Investment Securities (Tables)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Available For Sale And Held For Maturity Securities [Table Text Block]

The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at September 30, 2014 and December 31, 2013 were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
September 30, 2014
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations & agencies	$	96,327	$	101	$	(1,769	)	$	94,659
Obligations of states and political subdivisions	72,703		2,482		(189		)	74,996
Mortgage-backed securities: GSE residential	201,752		1,775		(2,068		)	201,459
Trust preferred securities	3,449		—		(2,987		)	462
Other securities	4,034		43		(21		)	4,056
Total available-for-sale	$	378,265	$	4,401	$	(7,034	)	$	375,632
Held-to-maturity:
U.S. Treasury securities and obligations of U.S. government corporations & agencies	$	53,594	$	51	$	(205	)	$	53,440
December 31, 2013
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations & agencies	$	197,805	$	137	$	(7,574	)	$	190,368
Obligations of states and political subdivisions	65,304		1,031		(1,773		)	64,562
Mortgage-backed securities: GSE residential	229,661		2,215		(4,275		)	227,601
Trust preferred securities	3,652		—		(3,461		)	191
Other securities	6,035		34		(67		)	6,002
Total available-for-sale	$	502,457	$	3,417	$	(17,150	)	$	488,724

During the third quarter of 2014, management evaluated its available-for-sale portfolio and transferred obligations of U.S. government corporations & agencies securities with a fair value of $53.6 million from available-for-sale to held-to-maturity to reduce price volatility. Management determined it has both the intent and ability to hold these securities to maturity. Transfers of investment securities into the held-to-maturity category from available-for-sale are made at fair value on the date of transfer. There were no gains or losses recognized as a result of this transfer. The related $1.4 million of unrealized holding loss that was included in the transfer is retained in the carrying value of the held-to-maturity securities and in other comprehensive income net of deferred taxes. These amounts are being amortized into net interest income over the remaining life of the related securities as a yield adjustment, resulting in no impact on future net income.

The trust preferred securities represent one trust preferred pooled security issued by First Tennessee Financial (“FTN”). The unrealized loss of this security, which has a remaining maturity of twenty-three years, is primarily due to its long-term nature, a lack of demand or inactive market for the security, and concerns regarding the underlying financial institutions that have issued the trust preferred security. See the heading “Trust Preferred Securities” for further information regarding this security.

Realized Gains and Losses From Sale of Securities

Realized gains and losses resulting from sales of securities were as follows during the nine months endedSeptember 30, 2014 and 2013 (in thousands):

	September 30, 2014			September 30, 2013
Gross gains	$	1,451		$	2,452
Gross losses	(737		)	(161		)

Investments Classified by Contractual Maturity Date

The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, and held-to-maturity presented at amortized cost, at September 30, 2014 and the weighted average yield for each range of maturities (dollars in thousands):

	One year or less			After 1 through 5 years			After 5 through 10 years			After ten years			Total
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	67,756		$	26,903		$	—		$	—		$	94,659
Obligations of state and political subdivisions	4,264			33,946			36,110			676			74,996
Mortgage-backed securities: GSE residential	2,698			124,885			73,876			—			201,459
Trust preferred securities	—			—			—			462			462
Other securities	—			—			3,998			58			4,056
Total available-for-sale investments	$	74,718		$	185,734		$	113,984		$	1,196		$	375,632
Weighted average yield	1.62		%	2.49		%	2.69		%	1.47		%	2.36		%
Full tax-equivalent yield	1.80		%	2.96		%	3.44		%	1.88		%	2.86		%
Held to Maturity:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	43,881		$	—		$	9,713		$	—		$	53,594
Weighted average yield	2.21		%	—		%	2.28		%	—		%	2.22		%
Full tax-equivalent yield	2.21		%	—		%	2.28		%	—		%	2.22		%

The weighted average yields are calculated on the basis of the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax-equivalent yields have been calculated using a 35% tax rate.  With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at September 30, 2014.

Fair value of investments with sustained gross unrealized losses

The following table presents the aging of gross unrealized losses and fair value by investment category as of September 30, 2014 and December 31, 2013 (in thousands):

	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2014
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	—	$	—		$	81,908	$	(1,769	)	$	81,908	$	(1,769	)
Obligations of states and political subdivisions	2,464		(10		)	9,163		(179		)	11,627		(189		)
Mortgage-backed securities: GSE residential	42,721		(391		)	76,664		(1,677		)	119,385		(2,068		)
Trust preferred securities	—		—			462		(2,987		)	462		(2,987		)
Other securities	—		—			1,979		(21		)	1,979		(21		)
Total	$	45,185	$	(401	)	$	170,176	$	(6,633	)	$	215,361	$	(7,034	)
Held-to-maturity:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	—		—			43,663		(205		)	$	43,663	$	(205	)
December 31, 2013
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	183,074	$	(7,574	)	$	—	$	—		$	183,074	$	(7,574	)
Obligations of states and political subdivisions	29,986		(1,708		)	808		(65		)	30,794		(1,773		)
Mortgage-backed securities: GSE residential	131,125		(4,275		)	13		—			131,138		(4,275		)
Trust preferred securities	—		—			191		(3,461		)	191		(3,461		)
Other securities	3,933		(67		)	—		—			3,933		(67		)
Total	$	348,118	$	(13,624	)	$	1,012	$	(3,526	)	$	349,130	$	(17,150	)

Trust Preferred Securities [Table Text Block]

Following are the details for the currently impaired trust preferred security (in thousands):

	Book Value	Market Value	Unrealized Gains (Losses)		Other-than- temporary Impairment Recorded To-date
PreTSL XXVIII	3,449	462	(2,987	)	(1,111	)

Credit Losses Recognized on Investments

Credit Losses Recognized on Investments. As described above, some of the Company’s investments in trust preferred securities have experienced fair value deterioration due to credit losses but are not otherwise other-than-temporarily impaired. The following table provides information about those trust preferred securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the nine months ended September 30, 2014 and 2013 (in thousands).

	Accumulated Credit Losses
	September 30, 2014		September 30, 2013
Credit losses on trust preferred securities held
Beginning of period	$	1,111	$	3,989
Additions related to OTTI losses not previously recognized	—		—
Reductions due to sales / (recoveries)	—		(2,878		)
Reductions due to change in intent or likelihood of sale	—		—
Additions related to increases in previously recognized OTTI losses	—		—
Reductions due to increases in expected cash flows	—		—
End of period	$	1,111	$	1,111