XML 23 R11.htm IDEA: XBRL DOCUMENT v3.19.2
Investment Securities
 6 Months Ended
Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The following table shows the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at June 30, 2019 and December 31, 2018, by contractual maturity within each type:
 
At June 30, 2019
 
At December 31, 2018
(Dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
Securities Held-to-Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government corporations and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
After 1 year to 5 years
$
6,997

 
$
55

 
$
—

 
$
7,052

 
$
6,996

 
$
—

 
$
(104
)
 
$
6,892

 
6,997

 
55

 
—

 
7,052

 
6,996

 
—

 
(104
)
 
6,892

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
After 5 years to 10 years
10,379

 
102

 
—

 
10,481

 
11,573

 
—

 
(135
)
 
11,438

Over 10 years
155,570

 
2,253

 
(60
)
 
157,763

 
124,065

 
287

 
(1,107
)
 
123,245

 
165,949

 
2,355

 
(60
)
 
168,244

 
135,638

 
287

 
(1,242
)
 
134,683

Total
$
172,946

 
$
2,410

 
$
(60
)
 
$
175,296

 
$
142,634

 
$
287

 
$
(1,346
)
 
$
141,575

Securities Available-for-Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government corporations and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Within 1 year
$
10,332

 
$
—

 
$
(16
)
 
$
10,316

 
$
15,108

 
$
—

 
$
(90
)
 
$
15,018

After 1 year to 5 years
—

 
—

 
—

 
—

 
303

 
—

 
(6
)
 
297


10,332

 
—

 
(16
)
 
10,316

 
15,411

 
—

 
(96
)
 
15,315

State and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Within 1 year
1,395

 
3

 
—

 
1,398

 
5,900

 
4

 
(6
)
 
5,898

After 1 year to 5 years
5,732

 
63

 
—

 
5,795

 
15,459

 
36

 
(56
)
 
15,439

After 5 years to 10 years
36,550

 
429

 
—

 
36,979

 
43,923

 
318

 
(163
)
 
44,078


43,677

 
495

 
—

 
44,172

 
65,282

 
358

 
(225
)
 
65,415

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
After 1 year to 5 years
5,420

 
20

 
(5
)
 
5,435

 
5,799

 
3

 
(70
)
 
5,732

After 5 years to 10 years
43,799

 
52

 
(237
)
 
43,614

 
49,904

 
6

 
(1,381
)
 
48,529

Over 10 years
93,324

 
172

 
(730
)
 
92,766

 
100,873

 
26

 
(3,398
)
 
97,501


142,543

 
244

 
(972
)
 
141,815

 
156,576

 
35

 
(4,849
)
 
151,762

Collateralized mortgage obligations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
After 5 years to 10 years
1,497

 
—

 
(31
)
 
1,466

 
1,677

 
—

 
(78
)
 
1,599

Over 10 years
1,200

 
11

 
—

 
1,211

 
1,305

 
—

 
(16
)
 
1,289


2,697

 
11

 
(31
)
 
2,677

 
2,982

 
—

 
(94
)
 
2,888

Corporate bonds:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Within 1 year
10,817

 
—

 
(33
)
 
10,784

 
7,806

 
—

 
(68
)
 
7,738

After 1 year to 5 years
29,115

 
320

 
(27
)
 
29,408

 
18,508

 
1

 
(332
)
 
18,177

After 5 years to 10 years
—

 
—

 


 
—

 
16,146

 
—

 
(392
)
 
15,754

Over 10 years
60,000

 
—

 
(6,150
)
 
53,850

 
60,000

 
—

 
(8,542
)
 
51,458


99,932

 
320

 
(6,210
)
 
94,042

 
102,460

 
1

 
(9,334
)
 
93,127

Total
$
299,181

 
$
1,070

 
$
(7,229
)
 
$
293,022

 
$
342,711

 
$
394

 
$
(14,598
)
 
$
328,507



Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties and mortgage-backed securities typically prepay at a rate faster than contractually due.
Securities with a carrying value of $379.0 million and $344.5 million at June 30, 2019 and December 31, 2018, respectively, were pledged to secure public deposits and other contractual obligations. In addition, securities of $9.9 million and $296 thousand were pledged to secure credit derivatives and interest rate swaps at June 30, 2019 and December 31, 2018, respectively. See Note 11, "Derivative Instruments and Hedging Activities" for additional information.
The following table presents information related to sales of securities available-for-sale during the six months ended June 30, 2019 and 2018:
 
Six Months Ended June 30,
(Dollars in thousands)
2019
 
2018
Securities available-for-sale:
 
 
 
Proceeds from sales
$
15,494

 
$
1,010

Gross realized gains on sales
29

 
10

Gross realized losses on sales
21

 
—

Tax expense related to net realized gains on sales
2

 
2


    
At June 30, 2019 and December 31, 2018, there were no reportable investments in any single issuer representing more than 10% of shareholders’ equity.
The following table shows the fair value of securities that were in an unrealized loss position at June 30, 2019 and December 31, 2018 by the length of time those securities were in a continuous loss position. For the investment securities in an unrealized loss position, the Corporation has concluded, based on its analysis, that the unrealized losses are primarily caused by the movement of interest rates and current market conditions and there is no other-than temporary impairment of the securities. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the par value of the investment. It is more likely than not that the Corporation will not be required to sell the investments before a recovery of carrying value.
 
Less than
Twelve Months
 
Twelve Months
or Longer
 
Total
(Dollars in thousands)
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
At June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Securities Held-to-Maturity
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities
$
15,022

 
$
(39
)
 
$
3,652

 
$
(21
)
 
$
18,674

 
$
(60
)
Total
$
15,022

 
$
(39
)
 
$
3,652

 
$
(21
)
 
$
18,674

 
$
(60
)
Securities Available-for-Sale
 
 
 
 
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
—

 
$
—

 
$
10,316

 
$
(16
)
 
$
10,316

 
$
(16
)
Residential mortgage-backed securities
—

 
—

 
99,801

 
(972
)
 
99,801

 
(972
)
Collateralized mortgage obligations
—

 
—

 
1,466

 
(31
)
 
1,466

 
(31
)
Corporate bonds
1,497

 
(4
)
 
71,109

 
(6,206
)
 
72,606

 
(6,210
)
Total
$
1,497

 
$
(4
)
 
$
182,692

 
$
(7,225
)
 
$
184,189

 
$
(7,229
)
At December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Securities Held-to-Maturity
 
 
 
 
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
—

 
$
—

 
$
6,892

 
$
(104
)
 
$
6,892

 
$
(104
)
Residential mortgage-backed securities
48,192

 
(472
)
 
34,501

 
(770
)
 
82,693

 
(1,242
)
Total
$
48,192

 
$
(472
)
 
$
41,393

 
$
(874
)
 
$
89,585

 
$
(1,346
)
Securities Available-for-Sale
 
 
 
 
 
 
 
 
 
 
 
U.S. government corporations and agencies
$
—

 
$
—

 
$
15,315

 
$
(96
)
 
$
15,315

 
$
(96
)
State and political subdivisions
9,311

 
(61
)
 
15,302

 
(164
)
 
24,613

 
(225
)
Residential mortgage-backed securities
7,099

 
(106
)
 
141,924

 
(4,743
)
 
149,023

 
(4,849
)
Collateralized mortgage obligations
1,289

 
(16
)
 
1,599

 
(78
)
 
2,888

 
(94
)
Corporate bonds
16,896

 
(235
)
 
75,730

 
(9,099
)
 
92,626

 
(9,334
)
Total
$
34,595

 
$
(418
)
 
$
249,870

 
$
(14,180
)
 
$
284,465

 
$
(14,598
)


At June 30, 2019, gross unrealized losses for securities available-for-sale in an unrealized loss position for twelve months or longer, totaled $7.2 million. Three federal agency bonds, sixteen investment grade corporate bonds, ninety federal agency residential mortgage securities and one collateralized mortgage obligation bonds had respective unrealized loss positions of $16 thousand, $6.2 million, $1.0 million and $31 thousand, respectively. The fair value of these 110 securities fluctuate with changes in market conditions which for these underlying securities is primarily due to changes in the interest rate environment. The Corporation does not intend to sell the securities in an unrealized loss position and is unlikely to be required to sell these securities before a recovery of fair value, which may be maturity. Upon review of the attributes of the individual securities, the Corporation concluded these
securities were not other-than-temporarily impaired. The Corporation did not recognize any other-than-temporary impairment charges on debt securities for the six months ended June 30, 2019 or 2018.

The Corporation recognized a $20 thousand net gain and $33 thousand net gain on equity securities during the six months ended June 30, 2019 and 2018, respectively, in other noninterest income. There were no sales of equity securities during the six months ended June 30, 2019 or June 30, 2018.