |
Municipal securities |  |  | 190 |  |  |  | 1 |  |  |  | — |  |  |  | 191 |
Corporate securities |  |  | 10,464 |  |  |  | 91 |  |  |  | — |  |  |  | 10,555 |
Total securities held for investment |  | $ | 72,485 |  |  | $ | 466 |  |  | $ | (8 | ) |  | $ | 72,943 |
|  | December 31, 2015 |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 61,863 |  |  | $ | 75 |  |  | $ | (106 | ) |  | $ | 61,832 |
Municipal securities |  |  | 190 |  |  |  | 3 |  |  |  | — |  |  |  | 193 |
Corporate securities |  |  | 10,488 |  |  |  | — |  |  |  | (23 | ) |  |  | 10,465 |
Total securities held for investment |  | $ | 72,541 |  |  | $ | 78 |  |  | $ | (129 | ) |  | $ | 72,490 |
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 March 31, 2016. 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 |  | $ | 71,929 |  |  | $ | 71,856 |
Due after one year but within five years |  |  | 2,623 |  |  |  | 2,663 |
Due after five years but within ten years |  |  | 88,169 |  |  |  | 92,622 |
Due after ten years |  |  | 116,843 |  |  |  | 105,612 |
|  |  | 279,564 |  |  |  | 272,753 |
Mortgage-backed securities |  |  | 65,778 |  |  |  | 65,644 |
Equity securities |  |  | 66 |  |  |  | 72 |
Total securities available for sale |  | $ | 345,408 |  |  | $ | 338,469 |
Held-to-maturity securities |  |  |  |  |  |  |  |
Due within one year |  | $ | 25,232 |  |  | $ | 25,231 |
Due after one year but within five years |  |  | 47,253 |  |  |  | 47,712 |
Due after five years but within ten years |  |  | — |  |  |  | — |
Due after ten years |  |  | — |  |  |  | — |
Total securities held to maturity |  | $ | 72,485 |  |  | $ | 72,943 |
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:
|  | March 31, 2016 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 1,418 |  |  | $ | (1 | ) |  | $ | 23,809 |  |  | $ | (256 | ) |  | $ | 25,227 |  |  | $ | (257 | )
Municipal securities |  |  | 395 |  |  |  | (1 | ) |  |  | 3,239 |  |  |  | (58 | ) |  |  | 3,634 |  |  |  | (59 | )
Single issue trust preferred securities |  |  | — |  |  |  | — |  |  |  | 44,088 |  |  |  | (11,809 | ) |  |  | 44,088 |  |  |  | (11,809 | )
Corporate securities |  |  | 60,210 |  |  |  | (84 | ) |  |  | 10,041 |  |  |  | (8 | ) |  |  | 70,251 |  |  |  | (92 | )
Mortgage-backed Agency securities |  |  | 5,020 |  |  |  | (22 | ) |  |  | 37,329 |  |  |  | (394 | ) |  |  | 42,349 |  |  |  | (416 | )
Total |  | $ | 67,043 |  |  | $ | (108 | ) |  | $ | 118,506 |  |  | $ | (12,525 | ) |  | $ | 185,549 |  |  | $ | (12,633 | )
|  | December 31, 2015 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 4,441 |  |  | $ | (5 | ) |  | $ | 23,922 |  |  | $ | (746 | ) |  | $ | 28,363 |  |  | $ | (751 | )
Municipal securities |  |  | 8,126 |  |  |  | (48 | ) |  |  | 10,393 |  |  |  | (309 | ) |  |  | 18,519 |  |  |  | (357 | )
Single issue trust preferred securities |  |  | — |  |  |  | — |  |  |  | 47,832 |  |  |  | (8,050 | ) |  |  | 47,832 |  |  |  | (8,050 | )
Corporate securities |  |  | 70,333 |  |  |  | (238 | ) |  |  | — |  |  |  | — |  |  |  | 70,333 |  |  |  | (238 | )
Mortgage-backed Agency securities |  |  | 27,050 |  |  |  | (253 | ) |  |  | 37,291 |  |  |  | (922 | ) |  |  | 64,341 |  |  |  | (1,175 | )
Total |  | $ | 109,950 |  |  | $ | (544 | ) |  | $ | 119,438 |  |  | $ | (10,027 | ) |  | $ | 229,388 |  |  | $ | (10,571 | )
The following tables present 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 dates indicated. |
|  | March 31, 2016 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 13,749 |  |  | $ | (8 | ) |  | $ | — |  |  | $ | — |  |  | $ | 13,749 |  |  | $ | (8 | )
Total |  | $ | 13,749 |  |  | $ | (8 | ) |  | $ | — |  |  | $ | — |  |  | $ | 13,749 |  |  | $ | (8 | )
|  | December 31, 2015 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 43,723 |  |  | $ | (106 | ) |  | $ | — |  |  | $ | — |  |  | $ | 43,723 |  |  | $ | (106 | )
Corporate securities |  |  | 6,851 |  |  |  | (23 | ) |  |  | — |  |  |  | — |  |  |  | 6,851 |  |  |  | (23 | )
Total |  | $ | 50,574 |  |  | $ | (129 | ) |  | $ | — |  |  | $ | — |  |  | $ | 50,574 |  |  | $ | (129 | )
As of March 31, 2016, there were 52 individual securities in an unrealized loss position, and their combined depreciation in value represented 3.08% of the investment securities portfolio. As of December 31, 2015, there were 107 individual securities in an unrealized loss position, and their combined depreciation in value represented 2.44% of the investment securities portfolio. 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 |
|  | March 31, |
|  | 2016 |  |  | 2015 |
(Amounts in thousands) |  |  |  |  |  |
Gross realized gains |  | $ | 132 |  |  | $ | 15 |
Gross realized losses |  |  | (131 | ) |  |  | (38 | )
Net gain (loss) on sale of securities |  | $ | 1 |  |  | $ | (23 | )
The carrying amount of securities pledged for various purposes totaled $222.54 million as of March 31, 2016, and $236.73 million as of December 31, 2015. The Company reviews its investment portfolio quarterly for indications of other-than-temporary impairment (“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 other comprehensive income (“OCI”). Temporary impairment on these securities is primarily related to changes in benchmark interest rates, changes in pricing in the credit markets, destabilization in foreign markets, and other current economic factors. During the three months ended March 31, 2016 and 2015, the Company incurred no OTTI charges related to debt securities not beneficially owned. 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 months ended March 31, 2016 and 2015, the Company incurred no OTTI charges related to equity holdings.

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