XML 25 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

SECURITIES AVAILABLE FOR SALE | 9 Months Ended
--- | ---
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract] |
SECURITIES AVAILABLE FOR SALE | SECURITIES AVAILABLE FOR SALE The following is a summary of securities available for sale:
(in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |
Obligations of US Government-sponsored enterprises |  | $ | 3,998 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 3,997 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
US Government-sponsored enterprises |  | 441,725 |  |  | 357 |  |  | 16,791 |  |  | 425,291 |
US Government agency |  | 116,638 |  |  | 136 |  |  | 3,192 |  |  | 113,582 |
Private label |  | 428 |  |  | 112 |  |  | 5 |  |  | 535 |
Obligations of states and political subdivisions thereof |  | 133,926 |  |  | 600 |  |  | 3,089 |  |  | 131,437 |
Corporate bonds |  | 38,323 |  |  | 114 |  |  | 621 |  |  | 37,816 |
Total securities available for sale |  | $ | 735,038 |  |  | $ | 1,319 |  |  | $ | 23,699 |  |  | $ | 712,658 |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |
Obligations of US Government-sponsored enterprises |  | $ | 6,967 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 6,972 |
Mortgage-backed securities: |  |  |  |  |  |  |  |
US Government-sponsored enterprises |  | 447,081 |  |  | 1,738 |  |  | 5,816 |  |  | 443,003 |
US Government agency |  | 96,357 |  |  | 413 |  |  | 1,174 |  |  | 95,596 |
Private label |  | 529 |  |  | 150 |  |  | 5 |  |  | 674 |
Obligations of states and political subdivisions thereof |  | 138,522 |  |  | 2,407 |  |  | 729 |  |  | 140,200 |
Corporate bonds |  | 30,527 |  |  | 323 |  |  | 53 |  |  | 30,797 |
Total securities available for sale |  | $ | 719,983 |  |  | $ | 5,036 |  |  | $ | 7,777 |  |  | $ | 717,242 |
The amortized cost and estimated fair value of available for sale (“AFS”) securities segregated by contractual maturity at September 30, 2018 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable.
|  | Available for sale
(in thousands) |  | Amortized Cost |  | Fair Value
Within 1 year |  | $ | 4,028 |  |  | $ | 4,027 |
Over 1 year to 5 years |  | 15,587 |  |  | 15,446 |
Over 5 years to 10 years |  | 45,826 |  |  | 45,418 |
Over 10 years |  | 110,806 |  |  | 108,359 |
Total bonds and obligations |  | 176,247 |  |  | 173,250 |
Mortgage-backed securities |  | 558,791 |  |  | 539,408 |
Total securities available for sale |  | $ | 735,038 |  |  | $ | 712,658 |
Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows:
|  | Less Than Twelve Months |  | Over Twelve Months |  | Total
(In thousands) |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value
September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of US Government-sponsored enterprises |  | $ | 1 |  |  | $ | 3,997 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | 3,997 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |
US Government-sponsored enterprises |  | 5,882 |  |  | 213,267 |  |  | 10,909 |  |  | 193,006 |  |  | 16,791 |  |  | 406,273 |
US Government agency |  | 545 |  |  | 47,373 |  |  | 2,647 |  |  | 59,364 |  |  | 3,192 |  |  | 106,737 |
Private label |  | 1 |  |  | 114 |  |  | 4 |  |  | 50 |  |  | 5 |  |  | 164 |
Obligations of states and political subdivisions thereof |  | 892 |  |  | 44,817 |  |  | 2,197 |  |  | 31,933 |  |  | 3,089 |  |  | 76,750 |
Corporate bonds |  | 621 |  |  | 25,465 |  |  | — |  |  | — |  |  | 621 |  |  | 25,465 |
Total securities available for sale |  | $ | 7,942 |  |  | $ | 335,033 |  |  | $ | 15,757 |  |  | $ | 284,353 |  |  | $ | 23,699 |  |  | $ | 619,386 |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
US Government-sponsored enterprises |  | $ | 1,895 |  |  | $ | 189,486 |  |  | $ | 3,921 |  |  | $ | 117,156 |  |  | $ | 5,816 |  |  | $ | 306,642 |
US Government agency |  | 559 |  |  | 45,221 |  |  | 615 |  |  | 30,155 |  |  | 1,174 |  |  | 75,376 |
Private label |  | — |  |  | 8 |  |  | 5 |  |  | 130 |  |  | 5 |  |  | 138 |
Obligations of states and political subdivisions thereof |  | 58 |  |  | 8,298 |  |  | 671 |  |  | 27,727 |  |  | 729 |  |  | 36,025 |
Corporate bonds |  | 53 |  |  | 8,943 |  |  | — |  |  | — |  |  | 53 |  |  | 8,943 |
Total securities available for sale |  | $ | 2,565 |  |  | $ | 251,956 |  |  | $ | 5,212 |  |  | $ | 175,168 |  |  | $ | 7,777 |  |  | $ | 427,124 |
Visa Class B Common Shares The Company was a member of the Visa USA payment network and was issued Class B shares in connection with the Visa Reorganization and the Visa Inc. initial public offering ("IPO") in March 2008. The Visa Class B shares are transferable only under limited circumstances until they can be converted into shares of the publicly traded class of Visa stock. This conversion cannot happen until the settlement of certain litigation, which is indemnified by Visa members. Since its initial public offering, Visa has funded a litigation reserve based upon a change in the conversion ratio of Visa Class B shares into Visa Class A shares. At its discretion, Visa may continue to increase the conversion rate in connection with any settlements in excess of amounts then in escrow for that purpose and reduce the conversion rate to the extent it adds any funds to the escrow in the future. Based on the existing transfer restriction and uncertainty of the litigation, the Company has recorded its Visa Class B shares on its consolidated balance sheets at a zero value for all reporting periods since 2008. In September 2018, the Company sold 4,700 shares with a pre-tax gain of $685 thousand. At September 30, 2018, the Company owned 10,842 of Visa Class B shares with a current conversion ratio to Visa Class A shares of 1.6298. As of December 31, 2017 the Company held 15,542 Class B shares, which 11,623 were obtained through the original IPO and 3,919 were acquired through a business combination in 2017. Securities Impairment: As a part of the Company’s ongoing security monitoring process, the Company identifies securities in an unrealized loss position that could potentially be other-than-temporarily impaired. For the three months ended September 30, 2018 and 2017 the Company did not record any other-than-temporary impairment (“OTTI”) losses.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Estimated credit losses as of prior year-end |  | $ | 1,697 |  |  | $ | 1,697 |  |  | $ | 1,697 |  |  | $ | 1,697 |
Reductions for securities paid off during the period |  | — |  |  | — |  |  | — |  |  | — |
Estimated credit losses at end of the period |  | $ | 1,697 |  |  | $ | 1,697 |  |  | $ | 1,697 |  |  | $ | 1,697 |
The Company expects to recover its amortized cost basis on all securities in its AFS portfolio. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of September 30, 2018, prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover. The following summarizes, by investment security type, the basis for the conclusion that securities in an unrealized loss position were not other-than-temporarily impaired at September 30, 2018: Obligations of US Government-sponsored enterprises One security in the Company’s portfolio of AFS US Government sponsored enterprises was in an unrealized loss position. Aggregate unrealized losses represented less than 0.1% of the amortized cost of securities in unrealized loss positions.The Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”) guarantee the contractual cash flows of all of the Company’s US Government-sponsored enterprises. The security is investment grade rated and there were no material underlying credit downgrades during the quarter. The Security is performing. US Government-sponsored enterprises 516 out of the total 769 securities in the Company’s portfolios of AFS US Government-sponsored enterprises were in unrealized loss positions. Aggregate unrealized losses represented 4.0% of the amortized cost of securities in unrealized loss positions.The FNMA and FHLMC guarantee the contractual cash flows of all of the Company’s US Government-sponsored enterprises. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. US Government agency 132 out of the total 197 securities in the Company’s portfolios of AFS US Government agency securities were in unrealized loss positions. Aggregate unrealized losses represented 2.9% of the amortized cost of securities in unrealized loss positions. The Government National Mortgage Association (“GNMA”) guarantees the contractual cash flows of all of the Company’s US Government agency securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. Private label Eight of the total 21 securities in the Company’s portfolio of AFS private label mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 3.0% of the amortized cost of securities in unrealized loss positions. Based upon the expectation that the Company will receive all of the future contractual cash flows related to the amortized cost on these securities, the Company does not consider there to be any additional other-than-temporary impairment with respect to these securities. Obligations of states and political subdivisions thereof 149 of the total 258 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 3.9% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for the risk. There were no material underlying credit downgrades during the quarter. All securities are performing. Corporate bonds Ten out of the total 17 securities in the Company’s portfolio of AFS corporate bonds were in an unrealized loss position. The aggregate unrealized loss represents 2.4% of the amortized cost of bonds in unrealized loss positions. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration