XML 50 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2017
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 December 31, 2017 and December 31, 2016 were as follows (in thousands):
December 31, 2017
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses)
 
Fair Value
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations & agencies
$
115,796

 
$
8

 
$
(2,034
)
 
$
113,770

Obligations of states and political subdivisions
165,037

 
2,254

 
(1,025
)
 
166,266

Mortgage-backed securities: GSE residential
295,778

 
493

 
(2,460
)
 
293,811

Trust preferred securities
2,893

 
—

 
(345
)
 
2,548

Other securities
2,039

 
145

 
—

 
2,184

Total available-for-sale
$
581,543

 
$
2,900

 
$
(5,864
)
 
$
578,579

Held-to-maturity:
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations & agencies
$
69,332

 
$
103

 
$
(978
)
 
$
68,457

December 31, 2016
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations & agencies
$
138,819

 
$
13

 
$
(2,508
)
 
$
136,324

Obligations of states and political subdivisions
164,163

 
1,346

 
(2,804
)
 
162,705

Mortgage-backed securities: GSE residential
318,829

 
531

 
(4,369
)
 
314,991

Trust preferred securities
3,050

 
—

 
(1,398
)
 
1,652

Other securities
4,034

 
147

 
(5
)
 
4,176

Total available-for-sale
$
628,895

 
$
2,037

 
$
(11,084
)
 
$
619,848

Held-to-maturity:
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations & agencies
$
74,231

 
$
203

 
$
(1,338
)
 
$
73,096


Trust preferred securities at December 31, 2017, is one trust preferred pooled security issued by First Tennessee Financial (“FTN”). The unrealized loss of this security, which has a maturity of twenty 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” below for further information regarding this security.
Realized Gains and Losses From Sale of Securities
Proceeds from sales of investment securities, realized gains and losses and income tax expense and benefit were as follows during the years ended December 31, 2017, 2016 and 2015 (in thousands):
 
2017
 
2016
 
2015
Proceeds from sales
$
159,663

 
$
70,757

 
$
19,380

Gross gains
773

 
1,192

 
452

Gross losses
(157
)
 
—

 
—

Income tax expense
216

 
465

 
176
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 December 31, 2017 and the weighted average yield for each range of maturities (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
$
70,462

 
$
38,359

 
$
4,949

 
$
—

 
$
113,770

Obligations of state and political subdivisions
16,897

 
74,454

 
73,297

 
1,618

 
166,266

Mortgage-backed securities: GSE residential
75

 
168,002

 
125,734

 
—

 
293,811

Trust preferred securities
—

 
—

 
—

 
2,548

 
2,548

Other securities
—

 
2,012

 
—

 
172

 
2,184

Total investments
$
87,434

 
$
282,827

 
$
203,980

 
$
4,338

 
$
578,579

Weighted average yield
2.28
%
 
3.30
%
 
4.11
%
 
2.74
%
 
3.42
%
Full tax-equivalent yield
2.67
%
 
3.82
%
 
4.88
%
 
3.55
%
 
4.01
%
Held-to-maturity:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
39,993

 
$
29,339

 
$
—

 
$
—

 
$
69,332

Weighted average yield
1.76
%
 
2.08
%
 
—
%
 
—
%
 
1.90
%
Full tax-equivalent yield
1.76
%
 
2.08
%
 
—
%
 
—
%
 
1.90
%

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 December 31, 2017.
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 December 31, 2017 and 2016 (in thousands):
 
Less than 12 months
 
12 months or more
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
58,584

 
$
(540
)
 
$
47,972

 
$
(1,494
)
 
$
106,556

 
$
(2,034
)
Obligations of states and political subdivisions
42,618

 
(769
)
 
9,267

 
(256
)
 
51,885

 
(1,025
)
Mortgage-backed securities: GSE residential
187,949

 
(1,942
)
 
22,609

 
(518
)
 
210,558

 
(2,460
)
Trust preferred securities
—

 
—

 
2,548

 
(345
)
 
2,548

 
(345
)
Other securities
—

 
—

 
—

 
—

 
—

 
—

Total
$
289,151

 
$
(3,251
)
 
$
82,396

 
$
(2,613
)
 
$
371,547

 
$
(5,864
)
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
34,101

 
$
(525
)
 
$
14,540

 
$
(453
)
 
$
48,641

 
$
(978
)
December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
125,257

 
$
(2,508
)
 
$
—

 
$
—

 
$
125,257

 
$
(2,508
)
Obligations of states and political subdivisions
93,405

 
(2,804
)
 
—

 
—

 
93,405

 
(2,804
)
Mortgage-backed securities: GSE residential
266,319

 
(4,099
)
 
5,878

 
(270
)
 
272,197

 
(4,369
)
Trust preferred securities
—

 
—

 
1,652

 
(1,398
)
 
1,652

 
(1,398
)
Other securities
—

 
—

 
1,995

 
(5
)
 
1,995

 
(5
)
Total
$
484,981

 
$
(9,411
)
 
$
9,525

 
$
(1,673
)
 
$
494,506

 
$
(11,084
)
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities and obligations of U.S. government corporations and agencies
$
53,295

 
$
(1,338
)
 
$
—

 
$
—

 
$
53,295

 
$
(1,338
)
Trust Preferred Securities [Table Text Block]
Following are the details for the impaired trust preferred security remaining as of December 31, 2017 (in thousands):
 
Book
Value
 
Market Value
 
Unrealized Gains (Losses)
 
Other-than-
temporary
Impairment
Recorded To-date
PreTSL XXVIII
$
2,893

 
$
2,548

 
$
(345
)
 
$
(1,111
)
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 years ended December 31, 2017, 2016 and 2015 (in thousands).
 
Accumulated Credit Losses as of December 31:
 
2017
 
2016
 
2015
Credit losses on trust preferred securities held:
 
 
 
 
 
Beginning of period
$
1,111

 
$
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

 
$
1,111
Maturities of Investment Securities

 
 
Amortized
Cost
 
Estimated
Fair Value
Available-for-sale:
 
 
 
 
Due in one year or less
 
$
88,726

 
$
87,358

Due after one-five years
 
114,719

 
114,825

Due after five-ten years
 
77,765

 
78,246

Due after ten years
 
4,555

 
4,339

 
 
285,765

 
284,768

Mortgage-backed securities: GSE residential
 
295,778

 
293,811

Total available-for-sale
 
581,543

 
578,579

   Held-to-maturity:
 
 
 
 
Due in one year or less
 
39,993

 
39,105

Due after one-five years
 
29,339

 
29,352

Due after five-ten years
 
—

 
—

Due after ten years
 
—

 
—

   Total held-to-maturity
 
69,332

 
$
68,457



Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.