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Investment Securities
 6 Months Ended
Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities
 
The amortized cost and estimated fair value of securities were as follows:
 
 
 
June 30, 2015
 
 
Amortized
 Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 
 
(in thousands)
Investment securities available for sale:
 
 

 
 
 
 
 
 
Municipal bonds
 
$
120,392

 
$
784

 
$
(745
)
 
$
120,431

Mortgage-backed securities
 
160,764

 
312

 
(1,073
)
 
160,003

Total securities available for sale
 
$
281,156

 
$
1,096

 
$
(1,818
)
 
$
280,434


 
 
December 31, 2014
 
 
Amortized
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 
 
(in thousands)
Investment securities available for sale:
 
 

 
 

 
 

 
 

Municipal bonds
 
$
88,599

 
$
1,235

 
$
(173
)
 
$
89,661

Mortgage-backed securities
 
112,159

 
432

 
(614
)
 
111,977

Total securities available for sale
 
$
200,758

 
$
1,667

 
$
(787
)
 
$
201,638


 
 
June 30, 2014
 
 
Amortized
 Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 
 
(in thousands)
Investment securities available for sale:
 
 

 
 

 
 

 
 

Municipal bonds
 
$
84,576

 
$
1,211

 
$
(354
)
 
85,433

Mortgage-backed securities
 
150,578

 
230

 
(1,125
)
 
149,683

Total securities available for sale
 
$
235,154

 
$
1,441

 
$
(1,479
)
 
$
235,116



At June 30, 2015, the Company had $11.3 million in Federal Home Loan Bank (“FHLB”) stock, $7.5 million in Federal Reserve Bank (“FRB”) stock, and $4 million in other stock, all carried at cost.  During the six months ended June 30, 2015, the Company had net sales of $10.5 million of FHLB stock through the FHLB stock purchase program.
 
At June 30, 2015, mortgage-backed securities (“MBS”) with an estimated par value of $65.2 million and a fair value of $66.8 million were pledged as collateral for the Bank’s three reverse repurchase agreements which totaled $28.5 million and HOA reverse repurchase agreements which totaled $19.7 million.
 
The table below shows the number, fair value and gross unrealized holding losses of the Company’s investment securities by investment category and length of time that the securities have been in a continuous loss position.
 
 
June 30, 2015
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
(dollars in thousands)
Municipal bonds
109

 
$
56,215

 
$
(636
)
 
7

 
$
3,728

 
$
(109
)
 
116

 
$
59,943

 
$
(745
)
Mortgage-backed securities
32

 
87,506

 
(548
)
 
3

 
14,222

 
(525
)
 
35

 
101,728

 
(1,073
)
Total
141

 
$
143,721

 
$
(1,184
)
 
10

 
$
17,950

 
$
(634
)
 
151

 
$
161,671

 
$
(1,818
)

 
December 31, 2014
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
(dollars in thousands)
Municipal bonds
35

 
$
18,129

 
$
(117
)
 
16

 
$
6,510

 
$
(56
)
 
51

 
$
24,639

 
$
(173
)
Mortgage-backed securities
7

 
24,353

 
(105
)
 
4

 
18,842

 
(509
)
 
11

 
43,195

 
(614
)
Total
42

 
$
42,482

 
$
(222
)
 
20

 
$
25,352

 
$
(565
)
 
62

 
$
67,834

 
$
(787
)
 
June 30, 2014
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
(dollars in thousands)
Municipal bonds
27

 
$
14,011

 
$
(143
)
 
44

 
$
18,316

 
$
(211
)
 
71

 
$
32,327

 
$
(354
)
Mortgage-backed securities
11

 
37,316

 
(109
)
 
12

 
52,235

 
(1,016
)
 
23

 
89,551

 
(1,125
)
Total
38

 
$
51,327

 
$
(252
)
 
56

 
$
70,551

 
$
(1,227
)
 
94

 
$
121,878

 
$
(1,479
)


The amortized cost and estimated fair value of investment securities available for sale at June 30, 2015, by contractual maturity are shown in the table below.

 
 
One Year
or Less
 
More than One
Year to Five Years
 
More than Five Years
to Ten Years
 
More than
Ten Years
 
Total
 
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
 
(dollars in thousands)
Investment securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal bonds
 
$
462

 
$
465

 
$
21,627

 
$
21,554

 
$
45,981

 
$
46,111

 
$
52,322

 
$
52,301

 
$
120,392

 
$
120,431

Mortgage-backed securities
 
—

 
—

 
—

 
—

 
24,341

 
24,328

 
136,423

 
135,675

 
160,764

 
160,003

Total investment securities available for sale
 
$
462

 
$
465

 
$
21,627

 
$
21,554

 
$
70,322

 
$
70,439

 
$
188,745

 
$
187,976

 
$
281,156

 
$
280,434



Any temporary impairment is a result of the change in market interest rates and not the underlying issuers’ ability to repay.  The Company has the intent and ability to hold these securities until the temporary impairment is eliminated.  Accordingly, the Company has not recognized the temporary impairment in earnings.
 
Unrealized gains and losses on investment securities available for sale are recognized in stockholders’ equity as accumulated other comprehensive income or loss.  At June 30, 2015, the Company had accumulated other comprehensive loss of $722,000, or $425,000 net of benefit, compared to accumulated other comprehensive income of $880,000 or $518,000 net of tax, at December 31, 2014.