XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.8.0.1

MARKETABLE SECURITIES | 9 Months Ended
--- | ---
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract] |
MARKETABLE SECURITIES | MARKETABLE SECURITIES The following tables summarize the amortized cost and fair value of securities available for sale and securities held to maturity as of September 30, 2017 and December 31, 2016 and the corresponding amounts of gross unrealized gains and losses:
September 30, 2017 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Available for sale: |  |  |  |  |  |  |
Corporate bonds | $ | 18,842 |  |  | $ | 178 |  |  | $ | — |  |  | $ | 19,020 |
Municipal securities | 7,769 |  |  | — |  |  | 305 |  |  | 7,464 |
Mortgage-backed securities | 91,801 |  |  | 20 |  |  | 863 |  |  | 90,958 |
Collateralized mortgage obligations | 120,580 |  |  | 493 |  |  | 382 |  |  | 120,691 |
Total available for sale | $ | 238,992 |  |  | $ | 691 |  |  | $ | 1,550 |  |  | $ | 238,133 |
Held to maturity: |  |  |  |  |  |  |
Municipal securities | $ | 146,993 |  |  | $ | 2,696 |  |  | $ | 516 |  |  | $ | 149,173 |
Mortgage-backed securities | 23,337 |  |  | 278 |  |  | 66 |  |  | 23,549 |
Collateralized mortgage obligations | 8,751 |  |  | 181 |  |  | 503 |  |  | 8,429 |
Total held to maturity | $ | 179,081 |  |  | $ | 3,155 |  |  | $ | 1,085 |  |  | $ | 181,151 |
December 31, 2016 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Available for sale: |  |  |  |  |  |  |
Corporate bonds | $ | 25,254 |  |  | $ | 6 |  |  | $ | 377 |  |  | $ | 24,883 |
Municipal securities | 7,841 |  |  | — |  |  | 622 |  |  | 7,219 |
Mortgage-backed securities | 61,298 |  |  | — |  |  | 1,608 |  |  | 59,690 |
Collateralized mortgage obligations | 65,789 |  |  | 10 |  |  | 666 |  |  | 65,133 |
Total available for sale | $ | 160,182 |  |  | $ | 16 |  |  | $ | 3,273 |  |  | $ | 156,925 |
Held to maturity: |  |  |  |  |  |  |
Municipal securities | $ | 149,420 |  |  | $ | 901 |  |  | $ | 3,889 |  |  | $ | 146,432 |
Mortgage-backed securities | 28,450 |  |  | 318 |  |  | 290 |  |  | 28,478 |
Collateralized mortgage obligations | 11,501 |  |  | 265 |  |  | 521 |  |  | 11,245 |
Total held to maturity | $ | 189,371 |  |  | $ | 1,484 |  |  | $ | 4,700 |  |  | $ | 186,155 |
The Company’s held to maturity mortgage-backed securities portfolio includes non-agency collateralized mortgage obligations with a carrying value of $1,470, which had unrealized losses of $503 as of September 30, 2017. These non-agency mortgage-backed securities were rated AAA at purchase. The Company monitors these securities to ensure it has adequate credit support, and the Company records other than temporary impairment (OTTI) as appropriate. The Company does not have the intent to sell these securities and does not expect to sell the securities before their anticipated recovery. Management evaluates securities for OTTI on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The Company did no t record any OTTI losses on any of its securities during the nine months ended September 30, 2017 or for the year ended December 31, 2016. Information pertaining to securities with gross unrealized losses as of September 30, 2017 and December 31, 2016 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is detailed in the following tables:
| Less Than 12 Months |  | 12 Months or Longer |  | Total
September 30, 2017 | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value
Available for sale: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Municipal securities | — |  |  | — |  |  | (305 | ) |  | 7,464 |  |  | (305 | ) |  | 7,464 |
Mortgage-backed securities | (556 | ) |  | 72,802 |  |  | (307 | ) |  | 13,913 |  |  | (863 | ) |  | 86,715 |
Collateralized mortgage obligations | (244 | ) |  | 42,825 |  |  | (138 | ) |  | 7,522 |  |  | (382 | ) |  | 50,347 |
Total available for sale | $ | (800 | ) |  | $ | 115,627 |  |  | $ | (750 | ) |  | $ | 28,899 |  |  | $ | (1,550 | ) |  | $ | 144,526 |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |
Municipal securities | $ | (258 | ) |  | $ | 39,090 |  |  | $ | (258 | ) |  | $ | 13,085 |  |  | $ | (516 | ) |  | $ | 52,175 |
Mortgage-backed securities | (66 | ) |  | 10,562 |  |  | — |  |  | — |  |  | (66 | ) |  | 10,562 |
Collateralized mortgage obligations | — |  |  | — |  |  | (503 | ) |  | 2,272 |  |  | (503 | ) |  | 2,272 |
Total held to maturity | $ | (324 | ) |  | $ | 49,652 |  |  | $ | (761 | ) |  | $ | 15,357 |  |  | $ | (1,085 | ) |  | $ | 65,009 |
| Less Than 12 Months |  | 12 Months or Longer |  | Total
December 31, 2016 | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value
Available for sale: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | $ | (377 | ) |  | $ | 22,529 |  |  | $ | — |  |  | $ | — |  |  | $ | (377 | ) |  | $ | 22,529 |
Municipal securities | (622 | ) |  | 7,219 |  |  | — |  |  | — |  |  | (622 | ) |  | 7,219 |
Mortgage-backed securities | (1,047 | ) |  | 44,420 |  |  | (561 | ) |  | 15,270 |  |  | (1,608 | ) |  | 59,690 |
Collateralized mortgage obligations | (437 | ) |  | 55,435 |  |  | (229 | ) |  | 9,049 |  |  | (666 | ) |  | 64,484 |
Total available for sale | $ | (2,483 | ) |  | $ | 129,603 |  |  | $ | (790 | ) |  | $ | 24,319 |  |  | $ | (3,273 | ) |  | $ | 153,922 |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |
Municipal securities | $ | (3,889 | ) |  | $ | 98,943 |  |  | $ | — |  |  | $ | — |  |  | $ | (3,889 | ) |  | $ | 98,943 |
Mortgage-backed securities | (290 | ) |  | 19,983 |  |  | — |  |  | — |  |  | (290 | ) |  | 19,983 |
Collateralized mortgage obligations | — |  |  | — |  |  | (521 | ) |  | 2,350 |  |  | (521 | ) |  | 2,350 |
Total held to maturity | $ | (4,179 | ) |  | $ | 118,926 |  |  | $ | (521 | ) |  | $ | 2,350 |  |  | $ | (4,700 | ) |  | $ | 121,276 |
The number of investment positions in an unrealized loss position totaled 104 and 177 at September 30, 2017 and December 31, 2016, respectively. The securities in a loss position were composed of tax-exempt municipal bonds, corporate bonds, collateralized mortgage obligations and mortgage backed securities. Management believes the unrealized loss on the remaining securities is a function of the movement of interest rates since the time of purchase. Based on evaluation of available evidence, including recent changes in interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment would be reduced and the resulting loss recognized in net income in the period the OTTI is identified. The Company does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery. The Company does not consider these securities to be OTTI at September 30, 2017. Mortgage-backed securities and collateralized mortgage obligations are backed by pools of mortgages that are insured or guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Government National Mortgage Association. As of September 30, 2017, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity. Securities with fair values of approximately $221,777 and $259,499 at September 30, 2017 and December 31, 2016, respectively, were pledged to secure public fund deposits and for other purposes as required or permitted by law. The proceeds from sales of securities and the associated gains and losses are listed below for:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Proceeds | $ | 199,974 |  |  | $ | 31,969 |  |  | $ | 214,736 |  |  | $ | 109,056 |
Gross gains | — |  |  | 96 |  |  | 38 |  |  | 243 |
Gross losses | — |  |  | (32 | ) |  | (13 | ) |  | (161 | )
During the nine months ended September 30, 2017 and 2016, the Company sold three held-to-maturity securities each year. The Company sold these municipal securities based upon internal credit analysis, under the belief that they had experienced significant deterioration in creditworthiness. The risk exposure presented by these municipalities had increased beyond acceptable levels, and the Company determined that it was reasonably possible that all amounts due would not be collected. The credit analysis determined that the municipalities had been significantly impacted because their tax bases are heavily reliant on the energy industry relative to other sectors of the economy. Specifically, the revenues of these municipalities have been adversely impacted by the significant decline in energy prices since 2014. The Company believes the sale of these securities were merited and permissible under the applicable accounting guidelines because of the significant deterioration in the creditworthiness of the issuers. Sale of securities held to maturity were as follows for:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Proceeds from sales | $ | — |  |  | $ | — |  |  | $ | 923 |  |  | $ | 1,866 |
Amortized cost | — |  |  | — |  |  | 907 |  |  | 1,842 |
Gross realized gains | — |  |  | — |  |  | 16 |  |  | 24 |
Tax expense related to securities gains/losses | — |  |  | — |  |  | (4 | ) |  | (7 | )
The contractual maturities at September 30, 2017 of available for sale and held to maturity securities at carrying value and estimated fair value are shown below. The Company invests in mortgage-backed securities and collateralized mortgage obligations that have expected maturities that differ from their contractual maturities. These differences arise because borrowers and/or issuers may have the right to call or prepay their obligation with or without call or prepayment penalties.
| Available for Sale |  | Held to Maturity
| Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Due within one year | $ | — |  |  | $ | — |  |  | $ | 2,683 |  |  | $ | 2,693 |
Due after one year through five years | 1,086 |  |  | 1,096 |  |  | 5,126 |  |  | 5,292 |
Due after five years through ten years | 17,756 |  |  | 17,924 |  |  | 43,228 |  |  | 44,785 |
Due after ten years | 7,769 |  |  | 7,464 |  |  | 95,956 |  |  | 96,403 |
Mortgage-backed securities | 91,801 |  |  | 90,958 |  |  | 23,337 |  |  | 23,549 |
Collateralized mortgage obligations | 120,580 |  |  | 120,691 |  |  | 8,751 |  |  | 8,429 |
Total Securities | $ | 238,992 |  |  | $ | 238,133 |  |  | $ | 179,081 |  |  | $ | 181,151 |

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 -URI http://asc.fasb.org/topic&trid=2196928 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=4738149 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2289146 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration