XML 25 R13.htm IDEA: XBRL DOCUMENT v3.7.0.1
Investments
 6 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Investments
INVESTMENTS

The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available for sale and held to maturity:
 
 
June 30, 2017
(in thousands)
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
Available for sale securities:
 
 
 
 
 
 
 
Obligations of U.S. Government-sponsored enterprises
$
99,855

 
$
386

 
$
(6
)
 
$
100,235

Obligations of states and political subdivisions
34,083

 
1,001

 
—

 
35,084

Agency mortgage-backed securities
488,951

 
2,108

 
(2,521
)
 
488,538

          Total securities available for sale
$
622,889

 
$
3,495

 
$
(2,527
)
 
$
623,857

Held to maturity securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
14,722

 
$
189

 
$
(7
)
 
$
14,904

Agency mortgage-backed securities
62,919

 
135

 
(127
)
 
62,927

          Total securities held to maturity
$
77,641

 
$
324


$
(134
)

$
77,831



 
December 31, 2016
(in thousands)
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
Available for sale securities:
 
 
 
 
 
 
 
    Obligations of U.S. Government-sponsored enterprises
$
107,312

 
$
348

 
$
—

 
$
107,660

    Obligations of states and political subdivisions
36,486

 
630

 
(485
)
 
36,631

    Agency mortgage-backed securities
319,345

 
1,101

 
(3,940
)
 
316,506

          Total securities available for sale
$
463,143

 
$
2,079

 
$
(4,425
)
 
$
460,797

Held to maturity securities:
 
 
 
 
 
 
 
   Obligations of states and political subdivisions
$
14,759

 
$
11

 
$
(242
)
 
$
14,528

   Agency mortgage-backed securities
65,704

 
45

 
(638
)
 
65,111

          Total securities held to maturity
$
80,463

 
$
56

 
$
(880
)
 
$
79,639



At June 30, 2017, and December 31, 2016, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government-sponsored enterprises. Available for sale securities having a fair value of $418.9 million and $407.3 million at June 30, 2017, and December 31, 2016, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions.

The amortized cost and estimated fair value of debt securities at June 30, 2017, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 5 years.
 
 
Available for sale
 
Held to maturity
(in thousands)
Amortized Cost
 
Estimated Fair Value
 
Amortized Cost
 
Estimated Fair Value
Due in one year or less
$
1,780

 
$
1,791

 
$
—

 
$
—

Due after one year through five years
111,987

 
112,761

 
—

 
—

Due after five years through ten years
16,807

 
17,391

 
12,367

 
12,529

Due after ten years
3,364

 
3,375

 
2,355

 
2,375

Agency mortgage-backed securities
488,951

 
488,539

 
62,919

 
62,927

 
$
622,889

 
$
623,857


$
77,641


$
77,831




The following table represents a summary of investment securities that had an unrealized loss:
 
 
June 30, 2017
Less than 12 months
 
12 months or more
 
Total
(in thousands)
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
Obligations of U.S. Government-sponsored enterprises
$
10,142

 
$
6

 
$
—

 
$
—

 
$
10,142

 
$
6

Obligations of states and political subdivisions
$
1,642

 
$
7

 
$
—

 
$
—

 
$
1,642

 
$
7

Agency mortgage-backed securities
293,426

 
2,197

 
12,918

 
451

 
306,344

 
2,648

 
$
305,210

 
$
2,210


$
12,918


$
451


$
318,128


$
2,661

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
Less than 12 months
 
12 months or more
 
Total
(in thousands)
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
Obligations of states and political subdivisions
$
21,361

 
$
408

 
$
3,553

 
$
320

 
$
24,914

 
$
728

Agency mortgage-backed securities
267,734

 
4,084

 
12,883

 
493

 
280,617

 
4,577

 
$
289,095

 
$
4,492


$
16,436


$
813


$
305,531


$
5,305




The unrealized losses at both June 30, 2017, and December 31, 2016, were primarily attributable to changes in market interest rates since the securities were purchased. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include among other considerations (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, (4) structure of the security, and (5) the intent to sell the security or whether it is more likely than not the Company would be required to sell the security before its anticipated recovery in market value. At June 30, 2017, management performed its quarterly analysis of all securities with an unrealized loss and concluded no individual securities were other-than-temporarily impaired.