Investment Securities (Tables)

9 Months Ended

Sep. 30, 2014

Amortized Cost and Fair Value of Available-For-Sale Securities, Including Gross Unrealized Gains and Losses

The following tables present the amortized cost and fair value of available-for-sale securities, including gross unrealized gains and losses, as of the dates indicated:


	September 30, 2014
	Amortized		Unrealized		Unrealized			Fair		OTTI in
(Amounts in thousands)	Cost		Gains		Losses			Value		AOCI⁽¹⁾
U.S. Treasury securities	$	9,729	$	—	$	(251	)	$	9,478	$	—
Municipal securities		137,899		4,411		(1,248	)		141,062		—
Single issue trust preferred securities		55,807		—		(7,125	)		48,682		—
Corporate securities		5,000		48		—			5,048		—
Mortgage-backed securities:
Agency		140,528		292		(3,301	)		137,519		—
Non-Agency Alt-A residential		11,284		—		(1,622	)		9,662		(1,622	)

Total mortgage-backed securities		151,812		292		(4,923	)		147,181		(1,622	)
Equity securities		226		20		(4	)		242		—

Total	$	360,473	$	4,771	$	(13,551	)	$	351,693	$	(1,622	)


	December 31, 2013
	Amortized		Unrealized		Unrealized			Fair		OTTI in
(Amounts in thousands)	Cost		Gains		Losses			Value		AOCI⁽¹⁾
U.S. Treasury securities	$	9,708	$	—	$	(695	)	$	9,013	$	—
Municipal securities		147,049		1,868		(4,637	)		144,280		—
Single issue trust preferred securities		55,764		—		(9,530	)		46,234		—
Corporate securities		5,000		—		(129	)		4,871		—
Mortgage-backed securities:
Agency		306,319		2,575		(8,508	)		300,386		—
Non-Agency Alt-A residential		12,543		—		(2,754	)		9,789		(2,754	)

Total mortgage-backed securities		318,862		2,575		(11,262	)		310,175		(2,754	)
Equity securities		5,259		24		(36	)		5,247		—

Total	$	541,642	$	4,467	$	(26,289	)	$	519,820	$	(2,754	)

(1)	Other-than-temporary impairment in accumulated other comprehensive income

Amortized Cost and Fair Value of Held-to-Maturity Securities, Including Gross Unrealized Gains and Losses

The following tables present the amortized cost and fair value of held-to-maturity securities, including gross unrealized gains and losses, as of the dates indicated:


	September 30, 2014
	Amortized		Unrealized		Unrealized			Fair
(Amounts in thousands)	Cost		Gains		Losses			Value
U.S. Agency securities	$	20,045	$	—	$	(87	)	$	19,958
Municipal securities		379		3		—			382
Corporate securities		10,605		1		(43	)		10,563

Total	$	31,029	$	4	$	(130	)	$	30,903


	December 31, 2013
	Amortized		Unrealized		Unrealized			Fair
(Amounts in thousands)	Cost		Gains		Losses			Value
Municipal securities	$	568	$	11	$	—		$	579

Total	$	568	$	11	$	—		$	579

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

The following table presents the amortized cost and fair value of available-for-sale securities and held-to-maturity securities, by contractual maturity, as of September 30, 2014. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.


	Amortized
(Amounts in thousands)	Cost		Fair Value
Available-for-sale securities
Due within one year	$	3,229	$	3,233
Due after one year but within five years		6,994		7,196
Due after five years but within ten years		53,570		55,008
Due after ten years		144,642		138,833

		208,435		204,270
Mortgage-backed securities		151,812		147,181
Equity securities		226		242

Total	$	360,473	$	351,693

Held-to-maturity securities
Due within one year	$	190	$	191
Due after one year but within five years		30,839		30,712
Due after five years but within ten years		—		—
Due after ten years		—		—

Total	$	31,029	$	30,903

Available-For-Sale Securities in Continuous Unrealized Loss Position

The following tables present the fair values and unrealized losses for available-for-sale securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of the dates indicated:


	September 30, 2014
	Less than 12 Months					12 Months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Amounts in thousands)	Value		Losses			Value		Losses			Value		Losses
U.S. Treasury securities	$	—	$	—		$	9,478	$	(251	)	$	9,478	$	(251	)
Municipal securities		1,023		(7	)		27,964		(1,241	)		28,987		(1,248	)
Single issue trust preferred securities		—		—			48,682		(7,125	)		48,682		(7,125	)
Mortgage-backed securities:
Agency		19,654		(76	)		95,524		(3,225	)		115,178		(3,301	)
Non-Agency Alt-A residential		—		—			9,661		(1,622	)		9,661		(1,622	)

Total mortgage-backed securities		19,654		(76	)		105,185		(4,847	)		124,839		(4,923	)
Equity securities		152		(4	)		—		—			152		(4	)

Total	$	20,829	$	(87	)	$	191,309	$	(13,464	)	$	212,138	$	(13,551	)


	December 31, 2013
	Less than 12 Months					12 Months or longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Amounts in thousands)	Value		Losses			Value		Losses			Value		Losses
U.S. Treasury securities	$	9,013	$	(695	)	$	—	$	—		$	9,013	$	(695	)
Municipal securities		57,950		(4,147	)		3,049		(490	)		60,999		(4,637	)
Single issue trust preferred securities		—		—			46,234		(9,530	)		46,234		(9,530	)
Corporate securities		4,871		(129	)		—		—			4,871		(129	)
Mortgage-backed securities:
Agency		114,047		(4,361	)		55,706		(4,147	)		169,753		(8,508	)
Non-Agency Alt-A residential		—		—			9,789		(2,754	)		9,789		(2,754	)

Total mortgage-backed securities		114,047		(4,361	)		65,495		(6,901	)		179,542		(11,262	)
Equity securities		4,976		(24	)		20		(12	)		4,996		(36	)

Total	$	190,857	$	(9,356	)	$	114,798	$	(16,933	)	$	305,655	$	(26,289	)

Held to Maturity Securities in Continuous Unrealized Loss Position

The following table presents the fair values and unrealized losses for held-to-maturity securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of the dates indicated. There were no held-to-maturity securities in a continuous unrealized loss position as of December 31, 2013.


	September 30, 2014
	Less than 12 Months					12 Months or longer				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
(Amounts in thousands)	Value		Losses			Value		Losses		Value		Losses
U.S. Agency securities	$	19,958	$	(87	)	$	—	$	—	$	19,958	$	(87	)
Corporate securities		7,439		(43	)		—		—		7,439		(43	)

Total	$	27,397	$	(130	)	$	—	$	—	$	27,397	$	(130	)

Net Loss or Gain from Sale of Securities

The following table presents the components of the Company’s net loss or gain from the sale of securities in the periods indicated:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Amounts in thousands)	2014			2013			2014			2013
Gross realized gains	$	746		$	—		$	2,257		$	307
Gross realized losses		(426	)		(39	)		(1,951	)		(116	)

Net gain (loss) on sale of securities	$	320		$	(39	)	$	306		$	191

Credit Losses Recognized in Earnings for Debt Securities Where Portion of OTTI Recognized in OCI

The following table presents the activity for credit-related losses recognized in earnings on debt securities where a portion of an OTTI was recognized in OCI for the periods indicated:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Amounts in thousands)	2014		2013		2014		2013
Beginning balance⁽¹⁾	$	8,284	$	7,478	$	7,798	$	7,478
Additions for credit losses on securities previously recognized		219		—		705		—

Ending balance	$	8,503	$	7,478	$	8,503	$	7,478

(1)	The beginning balance includes credit related losses included in OTTI charges recognized on debt securities in prior periods.

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

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- 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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