Securities (Tables)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

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

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	)

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

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.