Securities |
4. SECURITIES
The amortized cost and fair value of securities are as follows:
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|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
Securities Available for Sale
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$ |
29,771 |
|
|
$ |
223 |
|
|
$ |
— |
|
|
$ |
29,994 |
|
U.S. government-sponsored entities
|
|
|
398,497 |
|
|
|
2,617 |
|
|
|
(36 |
) |
|
|
401,078 |
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
1,075,195 |
|
|
|
12,691 |
|
|
|
(21 |
) |
|
|
1,087,865 |
|
Agency collateralized mortgage obligations
|
|
|
524,722 |
|
|
|
3,812 |
|
|
|
(2,904 |
) |
|
|
525,630 |
|
Non-agency collateralized mortgage obligations
|
|
|
1,111 |
|
|
|
— |
|
|
|
(15 |
) |
|
|
1,096 |
|
Commercial mortgage-backed securities
|
|
|
3,674 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
3,673 |
|
States of the U.S. and political subdivisions
|
|
|
39,620 |
|
|
|
283 |
|
|
|
(99 |
) |
|
|
39,804 |
|
Other debt securities
|
|
|
9,754 |
|
|
|
177 |
|
|
|
(1,023 |
) |
|
|
8,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt securities
|
|
|
2,082,344 |
|
|
|
19,803 |
|
|
|
(4,099 |
) |
|
|
2,098,048 |
|
Equity securities
|
|
|
975 |
|
|
|
320 |
|
|
|
— |
|
|
|
1,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,083,319 |
|
|
$ |
20,123 |
|
|
$ |
(4,099 |
) |
|
$ |
2,099,343 |
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
December 31, 2015
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
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|
|
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|
|
|
|
|
|
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|
Securities Held to Maturity
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|
|
|
|
|
|
March 31, 2016
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
|
|
$ |
500 |
|
|
$ |
184 |
|
|
$ |
— |
|
|
$ |
684 |
|
U.S. government-sponsored entities
|
|
|
122,333 |
|
|
|
1,606 |
|
|
|
— |
|
|
|
123,939 |
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
830,640 |
|
|
|
18,063 |
|
|
|
(4 |
) |
|
|
848,699 |
|
Agency collateralized mortgage obligations
|
|
|
520,576 |
|
|
|
4,123 |
|
|
|
(2,931 |
) |
|
|
521,768 |
|
Non-agency collateralized mortgage obligations
|
|
|
2,436 |
|
|
|
4 |
|
|
|
(9 |
) |
|
|
2,431 |
|
Commercial mortgage-backed securities
|
|
|
50,526 |
|
|
|
1,222 |
|
|
|
(92 |
) |
|
|
51,656 |
|
States of the U.S. and political subdivisions
|
|
|
249,009 |
|
|
|
5,441 |
|
|
|
(174 |
) |
|
|
254,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,776,020 |
|
|
$ |
30,643 |
|
|
$ |
(3,210 |
) |
|
$ |
1,803,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
The increase in securities in 2016 primarily relates to the METR
acquisition completed on February 13, 2016.
Gross gains and gross losses were realized on securities as
follows:
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|
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|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2016 |
|
|
2015 |
|
Gross gains
|
|
$ |
71 |
|
|
$ |
— |
|
Gross losses
|
|
|
— |
|
|
|
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
$ |
71 |
|
|
$ |
(9 |
) |
|
|
|
|
|
|
|
|
|
As of March 31, 2016, the amortized cost and fair value of
securities, by contractual maturities, were as follows:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for Sale |
|
|
Held to Maturity |
|
|
|
Amortized
Cost |
|
|
Fair
Value |
|
|
Amortized
Cost |
|
|
Fair
Value |
|
Due in one year or less
|
|
$ |
179 |
|
|
$ |
180 |
|
|
$ |
12,126 |
|
|
$ |
12,140 |
|
Due from one to five years
|
|
|
441,067 |
|
|
|
444,025 |
|
|
|
114,319 |
|
|
|
115,578 |
|
Due from five to ten years
|
|
|
29,112 |
|
|
|
29,332 |
|
|
|
53,587 |
|
|
|
54,986 |
|
Due after ten years
|
|
|
7,284 |
|
|
|
6,247 |
|
|
|
191,810 |
|
|
|
196,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
477,642 |
|
|
|
479,784 |
|
|
|
371,842 |
|
|
|
378,899 |
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
1,075,195 |
|
|
|
1,087,865 |
|
|
|
830,640 |
|
|
|
848,699 |
|
Agency collateralized mortgage obligations
|
|
|
524,722 |
|
|
|
525,630 |
|
|
|
520,576 |
|
|
|
521,768 |
|
Non-agency collateralized mortgage obligations
|
|
|
1,111 |
|
|
|
1,096 |
|
|
|
2,436 |
|
|
|
2,431 |
|
Commercial mortgage-backed securities
|
|
|
3,674 |
|
|
|
3,673 |
|
|
|
50,526 |
|
|
|
51,656 |
|
Equity securities
|
|
|
975 |
|
|
|
1,295 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,083,319 |
|
|
$ |
2,099,343 |
|
|
$ |
1,776,020 |
|
|
$ |
1,803,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 mortgage-backed
securities based on the payment patterns of the underlying
collateral.
At March 31, 2016 and December 31, 2015, securities with
a carrying value of $2,472,531 and $1,728,939, respectively, were
pledged to secure public deposits, trust deposits and for other
purposes as required by law. Securities with a carrying value of
$361,338 and $272,629 at March 31, 2016 and December 31,
2015, respectively, were pledged as collateral for short-term
borrowings. In total, 73.1% of securities as of March 31, 2016
were pledged for purposes as stated above, compared to 61.3% as of
December 31, 2015.
Following are summaries of the fair values and unrealized losses of
securities, segregated by length of impairment:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
|
|
# |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
# |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
# |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government-sponsored entities
|
|
|
2 |
|
|
$ |
17,960 |
|
|
$ |
(36 |
) |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
2 |
|
|
$ |
17,960 |
|
|
$ |
(36 |
) |
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
2 |
|
|
|
56,402 |
|
|
|
(21 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
56,402 |
|
|
|
(21 |
) |
Agency collateralized mortgage obligations
|
|
|
2 |
|
|
|
29,786 |
|
|
|
(28 |
) |
|
|
15 |
|
|
|
175,354 |
|
|
|
(2,876 |
) |
|
|
17 |
|
|
|
205,140 |
|
|
|
(2,904 |
) |
Non-agency collateralized mortgage obligations
|
|
|
1 |
|
|
|
1,091 |
|
|
|
(15 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1,091 |
|
|
|
(15 |
) |
Commercial mortgage-backed securities
|
|
|
1 |
|
|
|
3,673 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
3,673 |
|
|
|
(1 |
) |
States of the U.S. and political subdivisions
|
|
|
16 |
|
|
|
21,325 |
|
|
|
(99 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
|
|
21,325 |
|
|
|
(99 |
) |
Other debt securities
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
3,875 |
|
|
|
(1,023 |
) |
|
|
3 |
|
|
|
3,875 |
|
|
|
(1,023 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24 |
|
|
$ |
130,237 |
|
|
$ |
(200 |
) |
|
|
18 |
|
|
$ |
179,229 |
|
|
$ |
(3,899 |
) |
|
|
42 |
|
|
$ |
309,466 |
|
|
$ |
(4,099 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities Held to Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency mortgage-backed securities
|
|
|
1 |
|
|
$ |
922 |
|
|
|
(4 |
) |
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
|
1 |
|
|
$ |
922 |
|
|
$ |
(4 |
) |
Agency collateralized mortgage obligations
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
|
|
181,913 |
|
|
|
(2,931 |
) |
|
|
16 |
|
|
|
181,913 |
|
|
|
(2,931 |
) |
Non-agency collateralized mortgage obligations
|
|
|
2 |
|
|
|
1,294 |
|
|
|
(9 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
1,294 |
|
|
|
(9 |
) |
Commercial mortgage-backed securities
|
|
|
1 |
|
|
|
8,579 |
|
|
|
(92 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
8,579 |
|
|
|
(92 |
) |
States of the U.S. and political subdivisions
|
|
|
5 |
|
|
|
10,007 |
|
|
|
(173 |
) |
|
|
1 |
|
|
|
2,055 |
|
|
|
(1 |
) |
|
|
6 |
|
|
|
12,062 |
|
|
|
(174 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 |
|
|
$ |
20,802 |
|
|
$ |
(278 |
) |
|
|
17 |
|
|
$ |
183,968 |
|
|
$ |
(2,932 |
) |
|
|
26 |
|
|
$ |
204,770 |
|
|
$ |
(3,210 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Corporation does not intend to sell the debt securities and it
is not more likely than not that the Corporation will be required
to sell the securities before recovery of their amortized cost
basis.
Other-Than-Temporary Impairment
The Corporation evaluates its investment securities portfolio for
other-than-temporary impairment (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:
|
|
|
|
|
|
|
|
|
|
|
Equities |
|
|
Total |
|
For the Three Months Ended March 31, 2016
|
|
|
|
|
|
|
|
|
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 Three Months Ended March 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 |
|
|
|
|
|
|
|
|
|
|
The Corporation did not recognize any impairment losses on
securities for the three months ended March 31, 2016 or
2015.
States of the U.S. and Political Subdivisions
The Corporation’s municipal bond portfolio with a carrying
amount of $288,813 as of March 31, 2016 is highly rated with
an average entity-specific rating of AA and 97.0% 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 94.8% 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 $1,730. 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.
|