Investment Securities (Tables)

6 Months Ended

Jun. 30, 2016

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:



	June 30, 2016									December 31, 2015
	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	$	39,009	$	40,337	$	1,336	$	(8	)	$	42,919	$	44,146	$	1,246	$	(19	)
Corporate bonds	8,529		8,534		6		(1		)	15,072		15,098		42		(16		)
MBS pass-through securities issued by FHLMC and FNMA	10,953		11,289		336		—			11,646		11,810		171		(7		)
Total held-to-maturity	58,491		60,160		1,678		(9		)	69,637		71,054		1,459		(42		)
Available-for-sale:
Securities of U.S. government or government-sponsored agencies:
MBS pass-through securities issued by FHLMC and FNMA	111,682		113,877		2,195		—			138,222		138,462		694		(454		)
CMOs issued by FNMA	23,061		23,387		331		(5		)	18,266		18,219		97		(144		)
CMOs issued by FHLMC	21,110		21,451		341		—			22,889		22,932		82		(39		)
CMOs issued by GNMA	8,470		8,692		222		—			10,326		10,480		169		(15		)
Debentures of government- sponsored agencies	83,566		83,758		193		(1		)	161,690		160,892		28		(826		)
Privately issued CMOs	768		768		1		(1		)	3,960		4,150		190		—
Obligations of state and political subdivisions	64,725		66,452		1,729		(2		)	57,110		57,673		580		(17		)
Corporate bonds	4,954		4,976		25		(3		)	4,947		4,979		43		(11		)
Total available-for-sale	318,336		323,361		5,037		(12		)	417,410		417,787		1,883		(1,506		)
Total investment securities	$	376,827	$	383,521	$	6,715	$	(21	)	$	487,047	$	488,841	$	3,342	$	(1,548	)

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of investment debt securities by contractual maturity at June 30, 2016 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.



	June 30, 2016								December 31, 2015
	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	$	19,481	$	19,545	$	2,412	$	2,416	$	18,853	$	18,920	$	12,135	$	12,176
After one year but within five years	21,203		21,929		114,702		115,207		31,677		32,360		188,007		187,326
After five years through ten years	5,646		6,068		65,766		67,170		8,580		8,969		64,899		64,999
After ten years	12,161		12,618		135,456		138,568		10,527		10,805		152,369		153,286
Total	$	58,491	$	60,160	$	318,336	$	323,361	$	69,637	$	71,054	$	417,410	$	417,787

Schedule of Realized Gain (Loss)

Sales of investment securities and gross realized gains and losses are shown in the following table.



	Three months ended				Six months ended
(in thousands)	June 30, 2016		June 30, 2015		June 30, 2016			June 30, 2015
Available-for-sale:
Sales proceeds	$	13,688	$	1,559	$	68,673		$	1,559
Gross realized gains	284		8		458			8
Gross realized losses	—		—		(64		)	—

Schedule of Unrealized Loss on Investments

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



June 30, 2016	< 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 and political subdivisions	$	1,058	$	(8	)	$	—	$	—		$	1,058	$	(8	)
Corporate bonds	5,000		(1		)	—		—			5,000		(1		)
MBS pass-through securities issued by FHLMC and FNMA	—		—			—		—			—		—
Total held-to-maturity	6,058		(9		)	—		—			6,058		(9		)
Available-for-sale:
MBS pass-through securities issued by FHLMC and FNMA	—		—			—		—			—		—
CMOs issued by FNMA	—		—			2,811		(5		)	2,811		(5		)
CMOs issued by FHLMC	—		—			—		—			—		—
CMOs issued by GNMA	—		—			—		—			—		—
Debentures of government- sponsored agencies	9,997		(1		)	—		—			9,997		(1		)
Privately issued CMOs	182		(1		)	—		—			182		(1		)
Obligations of state & political subdivisions	1,918		(2		)	—		—			1,918		(2		)
Corporate bonds	1,990		(3		)	—		—			1,990		(3		)
Total available-for-sale	14,087		(7		)	2,811		(5		)	16,898		(12		)
Total temporarily impaired securities	$	20,145	$	(16	)	$	2,811	$	(5	)	$	22,956	$	(21	)



December 31, 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 and political subdivisions	$	8,297	$	(19	)	$	—	$	—		$	8,297	$	(19	)
Corporate bonds	3,523		(15		)	1,999		(1		)	5,522		(16		)
MBS pass-through securities issued by FHLMC and FNMA	2,332		(7		)	—		—			2,332		(7		)
Total held-to-maturity	14,152		(41		)	1,999		(1		)	16,151		(42		)
Available-for-sale:
MBS pass-through securities issued by FHLMC and FNMA	68,809		(454		)	—		—			68,809		(454		)
CMOs issued by FNMA	9,277		(80		)	3,158		(64		)	12,435		(144		)
CMOs issued by FHLMC	—		—			1,989		(39		)	1,989		(39		)
CMOs issued by GNMA	164		—			2,374		(15		)	2,538		(15		)
Debentures of government- sponsored agencies	136,064		(713		)	9,887		(113		)	145,951		(826		)
Obligations of state & political subdivisions	4,557		(15		)	579		(2		)	5,136		(17		)
Corporate bonds	2,986		(11		)	—		—			2,986		(11		)
Total available-for-sale	221,857		(1,273		)	17,987		(233		)	239,844		(1,506		)
Total temporarily impaired securities	$	236,009	$	(1,314	)	$	19,986	$	(234	)	$	255,995	$	(1,548	)