Investment Securities [Text Block] |
Securities
The following tables show the amortized cost, gross unrealized gains and losses and fair value of investment securities, by investment security type as of June 30, 2015 and December 31, 2014. | | | | | | | | | | | | | | | | | | June 30, 2015 | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized (Losses) | | Fair Value | Securities available for sale: | | | | | | | | U.S. government agencies and corporations | $ | 2,565 |
| | $ | 185 |
| | $ | — |
| | $ | 2,750 |
| State and political subdivisions | 54,710 |
| | 924 |
| | (591 | ) | | 55,043 |
| Collateralized mortgage obligations (1) | 116,901 |
| | 815 |
| | (1,215 | ) | | 116,501 |
| Mortgage-backed securities (1) | 59,507 |
| | 635 |
| | (405 | ) | | 59,737 |
| Trust preferred security | 1,768 |
| | — |
| | (728 | ) | | 1,040 |
| Corporate notes and equity securities | 10,162 |
| | 48 |
| | (80 | ) | | 10,130 |
| | $ | 245,613 |
| | $ | 2,607 |
| | $ | (3,019 | ) | | $ | 245,201 |
| | | | | | | | | Securities held to maturity: | | | | | | | | State and political subdivisions | $ | 51,302 |
| | $ | 15 |
| | $ | (869 | ) | | $ | 50,448 |
| | |
| | |
| | |
| | |
| | December 31, 2014 | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized (Losses) | | Fair Value | Securities available for sale: | | | | | | | | U.S. government agencies and corporations | $ | 12,626 |
| | $ | 204 |
| | $ | (10 | ) | | $ | 12,820 |
| State and political subdivisions | 51,234 |
| | 1,286 |
| | (161 | ) | | 52,359 |
| Collateralized mortgage obligations (1) | 126,430 |
| | 856 |
| | (1,416 | ) | | 125,870 |
| Mortgage-backed securities (1) | 65,813 |
| | 624 |
| | (284 | ) | | 66,153 |
| Trust preferred security | 1,763 |
| | — |
| | (845 | ) | | 918 |
| Corporate notes and equity securities | 14,729 |
| | 66 |
| | (125 | ) | | 14,670 |
| | $ | 272,595 |
| | $ | 3,036 |
| | $ | (2,841 | ) | | $ | 272,790 |
| | | | | | | | | Securities held to maturity: | | | | | | | | State and political subdivisions | $ | 51,343 |
| | $ | 344 |
| | $ | (186 | ) | | $ | 51,501 |
|
| | (1) | All collateralized mortgage obligations and mortgage-backed securities consist of residential mortgage pass-through securities guaranteed by GNMA or issued by FNMA and real estate mortgage investment conduits guaranteed by FHLMC or GNMA. |
Investment securities with an amortized cost of approximately $80,658 and $4,805 as of June 30, 2015 and December 31, 2014, respectively, were pledged to secure access to the Federal Reserve discount window, for public fund deposits, and for other purposes as required or permitted by law or regulation. The increase in the amount of pledged investment securities at June 30, 2015 compared to December 31, 2014 was primarily due to an increase in public fund deposits.
The amortized cost and fair value of investment securities available for sale as of June 30, 2015, by contractual maturity, are shown below. Certain securities have call features that allow the issuer to call the securities prior to maturity. Expected maturities may differ from contractual maturities for collateralized mortgage obligations and mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, collateralized mortgage obligations and mortgage-backed securities are not included in the maturity categories within the following maturity summary. Equity securities have no maturity date. | | | | | | | | | | June 30, 2015 | | Amortized Cost | | Fair Value | Due in one year or less | $ | 1,337 |
| | $ | 1,359 |
| Due after one year through five years | 18,914 |
| | 19,363 |
| Due after five years through ten years | 16,378 |
| | 16,592 |
| Due after ten years | 31,092 |
| | 30,239 |
| | 67,721 |
| | 67,553 |
| Collateralized mortgage obligations and mortgage-backed securities | 176,408 |
| | 176,238 |
| Equity securities | 1,484 |
| | 1,410 |
| | $ | 245,613 |
| | $ | 245,201 |
|
The amortized cost and fair value of investment securities held to maturity as of June 30, 2015, by contractual maturity, are shown below. Certain securities have call features that allow the issuer to call the securities prior to maturity. | | | | | | | | | | June 30, 2015 | | Amortized Cost | | Fair Value | Due after one year through five years | $ | 278 |
| | $ | 274 |
| Due after five years through ten years | 14,398 |
| | 14,276 |
| Due after ten years | 36,626 |
| | 35,898 |
| | $ | 51,302 |
| | $ | 50,448 |
|
The details of the sales of investment securities for the three and six months ended June 30, 2015 and 2014 are summarized in the following table. | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2015 | | 2014 | | 2015 | | 2014 | Proceeds from sales | $ | 6,889 |
| | $ | — |
| | $ | 16,946 |
| | $ | 29,238 |
| Gross gains on sales | 43 |
| | — |
| | 54 |
| | 716 |
| Gross losses on sales | 7 |
| | — |
| | 7 |
| | 210 |
|
The following tables show the fair value and gross unrealized losses, aggregated by investment type and length of time that individual securities have been in a continuous loss position, as of June 30, 2015 and December 31, 2014. | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2015 | | Less than 12 months | | 12 months or longer | | Total | | Fair Value | | Gross Unrealized (Losses) | | Fair Value | | Gross Unrealized (Losses) | | Fair Value | | Gross Unrealized (Losses) | Securities available for sale: | | | | | | | | | | | | U.S. government agencies and corporations | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| State and political subdivisions | 27,759 |
| | (591 | ) | | — |
| | — |
| | 27,759 |
| | (591 | ) | Collateralized mortgage obligations | 19,117 |
| | (151 | ) | | 45,771 |
| | (1,064 | ) | | 64,888 |
| | (1,215 | ) | Mortgage-backed securities | 21,967 |
| | (239 | ) | | 7,842 |
| | (166 | ) | | 29,809 |
| | (405 | ) | Trust preferred security | — |
| | — |
| | 1,040 |
| | (728 | ) | | 1,040 |
| | (728 | ) | Corporate notes and equity securities | 3,039 |
| | (26 | ) | | 938 |
| | (54 | ) | | 3,977 |
| | (80 | ) | | $ | 71,882 |
| | $ | (1,007 | ) | | $ | 55,591 |
| | $ | (2,012 | ) | | $ | 127,473 |
| | $ | (3,019 | ) | | |
| | |
| | |
| | |
| | |
| | |
| Securities held to maturity: | | | | | | | | | | | | State and political subdivisions | $ | 46,975 |
| | $ | (869 | ) | | $ | — |
| | $ | — |
| | $ | 46,975 |
| | $ | (869 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2014 | | Less than 12 months | | 12 months or longer | | Total | | Fair Value | | Gross Unrealized (Losses) | | Fair Value | | Gross Unrealized (Losses) | | Fair Value | | Gross Unrealized (Losses) | Securities available for sale: | | | | | | | | | | | | U.S. government agencies and corporations | $ | 10,039 |
| | $ | (10 | ) | | $ | — |
| | $ | — |
| | $ | 10,039 |
| | $ | (10 | ) | State and political subdivisions | 6,614 |
| | (90 | ) | | 5,887 |
| | (71 | ) | | 12,501 |
| | (161 | ) | Collateralized mortgage obligations | 17,283 |
| | (87 | ) | | 53,318 |
| | (1,329 | ) | | 70,601 |
| | (1,416 | ) | Mortgage-backed securities | 15,184 |
| | (101 | ) | | 17,126 |
| | (183 | ) | | 32,310 |
| | (284 | ) | Trust preferred security | — |
| | — |
| | 918 |
| | (845 | ) | | 918 |
| | (845 | ) | Corporate notes and equity securities | 4,581 |
| | (23 | ) | | 2,881 |
| | (102 | ) | | 7,462 |
| | (125 | ) | | $ | 53,701 |
| | $ | (311 | ) | | $ | 80,130 |
| | $ | (2,530 | ) | | $ | 133,831 |
| | $ | (2,841 | ) | | | | | | | | | | | | | Securities held to maturity: | | | | | | | | | | | | State and political subdivisions | $ | 13,048 |
| | $ | (186 | ) | | $ | — |
| | $ | — |
| | $ | 13,048 |
| | $ | (186 | ) |
As of June 30, 2015, the available for sale securities with unrealized losses that have existed for longer than one year included 12 collateralized mortgage obligation securities, two mortgage-backed securities, one trust preferred security and two equity securities.
The Company believes the unrealized losses on investments available for sale and held to maturity as of June 30, 2015, were due to market conditions, rather than reduced estimated cash flows. The Company does not intend to sell these securities, does not anticipate that these securities will be required to be sold before anticipated recovery, and expects full principal and interest to be collected. Therefore, the Company does not consider these investments to have OTTI as of June 30, 2015.
|