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Investment Securities
 9 Months Ended
Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities
 
The amortized cost and estimated fair value of securities were as follows:
 
 
 
September 30, 2015
 
 
Amortized
 Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 
 
(in thousands)
Investment securities available for sale:
 
 

 
 
 
 
 
 
Municipal bonds
 
$
129,064

 
$
1,266

 
$
(326
)
 
$
130,004

Mortgage-backed securities
 
160,929

 
700

 
(486
)
 
161,143

Total securities available for sale
 
$
289,993

 
$
1,966

 
$
(812
)
 
$
291,147


 
 
December 31, 2014
 
 
Amortized
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 
 
(in thousands)
Investment securities available for sale:
 
 

 
 

 
 

 
 

Municipal bonds
 
$
88,599

 
$
1,235

 
$
(173
)
 
$
89,661

Mortgage-backed securities
 
112,159

 
432

 
(614
)
 
111,977

Total securities available for sale
 
$
200,758

 
$
1,667

 
$
(787
)
 
$
201,638


 
 
September 30, 2014
 
 
Amortized
 Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 
 
(in thousands)
Investment securities available for sale:
 
 

 
 

 
 

 
 

Municipal bonds
 
$
97,358

 
$
1,495

 
$
(268
)
 
98,585

Mortgage-backed securities
 
184,701

 
180

 
(1,264
)
 
183,617

Total securities available for sale
 
$
282,059

 
$
1,675

 
$
(1,532
)
 
$
282,202



At September 30, 2015, the Company had $11.4 million in Federal Home Loan Bank (“FHLB”) stock, $7.5 million in Federal Reserve Bank (“FRB”) stock, and $3.6 million in other stock, all carried at cost.
 
At September 30, 2015, mortgage-backed securities (“MBS”) with an estimated par value of $63.3 million and a fair value of $65.4 million were pledged as collateral for the Bank’s three reverse repurchase agreements which totaled $28.5 million and Homeowner's Association ("HOA") reverse repurchase agreements which totaled $19.0 million.
 
The table below shows the number, fair value and gross unrealized holding losses of the Company’s investment securities by investment category and length of time that the securities have been in a continuous loss position.
 
 
September 30, 2015
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
(dollars in thousands)
Municipal bonds
64

 
$
37,405

 
$
(248
)
 
7

 
$
3,612

 
$
(78
)
 
71

 
$
41,017

 
$
(326
)
Mortgage-backed securities
17

 
57,803

 
(139
)
 
3

 
13,613

 
(347
)
 
20

 
71,416

 
(486
)
Total
81

 
$
95,208

 
$
(387
)
 
10

 
$
17,225

 
$
(425
)
 
91

 
$
112,433

 
$
(812
)

 
December 31, 2014
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
(dollars in thousands)
Municipal bonds
35

 
$
18,129

 
$
(117
)
 
16

 
$
6,510

 
$
(56
)
 
51

 
$
24,639

 
$
(173
)
Mortgage-backed securities
7

 
24,353

 
(105
)
 
4

 
18,842

 
(509
)
 
11

 
43,195

 
(614
)
Total
42

 
$
42,482

 
$
(222
)
 
20

 
$
25,352

 
$
(565
)
 
62

 
$
67,834

 
$
(787
)
 
September 30, 2014
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
(dollars in thousands)
Municipal bonds
29

 
$
16,804

 
$
(183
)
 
26

 
$
10,459

 
$
(85
)
 
55

 
$
27,263

 
$
(268
)
Mortgage-backed securities
22

 
85,248

 
(256
)
 
9

 
42,516

 
(1,008
)
 
31

 
127,764

 
(1,264
)
Total
51

 
$
102,052

 
$
(439
)
 
35

 
$
52,975

 
$
(1,093
)
 
86

 
$
155,027

 
$
(1,532
)


Any temporary impairment is a result of the change in market interest rates and not the underlying issuers’ ability to repay. The Company has the intent and ability to hold these securities until the temporary impairment is eliminated. Accordingly, the Company has not recognized the temporary impairment in earnings.






The amortized cost and estimated fair value of investment securities available for sale at September 30, 2015, by contractual maturity are shown in the table below.

 
 
One Year
or Less
 
More than One
Year to Five Years
 
More than Five Years
to Ten Years
 
More than
Ten Years
 
Total
 
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
 
(dollars in thousands)
Investment securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal bonds
 
$
840

 
$
843

 
$
25,480

 
$
25,605

 
$
45,233

 
$
45,628

 
$
57,511

 
$
57,928

 
$
129,064

 
$
130,004

Mortgage-backed securities
 
—

 
—

 
—

 
—

 
25,566

 
25,744

 
135,363

 
135,399

 
160,929

 
161,143

Total investment securities available for sale
 
$
840

 
$
843

 
$
25,480

 
$
25,605

 
$
70,799

 
$
71,372

 
$
192,874

 
$
193,327

 
$
289,993

 
$
291,147



Unrealized gains and losses on investment securities available for sale are recognized in stockholders’ equity as accumulated other comprehensive income or loss. At September 30, 2015, the Company had accumulated other comprehensive income of $1,154,000, or $679,000 net of benefit, compared to accumulated other comprehensive income of $880,000, or $518,000 net of tax, at December 31, 2014.