Securities (Tables)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Estimated Fair Value of Securities Available-for-Sale and Held-to-Maturity

The amortized cost and estimated fair value of securities available-for-sale and held-to-maturity at September 30, 2014 and December 31, 2013 are as follows (in thousands):

	At September 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale:
Investment securities:
U.S. agency obligations	$	19,973	$	9	$	(5	)	$	19,977
Equity investments		633		95		(22	)		706
Total investment securities available-for-sale	$	20,606	$	104	$	(27	)	$	20,683
Held-to-maturity:
Investment securities:
U.S. agency obligations	$	86,648	$	128	$	(72	)	$	86,704
State and municipal obligations		15,884		41		(6	)		15,919
Corporate debt securities		55,000		—		(7,000	)		48,000
Total investment securities		157,532		169		(7,078	)		150,623
Mortgage-backed securities:
FHLMC		147,477		459		(2,404	)		145,532
FNMA		193,390		4,684		(1,940	)		196,134
GNMA		644		126		—			770
Total mortgage-backed securities		341,511		5,269		(4,344	)		342,436
Total held-to-maturity	$	499,043	$	5,438	$	(11,422	)	$	493,059
Total securities	$	519,649	$	5,542	$	(11,449	)	$	513,742

	At December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Available-for-sale:
Investment securities:
U.S. agency obligations	$	35,128	$	161	$	—		$	35,289
Equity investments		6,757		1,790		—			8,547
Total investment securities available-for-sale	$	41,885	$	1,951	$	—		$	43,836
Held-to-maturity:
Investment securities:
U.S. agency obligations	$	82,406	$	153	$	(144	)	$	82,415
State and municipal obligations		21,784		36		(35	)		21,785
Corporate debt securities		55,000		—		(10,750	)		44,250
Total investment securities		159,190		189		(10,929	)		148,450
Mortgage-backed securities:
FHLMC		148,759		447		(4,552	)		144,654
FNMA		200,070		4,659		(3,607	)		201,122
GNMA		721		135		—			856
Total mortgage-backed securities		349,550		5,241		(8,159	)		346,632
Total held-to-maturity	$	508,740	$	5,430	$	(19,088	)	$	495,082
Total securities	$	550,625	$	7,381	$	(19,088	)	$	538,918

Carrying Value of Held-to-Maturity Investment Securities

The carrying value of the held-to-maturity investment securities at September 30, 2014 and December 31, 2013 are as follows (in thousands):

	September 30, 2014			December 31, 2013
Amortized cost	$	499,043		$	508,740
Net loss on date of transfer from available-for-sale		(13,347	)		(13,347	)
Accretion of net unrealized loss on securities reclassified as held-to-maturity		1,123			206
Carrying value	$	486,819		$	495,599

Contractual Maturity of Investment Securities

The amortized cost and estimated fair value of investment securities, excluding equity investments, at September 30, 2014 by contractual maturity, are shown below (in thousands). Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. At September 30, 2014, corporate debt securities with an amortized cost and estimated fair value of $55.0 million and $48.0 million, respectively, were callable prior to the maturity date.

September 30, 2014	Amortized Cost		Estimated Fair Value
Less than one year	$	48,248	$	48,333
Due after one year through five years		73,661		73,670
Due after five years through ten years		596		597
Due after ten years		55,000		48,000
	$	177,505	$	170,600

Estimated Fair Value and Unrealized Loss of Securities Available-for-Sale and Held-to-Maturity

The estimated fair value and unrealized loss of securities available-for-sale and held-to-maturity at September 30, 2014 and December 31, 2013, segregated by the duration of the unrealized loss, are as follows (in thousands):

	At September 30, 2014
	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
Available-for-sale:
Investment securities:
U.S. agency obligations	$	9,961	$	(5	)	$	—	$	—		$	9,961	$	(5	)
Equity investments		363		(22	)		—		—			363		(22	)
Total investment securities available-for-sale	$	10,324	$	(27	)	$	—	$	—		$	10,324	$	(27	)
Held-to-maturity:
Investment securities:
U.S. agency obligations	$	10,118	$	(17	)	$	25,458	$	(55	)	$	35,576	$	(72	)
State and municipal obligations		—		—			2,042		(6	)		2,042		(6	)
Corporate debt securities		—		—			48,000		(7,000	)		48,000		(7,000	)
Total investment securities		10,118		(17	)		75,500		(7,061	)		85,618		(7,078	)
Mortgage-backed securities:
FHLMC		31,128		(629	)		81,090		(1,775	)		112,218		(2,404	)
FNMA		19,351		(123	)		62,265		(1,817	)		81,616		(1,940	)
Total mortgage-backed securities		50,479		(752	)		143,355		(3,592	)		193,834		(4,344	)
Total held-to-maturity	$	60,597	$	(769	)	$	218,855	$	(10,653	)	$	279,452	$	(11,422	)
Total securities	$	70,921	$	(796	)	$	218,855	$	(10,653	)	$	289,776	$	(11,449	)

	At December 31, 2013
	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
Held-to-maturity:
Investment securities:
U.S. agency obligations	$	35,747	$	(144	)	$	—	$	—		$	35,747	$	(144	)
State and municipal obligations		3,526		(31	)		1,153		(4	)		4,679		(35	)
Corporate debt securities		—		—			44,250		(10,750	)		44,250		(10,750	)
Total investment securities		39,273		(175	)		45,403		(10,754	)		84,676		(10,929	)
Mortgage-backed securities:
FHLMC		122,365		(4,552	)		—		—			122,365		(4,552	)
FNMA		84,467		(3,607	)		—		—			84,467		(3,607	)
Total mortgage-backed securities		206,832		(8,159	)		—		—			206,832		(8,159	)
Total held-to-maturity	$	246,105	$	(8,334	)	$	45,403	$	(10,754	)	$	291,508	$	(19,088	)

Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt Securities

At September 30, 2014, the amortized cost, estimated fair value and credit rating of the individual corporate debt securities in an unrealized loss position for greater than one year are as follows (in thousands):

Security Description	Amortized Cost		Estimated Fair Value		Credit Rating Moody’s/S&P
BankAmerica Capital	$	15,000	$	13,050	Ba1/BB
Chase Capital		10,000		8,700	Baa2/BBB-
Wells Fargo Capital		5,000		4,400	A3/BBB+
Huntington Capital		5,000		4,300	Baa3/BB
Keycorp Capital		5,000		4,400	Baa3/BB+
PNC Capital		5,000		4,400	Baa2/BBB-
State Street Capital		5,000		4,350	A3/BBB
SunTrust Capital		5,000		4,400	Baa3/BB
	$	55,000	$	48,000