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Investment Securities
 6 Months Ended
Jun. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities
 
Investment securities at June 30, 2015 and December 31, 2014 consisted of the following (dollars in thousands):
 
Amortized
cost
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Estimated
fair value
June 30, 2015
 

 
 

 
 

 
 

Available-for-sale
 

 
 

 
 

 
 

U.S. Agency mortgage-backed securities (MBS) *
$
203,804

 
$
4,167

 
$
(813
)
 
$
207,158

Non-agency MBS
87,424

 
178

 
(689
)
 
86,913

U.S. Agency asset-backed securities
7,860

 
817

 
(7
)
 
8,670

Corporate securities
7,405

 
65

 
—

 
7,470

Mutual fund
519

 
13

 
—

 
532

 
$
307,012

 
$
5,240

 
$
(1,509
)
 
$
310,743

Held-to-maturity
 

 
 

 
 

 
 

U.S. Agency MBS
$
105,800

 
$
1,807

 
$
—

 
$
107,607

Obligations of state and political subdivisions
41,624

 
546

 
(34
)
 
42,136

Tax credit investments
439

 
—

 
—

 
439

 
$
147,863

 
$
2,353

 
$
(34
)
 
$
150,182

 
 
 
 
 
 
 
 
December 31, 2014
 

 
 

 
 

 
 

Available-for-sale
 

 
 

 
 

 
 

U.S. Agency MBS *
$
232,514

 
$
4,562

 
$
(896
)
 
$
236,180

Non-agency MBS
66,872

 
232

 
(407
)
 
66,697

U.S. Agency asset-backed securities
8,192

 
858

 
(42
)
 
9,008

Corporate securities
7,333

 
137

 
—

 
7,470

Mutual fund
514

 
13

 
—

 
527

 
$
315,425

 
$
5,802

 
$
(1,345
)
 
$
319,882

Held-to-maturity
 

 
 

 
 

 
 

U.S. Agency MBS
$
110,175

 
$
2,032

 
$
—

 
$
112,207

Obligations of state and political subdivisions
41,840

 
962

 
(18
)
 
42,784

Tax credit investments
564

 
—

 
—

 
564

 
$
152,579

 
$
2,994

 
$
(18
)
 
$
155,555

 
* U.S. Agency MBS include private label MBS of approximately $8.6 million and $9.3 million at June 30, 2015 and December 31, 2014, respectively, which are supported by FHA/VA collateral.
  
The following table presents the contractual maturities of investment securities at June 30, 2015 (dollars in thousands):
 
 
Available-for-sale
 
Held-to-maturity
 
Amortized
cost
 
Estimated
fair value
 
Amortized
cost
 
Estimated
fair value
Due in one year or less
$
261

 
$
262

 
$
195

 
$
198

Due after one year through five years
9,399

 
9,485

 
28,854

 
29,136

Due after five years through ten years
64,419

 
63,861

 
93,357

 
95,121

Due after ten years
232,414

 
236,603

 
25,018

 
25,288

Mutual fund
519

 
532

 
—

 
—

Tax credit investments
—

 
—

 
439

 
439

 
$
307,012

 
$
310,743

 
$
147,863

 
$
150,182

 
The following table presents the fair value and gross unrealized losses of the Bank’s investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2015 and December 31, 2014 (dollars in thousands):
 
 
Less than 12 months

12 months or more

Total
 
Estimated 
fair value

Unrealized
losses

Estimated 
fair value

Unrealized
losses

Estimated 
fair value

Unrealized
losses
June 30, 2015
 


 


 


 


 


 

Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
U.S. Agency MBS
$
7,981


$
(32
)

$
39,762


$
(781
)

$
47,743


$
(813
)
Non-Agency MBS
59,328


(616
)

5,318


(73
)

64,646


(689
)
U.S. Agency asset-backed securities
658


(2
)

1,580


(5
)

2,238


(7
)
 
$
67,967


$
(650
)

$
46,660


$
(859
)

$
114,627


$
(1,509
)


















Held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
$
5,989

 
$
(34
)
 
$
—

 
$
—

 
$
5,989

 
$
(34
)
 
$
5,989

 
$
(34
)
 
$
—

 
$
—

 
$
5,989

 
$
(34
)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 

 
 

 
 

 
 

 
 

 
 

Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
U.S. Agency MBS
$
15,807

 
$
(17
)
 
$
41,479

 
$
(879
)
 
$
57,286

 
$
(896
)
Non-Agency MBS
23,953

 
(220
)
 
6,411

 
(187
)
 
30,364

 
(407
)
U.S. Agency asset-backed securities
718

 
(6
)
 
1,582

 
(36
)
 
2,300

 
(42
)
 
$
40,478

 
$
(243
)
 
$
49,472

 
$
(1,102
)
 
$
89,950

 
$
(1,345
)
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
$
3,806

 
$
(18
)
 
$
—

 
$
—

 
$
3,806

 
$
(18
)
 
$
3,806

 
$
(18
)
 
$
—

 
$
—

 
$
3,806

 
$
(18
)

 
The unrealized losses on investments in U.S. Agency and non-agency MBS and U.S. Agency asset-backed securities are primarily due to changes in market yield/rate spreads at June 30, 2015 and December 31, 2014 as compared to yield/rate spread relationships prevailing at the time specific investment securities were purchased. Management expects the fair value of these investment securities to recover as securities approach their maturity dates. Management does not believe that the above gross unrealized losses on investment securities are other-than-temporary. Accordingly, no impairment adjustments have been recorded.
 
Management intends to hold the investment securities classified as held-to-maturity until they mature, at which time the Company will receive full amortized cost value for such investment securities. Furthermore, as of June 30, 2015, management did not have the intent to sell any of the securities classified as held-to-maturity in the table above and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost.