Investment Securities (Tables)

9 Months Ended

Sep. 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:



	September 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	$	32,765	$	33,868	$	1,106	$	(3	)	$	42,919	$	44,146	$	1,246	$	(19	)
Corporate bonds	3,524		3,523		0		(1		)	15,072		15,098		42		(16		)
MBS pass-through securities issued by FHLMC and FNMA	10,134		10,476		342		—			11,646		11,810		171		(7		)
Total held-to-maturity	46,423		47,867		1,448		(4		)	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	196,987		198,999		2,239		(227		)	138,222		138,462		694		(454		)
CMOs issued by FNMA	14,885		15,104		219		—			18,266		18,219		97		(144		)
CMOs issued by FHLMC	30,555		30,887		332		—			22,889		22,932		82		(39		)
CMOs issued by GNMA	7,654		7,834		180		—			10,326		10,480		169		(15		)
Debentures of government- sponsored agencies	40,486		40,576		98		(8		)	161,690		160,892		28		(826		)
Privately issued CMOs	560		560		1		(1		)	3,960		4,150		190		—
Obligations of state and political subdivisions	78,719		80,027		1,401		(93		)	57,110		57,673		580		(17		)
Corporate bonds	4,956		5,009		53		—			4,947		4,979		43		(11		)
Total available-for-sale	374,802		378,996		4,523		(329		)	417,410		417,787		1,883		(1,506		)
Total investment securities	$	421,225	$	426,863	$	5,971	$	(333	)	$	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 September 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.



	September 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	$	14,037	$	14,115	$	17,067	$	17,080	$	18,853	$	18,920	$	12,135	$	12,176
After one year but within five years	16,583		17,212		67,087		67,487		31,677		32,360		188,007		187,326
After five years through ten years	4,467		4,739		87,774		88,871		8,580		8,969		64,899		64,999
After ten years	11,336		11,801		202,873		205,558		10,527		10,805		152,369		153,286
Total	$	46,423	$	47,867	$	374,801	$	378,996	$	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				Nine months ended
(in thousands)	September 30, 2016		September 30, 2015		September 30, 2016			September 30, 2015
Available-for-sale:
Sales proceeds	$	—	$	—	$	68,673		$	1,559
Gross realized gains	—		—		458			8
Gross realized losses	—		—		(64		)	—

Held-to-Maturity:
Sales proceeds	$	—	$	1,015	$	—		$	1,015
Gross realized gains	—		72		—			72
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 tables below:



September 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	$	547	$	(3	)	$	—	$	—	$	547	$	(3	)
Corporate bonds	3,523		(1		)	—		—		3,523		(1		)
Total held-to-maturity	4,070		(4		)	—		—		4,070		(4		)
Available-for-sale:
MBS pass-through securities issued by FHLMC and FNMA	69,229		(227		)	—		—		69,229		(227		)
Debentures of government- sponsored agencies	14,992		(8		)	—		—		14,992		(8		)
Privately issued CMOs	162		(1		)	—		—		162		(1		)
Obligations of state & political subdivisions	14,236		(93		)	—		—		14,236		(93		)
Total available-for-sale	98,619		(329		)	—		—		98,619		(329		)
Total temporarily impaired securities	$	102,689	$	(333	)	$	—	$	—	$	102,689	$	(333	)



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	)