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Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Held-to-maturity Securities
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:
 
September 30, 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
$
20,213

$
20,790

$
577

$
—


$
30,856

$
31,544

$
694

$
(6
)
Corporate bonds
—

—

—

—


3,519

3,518

—

(1
)
MBS pass-through securities issued by FHLMC and FNMA
103,624

103,904

425

(145
)

10,063

10,035

126

(154
)
  CMOs issued by FHLMC
31,285

31,455

173

(3
)
 
—

—

—

—

Total held-to-maturity
155,122

156,149

1,175

(148
)

44,438

45,097

820

(161
)
Available-for-sale:
 
 
 
 
 
 
 
 
 
Securities of U.S. government agencies:
 
 
 
 
 
 
 
 
 
MBS pass-through securities issued by FHLMC and FNMA
91,404

91,716

551

(239
)

193,998

190,566

145

(3,577
)
CMOs issued by FNMA
11,504

11,529

68

(43
)

13,790

13,772

91

(109
)
CMOs issued by FHLMC
35,317

35,360

56

(13
)

43,452

42,758

37

(731
)
CMOs issued by GNMA
8,754

8,765

62

(51
)

6,844

6,945

102

(1
)
Debentures of government- sponsored agencies
30,492

30,382

—

(110
)

35,486

35,403

7

(90
)
Privately issued CMOs
127

128

1

—


419

419

1

(1
)
Obligations of state and
political subdivisions
74,903

75,181

675

(397
)

79,306

77,701

135

(1,740
)
Corporate bonds
4,967

5,031

64

—


4,959

5,016

57

—

Total available-for-sale
257,468

258,092

1,477

(853
)

378,254

372,580

575

(6,249
)
Total investment securities
$
412,590

$
414,241

$
2,652

$
(1,001
)

$
422,692

$
417,677

$
1,395

$
(6,410
)
Available-for-sale Securities
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:
 
September 30, 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
$
20,213

$
20,790

$
577

$
—


$
30,856

$
31,544

$
694

$
(6
)
Corporate bonds
—

—

—

—


3,519

3,518

—

(1
)
MBS pass-through securities issued by FHLMC and FNMA
103,624

103,904

425

(145
)

10,063

10,035

126

(154
)
  CMOs issued by FHLMC
31,285

31,455

173

(3
)
 
—

—

—

—

Total held-to-maturity
155,122

156,149

1,175

(148
)

44,438

45,097

820

(161
)
Available-for-sale:
 
 
 
 
 
 
 
 
 
Securities of U.S. government agencies:
 
 
 
 
 
 
 
 
 
MBS pass-through securities issued by FHLMC and FNMA
91,404

91,716

551

(239
)

193,998

190,566

145

(3,577
)
CMOs issued by FNMA
11,504

11,529

68

(43
)

13,790

13,772

91

(109
)
CMOs issued by FHLMC
35,317

35,360

56

(13
)

43,452

42,758

37

(731
)
CMOs issued by GNMA
8,754

8,765

62

(51
)

6,844

6,945

102

(1
)
Debentures of government- sponsored agencies
30,492

30,382

—

(110
)

35,486

35,403

7

(90
)
Privately issued CMOs
127

128

1

—


419

419

1

(1
)
Obligations of state and
political subdivisions
74,903

75,181

675

(397
)

79,306

77,701

135

(1,740
)
Corporate bonds
4,967

5,031

64

—


4,959

5,016

57

—

Total available-for-sale
257,468

258,092

1,477

(853
)

378,254

372,580

575

(6,249
)
Total investment securities
$
412,590

$
414,241

$
2,652

$
(1,001
)

$
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 September 30, 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.
 
September 30, 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
$
2,092

$
2,132

 
$
8,884

$
8,893

 
$
13,473

$
13,506

 
$
20,136

$
20,109

After one but within five years
15,206

15,565

 
67,085

67,065

 
16,706

17,150

 
58,334

58,267

After five years through ten years
56,607

56,979

 
101,756

101,880

 
3,000

3,125

 
113,576

110,842

After ten years
81,217

81,473

 
79,743

80,254

 
11,259

11,316

 
186,208

183,362

Total
$
155,122

$
156,149

 
$
257,468

$
258,092

 
$
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.
 
Three months ended
 
Nine months ended
(in thousands)
September 30, 2017
 
September 30, 2016
 
September 30, 2017
 
September 30, 2016
Available-for-sale:
 
 
 
 
 
 
 
Sales proceeds
$
—

 
$
—

 
$
1,321

 
$
68,673

Gross realized gains
—

 
—

 
13

 
458

Gross realized losses
—

 
—

 
(3
)
 
(64
)
Schedule of Unrealized Loss on Investments
There were 67 and 134 investment securities in unrealized loss positions at September 30, 2017 and December 31, 2016, respectively. Those securities are summarized and classified according to the duration of the loss period in the tables below:
September 30, 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:
 
 
 
 
 
 
 
 
MBS pass-through securities issued by FHLMC and FNMA
17,764

(115
)
 
31,501

(30
)
 
49,265

(145
)
CMOs issued by FHLMC
—

—

 
1,505

(3
)
 
1,505

(3
)
Total held-to-maturity
17,764

(115
)
 
33,006

(33
)
 
50,770

(148
)
Available-for-sale:
 
 
 
 
 
 
 
 
MBS pass-through securities issued by FHLMC and FNMA
21,619

(229
)
 
2,321

(10
)
 
23,940

(239
)
CMOs issued by FNMA
8,005

(43
)
 
—

—

 
8,005

(43
)
CMOs issued by FHLMC
15,014

(13
)
 
—

—

 
15,014

(13
)
CMOs issued by GNMA
4,807

(51
)
 
—

—

 
4,807

(51
)
Debentures of government- sponsored agencies
19,929

(64
)
 
9,953

(46
)
 
29,882

(110
)
Obligations of state and political subdivisions
6,129

(38
)
 
18,010

(359
)
 
24,139

(397
)
Total available-for-sale
75,503

(438
)
 
30,284

(415
)
 
105,787

(853
)
Total temporarily impaired securities
$
93,267

$
(553
)
 
$
63,290

$
(448
)
 
$
156,557

$
(1,001
)
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
)