Investment Securities (Tables)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities and Held-to-maturity Securities Reconciliation

Our investment securities portfolio consists of obligations of state and political subdivisions, corporate bonds, U.S. government agency securities, including mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”) issued or guaranteed by Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), or Government National Mortgage Association ("GNMA"), debentures issued by government-sponsored agencies such as FNMA, Federal Farm Credit Bureau, FHLB and FHLMC, as well as privately issued CMOs, as reflected in the table below:



	September 30, 2015									December 31, 2014
	Amortized		Fair		Gross Unrealized					Amortized		Fair		Gross Unrealized
(in thousands)	Cost		Value		Gains		(Losses)			Cost		Value		Gains		(Losses)
Held-to-maturity
Obligations of state and political subdivisions	$	50,570	$	51,867	$	1,302	$	(5	)	$	63,425	$	65,121	$	1,736	$	(40	)
Corporate bonds	23,578		23,662		87		(3		)	40,257		40,448		216		(25		)
MBS pass-through securities issued by FHLMC and FNMA	12,323		12,575		259		(7		)	12,755		13,074		319		—
Total held-to-maturity	86,471		88,104		1,648		(15		)	116,437		118,643		2,271		(65		)

Available-for-sale
Securities of U.S. government agencies:
MBS pass-through securities issued by FHLMC and FNMA	116,513		117,963		1,488		(38		)	92,963		94,214		1,262		(11		)
CMOs issued by FNMA	16,211		16,385		208		(34		)	14,771		14,790		77		(58		)
CMOs issued by FHLMC	24,645		24,869		239		(15		)	31,238		31,260		109		(87		)
CMOs issued by GNMA	11,951		12,200		254		(5		)	17,573		17,855		298		(16		)
Debentures of government- sponsored agencies	101,987		102,165		229		(51		)	14,694		14,557		95		(232		)
Privately issued CMOs	4,700		4,891		193		(2		)	7,137		7,294		172		(15		)
Obligations of state and political subdivisions	50,073		50,377		345		(41		)	15,733		15,880		155		(8		)
Corporate bonds	4,944		5,006		62		—			4,936		4,998		66		(4		)
Total available-for-sale	331,024		333,856		3,018		(186		)	199,045		200,848		2,234		(431		)

Total investment securities	$	417,495	$	421,960	$	4,666	$	(201	)	$	315,482	$	319,491	$	4,505	$	(496	)

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of investment debt securities by contractual maturity at September 30, 2015 are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.



	September 30, 2015								December 31, 2014
	Held-to-Maturity				Available-for-Sale				Held-to-Maturity				Available-for-Sale
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	34,325	$	34,459	$	11,955	$	12,019	$	39,778	$	39,913	$	2,378	$	2,388
After one year but within five years	31,072		31,821		127,221		127,607		50,983		51,953		43,866		43,919
After five years through ten years	9,876		10,352		51,686		51,885		11,679		12,426		9,644		9,749
After ten years	11,198		11,472		140,162		142,345		13,997		14,351		143,157		144,792
Total	$	86,471	$	88,104	$	331,024	$	333,856	$	116,437	$	118,643	$	199,045	$	200,848

Schedule of Realized Gain (Loss)

Sales of investment securities and gross realized gains and losses are shown in the following table. The sales of the held-to-maturity securities were due to evidence of significant deterioration of the issuers' creditworthiness since purchase.



	Three months ended				Nine months ended
(in thousands)	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Available-for-sale:
Sales proceeds	$	—	$	413	$	1,559	$	2,435
Gross realized gains	$	—	$	4	$	8	$	4
Gross realized (losses)	$	—	$	—	$	—	$	(15	)
Held-to-maturity:
Sales proceeds	$	1,015	$	—	$	1,015	$	2,146
Gross realized gains	$	72	$	—	$	72	$	104
Gross realized (losses)	$	—	$	—	$	—	$	—

Schedule of Unrealized Loss on Investments

Those securities are summarized and classified according to the duration of the loss period in the table below:



September 30, 2015	< 12 continuous months					≥ 12 continuous months					Total securities in a loss position
(in thousands)	Fair value		Unrealized loss			Fair value		Unrealized loss			Fair value		Unrealized loss
Held-to-maturity
Obligations of state & political subdivisions	$	2,751	$	(5	)	$	—	$	—		$	2,751	$	(5	)
Corporate bonds	5,540		(3		)	—		—			5,540		(3		)
MBS pass-through securities issued by FHLMC and FNMA	2,344		(7		)	—		—			2,344		(7		)
Total held-to-maturity	10,635		(15		)	—		—			10,635		(15		)
Available-for-sale
MBS pass-through securities issued by FHLMC and FNMA	21,640		(38		)	—		—			21,640		(38		)
CMOs issued by FNMA	—		—			3,428		(34		)	3,428		(34		)
CMOs issued by FHLMC	—		—			2,089		(15		)	2,089		(15		)
CMOs issued by GNMA	2,570		(5		)	—		—			2,570		(5		)
Debentures of government- sponsored agencies	—		—			9,949		(51		)	9,949		(51		)
Privately issued CMOs	—		—			379		(2		)	379		(2		)
Obligations of state & political subdivisions	9,867		(39		)	582		(2		)	10,449		(41		)
Total available-for-sale	34,077		(82		)	16,427		(104		)	50,504		(186		)
Total temporarily impaired securities	$	44,712	$	(97	)	$	16,427	$	(104	)	$	61,139	$	(201	)



December 31, 2014	< 12 continuous months					≥ 12 continuous months					Total securities in a loss position
(dollars in thousands)	Fair value		Unrealized loss			Fair value		Unrealized loss			Fair value		Unrealized loss
Held-to-maturity
Obligations of state & political subdivisions	$	5,830	$	(27	)	$	359	$	(13	)	$	6,189	$	(40	)
Corporate bonds	3,009		(1		)	3,533		(24		)	6,542		(25		)
Total held-to-maturity	8,839		(28		)	3,892		(37		)	12,731		(65		)
Available-for-sale
MBS pass-through securities issued by FHLMC and FNMA	1,960		(11		)	—		—			1,960		(11		)
CMOs issued by FNMA	—		—			4,115		(58		)	4,115		(58		)
CMOs issued by FHLMC	17,157		(44		)	2,291		(43		)	19,448		(87		)
CMOs issued by GNMA	3,262		(16		)	—		—			3,262		(16		)
Debentures of government- sponsored agencies	494		(1		)	9,769		(231		)	10,263		(232		)
Privately issued CMOs	817		(15		)	—		—			817		(15		)
Obligations of state & political subdivisions	2,695		(3		)	1,112		(5		)	3,807		(8		)
Corporate bonds	1,002		(1		)	990		(3		)	1,992		(4		)
Total available-for-sale	27,387		(91		)	18,277		(340		)	45,664		(431		)
Total temporarily impaired securities	$	36,226	$	(119	)	$	22,169	$	(377	)	$	58,395	$	(496	)