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Securities
 9 Months Ended
Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
Securities
Securities
 
The following tables summarize securities available-for-sale as of September 30, 2015 and December 31, 2014.
 
 
September 30, 2015
 
 
Amortized
 
Gross Unrealized
 
Fair
 
 
Cost
 
Gains
 
Losses
 
Value
Securities available-for-sale
 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
36,006

 
$
203

 
$
(585
)
 
$
35,624

Municipal securities
 
15,213

 
100

 
(89
)
 
15,224

Mortgage-backed securities
 
109,645

 
598

 
(191
)
 
110,052

Asset-backed securities
 
19,438

 
11

 
(26
)
 
19,423

Corporate securities
 
20,000

 
—

 
(771
)
 
19,229

Other securities
 
3,000

 
13

 
—

 
3,013

Total available-for-sale
 
$
203,302

 
$
925

 
$
(1,662
)
 
$
202,565

 
 
 
December 31, 2014
 
 
Amortized
 
Gross Unrealized
 
Fair
 
 
Cost
 
Gains
 
Losses
 
Value
Securities available-for-sale
 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
13,680

 
$
129

 
$
(257
)
 
$
13,552

Mortgage-backed securities
 
117,134

 
282

 
(368
)
 
117,048

Asset-backed securities
 
4,913

 
—

 
(1
)
 
4,912

Other securities
 
2,000

 
6

 
—

 
2,006

Total available-for-sale
 
$
137,727

 
$
417

 
$
(626
)
 
$
137,518


 
The carrying value of securities at September 30, 2015 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
 
Available-for-Sale
 
 
Amortized
Cost
 
Fair
Value
Within one year
 
$
—

 
$
—

One to five years
 
491

 
458

Five to ten years
 
24,323

 
23,930

After ten years
 
46,405

 
45,689

 
 
71,219

 
70,077

Mortgage-backed securities
 
109,645

 
110,052

Asset-backed securities
 
19,438

 
19,423

Other securities
 
3,000

 
3,013

Total
 
$
203,302

 
$
202,565


 
Gross realized gains of $0 and $0.4 million, and gross losses of $0 and $0.4 million, resulting from sales of available-for-sale securities were recognized during the three months ended September 30, 2015 and 2014, respectively. Gross realized gains of $0 and $2.7 million, and gross losses of $0 and $2.2 million, resulting from sales of available-for-sale securities were recognized during the nine months ended September 30, 2015 and 2014, respectively.
 
Certain investments in debt securities are reported in the condensed consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at September 30, 2015 and December 31, 2014 was $81.0 million and $86.9 million, which was approximately 40% and 63%, respectively, of the Company’s available-for-sale securities portfolio. These declines resulted primarily from fluctuations in market interest rates after purchase.
 
Except as discussed below, management believes the declines in fair value for these securities are temporary.
 
Should the impairment of any of these securities become other-than-temporary, the cost basis of the security will be reduced, with the resulting loss recognized in net income in the period in which the other-than-temporary impairment (“OTTI”) is identified.
 
The following tables show the securities portfolio's gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2015 and December 31, 2014. 
 
 
September 30, 2015
 
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Securities available-for-sale
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
13,568

 
$
(427
)
 
$
8,771

 
$
(158
)
 
$
22,339

 
$
(585
)
Municipal securities
 
6,152

 
(89
)
 
—

 
—

 
6,152

 
(89
)
Mortgage-backed securities
 
—

 
—

 
23,741

 
(191
)
 
23,741

 
(191
)
Asset-backed securities
 
9,586

 
(26
)
 
—

 
—

 
9,586

 
(26
)
Corporate securities
 
19,229

 
(771
)
 
—

 
—

 
19,229

 
(771
)
Total
 
$
48,535

 
$
(1,313
)
 
$
32,512

 
$
(349
)
 
$
81,047

 
$
(1,662
)
  
 
 
December 31, 2014
 
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Securities available-for-sale
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government-sponsored agencies
 
$
801

 
$
(10
)
 
$
8,719

 
$
(247
)
 
$
9,520

 
$
(257
)
Mortgage-backed securities
 
51,204

 
(57
)
 
21,237

 
(311
)
 
72,441

 
(368
)
Asset-backed securities
 
4,912

 
(1
)
 
—

 
—

 
4,912

 
(1
)
Total
 
$
56,917

 
$
(68
)
 
$
29,956

 
$
(558
)
 
$
86,873

 
$
(626
)


U. S. Government-Sponsored Agencies, Municipal Securities and Corporate Securities

The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies, municipal organizations and corporate entities were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2015.
 
Mortgage-Backed and Asset-Backed Securities
 
The unrealized losses on the Company’s investments in mortgage-backed and asset-backed securities were caused by interest rate changes. The Company expects to recover the amortized cost bases over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2015.

Credit Losses Recognized on Investments
 
Certain debt securities have experienced fair value deterioration due to credit losses and other market factors, but are not considered other-than-temporarily impaired.
 
The following table provides information about debt securities for which only a credit loss was recognized in income and other losses were recorded in accumulated other comprehensive loss during the nine months ended September 30, 2014. The Company did not own any OTTI securities during the three and nine months ended September 30, 2015 or during the three months ended September 30, 2014.  
 
Accumulated Credit Losses
Credit losses on debt securities held
 

January 1, 2014
$
1,183

Realized losses related to OTTI
(1,139
)
Recoveries related to OTTI
(44
)
September 30, 2014
$
—


There were no amounts reclassified from accumulated other comprehensive loss during the three and nine months ended September 30, 2015. Amounts reclassified from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of income during the three and nine months ended September 30, 2014, were as follows:
Details About Accumulated Other Comprehensive Loss Components
 
Amounts Reclassified from Accumulated Other
Comprehensive Loss for the
Three Months Ended September 30, 2014
 
Affected Line Item in the
Statements of Income
Unrealized gains and losses on securities available-for-sale
 
 

 
 
Gain realized in earnings
 
$
54

 
Gain on sale of securities
Total reclassified amount before tax
 
54

 
Income Before Income Taxes
Tax expense
 
18

 
Income Tax Provision
Total reclassifications out of accumulated other comprehensive loss
 
$
36

 
Net Income

Details About Accumulated Other Comprehensive Loss Components
 
Amounts Reclassified from Accumulated Other
Comprehensive Loss for the
Nine Months Ended September 30, 2014
 
Affected Line Item in the
Statements of Income
Unrealized gains and losses on securities available-for-sale
 
 

 
 
Gain realized in earnings
 
$
538

 
Gain on sale of securities
Total reclassified amount before tax
 
538

 
Income Before Income Taxes
Tax expense
 
183

 
Income Tax Provision
Total reclassifications out of accumulated other comprehensive loss
 
$
355

 
Net Income