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Investment Securities
 3 Months Ended
Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities
 
The following table presents investment securities at March 31, 2016 and December 31, 2015, showing that available-for-sale and held-to-maturity securities increased from December 31, 2015 primarily due to redeployment of cash assumed in the branch acquisition into securities (dollars in thousands):
 
Amortized
cost
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Estimated
fair value
March 31, 2016
 

 
 

 
 

 
 

Available-for-sale
 

 
 

 
 

 
 

U.S. Agency mortgage-backed securities (MBS)
$
208,623

 
$
2,760

 
$
(251
)
 
$
211,132

Non-agency MBS
167,528

 
729

 
(803
)
 
167,454

U.S. Agency asset-backed securities
7,172

 
811

 
(43
)
 
7,940

Corporate securities
41,942

 
13

 
(119
)
 
41,836

Mutual fund
528

 
19

 
—

 
547

 
$
425,793

 
$
4,332

 
$
(1,216
)
 
$
428,909

Held-to-maturity
 

 
 

 
 

 
 

U.S. Agency MBS
$
103,501

 
$
3,597

 
$
(34
)
 
$
107,064

Obligations of state and political subdivisions
40,107

 
1,676

 
—

 
41,783

Tax credit investments
421

 
—

 
—

 
421

 
$
144,029

 
$
5,273

 
$
(34
)
 
$
149,268

 
 
 
 
 
 
 
 
December 31, 2015
 

 
 

 
 

 
 

Available-for-sale
 

 
 

 
 

 
 

U.S. Agency MBS
$
154,691

 
$
2,698

 
$
(455
)
 
$
156,934

Non-agency MBS
118,765

 
477

 
(1,016
)
 
118,226

U.S. Agency asset-backed securities
7,468

 
800

 
(23
)
 
8,245

Corporate securities
26,199

 
121

 
—

 
26,320

Mutual fund
525

 
12

 
—

 
537

 
$
307,648

 
$
4,108

 
$
(1,494
)
 
$
310,262

Held-to-maturity
 

 
 

 
 

 
 

U.S. Agency MBS
$
98,800

 
$
1,875

 
$
(5
)
 
$
100,670

Obligations of state and political subdivisions
421

 
—

 
—

 
421

Tax credit investments
40,203

 
968

 
(2
)
 
41,169

 
$
139,424

 
$
2,843

 
$
(7
)
 
$
142,260

 

  
The following table presents the contractual maturities of investment securities at March 31, 2016 (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
$
9,636

 
$
9,616

 
$
—

 
$
—

Due after one year through five years
47,632

 
47,602

 
30,628

 
31,272

Due after five years through ten years
49,019

 
49,159

 
88,136

 
92,080

Due after ten years
318,978

 
321,985

 
24,844

 
25,495

Mutual fund
528

 
547

 
—

 
—

Tax credit investments
—

 
—

 
421

 
421

 
$
425,793

 
$
428,909

 
$
144,029

 
$
149,268

 
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 March 31, 2016 and December 31, 2015 (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
March 31, 2016
 


 


 


 


 


 

Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
U.S. Agency MBS
$
50,006


$
(147
)

$
17,058


$
(104
)

$
67,064


$
(251
)
Non-Agency MBS
113,432


(696
)

11,794


(107
)

125,226


(803
)
U.S. Agency asset-backed securities
—


—


1,456


(43
)

1,456


(43
)
Corporate Securities
36,746

 
(119
)
 
—

 
—

 
36,746

 
(119
)
 
$
200,184


$
(962
)

$
30,308


$
(254
)

$
230,492


$
(1,216
)


















Held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
U.S. Agency MBS
$
5,072

 
$
(34
)
 
$
—

 
$
—

 
$
5,072

 
$
(34
)
Obligations of state and political subdivisions
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
—

 
$
5,072

 
$
(34
)
 
$
—

 
$
—

 
$
5,072

 
$
(34
)
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 

 
 

 
 

 
 

 
 

 
 

Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
U.S. Agency MBS
$
23,630

 
$
(123
)
 
$
34,576

 
$
(332
)
 
$
58,206

 
$
(455
)
Non-Agency MBS
66,412

 
(765
)
 
12,225

 
(251
)
 
78,637

 
(1,016
)
U.S. Agency asset-backed securities
—

 
—

 
1,521

 
(23
)
 
1,521

 
(23
)
 
$
90,042

 
$
(888
)
 
$
48,322

 
$
(606
)
 
$
138,364

 
$
(1,494
)
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
U.S. Agency MBS
2,063

 
(5
)
 
—

 
—

 
$
2,063

 
$
(5
)
Obligations of state and political subdivisions
$
725

 
$
(2
)
 
$
—

 
$
—

 
$
725

 
$
(2
)
 
$
2,788

 
$
(7
)
 
$
—

 
$
—

 
$
2,788

 
$
(7
)

 
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 March 31, 2016 and December 31, 2015 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 March 31, 2016, 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.