XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.19.1

Investments | 3 Months Ended
--- | ---
Mar. 31, 2019
Investments [Abstract] |
Investments | Note 4 – Investments ﻿ The investment portfolio is classified and accounted for based on the guidance of ASC Topic 320, Investments – Debt and Equity Securities. ﻿ The amortized cost of debt securities classified as available-for-sale is adjusted for the amortization of premiums to the first call date, if applicable, or to maturity, and for the accretion of discounts to maturity, or, in the case of mortgage-backed securities, over the estimated life of the security. Such amortization and accretion is included in interest income from investments. Interest and dividends are included in interest income from investments. Gains and losses on the sale of securities are recorded using the specific identification method. The following table shows a comparison of amortized cost and fair values of investment securities at March 31, 2019 and December 31, 2018: ﻿
﻿ |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |
﻿(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI in AOCL
﻿March 31, 2019 |  |  |  |  |  |  |  |  |  |
﻿Available for Sale: |  |  |  |  |  |  |  |  |  |
﻿ U.S. government agencies | $ | 30,000 | $ | 0 | $ | 536 | $ | 29,464 | $ | 0
﻿ Commercial mortgage-backed agencies |  | 38,141 |  | 0 |  | 1,165 |  | 36,976 |  | 0
﻿ Collateralized mortgage obligations |  | 35,564 |  | 0 |  | 559 |  | 35,005 |  | 0
﻿ Obligations of states and political subdivisions |  | 19,798 |  | 213 |  | 94 |  | 19,917 |  | 0
﻿ Collateralized debt obligations |  | 18,362 |  | 0 |  | 3,210 |  | 15,152 |  | (2,075)
﻿Total available for sale | $ | 141,865 | $ | 213 | $ | 5,564 | $ | 136,514 | $ | (2,075)
﻿ |  |  |  |  |  |  |  |  |  |
﻿Held to Maturity: |  |  |  |  |  |  |  |  |  |
﻿ U.S. government agencies | $ | 16,054 | $ | 401 | $ | 0 | $ | 16,455 | $ | 0
﻿ Residential mortgage-backed agencies |  | 45,312 |  | 15 |  | 667 |  | 44,660 |  | 0
﻿ Commercial mortgage-backed agencies |  | 15,745 |  | 213 |  | 0 |  | 15,958 |  | 0
﻿ Collateralized mortgage obligations |  | 3,753 |  | 0 |  | 62 |  | 3,691 |  | 0
﻿ Obligations of states and political subdivisions |  | 14,674 |  | 1,974 |  | 48 |  | 16,600 |  | 0
﻿Total held to maturity | $ | 95,538 | $ | 2,603 | $ | 777 | $ | 97,364 | $ | 0
﻿ |  |  |  |  |  |  |  |  |  |
﻿December 31, 2018 |  |  |  |  |  |  |  |  |  |
﻿Available for Sale: |  |  |  |  |  |  |  |  |  |
﻿ U.S. government agencies | $ | 30,000 | $ | 0 | $ | 974 | $ | 29,026 | $ | 0
﻿ Commercial mortgage-backed agencies |  | 39,013 |  | 0 |  | 1,261 |  | 37,752 |  | 0
﻿ Collateralized mortgage obligations |  | 36,669 |  | 0 |  | 965 |  | 35,704 |  | 0
﻿ Obligations of states and political subdivisions |  | 20,083 |  | 132 |  | 333 |  | 19,882 |  | 0
﻿ Collateralized debt obligations |  | 18,358 |  | 0 |  | 3,081 |  | 15,277 |  | (1,966)
﻿Total available for sale | $ | 144,123 | $ | 132 | $ | 6,614 | $ | 137,641 | $ | (1,966)
﻿Held to Maturity: |  |  |  |  |  |  |  |  |  |
﻿ U.S. government agencies | $ | 16,017 | $ | 120 | $ | 0 | $ | 16,137 | $ | 0
﻿ Residential mortgage-backed agencies |  | 46,491 |  | 6 |  | 1,287 |  | 45,210 |  | 0
﻿ Commercial mortgage-backed agencies |  | 15,821 |  | 75 |  | 68 |  | 15,828 |  | 0
﻿ Collateralized mortgage obligations |  | 3,761 |  | 0 |  | 156 |  | 3,605 |  | 0
﻿ Obligations of states and political subdivisions |  | 11,920 |  | 1,156 |  | 96 |  | 12,980 |  | 0
﻿Total held to maturity | $ | 94,010 | $ | 1,357 | $ | 1,607 | $ | 93,760 | $ | 0
﻿ ﻿ Proceeds from sales/calls of available for sale securities and the realized gains and losses are as follows:
﻿ |  |  |  |
﻿ | Three months ended
﻿ | March 31,
﻿(in thousands) | 2019 | 2018
﻿Proceeds | $ | 260 | $ | 235
﻿Realized gains |  | 0 |  | 0
﻿Realized losses |  | 6 |  | 9
﻿ The following table shows the Corporation’s investment securities with gross unrealized losses and fair values at March 31, 2019 and December 31, 2018, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ | Less than 12 months |  |  | 12 months or more |  |
﻿(in thousands) | Fair Value | Unrealized Losses | Number of Investments | Fair Value | Unrealized Losses | Number of Investments
﻿March 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
﻿Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |
﻿ U.S. government agencies | $ | 0 | $ | 0 |  | 0 | $ | 29,464 | $ | 536 |  | 5
﻿ Commercial mortgage-backed agencies |  | 0 |  | 0 |  | 0 |  | 36,976 |  | 1,165 |  | 8
﻿ Collateralized mortgage obligations |  | 171 |  | 1 |  | 1 |  | 34,834 |  | 558 |  | 8
﻿ Obligations of states and political subdivisions |  | 115 |  | 1 |  | 1 |  | 5,278 |  | 93 |  | 4
﻿ Collateralized debt obligations |  | 5,949 |  | 478 |  | 4 |  | 9,201 |  | 2,732 |  | 5
﻿Total available for sale | $ | 6,235 | $ | 480 |  | 6 | $ | 115,753 | $ | 5,084 |  | 30
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿Held to Maturity: |  |  |  |  |  |  |  |  |  |  |  |
﻿ Residential mortgage-backed agencies |  | 3,623 |  | 15 |  | 2 |  | 36,833 |  | 652 |  | 26
﻿ Collateralized mortgage obligations |  | 0 |  | 0 |  | 0 |  | 3,691 |  | 62 |  | 1
﻿ Obligations of states and political subdivisions |  | 2,247 |  | 48 |  | 1 |  | 0 |  | 0 |  | 0
﻿Total held to maturity | $ | 5,870 | $ | 63 |  | 3 | $ | 40,524 | $ | 714 |  | 27
﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
﻿Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |
﻿ U.S. government agencies | $ | 0 | $ | 0 |  | 0 | $ | 29,026 | $ | 974 |  | 5
﻿ Commercial mortgage-backed agencies |  | 0 |  | 0 |  | 0 |  | 37,752 |  | 1,261 |  | 8
﻿ Collateralized mortgage obligations |  | 232 |  | 1 |  | 1 |  | 35,472 |  | 964 |  | 8
﻿ Obligations of states and political subdivisions |  | 3,310 |  | 48 |  | 5 |  | 11,068 |  | 285 |  | 8
﻿ Collateralized debt obligations |  | 5,987 |  | 438 |  | 4 |  | 9,290 |  | 2,643 |  | 5
﻿Total available for sale | $ | 9,529 | $ | 487 |  | 10 | $ | 122,608 | $ | 6,127 |  | 34
﻿Held to Maturity: |  |  |  |  |  |  |  |  |  |  |  |
﻿ Residential mortgage-backed agencies | $ | 3,605 | $ | 51 |  | 2 | $ | 41,448 | $ | 1,236 |  | 29
﻿ Commercial mortgage-backed agencies |  | 0 |  | 0 |  | 0 |  | 7,656 |  | 68 |  | 1
﻿ Collateralized mortgage obligations |  | 0 |  | 0 |  | 0 |  | 3,605 |  | 156 |  | 1
﻿ Obligations of states and political subdivisions |  | 0 |  | 0 |  | 0 |  | 2,199 |  | 96 |  | 1
﻿Total held to maturity | $ | 3,605 | $ | 51 |  | 2 | $ | 54,908 | $ | 1,556 |  | 32
﻿ Management systematically evaluates securities for impairment on a quarterly basis. Based upon application of accounting guidance for subsequent measurement in ASC Topic 320 (ASC Section 320-10-35), management assesses whether (a) the Corporation has the intent to sell a security being evaluated and (b) it is more likely than not that the Corporation will be required to sell the security prior to its anticipated recovery. If neither applies, then declines in the fair values of securities below their cost that are considered other-than-temporary declines are split into two components. The first is the loss attributable to declining credit quality. Credit losses are recognized in earnings as realized losses in the period in which the impairment determination is made. The second component consists of all other losses, which are recognized in other comprehensive loss. In estimating other than temporary impairment (“OTTI”) losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) adverse conditions specifically related to the security, an industry, or a geographic area, (3) the historic and implied volatility of the fair value of the security, (4) changes in the rating of the security by a rating agency, (5) recoveries or additional declines in fair value subsequent to the balance sheet date, (6) failure of the issuer of the security to make scheduled interest or principal payments, and (7) the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future. Management also monitors cash flow projections for securities that are considered beneficial interests under the guidance of ASC Subtopic 325-40, Investments – Other – Beneficial Interests in Securitized Financial Assets, (ASC Section 325-40-35). Further discussion about the evaluation of securities for impairment can be found in Item 2 of Part I of this report under the heading “Investment Securities”. ﻿ Management believes that the valuation of certain securities is a critical accounting policy that requires significant estimates in preparation of the Corporation’s consolidated financial statements. Management utilizes an independent third party to prepare both the impairment valuations and fair value determinations for the Corporation’s collateralized debt obligation (“CDO”) portfolio consisting of pooled trust preferred securities. See Note 7 for a discussion of the methodology used by management to determine the fair values of these securities. Based upon a review of credit quality and the cash flow tests performed by the independent third party, management determined that there were no securities that had credit-related non-cash OTTI charges during the first three months of 2019. ﻿ The Corporation does not believe that the investment securities that were in an unrealized loss position at March 31, 2019 represent an other-than-temporary impairment. The Corporation does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities at a loss. The following tables present a cumulative roll-forward of the amount of non-cash OTTI charges related to credit losses which have been recognized in earnings for the trust preferred securities in the CDO portfolio held and not intended to be sold for the three-month periods ended March 31, 2019 and 2018:
﻿ |  |  |  |
﻿ |  |  |  |
﻿ |  |  |  |
﻿ | Three months ended March 31,
﻿(in thousands) | 2019 | 2018
﻿Balance of credit-related OTTI at January 1 | $ | 2,646 | $ | 2,958
﻿Reduction for increases in cash flows expected to be collected |  | (49) |  | (55)
﻿Balance of credit-related OTTI at March 31 | $ | 2,597 | $ | 2,903
﻿ The amortized cost and estimated fair value of securities by contractual maturity at March 31, 2019 are shown in the following table. Actual maturities may 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. ﻿ ﻿
﻿ |  |  |  |
﻿ | March 31, 2019
﻿(in thousands) | Amortized Cost | Fair Value
﻿Contractual Maturity |  |  |  |
﻿Available for Sale: |  |  |  |
﻿Due in one year or less | $ | 227 | $ | 228
﻿Due after one year through five years |  | 16,768 |  | 16,614
﻿Due after five years through ten years |  | 21,799 |  | 21,388
﻿Due after ten years |  | 29,366 |  | 26,303
﻿ |  | 68,160 |  | 64,533
﻿Commercial mortgage-backed agencies |  | 38,141 |  | 36,976
﻿Collateralized mortgage obligations |  | 35,564 |  | 35,005
﻿ Total available for sale | $ | 141,865 | $ | 136,514
﻿Held to Maturity: |  |  |  |
﻿Due after one year through five years | $ | 8,363 | $ | 8,556
﻿Due after five years through ten years |  | 7,691 |  | 7,899
﻿Due after ten years |  | 14,674 |  | 16,600
﻿ |  | 30,728 |  | 33,055
﻿Residential mortgage-backed agencies |  | 45,312 |  | 44,660
﻿Commercial mortgage-backed agencies |  | 15,745 |  | 15,958
﻿Collateralized mortgage obligations |  | 3,753 |  | 3,691
﻿Total held to maturity | $ | 95,538 | $ | 97,364
﻿

X
- References No definition available. + Details
Name: | us-gaap_AvailableForSaleSecuritiesAndHeldToMaturitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=4738149 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2289146 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration