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Securities | 3 Months Ended
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Mar. 31, 2014
Investments debt and equity securities [Abstract] |
Investments In Debt And Marketable Equity Securities And Certain Trading Assets Disclosure Text Block | NOTE 4: SECURITIES At March 31, 2014 and December 31, 2013, respectively, all securities within the scope of ASC 320, Investments – Debt and Equity Securities, were classified as available-for-sale. The fair value and amortized cost for securities available-for-sale by contractual maturity at March 31, 2014 and December 31, 2013, respectively, are presented below.
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |
Agency obligations (a) | $ | — | — | 23,247 | 21,275 | 44,522 |  | — | 4,557 |  | $ | 49,079
Agency RMBS (a) |  | — | — | 8,306 | 154,052 | 162,358 |  | 976 | 4,733 |  |  | 166,115
State and political subdivisions |  | — | 1,735 | 21,366 | 41,238 | 64,339 |  | 1,560 | 459 |  |  | 63,238
| Total available-for-sale | $ | — | 1,735 | 52,919 | 216,565 | 271,219 |  | 2,536 | 9,749 |  | $ | 278,432
(a) Includes securities issued by U.S. government agencies or government sponsored entities.
|  |  | 1 year | 1 to 5 | 5 to 10 | After 10 | Fair |  | Gross Unrealized |  | Amortized
(Dollars in thousands) |  | or less | years | years | years | Value |  | Gains | Losses |  | Cost
March 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |
Agency obligations (a) | $ | — | — | 33,920 | 22,114 | 56,034 |  | 54 | 3,143 |  | $ | 59,123
Agency RMBS (a) |  | — | — | 7,954 | 154,755 | 162,709 |  | 1,138 | 3,016 |  |  | 164,587
State and political subdivisions |  | — | 679 | 20,402 | 40,165 | 61,246 |  | 2,236 | 111 |  |  | 59,121
| Total available-for-sale | $ | — | 679 | 62,276 | 217,034 | 279,989 |  | 3,428 | 6,270 |  | $ | 282,831
Securities with aggregate fair values of $140.0 million and $120.5 million at March 31, 2014 and December 31, 2013, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase, Federal Home Loan Bank (“FHLB”) advances, and for other purposes required or permitted by law. Included in other assets are cost-method investments. The carrying amounts of cost-method investments were $1.6 million and $1.8 million at March 31, 2014 and December 31, 2013, respectively. Cost-method investments primarily include non-marketable equity investments, such as FHLB of Atlanta stock and Federal Reserve Bank (“FRB”) stock. Gross Unrealized Losses and Fair Value The fair values and gross unrealized losses on securities at March 31, 2014 and December 31, 2013, respectively, segregated by those securities that have been in an unrealized loss position for less than 12 months and 12 months or longer, are presented below.
|  |  |  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total
|  |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized
(Dollars in thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses
March 31, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency obligations | $ | 22,827 |  |  | 1,303 |  |  | 18,112 |  |  | 1,840 |  | $ | 40,939 |  |  | 3,143
Agency RMBS |  | 88,746 |  |  | 2,778 |  |  | 4,616 |  |  | 238 |  |  | 93,362 |  |  | 3,016
State and political subdivisions |  | 4,255 |  |  | 111 |  |  | — |  |  | — |  |  | 4,255 |  |  | 111
|  | Total | $ | 115,828 |  |  | 4,192 |  |  | 22,728 |  |  | 2,078 |  | $ | 138,556 |  |  | 6,270
December 31, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency obligations | $ | 35,933 |  |  | 3,182 |  |  | 8,590 |  |  | 1,376 |  | $ | 44,523 |  |  | 4,558
Agency RMBS |  | 109,774 |  |  | 4,393 |  |  | 7,683 |  |  | 339 |  |  | 117,457 |  |  | 4,732
State and political subdivisions |  | 9,575 |  |  | 459 |  |  | — |  |  | — |  |  | 9,575 |  |  | 459
|  | Total | $ | 155,282 |  |  | 8,034 |  |  | 16,273 |  |  | 1,715 |  | $ | 171,555 |  |  | 9,749
The Company recorded an other-than-temporary impairment charge in the first quarter of 2014 related to securities management intended to sell at March 31, 2014. Subsequent to March 31, 2014, the Company sold these available-for-sale agency residential mortgage-backed securities (“RMBS”) with a fair value of approximately $18.9 million and realized a loss of $0.3 million. Periodically, available-for-sale securities may be sold or the composition of the portfolio realigned to improve yields, quality, or m arketability, or to implement changes in investment or asset/liability strategy, including collateral requirements and raising funds for liquidity purposes. For the securities in the previous table, the Company does not have the intent to sell and has dete rmined it is not more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis, which may be maturity. On a quarterly basis, the Company assesses each security for credit impairment. For debt secur ities, the Company evaluates, where necessary, whether credit impairment exists by comparing the present value of the expected cash flows to the securities’ amortized cost basis. For cost-method investments, the Company evaluates whether an event or change in circumstances has occurred during the reporting period that may have a significant adverse effect on the fair value of the investment. In determining whether a loss is temporary, the Company considers all relevant information including: the length of time and the extent to which the fair value has been less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or a geographic area (for example, changes in the financial condition of the issuer of the security, or in the case of an asset-backed debt security, in the financial condition of the underlying loan obligors, including changes in technology or the discontinuance of a segment of the business that may affect the future earnings potential of the i ssuer or underlying loan obligors of the security or changes in the quality of the credit enhancement); the historical and implied volatility of the fair value of the security; the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future; failure of the issuer of the security to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and recoveries or additional declines in fai r value subsequent to the balance sheet date. Agency obligations The unrealized losses associated with a gency obligations were primarily driven by changes in interest rates and not due to the credit quality of the securities. These securities were issued by U.S. government agencies or government-sponsored entities and d id not have any credit losses given the explicit government guarantee or other government support. Agency RMBS The unr ealized losses associated with a gency RMBS were primarily driven by changes in interest rates and not due to the credit quality of the securities. These securities were issued by U.S. government agencies or government-sponsored entities and d id not have any credit losses given the explicit government g uarantee or other government support. Securities of U.S. states and political subdivisions The unrealized losses associated with securities of U.S. states and political subdivisions were primarily driven by changes in interest rates and were not due to t he credit quality of the securities. Some of these securities are guaranteed by a bond insurer, but management did not rely on the guarantee in making its investment decision. These securities will continue to be monitored as part of the Company’s quart erly impairment analysis, but are expected to perform even if the rating agencies reduce the credit rating of the bond insurers. As a result, the Company expects to recover the entire amortized cost basis of these securities. Cost-method investments At March 31, 2014, cost-method investments with an aggregate cost of $1.6 million were not evaluated for impairment because the Company did not identify any events or changes in circu mstances that may have a significant adverse effect on the fair value of these cost-method investments. The carrying values of the Company’s investment securities could decline in the future if the financial condition of an issuer deteriorates and the Com pany determines it is probable that it will not recover the entire amortized cost basis for the security. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. Other-Than-Temporarily Impaired Securities The following table presents a roll-forward of the credit loss component of the amortized cost of debt securities that the Company has written down for other-than-temporary impairment and has recognized the credit com ponent of the loss in earnings (referred to as “credit-impaired” debt securities). O ther-than-temporary impairments recognized in earnings for credit-impaired debt securities are presented as additions in two components based upon w hether th e current period is the first time the debt security was credit-impaired (initial credit impairment) or is not the first ti me the debt security was credit-impaired (subsequent credit impairments). The credit loss component is reduced if the Company sell s, intend s to sell, or believe s it will be required to sell previously credit-impaired debt securities. Additionally, the credit loss component is reduced if the Company receive s cash flows in excess of what it expected to receive over the remaining life of t he credit-impaired debt security, the security matures or the security is fully written-down and deemed worthless. Changes in the credit loss component of credi t-impaired debt securities for the respective periods are presented below.
|  |  |  |  |  |  |  |  |  |  | Quarter ended March 31,
(Dollars in thousands) |  |  |  |  |  |  |  |  | 2014 |  |  | 2013
Balance, beginning of period |  |  |  |  |  |  |  | $ | — |  | $ | 1,257
Balance, end of period |  |  |  |  |  |  |  | $ | — |  | $ | 1,257
Other-Than-Temporary Impairment The following table presents details of the other-than-temporary impairment related to securities.
|  |  |  |  |  | Quarter ended March 31,
(Dollars in thousands) |  |  | 2014 |  |  | 2013
Other-than-temporary impairment charges (included in earnings): |  |  |  |  |  |
| Debt securities: |  |  |  |  |  |
|  | Agency RMBS |  | $ | 333 |  | $ | —
|  |  | Total debt securities |  |  | 333 |  |  | —
Total other-than-temporary impairment charges (included in earnings) |  | $ | 333 |  | $ | —
Other-than-temporary impairment on debt securities: |  |  |  |  |  |
| Recorded as part of gross realized losses: |  |  |  |  |  |
|  | Securities with intent to sell |  | $ | 333 |  | $ | —
Total other-than-temporary impairment on debt securities |  | $ | 333 |  | $ | —
Realized Gains and Losses
The following table presents the gross realized gains and losses on sales and other-than-temporary impairment charges
related to securities.
|  |  |  |  |  |  |  |  |  | Quarter ended March 31,
(Dollars in thousands) |  |  |  |  |  |  |  |  | 2014 |  |  | 2013
Gross realized gains |  |  |  |  |  |  |  | $ | 26 |  | $ | 161
Other-than-temporary impairment charges |  |  |  |  |  |  |  |  | (333) |  |  | —
| Realized gains, net |  |  |  |  |  |  |  | $ | (307) |  | $ | 161

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- 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 Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 3, 19, 20, 21, 22, 137 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 + Details
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