XML 26 R11.htm IDEA: XBRL DOCUMENT v3.3.1.900
Investment securities (Notes)
 12 Months Ended
Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities Disclosure [Text Block]
Investment 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 December 31, 2015 and 2014. 
 
2015
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
(Losses)
 
Fair
Value
Securities available for sale:
 
 
 
 
 
 
 
U.S. government agencies and corporations
$
2,551

 
$
141

 
$
—

 
$
2,692

State and political subdivisions
71,431

 
1,669

 
(21
)
 
73,079

Collateralized mortgage obligations (1)
133,414

 
491

 
(1,290
)
 
132,615

Mortgage-backed securities (1)
101,299

 
485

 
(696
)
 
101,088

Trust preferred security
1,773

 
—

 
(668
)
 
1,105

Corporate notes and equity securities
10,130

 
61

 
(56
)
 
10,135

 
$
320,598

 
$
2,847

 
$
(2,731
)
 
$
320,714

 
 
 
 
 
 
 
 
Securities held to maturity:
 
 
 
 
 
 
 
State and political subdivisions
$
51,259

 
$
883

 
$
(224
)
 
$
51,918

 
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.

In September 2014, the Company transferred 86 state and political subdivision securities with total amortized cost and estimated fair value of $50,882 and $51,371, respectively, from the available for sale securities classification to the held to maturity securities classification. Unrealized net gains, before tax, of $489 included in AOCI at the time of transfer are being amortized to interest income over the remaining expected lives of the transferred securities.

Investment securities with an amortized cost of approximately $78,553 and $4,805 as of December 31, 2015 and 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 as of December 31, 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 December 31, 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 in the following maturity summary. Equity securities have no maturity date.
 
2015
 
Amortized Cost
 
Fair Value
Due in one year or less
$
1,006

 
$
1,017

Due after one year through five years
18,976

 
19,283

Due after five years through ten years
27,565

 
28,251

Due after ten years
36,854

 
36,939

 
84,401

 
85,490

Collateralized mortgage obligations and mortgage-backed securities
234,713

 
233,703

Equity securities
1,484

 
1,521

 
$
320,598

 
$
320,714


The amortized cost and fair value of investment securities held to maturity as of December 31, 2015, by contractual maturity, are shown below.  Certain securities have call features that allow the issuer to call the securities prior to maturity.  
 
2015
 
Amortized Cost
 
Fair Value
Due after one year through five years
$
277

 
$
272

Due after five years through ten years
16,570

 
16,754

Due after ten years
34,412

 
34,892

 
$
51,259

 
$
51,918


The details of the sales of investment securities for the years ended December 31, 2015, 2014 and 2013 are summarized in the following table.
 
2015
 
2014
 
2013
Proceeds from sales
$
16,946

 
$
36,582

 
$
—

Gross gains on sales
54

 
1,050

 
—

Gross losses on sales
7

 
827

 
—


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 December 31, 2015 and 2014.  
 
 
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
 
321

 
(1
)
 
2,053

 
(20
)
 
2,374

 
(21
)
Collateralized mortgage obligations
 
53,043

 
(449
)
 
38,286

 
(841
)
 
91,329

 
(1,290
)
Mortgage-backed securities
 
67,662

 
(600
)
 
7,200

 
(96
)
 
74,862

 
(696
)
Trust preferred security
 
—

 
—

 
1,105

 
(668
)
 
1,105

 
(668
)
Corporate notes and equity securities
 
4,500

 
(56
)
 
—

 
—

 
4,500

 
(56
)
 
 
$
125,526

 
$
(1,106
)
 
$
48,644

 
$
(1,625
)
 
$
174,170

 
$
(2,731
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
 
State and political subdivisions
 
$
2,832

 
$
(42
)
 
$
7,341

 
$
(182
)
 
$
10,173

 
$
(224
)
 
 
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 December 31, 2015, the available for sale and held to maturity investment securities with unrealized losses that have existed for longer than one year included 21 state and political subdivision securities, 11 collateralized mortgage obligations, two mortgage-backed securities and one trust preferred security.

The Company believes the unrealized losses on investments available for sale and held to maturity as of December 31, 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 December 31, 2015.