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Securities | 9 Months Ended
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Sep. 30, 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 September 30, 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 September 30, 2014 and December 31, 2013, respectively, are presented below.
|  |  | 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
September 30, 2014 |  |  |  |  |  |  |  |  |  |  |  |
Agency obligations (a) | $ | — | 25,753 | 19,682 | 14,068 | 59,503 |  | 146 | 1,373 |  | $ | 60,730
Agency RMBS (a) |  | — | — | 6,958 | 132,226 | 139,184 |  | 1,064 | 1,545 |  |  | 139,665
State and political subdivisions |  | — | 507 | 16,197 | 49,436 | 66,140 |  | 3,217 | 5 |  |  | 62,928
| Total available-for-sale | $ | — | 26,260 | 42,837 | 195,730 | 264,827 |  | 4,427 | 2,923 |  | $ | 263,323
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.
Securities with aggregate fair values of $119.7 million and $120.5 million at September 30, 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 September 30, 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 September 30, 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
September 30, 2014: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency obligations | $ | 17,494 |  |  | 28 |  |  | 23,609 |  |  | 1,345 |  | $ | 41,103 |  |  | 1,373
Agency RMBS |  | 25,730 |  |  | 62 |  |  | 52,358 |  |  | 1,483 |  |  | 78,088 |  |  | 1,545
State and political subdivisions |  | 670 |  |  | 4 |  |  | 769 |  |  | 1 |  |  | 1,439 |  |  | 5
|  | Total | $ | 43,894 |  |  | 94 |  |  | 76,736 |  |  | 2,829 |  | $ | 120,630 |  |  | 2,923
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
For the securities in the previous table, the Company does not have the intent to sell and has determined 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 securities, the Company evaluates, where necessary, whether credit impairment exists by comparing the present value of the expected cash flows to the securi ties’ 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 determi ning 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 o r the discontinuance of a segment of the business that may affect the future earnings potential of the issuer or underlying loan obligors of the security or changes in the quality of the credit enhancement); the historical and implied volatility of the fai r 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 cha nges to the rating of the security by a rating agency; and recoveries or additional declines in fair 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 residential mortgage-backed securities (“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-sponsore d entities and d id not have any credit losses given the explicit government guarantee 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 the credit quality of the securities. Some of these securities are guaranteed by a bond insure r, 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 quarterly impairment analysis, but are expected to perform even if the rating agencies reduce the c redit 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 September 30, 2014, cost-method investments with an aggregate cost of $1.6 million were no t evaluated for impairment because the Company did not identify any events or changes in circumstances that may have a significant adverse effect on the fair value of these cost-method investments. 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 September 30, |  |  | Nine months ended September 30,
(Dollars in thousands) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013
Balance, beginning of period | $ | — |  | $ | 757 |  | $ | — |  | $ | 1,257
| Reductions: |  |  |  |  |  |  |  |  |  |  |
|  | Securities fully written down and deemed worthless |  | — |  |  | — |  |  | — |  |  | 500
Balance, end of period | $ | — |  | $ | 757 |  | $ | — |  | $ | 757
Other-Than-Temporary Impairment The following table presents details of the other-than-temporary impairment related to securities.
|  |  |  |  | Quarter ended September 30, |  |  | Nine months ended September 30,
(Dollars in thousands) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013
Other-than-temporary impairment charges |  |  |  |  |  |  |  |  |  |  |
| Debt securities: |  |  |  |  |  |  |  |  |  |  |
|  | Agency RMBS | $ | — |  | $ | — |  | $ | 333 |  | $ | —
|  |  | Total debt securities |  | — |  |  | — |  |  | 333 |  |  | —
Total other-than-temporary impairment charges | $ | — |  | $ | — |  | $ | 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 September 30, |  |  | Nine months ended September 30,
(Dollars in thousands) |  |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013
Gross realized gains |  | $ | 429 |  | $ | — |  | $ | 467 |  | $ | 685
Gross realized losses |  |  | (664) |  |  | — |  |  | (664) |  |  | (6)
Other-than-temporary impairment charges |  |  | — |  |  | — |  |  | (333) |  |  | —
| Realized (losses) gains, net |  | $ | (235) |  | $ | — |  | $ | (530) |  | $ | 679

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