Securities |
4. Securities
The amortized cost and fair value of securities are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
Securities Available for Sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$ |
29,738 |
|
|
$ |
58 |
|
|
$ |
— |
|
|
$ |
29,796 |
|
U.S. government-sponsored entities
|
|
|
368,463 |
|
|
|
856 |
|
|
|
(1,325 |
) |
|
|
367,994 |
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
703,069 |
|
|
|
4,594 |
|
|
|
(2,832 |
) |
|
|
704,831 |
|
Agency collateralized mortgage obligations
|
|
|
503,328 |
|
|
|
1,032 |
|
|
|
(8,530 |
) |
|
|
495,830 |
|
Non-agency collateralized mortgage obligations
|
|
|
1,177 |
|
|
|
13 |
|
|
|
— |
|
|
|
1,190 |
|
Commercial mortgage-backed securities
|
|
|
4,299 |
|
|
|
— |
|
|
|
(12 |
) |
|
|
4,287 |
|
States of the U.S. and political subdivisions
|
|
|
10,748 |
|
|
|
309 |
|
|
|
— |
|
|
|
11,057 |
|
Other debt securities
|
|
|
14,729 |
|
|
|
208 |
|
|
|
(651 |
) |
|
|
14,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt securities
|
|
|
1,635,551 |
|
|
|
7,070 |
|
|
|
(13,350 |
) |
|
|
1,629,271 |
|
Equity securities
|
|
|
975 |
|
|
|
324 |
|
|
|
(3 |
) |
|
|
1,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,636,526 |
|
|
$ |
7,394 |
|
|
$ |
(13,353 |
) |
|
$ |
1,630,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$ |
29,604 |
|
|
$ |
78 |
|
|
$ |
— |
|
|
$ |
29,682 |
|
U.S. government-sponsored entities
|
|
|
338,330 |
|
|
|
742 |
|
|
|
(1,939 |
) |
|
|
337,133 |
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
546,572 |
|
|
|
7,548 |
|
|
|
(35 |
) |
|
|
554,085 |
|
Agency collateralized mortgage obligations
|
|
|
580,601 |
|
|
|
1,617 |
|
|
|
(9,047 |
) |
|
|
573,171 |
|
Non-agency collateralized mortgage obligations
|
|
|
1,414 |
|
|
|
17 |
|
|
|
— |
|
|
|
1,431 |
|
Commercial mortgage-backed securities
|
|
|
7,891 |
|
|
|
— |
|
|
|
(11 |
) |
|
|
7,880 |
|
States of the U.S. and political subdivisions
|
|
|
12,713 |
|
|
|
477 |
|
|
|
(32 |
) |
|
|
13,158 |
|
Other debt securities
|
|
|
16,615 |
|
|
|
420 |
|
|
|
(857 |
) |
|
|
16,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt securities
|
|
|
1,533,740 |
|
|
|
10,899 |
|
|
|
(11,921 |
) |
|
|
1,532,718 |
|
Equity securities
|
|
|
1,031 |
|
|
|
316 |
|
|
|
— |
|
|
|
1,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,534,771 |
|
|
$ |
11,215 |
|
|
$ |
(11,921 |
) |
|
$ |
1,534,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government-sponsored entities
|
|
$ |
336,763 |
|
|
$ |
126 |
|
|
$ |
(5,904 |
) |
|
$ |
330,985 |
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
247,880 |
|
|
|
4,304 |
|
|
|
(1,303 |
) |
|
|
250,881 |
|
Agency collateralized mortgage obligations
|
|
|
511,098 |
|
|
|
895 |
|
|
|
(20,794 |
) |
|
|
491,199 |
|
Non-agency collateralized mortgage obligations
|
|
|
1,747 |
|
|
|
15 |
|
|
|
— |
|
|
|
1,762 |
|
States of the U.S. and political subdivisions
|
|
|
16,842 |
|
|
|
410 |
|
|
|
(250 |
) |
|
|
17,002 |
|
Collateralized debt obligations
|
|
|
37,203 |
|
|
|
4,507 |
|
|
|
(10,115 |
) |
|
|
31,595 |
|
Other debt securities
|
|
|
16,505 |
|
|
|
524 |
|
|
|
(929 |
) |
|
|
16,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt securities
|
|
|
1,168,038 |
|
|
|
10,781 |
|
|
|
(39,295 |
) |
|
|
1,139,524 |
|
Equity securities
|
|
|
1,444 |
|
|
|
682 |
|
|
|
— |
|
|
|
2,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,169,482 |
|
|
$ |
11,463 |
|
|
$ |
(39,295 |
) |
|
$ |
1,141,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
Securities Held to Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$ |
500 |
|
|
$ |
153 |
|
|
$ |
— |
|
|
$ |
653 |
|
U.S. government-sponsored entities
|
|
|
137,385 |
|
|
|
809 |
|
|
|
(395 |
) |
|
|
137,799 |
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
709,970 |
|
|
|
9,858 |
|
|
|
(1,176 |
) |
|
|
718,652 |
|
Agency collateralized mortgage obligations
|
|
|
499,694 |
|
|
|
803 |
|
|
|
(7,657 |
) |
|
|
492,840 |
|
Non-agency collateralized mortgage obligations
|
|
|
2,681 |
|
|
|
14 |
|
|
|
— |
|
|
|
2,695 |
|
Commercial mortgage-backed securities
|
|
|
51,258 |
|
|
|
115 |
|
|
|
(259 |
) |
|
|
51,114 |
|
States of the U.S. and political subdivisions
|
|
|
235,573 |
|
|
|
4,191 |
|
|
|
(101 |
) |
|
|
239,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,637,061 |
|
|
$ |
15,943 |
|
|
$ |
(9,588 |
) |
|
$ |
1,643,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$ |
502 |
|
|
$ |
168 |
|
|
$ |
— |
|
|
$ |
670 |
|
U.S. government-sponsored entities
|
|
|
101,602 |
|
|
|
885 |
|
|
|
(524 |
) |
|
|
101,963 |
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
677,169 |
|
|
|
16,712 |
|
|
|
(346 |
) |
|
|
693,535 |
|
Agency collateralized mortgage obligations
|
|
|
501,965 |
|
|
|
1,858 |
|
|
|
(7,329 |
) |
|
|
496,494 |
|
Non-agency collateralized mortgage obligations
|
|
|
4,285 |
|
|
|
28 |
|
|
|
— |
|
|
|
4,313 |
|
Commercial mortgage-backed securities
|
|
|
17,560 |
|
|
|
179 |
|
|
|
— |
|
|
|
17,739 |
|
States of the U.S. and political subdivisions
|
|
|
150,272 |
|
|
|
3,315 |
|
|
|
(43 |
) |
|
|
153,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,453,355 |
|
|
$ |
23,145 |
|
|
$ |
(8,242 |
) |
|
$ |
1,468,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$ |
503 |
|
|
$ |
99 |
|
|
$ |
— |
|
|
$ |
602 |
|
U.S. government-sponsored entities
|
|
|
43,322 |
|
|
|
180 |
|
|
|
(1,151 |
) |
|
|
42,351 |
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
628,681 |
|
|
|
12,281 |
|
|
|
(6,032 |
) |
|
|
634,930 |
|
Agency collateralized mortgage obligations
|
|
|
385,408 |
|
|
|
764 |
|
|
|
(15,844 |
) |
|
|
370,328 |
|
Non-agency collateralized mortgage obligations
|
|
|
6,852 |
|
|
|
44 |
|
|
|
(4 |
) |
|
|
6,892 |
|
Commercial mortgage-backed securities
|
|
|
2,241 |
|
|
|
124 |
|
|
|
(37 |
) |
|
|
2,328 |
|
States of the U.S. and political subdivisions
|
|
|
132,162 |
|
|
|
1,992 |
|
|
|
(2,022 |
) |
|
|
132,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,199,169 |
|
|
$ |
15,484 |
|
|
$ |
(25,090 |
) |
|
$ |
1,189,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross gains and gross losses were realized on securities as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31 |
|
2015 |
|
|
2014 |
|
|
2013 |
|
Gross gains
|
|
$ |
831 |
|
|
$ |
20,241 |
|
|
$ |
1,200 |
|
Gross losses
|
|
|
(9 |
) |
|
|
(8,524 |
) |
|
|
(392 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
822 |
|
|
$ |
11,717 |
|
|
$ |
808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During 2014, the Corporation strategically sold its entire
portfolio of pooled trust preferred securities (TPS) with net
proceeds of $51,540 and a gain of $13,766. These were previously
classified as collateralized debt obligations (CDOs) available for
sale. Of the 23 pooled securities sold, one was determined to be a
disallowed investment under the Volcker Rule (Section 619) of the
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
(Dodd-Frank Act), and as such, was required to be disposed of by
July 2016. Partially offsetting this gain was a net loss of $2,049
relating to the sale of other securities. By selling these
securities, the Corporation strengthened the risk profile of its
investment portfolio, improved its capital levels due to lowered
risk-weighted assets and generated capital to support future
growth.
As of December 31, 2015, the amortized cost and fair value of
securities, by contractual maturities, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale |
|
|
Held to Maturity |
|
|
|
Amortized
Cost |
|
|
Fair
Value |
|
|
Amortized
Cost |
|
|
Fair
Value |
|
Due in one year or less
|
|
$ |
5,178 |
|
|
$ |
5,183 |
|
|
$ |
2,409 |
|
|
$ |
2,426 |
|
Due from one to five years
|
|
|
403,591 |
|
|
|
403,401 |
|
|
|
136,744 |
|
|
|
136,841 |
|
Due from five to ten years
|
|
|
10,013 |
|
|
|
10,304 |
|
|
|
64,954 |
|
|
|
66,347 |
|
Due after ten years
|
|
|
4,896 |
|
|
|
4,245 |
|
|
|
169,351 |
|
|
|
172,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
423,678 |
|
|
|
423,133 |
|
|
|
373,458 |
|
|
|
378,115 |
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
703,069 |
|
|
|
704,831 |
|
|
|
709,970 |
|
|
|
718,652 |
|
Agency collateralized mortgage obligations
|
|
|
503,328 |
|
|
|
495,830 |
|
|
|
499,694 |
|
|
|
492,840 |
|
Non-agency collateralized mortgage obligations
|
|
|
1,177 |
|
|
|
1,190 |
|
|
|
2,681 |
|
|
|
2,695 |
|
Commercial mortgage-backed securities
|
|
|
4,299 |
|
|
|
4,287 |
|
|
|
51,258 |
|
|
|
51,114 |
|
Equity securities
|
|
|
975 |
|
|
|
1,296 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,636,526 |
|
|
$ |
1,630,567 |
|
|
$ |
1,637,061 |
|
|
$ |
1,643,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturities may differ from contractual terms because borrowers may
have the right to call or prepay obligations with or without
penalties. Periodic payments are received on residential
mortgage-backed securities based on the payment patterns of the
underlying collateral.
At December 31, 2015 and 2014, securities with a carrying
value of $1,728,939 and $1,036,380, respectively, were pledged to
secure public deposits, trust deposits and for other purposes as
required by law. Securities with a carrying value of $272,629 and
$892,647 at December 31, 2015 and 2014, respectively, were
pledged as collateral for short-term borrowings.
Following are summaries of the fair values and unrealized losses of
securities, segregated by length of impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12
Months |
|
|
Greater than 12
Months |
|
|
Total |
|
|
|
# |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
# |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
# |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
Securities Available for Sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government-sponsored entities
|
|
|
6 |
|
|
$ |
99,131 |
|
|
$ |
(814 |
) |
|
|
2 |
|
|
$ |
34,487 |
|
|
$ |
(511 |
) |
|
|
8 |
|
|
$ |
133,618 |
|
|
$ |
(1,325 |
) |
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
19 |
|
|
|
359,250 |
|
|
|
(2,832 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
|
|
359,250 |
|
|
|
(2,832 |
) |
Agency collateralized mortgage obligations
|
|
|
9 |
|
|
|
126,309 |
|
|
|
(1,366 |
) |
|
|
18 |
|
|
|
215,330 |
|
|
|
(7,164 |
) |
|
|
27 |
|
|
|
341,639 |
|
|
|
(8,530 |
) |
Commercial mortgage-backed securities
|
|
|
1 |
|
|
|
4,287 |
|
|
|
(12 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
4,287 |
|
|
|
(12 |
) |
Other debt securities
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
4,245 |
|
|
|
(651 |
) |
|
|
3 |
|
|
|
4,245 |
|
|
|
(651 |
) |
Equity securities
|
|
|
1 |
|
|
|
632 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
632 |
|
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36 |
|
|
$ |
589,609 |
|
|
$ |
(5,027 |
) |
|
|
23 |
|
|
$ |
254,062 |
|
|
$ |
(8,326 |
) |
|
|
59 |
|
|
$ |
843,671 |
|
|
$ |
(13,353 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government-sponsored entities
|
|
|
7 |
|
|
$ |
89,986 |
|
|
$ |
(275 |
) |
|
|
7 |
|
|
$ |
99,326 |
|
|
$ |
(1,664 |
) |
|
|
14 |
|
|
$ |
189,312 |
|
|
$ |
(1,939 |
) |
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
2 |
|
|
|
45,145 |
|
|
|
(35 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
45,145 |
|
|
|
(35 |
) |
Agency collateralized mortgage obligations
|
|
|
9 |
|
|
|
166,908 |
|
|
|
(1,238 |
) |
|
|
16 |
|
|
|
225,700 |
|
|
|
(7,809 |
) |
|
|
25 |
|
|
|
392,608 |
|
|
|
(9,047 |
) |
Commercial mortgage-backed securities
|
|
|
1 |
|
|
|
7,880 |
|
|
|
(11 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
7,880 |
|
|
|
(11 |
) |
States of the U.S. and political subdivisions
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1,159 |
|
|
|
(32 |
) |
|
|
1 |
|
|
|
1,159 |
|
|
|
(32 |
) |
Other debt securities
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
6,030 |
|
|
|
(857 |
) |
|
|
4 |
|
|
|
6,030 |
|
|
|
(857 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19 |
|
|
$ |
309,919 |
|
|
$ |
(1,559 |
) |
|
|
28 |
|
|
$ |
332,215 |
|
|
$ |
(10,362 |
) |
|
|
47 |
|
|
$ |
642,134 |
|
|
$ |
(11,921 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities Held to Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government-sponsored entities
|
|
|
3 |
|
|
$ |
39,843 |
|
|
$ |
(173 |
) |
|
|
1 |
|
|
$ |
14,778 |
|
|
$ |
(222 |
) |
|
|
4 |
|
|
$ |
54,621 |
|
|
$ |
(395 |
) |
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
17 |
|
|
|
212,024 |
|
|
|
(1,159 |
) |
|
|
1 |
|
|
|
917 |
|
|
|
(17 |
) |
|
|
18 |
|
|
|
212,941 |
|
|
|
(1,176 |
) |
Agency collateralized mortgage obligations
|
|
|
11 |
|
|
|
150,593 |
|
|
|
(1,434 |
) |
|
|
14 |
|
|
|
160,716 |
|
|
|
(6,223 |
) |
|
|
25 |
|
|
|
311,309 |
|
|
|
(7,657 |
) |
Commercial mortgage-backed securities
|
|
|
3 |
|
|
|
46,278 |
|
|
|
(259 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
46,278 |
|
|
|
(259 |
) |
States of the U.S. and political subdivisions
|
|
|
9 |
|
|
|
17,616 |
|
|
|
(101 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9 |
|
|
|
17,616 |
|
|
|
(101 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43 |
|
|
$ |
466,354 |
|
|
$ |
(3,126 |
) |
|
|
16 |
|
|
$ |
176,411 |
|
|
$ |
(6,462 |
) |
|
|
59 |
|
|
$ |
642,765 |
|
|
$ |
(9,588 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government-sponsored entities
|
|
|
2 |
|
|
$ |
24,989 |
|
|
$ |
(40 |
) |
|
|
2 |
|
|
$ |
29,516 |
|
|
$ |
(484 |
) |
|
|
4 |
|
|
$ |
54,505 |
|
|
$ |
(524 |
) |
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
1 |
|
|
|
1,099 |
|
|
|
(1 |
) |
|
|
4 |
|
|
|
45,042 |
|
|
|
(345 |
) |
|
|
5 |
|
|
|
46,141 |
|
|
|
(346 |
) |
Agency collateralized mortgage obligations
|
|
|
8 |
|
|
|
104,071 |
|
|
|
(630 |
) |
|
|
14 |
|
|
|
189,642 |
|
|
|
(6,699 |
) |
|
|
22 |
|
|
|
293,713 |
|
|
|
(7,329 |
) |
States of the U.S. and political subdivisions
|
|
|
1 |
|
|
|
1,427 |
|
|
|
(4 |
) |
|
|
4 |
|
|
|
5,453 |
|
|
|
(39 |
) |
|
|
5 |
|
|
|
6,880 |
|
|
|
(43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 |
|
|
$ |
131,586 |
|
|
$ |
(675 |
) |
|
|
24 |
|
|
$ |
269,653 |
|
|
$ |
(7,567 |
) |
|
|
36 |
|
|
$ |
401,239 |
|
|
$ |
(8,242 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Corporation does not intend to sell the debt securities and it
is not more likely than not the Corporation will be required to
sell the securities before recovery of their amortized cost
basis.
The Corporation’s portfolio of TPS consists of three
single-issuer securities, which are primarily from money-center and
large regional banks and are included in other debt securities.
These single-issuer TPS had an amortized cost and estimated fair
value of $4,896 and $4,245 at December 31, 2015, respectively.
The Corporation has concluded from its analysis performed at
December 31, 2015 that it is probable that the Corporation
will collect all contractual principal and interest payments
related to these securities.
Other-Than-Temporary Impairment
The Corporation evaluates its investment securities portfolio for
OTTI on a quarterly basis. Impairment is assessed at the individual
security level. The Corporation considers an investment security
impaired if the fair value of the security is less than its cost or
amortized cost basis. The following table presents a summary of the
cumulative credit-related OTTI charges recognized as components of
earnings for securities for which a portion of an OTTI is
recognized in other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized
Debt
Obligations |
|
|
Equities |
|
|
Total |
|
For the Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
$ |
— |
|
|
$ |
27 |
|
|
$ |
27 |
|
Loss where impairment was not previously recognized
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Additional loss where impairment was previously recognized
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Reduction due to credit impaired securities sold
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
$ |
— |
|
|
$ |
27 |
|
|
$ |
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
$ |
17,155 |
|
|
$ |
27 |
|
|
$ |
17,182 |
|
Loss where impairment was not previously recognized
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Additional loss where impairment was previously recognized
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Reduction due to credit impaired securities sold
|
|
|
(17,155 |
) |
|
|
— |
|
|
|
(17,155 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance
|
|
$ |
— |
|
|
$ |
27 |
|
|
$ |
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Corporation did not recognize any impairment losses on
securities for the years ended December 31, 2015 and 2014. The
Corporation recognized a net impairment loss of $27 for 2013, due
to the write-down of securities that the Corporation deemed to be
other-than-temporarily impaired.
States of the U.S. and Political Subdivisions
The Corporation’s municipal bond portfolio of $246,630 as of
December 31, 2015 is highly rated with an average
entity-specific rating of AA and 99.0% of the portfolio rated A or
better. General obligation bonds comprise 99.8% of the portfolio.
Geographically, municipal bonds support the Corporation’s
primary footprint as 93.8% of the securities are from
municipalities located throughout Pennsylvania, Ohio and Maryland.
The average holding size of the securities in the municipal bond
portfolio is $1,561. In addition to the strong stand-alone ratings,
81.0% of the municipalities have some formal credit enhancement
insurance that strengthens the creditworthiness of their issue.
Management also reviews the credit profile of each issuer on a
quarterly basis.
|