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Securities (Tables)
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9 Months Ended |
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Sep. 30, 2014
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| Investments, Debt and Equity Securities [Abstract] |
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| Summary of Investments |
The following tables present the amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of securities by major security type and class of security: | | | | | | | | | | | | | | | | | (Dollars in thousands) | | September 30, 2014 | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value | Securities Available for Sale: | | | | | | | | Obligations of U.S. government-sponsored enterprises |
| $31,008 |
| |
| $— |
| |
| ($89 | ) | |
| $30,919 |
| Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 248,369 |
| | 9,012 |
| | (160 | ) | | 257,221 |
| Obligations of states and political subdivisions | 52,526 |
| | 1,991 |
| | — |
| | 54,517 |
| Individual name issuer trust preferred debt securities | 30,743 |
| | — |
| | (3,546 | ) | | 27,197 |
| Corporate bonds | 6,122 |
| | 104 |
| | (7 | ) | | 6,219 |
| Total securities available for sale |
| $368,768 |
| |
| $11,107 |
| |
| ($3,802 | ) | |
| $376,073 |
| Held to Maturity: | | | | | | | | Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises |
| $26,480 |
| |
| $594 |
| |
| $— |
| |
| $27,074 |
| Total securities held to maturity |
| $26,480 |
| |
| $594 |
| |
| $— |
| |
| $27,074 |
| Total securities |
| $395,248 |
| |
| $11,701 |
| |
| ($3,802 | ) | |
| $403,147 |
|
| | | | | | | | | | | | | | | | | (Dollars in thousands) | | December 31, 2013 | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value | Securities Available for Sale: | | | | | | | | Obligations of U.S. government-sponsored enterprises |
| $54,474 |
| |
| $720 |
| |
| ($79 | ) | |
| $55,115 |
| Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 230,387 |
| | 8,369 |
| | (401 | ) | | 238,355 |
| Obligations of states and political subdivisions | 60,659 |
| | 2,200 |
| | — |
| | 62,859 |
| Trust preferred securities: | | | | | | | | Individual name issuers | 30,715 |
| | — |
| | (6,031 | ) | | 24,684 |
| Collateralized debt obligations | 547 |
| | — |
| | — |
| | 547 |
| Corporate bonds | 11,128 |
| | 231 |
| | (16 | ) | | 11,343 |
| Total securities available for sale |
| $387,910 |
| |
| $11,520 |
| |
| ($6,527 | ) | |
| $392,903 |
| Held to Maturity: | | | | | | | | Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises |
| $29,905 |
| |
| $14 |
| |
| ($54 | ) | |
| $29,865 |
| Total securities held to maturity |
| $29,905 |
| |
| $14 |
| |
| ($54 | ) | |
| $29,865 |
| Total securities |
| $417,815 |
| |
| $11,534 |
| |
| ($6,581 | ) | |
| $422,768 |
|
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| Securities by Contractual Maturity |
The schedule of maturities of debt securities available for sale and held to maturity is presented below. Mortgage-backed securities are included based on weighted average maturities, adjusted for anticipated prepayments. All other debt securities are included based on contractual maturities. Actual maturities may differ from amounts presented because certain issuers have the right to call or prepay obligations with or without call or prepayment penalties. Yields on tax exempt obligations are not computed on a tax equivalent basis. | | | | | | | | | | | | | | | | | | | | | | September 30, 2014 | (Dollars in thousands) | Within 1 Year | | 1-5 Years | | 5-10 Years | | After 10 Years | | Totals | Securities Available for Sale: | | | | | | | | | | Obligations of U.S. government-sponsored enterprises: | | | | | | | | | | Amortized cost |
| $— |
| |
| $31,008 |
| |
| $— |
| |
| $— |
| |
| $31,008 |
| Weighted average yield | — | % | | 1.72 | % | | — | % | | — | % | | 1.72 | % | Mortgage-backed securities issued by U.S. government-sponsored enterprises: | | | | | | | | | | Amortized cost | 41,207 |
| | 111,399 |
| | 63,797 |
| | 31,966 |
| | 248,369 |
| Weighted average yield | 3.73 | % | | 3.38 | % | | 2.79 | % | | 1.80 | % | | 3.08 | % | Obligations of state and political subdivisions: | | | | | | | | | | Amortized cost | 2,546 |
| | 26,690 |
| | 23,290 |
| | — |
| | 52,526 |
| Weighted average yield | 3.64 | % | | 3.92 | % | | 3.98 | % | | — | % | | 3.93 | % | Individual name issuer trust preferred debt securities: | | | | | | | | | | Amortized cost | — |
| | — |
| | — |
| | 30,743 |
| | 30,743 |
| Weighted average yield | — | % | | — | % | | — | % | | 1.08 | % | | 1.08 | % | Corporate bonds: | | | | | | | | | | Amortized cost | 5,714 |
| | 204 |
| | 204 |
| | — |
| | 6,122 |
| Weighted average yield | 2.81 | % | | 1.62 | % | | 3.20 | % | | — | % | | 2.78 | % | Total debt securities available for sale: | | | | | | | | | | Amortized cost |
| $49,467 |
| |
| $169,301 |
| |
| $87,291 |
| |
| $62,709 |
| |
| $368,768 |
| Weighted average yield | 3.62 | % | | 3.16 | % | | 3.11 | % | | 1.45 | % | | 2.92 | % | Fair value |
| $51,123 |
| |
| $174,197 |
| |
| $90,451 |
| |
| $60,302 |
| |
| $376,073 |
| Securities Held to Maturity: | | | | | | | | | | Mortgage-backed securities issued by U.S. government-sponsored enterprises: | | | | | | | | | | Amortized cost |
| $3,261 |
| |
| $10,120 |
| |
| $8,015 |
| |
| $5,084 |
| |
| $26,480 |
| Weighted average yield | 3.10 | % | | 3.03 | % | | 2.82 | % | | 1.02 | % | | 2.59 | % | Fair value |
| $3,334 |
| |
| $10,347 |
| |
| $8,195 |
| |
| $5,198 |
| |
| $27,074 |
|
Included in the above table are debt securities with an amortized cost balance of $106.1 million and a fair value of $104.1 million at September 30, 2014 that are callable at the discretion of the issuers. Final maturities of the callable securities range from twelve months to twenty-two years, with call features ranging from one month to three years. |
| Securities in a Continuous Unrealized Loss Position |
Other-Than-Temporary Impairment Assessment The Corporation assesses whether the decline in fair value of investment securities is other-than-temporary on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates impairments in value both qualitatively and quantitatively to assess whether they are other-than-temporary.
The following tables summarize temporarily impaired securities, segregated by length of time the securities have been in a continuous unrealized loss position: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | Less than 12 Months | | 12 Months or Longer | | Total | September 30, 2014 | # | | Fair
Value | | Unrealized
Losses | | # |
| | Fair Value | | Unrealized Losses | | # |
| | Fair Value | | Unrealized Losses | Obligations of U.S. government-sponsored enterprises | 4 |
| |
| $30,919 |
| |
| ($89 | ) | | — |
| |
| $— |
| |
| $— |
| | 4 |
| |
| $30,919 |
| |
| ($89 | ) | Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 4 |
| | 42,231 |
| | (147 | ) | | 1 |
| | 912 |
| | (13 | ) | | 5 |
| | 43,143 |
| | (160 | ) | Individual name issuer trust preferred debt securities | — |
| | — |
| | — |
| | 11 |
| | 27,197 |
| | (3,546 | ) | | 11 |
| | 27,197 |
| | (3,546 | ) | Corporate bonds | 1 |
| | 214 |
| | (3 | ) | | 1 |
| | 198 |
| | (4 | ) | | 2 |
| | 412 |
| | (7 | ) | Total temporarily impaired securities | 9 |
| |
| $73,364 |
| |
| ($239 | ) | | 13 |
| |
| $28,307 |
| |
| ($3,563 | ) | | 22 |
| |
| $101,671 |
| |
| ($3,802 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in thousands) | Less than 12 Months | | 12 Months or Longer | | Total | December 31, 2013 | # |
| | Fair Value | | Unrealized Losses | | # |
| | Fair Value | | Unrealized Losses | | # |
| | Fair Value | | Unrealized Losses | Obligations of U.S. government-sponsored enterprises | 1 |
| |
| $9,909 |
| |
| ($79 | ) | | — |
| |
| $— |
| |
| $— |
| | 1 |
| |
| $9,909 |
| |
| ($79 | ) | Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 7 |
| | 76,748 |
| | (455 | ) | | — |
| | — |
| | — |
| | 7 |
| | 76,748 |
| | (455 | ) | Individual name issuer trust preferred debt securities | — |
| | — |
| | — |
| | 11 |
| | 24,684 |
| | (6,031 | ) | | 11 |
| | 24,684 |
| | (6,031 | ) | Corporate bonds | 2 |
| | 407 |
| | (16 | ) | | — |
| | — |
| | — |
| | 2 |
| | 407 |
| | (16 | ) | Total temporarily impaired securities | 10 |
| |
| $87,064 |
| |
| ($550 | ) | | 11 |
| |
| $24,684 |
| |
| ($6,031 | ) | | 21 |
| |
| $111,748 |
| |
| ($6,581 | ) |
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| Rollforward of OTTI Recognized in Earnings |
Credit-Related Impairment Losses Recognized on Debt Securities The following table presents a rollforward of the cumulative credit-related impairment losses on debt securities held by the Corporation: | | | | | | | | | | | | | | | | | (Dollars in thousands) | Three months | | Nine months | Periods ended September 30, | 2014 | | 2013 | | 2014 |
| | 2013 |
| Balance at beginning of period |
| $— |
| |
| $1,229 |
| |
| $— |
| |
| $3,325 |
| Credit-related impairment loss on debt securities for which an other-than-temporary impairment was not previously recognized | — |
| | — |
| | — |
| | — |
| Additional increases to the amount of credit-related impairment loss on debt securities for which an other-than-temporary impairment was previously recognized | — |
| | — |
| | — |
| | 2,772 |
| Reductions for securities for which a liquidation notice was received during the period | — |
| | — |
| | — |
| | (4,868 | ) | Balance at end of period |
| $— |
| |
| $1,229 |
| |
| $— |
| |
| $1,229 |
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The January 1, 2014 beginning balance of the cumulative credit-related impairment losses was corrected from the $6.8 million reported in our Form 10-K for the fiscal year ended December 31, 2013 to reflect the impact of the notice of liquidation of a pooled trust preferred security that occurred during the first quarter of 2013 and management’s change in intent to no longer hold its other pooled trust preferred security, which was made in December 2013. |