XML 25 R11.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Investment Securities | 12 Months Ended
--- | ---
Dec. 31, 2016
Investment Securities |
Note 3. | Investment Securities
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, 2016 |
(Amounts in thousands) |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
U.S. Agency securities |  | $ | 1,342 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 1,345 |
Municipal securities |  |  | 111,659 |  |  |  | 2,258 |  |  |  | (586 | ) |  |  | 113,331 |
Single issue trust preferred securities |  |  | 22,104 |  |  |  | — |  |  |  | (2,165 | ) |  |  | 19,939 |
Mortgage-backed Agency securities |  |  | 31,290 |  |  |  | 66 |  |  |  | (465 | ) |  |  | 30,891 |
Equity securities |  |  | 55 |  |  |  | 18 |  |  |  | — |  |  |  | 73 |
Total securities available for sale |  | $ | 166,450 |  |  | $ | 2,345 |  |  | $ | (3,216 | ) |  | $ | 165,579 |
|  | December 31, 2015 |
(Amounts in thousands) |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
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 table presents the amortized cost and fair value of available-for-sale securities, by contractual maturity, as of December 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) |  | U.S. Agency Securities |  |  | Municipal Securities |  |  | Corporate Notes |  |  | Total |
Amortized cost maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
One year or less |  | $ | — |  |  | $ | 1,135 |  |  | $ | — |  |  | $ | 1,135 |
After one year through five years |  |  | 1 |  |  |  | 1,035 |  |  |  | — |  |  |  | 1,036 |
After five years through ten years |  |  | — |  |  |  | 88,449 |  |  |  | — |  |  |  | 88,449 |
After ten years |  |  | 1,341 |  |  |  | 21,040 |  |  |  | 22,104 |  |  |  | 44,485 |
Amortized cost |  | $ | 1,342 |  |  | $ | 111,659 |  |  | $ | 22,104 |  |  |  | 135,105 |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 31,290 |
Equity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 55 |
Total amortized cost |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 166,450 |
Fair value maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
One year or less |  | $ | — |  |  | $ | 1,141 |  |  | $ | — |  |  | $ | 1,141 |
After one year through five years |  |  | 1 |  |  |  | 1,059 |  |  |  | — |  |  |  | 1,060 |
After five years through ten years |  |  | — |  |  |  | 90,360 |  |  |  | — |  |  |  | 90,360 |
After ten years |  |  | 1,344 |  |  |  | 20,771 |  |  |  | 19,939 |  |  |  | 42,054 |
Fair value |  | $ | 1,345 |  |  | $ | 113,331 |  |  | $ | 19,939 |  |  |  | 134,615 |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 30,891 |
Equity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 73 |
Total fair value |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 165,579 |
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, 2016 |
(Amounts in thousands) |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
U.S. Agency securities |  | $ | 36,741 |  |  | $ | 124 |  |  | $ | — |  |  | $ | 36,865 |
Corporate securities |  |  | 10,392 |  |  |  | 11 |  |  |  | (2 | ) |  |  | 10,401 |
Total securities held to maturity |  | $ | 47,133 |  |  | $ | 135 |  |  | $ | (2 | ) |  | $ | 47,266 |
|  | December 31, 2015 |
(Amounts in thousands) |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
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 to maturity |  | $ | 72,541 |  |  | $ | 78 |  |  | $ | (129 | ) |  | $ | 72,490 |
The following table presents the amortized cost and fair value of held-to-maturity securities, by contractual maturity, as of December 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) |  | U.S. Agency Securities |  |  | Corporate Notes |  |  | Total |
Amortized cost maturity: |  |  |  |  |  |  |  |  |  |  |  |
One year or less |  | $ | 18,756 |  |  | $ | 3,095 |  |  | $ | 21,851 |
After one year through five years |  |  | 17,985 |  |  |  | 7,297 |  |  |  | 25,282 |
After five years through ten years |  |  | — |  |  |  | — |  |  |  | — |
After ten years |  |  | — |  |  |  | — |  |  |  | — |
Total amortized cost |  | $ | 36,741 |  |  | $ | 10,392 |  |  | $ | 47,133 |
Fair value maturity: |  |  |  |  |  |  |  |  |  |  |  |
One year or less |  | $ | 18,768 |  |  | $ | 3,096 |  |  | $ | 21,864 |
After one year through five years |  |  | 18,097 |  |  |  | 7,305 |  |  |  | 25,402 |
After five years through ten years |  |  | — |  |  |  | — |  |  |  | — |
After ten years |  |  | — |  |  |  | — |  |  |  | — |
Total fair value |  | $ | 36,865 |  |  | $ | 10,401 |  |  | $ | 47,266 |
The following tables present municipal securities, by state, for the states where the largest volume of these securities are held in the Company’s portfolio. The tables also present the amortized cost and fair value of the municipal securities, including gross unrealized gains and losses, as of the dates indicated.
|  | December 31, 2016 |
(Amounts in thousands) |  | Percent of Municipal Portfolio |  |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
New York |  |  | 11.66 | % |  | $ | 12,876 |  |  | $ | 334 |  |  | $ | — |  |  | $ | 13,210 |
Minnesota |  |  | 9.70 | % |  |  | 10,796 |  |  |  | 232 |  |  |  | (40 | ) |  |  | 10,988 |
Wisconsin |  |  | 8.66 | % |  |  | 9,786 |  |  |  | 74 |  |  |  | (42 | ) |  |  | 9,818 |
Ohio |  |  | 8.50 | % |  |  | 9,599 |  |  |  | 125 |  |  |  | (88 | ) |  |  | 9,636 |
Massachusetts |  |  | 8.45 | % |  |  | 9,355 |  |  |  | 229 |  |  |  | (10 | ) |  |  | 9,574 |
New Jersey |  |  | 7.14 | % |  |  | 7,891 |  |  |  | 202 |  |  |  | — |  |  |  | 8,093 |
Connecticut |  |  | 6.90 | % |  |  | 7,628 |  |  |  | 190 |  |  |  | — |  |  |  | 7,818 |
Texas |  |  | 6.55 | % |  |  | 7,397 |  |  |  | 130 |  |  |  | (103 | ) |  |  | 7,424 |
Iowa |  |  | 5.66 | % |  |  | 6,467 |  |  |  | 36 |  |  |  | (88 | ) |  |  | 6,415 |
Other |  |  | 26.78 | % |  |  | 29,864 |  |  |  | 706 |  |  |  | (215 | ) |  |  | 30,355 |
Total |  |  | 100.00 | % |  | $ | 111,659 |  |  | $ | 2,258 |  |  | $ | (586 | ) |  | $ | 113,331 |
|  | December 31, 2015 |
(Amounts in thousands) |  | Percent of Municipal Portfolio |  |  | Amortized Cost |  |  | Unrealized Gains |  |  | Unrealized Losses |  |  | Fair Value |
New York |  |  | 11.38 | % |  | $ | 14,062 |  |  | $ | 602 |  |  | $ | — |  |  | $ | 14,664 |
Minnesota |  |  | 8.72 | % |  |  | 11,011 |  |  |  | 283 |  |  |  | (64 | ) |  |  | 11,230 |
Wisconsin |  |  | 8.69 | % |  |  | 10,797 |  |  |  | 420 |  |  |  | (14 | ) |  |  | 11,203 |
Ohio |  |  | 8.38 | % |  |  | 10,416 |  |  |  | 388 |  |  |  | — |  |  |  | 10,804 |
Connecticut |  |  | 7.76 | % |  |  | 9,786 |  |  |  | 217 |  |  |  | (5 | ) |  |  | 9,998 |
New Jersey |  |  | 7.69 | % |  |  | 9,554 |  |  |  | 378 |  |  |  | (22 | ) |  |  | 9,910 |
Massachusetts |  |  | 7.60 | % |  |  | 9,479 |  |  |  | 315 |  |  |  | — |  |  |  | 9,794 |
Texas |  |  | 6.04 | % |  |  | 7,651 |  |  |  | 208 |  |  |  | (75 | ) |  |  | 7,784 |
Other |  |  | 5.03 | % |  |  | 6,471 |  |  |  | 75 |  |  |  | (60 | ) |  |  | 6,486 |
Total |  |  | 28.71 | % |  |  | 35,843 |  |  |  | 1,272 |  |  |  | (117 | ) |  |  | 36,998 |
|  |  | 100.00 | % |  | $ | 125,070 |  |  | $ | 4,158 |  |  | $ | (357 | ) |  | $ | 128,871 |
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, 2016 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(Amounts in thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
Municipal securities |  | $ | 24,252 |  |  | $ | (527 | ) |  | $ | 715 |  |  | $ | (59 | ) |  | $ | 24,967 |  |  | $ | (586 | )
Single issue trust preferred securities |  |  | — |  |  |  | — |  |  |  | 19,939 |  |  |  | (2,165 | ) |  |  | 19,939 |  |  |  | (2,165 | )
Mortgage-backed Agency securities |  |  | 12,834 |  |  |  | (166 | ) |  |  | 11,851 |  |  |  | (299 | ) |  |  | 24,685 |  |  |  | (465 | )
Total |  | $ | 37,086 |  |  | $ | (693 | ) |  | $ | 32,505 |  |  | $ | (2,523 | ) |  | $ | 69,591 |  |  | $ | (3,216 | )
|  | December 31, 2015 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(Amounts in thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
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:
|  | December 31, 2016 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(Amounts in thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
Corporate securities |  | $ | 3,533 |  |  | $ | (2 | ) |  | $ | — |  |  | $ | — |  |  | $ | 3,533 |  |  | $ | (2 | )
Total |  | $ | 3,533 |  |  | $ | (2 | ) |  | $ | — |  |  | $ | — |  |  | $ | 3,533 |  |  | $ | (2 | )
|  | December 31, 2015 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(Amounts in thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
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 | )
There were 82 individual securities in an unrealized loss position as of December 31, 2016, and their combined depreciation in value represented 1.51% of the investment securities portfolio. These securities included 15 securities in a continuous unrealized loss position for 12 months or longer that the Company does not intend to sell, and that it has determined is not more likely than not going to be required to sell, prior to maturity or recovery. There were 107 individual securities in an unrealized loss position as of December 31, 2015, and their combined depreciation in value represented 2.44% of the investment securities portfolio. The Company reviews its investment portfolio quarterly for indications of OTTI. The initial indicator of OTTI for both debt and equity securities is a decline in fair value below book value and the severity and duration of the decline. For debt securities, the credit-related OTTI is recognized as a charge to noninterest income and the noncredit-related OTTI is recognized in OCI. The Company incurred credit-related OTTI charges on debt securities of $4.64 million in 2016 related to the Company’s change in intent to hold certain securities to recovery. The intent was changed to sell specific trust preferred securities in the Company’s investment portfolio primarily to reduce credit concentrations with two issuers. The Company incurred credit-related OTTI charges on debt securities of $705 thousand in 2014 related to a non-Agency mortgage-backed security that was sold in November 2014. Temporary impairment on debt securities is primarily related to changes in benchmark interest rates, changes in pricing in the credit markets, and other current economic factors. For equity securities, the OTTI is recognized as a charge to noninterest income. The Company incurred OTTI charges related to equity securities of $11 thousand in 2016 and $32 thousand in 2014. There were no OTTI charges recognized in 2015. The following table presents the changes in credit-related losses recognized in earnings on debt securities where a portion of the impairment was recognized in OCI during the periods indicated:
|  | Year Ended December 31, |
(Amounts in thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Beginning balance (1) |  | $ | — |  |  | $ | — |  |  | $ | 7,798 |
Additions for credit losses on securities not previously recognized |  |  | 4,646 |  |  |  | — |  |  |  | — |
Additions for credit losses on securities previously recognized |  |  | — |  |  |  | — |  |  |  | 705 |
Reduction for securities sold/realized losses |  |  | (4,646 | ) |  |  | — |  |  |  | (8,503 | )
Ending balance |  | $ | — |  |  | $ | — |  |  | $ | — |
(1) | The beginning balance includes credit-related losses included in OTTI charges recognized on debt securities in prior periods.
The carrying amount of securities pledged for various purposes totaled $139.75 million as of December 31, 2016, and $236.73 million as of December 31, 2015. The following table presents the gross realized gains and losses from the sale of available-for-sale securities for the periods indicated:
|  | Year Ended December 31, |
(Amounts in thousands) |  | 2016 |  |  | 2015 |  |  | 2014 |
Gross realized gains |  | $ | 757 |  |  | $ | 363 |  |  | $ | 2,257 |
Gross realized losses |  |  | (422 | ) |  |  | (219 | ) |  |  | (3,642 | )
Net gain (loss) on sale of securities |  | $ | 335 |  |  | $ | 144 |  |  | $ | (1,385 | )

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=73527792&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=73527792&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=73527792&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=73527792&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=73527792&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration