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Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2015
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 March 31, 2015 and December 31, 2014 were as follows (in thousands):
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses)
 
Fair Value
March 31, 2015
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations & agencies
$
125,240

 
$
297

 
$
(292
)
 
$
125,245

Obligations of states and political subdivisions
77,861

 
3,025

 
(83
)
 
80,803

Mortgage-backed securities: GSE residential
190,670

 
3,070

 
(490
)
 
193,250

Trust preferred securities
3,255

 
—

 
(1,089
)
 
2,166

Other securities
4,035

 
36

 
(12
)
 
4,059

Total available-for-sale
$
401,061

 
$
6,428

 
$
(1,966
)
 
$
405,523

Held-to-maturity:
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations & agencies
$
48,799

 
$
1,178

 
$
—

 
$
49,977

 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations & agencies
$
101,224

 
$
91

 
$
(1,358
)
 
$
99,957

Obligations of states and political subdivisions
75,589

 
2,608

 
(113
)
 
78,084

Mortgage-backed securities: GSE residential
193,814

 
2,548

 
(961
)
 
195,401

Trust preferred securities
3,300

 
—

 
(2,936
)
 
364

Other securities
4,036

 
26

 
(12
)
 
4,050

Total available-for-sale
$
377,963

 
$
5,273

 
$
(5,380
)
 
$
377,856

Held-to-maturity:
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations & agencies
$
53,650

 
$
299

 
$
(12
)
 
$
53,937



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 three months ended March 31, 2015 and 2014 (in thousands):
 
March 31,
2015
 
March 31,
2014
Gross gains
$
229

 
$
892

Gross losses
—

 
(701
)
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 March 31, 2015 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
$
83,489

 
$
41,756

 
$
—

 
$
—

 
$
125,245

Obligations of state and political subdivisions
5,260

 
39,763

 
35,780

 
—

 
80,803

Mortgage-backed securities: GSE residential
12

 
41,396

 
151,842

 
—

 
193,250

Trust preferred securities
—

 
—

 
—

 
2,166

 
2,166

Other securities
—

 
1,988

 
2,017

 
54

 
4,059

Total available-for-sale investments
$
88,761

 
$
124,903

 
$
189,639

 
$
2,220

 
$
405,523

Weighted average yield
1.68
%
 
2.32
%
 
2.57
%
 
1.16
%
 
2.29
%
Full tax-equivalent yield
1.86
%
 
3.07
%
 
2.99
%
 
1.16
%
 
2.75
%
Held to Maturity:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
34,237

 
$
9,700

 
$
4,862

 
$
—

 
$
48,799

Weighted average yield
2.24
%
 
2.10
%
 
2.53
%
 
—
%
 
2.24
%
Full tax-equivalent yield
2.24
%
 
2.10
%
 
2.53
%
 
—
%
 
2.24
%


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 March 31, 2015.
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 March 31, 2015 and December 31, 2014 (in thousands):
 
Less than 12 months
 
12 months or more
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
9,999

 
$
(1
)
 
$
53,802

 
$
(291
)
 
$
63,801

 
$
(292
)
Obligations of states and political subdivisions
4,283

 
(53
)
 
1,206

 
(30
)
 
5,489

 
(83
)
Mortgage-backed securities: GSE residential
10,063

 
(35
)
 
22,810

 
(455
)
 
32,873

 
(490
)
Trust preferred securities
—

 
—

 
2,166

 
(1,089
)
 
2,166

 
(1,089
)
Other securities
—

 
—

 
1,988

 
(12
)
 
1,988

 
(12
)
Total
$
24,345

 
$
(89
)
 
$
81,972

 
$
(1,877
)
 
$
106,317

 
$
(1,966
)
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

December 31, 2014
 

 
 

 
 

 
 

 
 

 
 

Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
7,289

 
$
(46
)
 
$
75,030

 
$
(1,312
)
 
$
82,319

 
$
(1,358
)
Obligations of states and political subdivisions
3,586

 
(19
)
 
4,416

 
(94
)
 
8,002

 
(113
)
Mortgage-backed securities: GSE residential
19,565

 
(159
)
 
37,224

 
(802
)
 
56,789

 
(961
)
Trust preferred securities
—

 
—

 
364

 
(2,936
)
 
364

 
(2,936
)
Other securities
—

 
—

 
1,988

 
(12
)
 
1,988

 
(12
)
Total
$
30,440

 
$
(224
)
 
$
119,022

 
$
(5,156
)
 
$
149,462

 
$
(5,380
)
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
4,853

 
$
(12
)
 
$
—

 
$
—

 
$
4,853

 
$
(12
)
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
$
3,255

 
$
2,166

 
$
(1,089
)
 
$
(1,111
)
Credit Losses Recognized on Investments
Credit Losses Recognized on Investments. As described above, the Company’s investment in trust preferred security has experienced fair value deterioration due to credit losses but is not otherwise other-than-temporarily impaired. The following table provides information about the trust preferred security for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the three months ended March 31, 2015 and 2014 (in thousands).

 
Accumulated Credit Losses
 
March 31, 2015
 
March 31, 2014
Credit losses on trust preferred securities held
 
 
 
Beginning of period
$
1,111

 
$
1,111

Additions related to OTTI losses not previously recognized
—

 
—

Reductions due to sales / (recoveries)
—

 
—

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