Investment Securities (Tables)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Approximate Fair Values of Securities

The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair values of the investment securities at the dates indicated were:



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at September 30, 2014
U.S. Treasury
U.S. Government-sponsored agency securities	$	100	$	9			$	109
State and municipal	225,402		10,601		$	206	235,797
U.S. Government-sponsored mortgage-backed securities	323,254		6,560		283		329,531
Corporate obligations	1,570				717		853
Equity securities	1,706						1,706
Total available for sale	552,032		17,170		1,206		567,996
Held to maturity at September 30, 2014
State and municipal	191,660		4,935		64		196,531
U.S. Government-sponsored mortgage-backed securities	430,158		8,847		981		438,024
Total held to maturity	621,818		13,782		1,045		634,555
Total Investment Securities	$	1,173,850	$	30,952	$	2,251	$	1,202,551



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2013
U.S. Treasury	$	15,914	$	80	$	21	$	15,973
U.S. Government-sponsored agency securities	3,550		12		17		3,545
State and municipal	231,005		3,878		3,896		230,987
U.S. Government-sponsored mortgage-backed securities	279,299		3,926		1,973		281,252
Corporate obligations	6,374				3,636		2,738
Equity securities	1,706						1,706
Total available for sale	537,848		7,896		9,543		536,201
Held to maturity at December 31, 2013
State and municipal	145,941		62		91		145,912
U.S. Government-sponsored mortgage-backed securities	413,437		5,220		3,722		414,935
Total held to maturity	559,378		5,282		3,813		560,847
Total Investment Securities	$	1,097,226	$	13,178	$	13,356	$	1,097,048

Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity

The amortized cost and fair value of available for sale securities and held to maturity securities at September 30, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturity Distribution at September 30, 2014:
Due in one year or less	$	5,184	$	5,214	$	5,167	$	5,195
Due after one through five years	9,676		9,989		18,087		18,429
Due after five through ten years	47,127		49,113		83,138		85,034
Due after ten years	165,085		172,443		85,268		87,873
	$	227,072	$	236,759	$	191,660	$	196,531
U.S. Government-sponsored mortgage-backed securities	323,254		329,531		430,158		438,024
Equity securities	1,706		1,706
Total Investment Securities	$	552,032	$	567,996	$	621,818	$	634,555

Gross Gains and Losses on Sales and Redemptions of Available for Sale Securities and Other Than Temporary Impairment Losses Recognized

Gross gains and losses on the sales and redemptions of available for sale securities, and other-than-temporary impairment (“OTTI”) losses recognized for the three and nine months ended September 30, 2014 and 2013 are shown below.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Sales and Redemptions of Available for Sale Securities:
Gross gains	$	909	$	—	$	2,335	$	487
Gross losses
Other-than-temporary impairment losses

Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position

The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2014, and December 31, 2013:



	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Temporarily Impaired Available for Sale Securities at September 30, 2014
State and municipal	$	3,239	$	5	$	13,678	$	201	$	16,917	$	206
U.S. Government-sponsored mortgage-backed securities	18,096		100		5,615		183		23,711		283
Corporate obligations					821		717		821		717
Total Temporarily Impaired Available for Sale Securities	21,335		105		20,114		1,101		41,449		1,206
Temporarily Impaired Held to Maturity Securities at September 30, 2014
State and municipal	8,475		64						8,475		64
U.S. Government-sponsored mortgage-backed securities	58,004		687		18,639		294		76,643		981
Total Temporarily Impaired Held to Maturity Securities	66,479		751		18,639		294		85,118		1,045
Total Temporarily Impaired Investment Securities	$	87,814	$	856	$	38,753	$	1,395	$	126,567	$	2,251



	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Temporarily Impaired Available for Sale Securities at December 31, 2013
U.S. Treasury	$	4,875	$	21					$	4,875	$	21
U.S. Government-sponsored agency securities	3,433		17						3,433		17
State and municipal	111,791		3,840		$	583	$	56	$	112,374	$	3,896
U.S. Government-sponsored mortgage-backed securities	117,866		1,701		2,683		272		120,549		1,973
Corporate obligations					2,711		3,636		2,711		3,636
Total Temporarily Impaired Available for Sale Securities	237,965		5,579		5,977		3,964		243,942		9,543
Temporarily Impaired Held to Maturity Securities at December 31, 2013
State and municipal	17,318		91		184				17,502		91
U.S. Government-sponsored mortgage-backed securities	213,048		3,462		2,640		260		215,688		3,722
Total Temporarily Impaired Held to Maturity Securities	230,366		3,553		2,824		260		233,190		3,813
Total Temporarily Impaired Investment Securities	$	468,331	$	9,132	$	8,801	$	4,224	$	477,132	$	13,356

Investments in Debt and Equity Securities Reported Less than Historical Cost

Certain investments in debt and equity securities are reported in the financial statements at an amount less than their historical cost as indicated in the table below.



	September 30, 2014			December 31, 2013
Investments reported at less than historical cost:
Historical cost	$	128,819		$	490,488
Fair value	$	126,567		$	477,132
Percent of the Corporation's available for sale and held to maturity portfolio	10.6		%	43.6		%

Debt Securities Credit Loss Recognized in Income, and Other Losses Recorded in Other Comprehensive Income

The following table provides information about those securities for which only a credit loss was recognized in income and other losses were recorded in other comprehensive income.



	Accumulated Credit Losses in 2014		Accumulated Credit Losses in 2013
Credit losses on debt securities held:
Balance, January 1	$	11,355	$	11,355
Additions related to other-than-temporary losses not previously recognized
Balance, September 30	$	11,355	$	11,355

- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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