Investment Securities (Tables)

3 Months Ended

Mar. 31, 2017

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 residential and commercial 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:



	March 31, 2017									December 31, 2016
	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	$	27,741	$	28,407	$	669	$	(3	)	$	30,856	$	31,544	$	694	$	(6	)
Corporate bonds	3,514		3,511		—		(3		)	3,519		3,518		—		(1		)
MBS pass-through securities issued by FHLMC and FNMA	109,357		108,843		109		(623		)	10,063		10,035		126		(154		)
CMOs issued by FHLMC	31,660		31,660		50		(50		)	—		—		—		—
Total held-to-maturity	172,272		172,421		828		(679		)	44,438		45,097		820		(161		)
Available-for-sale:
Securities of U.S. government agencies:
MBS pass-through securities issued by FHLMC and FNMA	93,676		93,719		328		(285		)	193,998		190,566		145		(3,577		)
CMOs issued by FNMA	12,897		12,874		84		(107		)	13,790		13,772		91		(109		)
CMOs issued by FHLMC	10,237		10,260		25		(2		)	43,452		42,758		37		(731		)
CMOs issued by GNMA	6,181		6,268		87		—			6,844		6,945		102		(1		)
Debentures of government- sponsored agencies	35,488		35,386		2		(104		)	35,486		35,403		7		(90		)
Privately issued CMOs	305		305		—		—			419		419		1		(1		)
Obligations of state and political subdivisions	78,905		77,843		237		(1,299		)	79,306		77,701		135		(1,740		)
Corporate bonds	4,961		5,029		68		—			4,959		5,016		57		—
Total available-for-sale	242,650		241,684		831		(1,797		)	378,254		372,580		575		(6,249		)
Total investment securities	$	414,922	$	414,105	$	1,659	$	(2,476	)	$	422,692	$	417,677	$	1,395	$	(6,410	)

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of investment debt securities by contractual maturity at March 31, 2017 are shown below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties.



	March 31, 2017								December 31, 2016
	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	$	10,401	$	10,424	$	21,417	$	21,386	$	13,473	$	13,506	$	20,136	$	20,109
After one but within five years	16,665		17,098		57,185		57,200		16,706		17,150		58,334		58,267
After five years through ten years	43,964		44,082		80,507		79,224		3,000		3,125		113,576		110,842
After ten years	101,242		100,817		83,541		83,874		11,259		11,316		186,208		183,362
Total	$	172,272	$	172,421	$	242,650	$	241,684	$	44,438	$	45,097	$	378,254	$	372,580

Schedule of Realized Gain (Loss)

Sales of investment securities and gross 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
(in thousands)	March 31, 2017		March 31, 2016
Held-to-maturity:
Sales proceeds	$	—	$	54,985
Gross realized gains	—		110
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:



March 31, 2017	< 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	$	1,493	$	(1	)	$	545	$	(2	)	$	2,038	$	(3	)
Corporate bonds	3,512		(3		)	—		—			3,512		(3		)
MBS pass-through securities issued by FHLMC and FNMA	93,021		(623		)	—		—			93,021		(623		)
CMOs issued by FHLMC	11,604		(50		)	—		—			11,604		(50		)
Total held-to-maturity	109,630		(677		)	545		(2		)	110,175		(679		)
Available-for-sale:
MBS pass-through securities issued by FHLMC and FNMA	45,048		(285		)	—		—			45,048		(285		)
CMOs issued by FNMA	8,866		(107		)	—		—			8,866		(107		)
CMOs issued by FHLMC	6,553		(2		)	—		—			6,553		(2		)
Debentures of government- sponsored agencies	19,940		(50		)	9,945		(54		)	29,885		(104		)
Obligations of state add political subdivisions	41,822		(1,299		)	—		—			41,822		(1,299		)
Corporate bonds	1,000		—			—		—			1,000		—
Total available-for-sale	123,229		(1,743		)	9,945		(54		)	133,174		(1,797		)
Total temporarily impaired securities	$	232,859	$	(2,420	)	$	10,490	$	(56	)	$	243,349	$	(2,476	)



December 31, 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	$	2,250	$	(154	)	$	—	$	—		$	2,250	$	(154	)
Corporate bonds	3,362		(6		)	—		—			3,362		(6		)
MBS pass-through securities issued by FHLMC and FNMA	3,518		(1		)	—		—			3,518		(1		)
Total held-to-maturity	9,130		(161		)	—		—			9,130		(161		)
Available-for-sale:
MBS pass-through securities issued by FHLMC and FNMA	162,016		(3,577		)	—		—			162,016		(3,577		)
CMOs issued by FNMA	9,498		(109		)	—		—			9,498		(109		)
CMOs issued by FHLMC	31,545		(731		)	—		—			31,545		(731		)
CMOs issued by GNMA	1,583		(1		)	—		—			1,583		(1		)
Debentures of government- sponsored agencies	19,951		(38		)	9,946		(52		)	29,897		(90		)
Obligations of state and political subdivisions	59,567		(1,740		)	—		—			59,567		(1,740		)
Corporate bonds	154		(1		)	—		—			154		(1		)
Total available-for-sale	284,314		(6,197		)	9,946		(52		)	294,260		(6,249		)
Total temporarily impaired securities	$	293,444	$	(6,358	)	$	9,946	$	(52	)	$	303,390	$	(6,410	)