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Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2015
Investment Securities [Abstract]  
Amortized Cost and Fair Values of Securities

The amortized costs and approximate fair values, together with gross unrealized gains and losses on securities, are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Fair Value

Available for Sale Securities

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

Government-sponsored agencies

$
109,031 

 

$
2,073 

 

$
(509)

 

$
110,595 

Collateralized mortgage obligations

 

 

 

 

 

 

 

 

 

 

 

Government-sponsored agencies

 
85,629 

 

 
884 

 

 
(742)

 

 
85,771 

Municipal obligations

 
43,558 

 

 
1,500 

 

 
(480)

 

 
44,578 

Corporate obligations

 
21,777 

 

 
65 

 

 
(1,280)

 

 
20,562 

Total investment securities

$
259,995 

 

$
4,522 

 

$
(3,011)

 

$
261,506 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Fair Value

Available for Sale Securities

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

Government-sponsored agencies

$
110,452 

 

$
2,927 

 

$
(89)

 

$
113,290 

Collateralized mortgage obligations

 

 

 

 

 

 

 

 

 

 

 

Government-sponsored agencies

 
97,325 

 

 
1,270 

 

 
(836)

 

 
97,759 

Federal agencies

 
4 

 

 

 -

 

 

 -

 

 
4 

Municipal obligations

 
27,246 

 

 
2,013 

 

 
(7)

 

 
29,252 

Corporate obligations

 
21,763 

 

 
44 

 

 
(1,306)

 

 
20,501 

Total investment securities

$
256,790 

 

$
6,254 

 

$
(2,238)

 

$
260,806 

 

Amortized Cost and Fair Value of Available for Sale Securities by Contractual Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for Sale

Description Securities

 

Amortized Cost

 

Fair Value

Security obligations due

 

 

 

 

 

 

Within one year

 

 
4,488 

 

 
4,509 

One to five years

 

$
14,491 

 

$
14,577 

Five to ten years

 

 
2,214 

 

 
2,373 

After ten years

 

 
44,142 

 

 
43,681 

 

 

 
65,335 

 

 
65,140 

Mortgage-backed securities

 

 

 

 

 

 

Government-sponsored agencies

 

 
109,031 

 

 
110,595 

Collateralized mortgage obligations

 

 

 

 

 

 

Government-sponsored agencies

 

 
85,629 

 

 
85,771 

Totals

 

$
259,995 

 

$
261,506 

 

Investments Gross Unrealized Losses and Fair Value in Continuous Unrealized Loss Position

The following tables show the gross unrealized losses and fair value of the Company’s investments, 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

 

Less than 12 Months

 

12 Months or More

 

Total

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government-sponsored agencies

$
44,845 

 

$
(509)

 

$

 -

 

$

 -

 

$
44,845 

 

$
(509)

Collateralized mortgage obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government-sponsored agencies

 
23,968 

 

 
(211)

 

 
23,215 

 

 
(531)

 

 
47,183 

 

 
(742)

Municipal obligations

 
14,646 

 

 
(477)

 

 
490 

 

 
(3)

 

 
15,136 

 

 
(480)

Corporate obligations

 

 -

 

 

 -

 

 
2,522 

 

 
(1,280)

 

 
2,522 

 

 
(1,280)

Total temporarily impaired securities

$
83,459 

 

$
(1,197)

 

$
26,227 

 

$
(1,814)

 

$
109,686 

 

$
(3,011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

Less than 12 Months

 

12 Months or More

 

Total

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

 

 

Fair Value

 

 

Unrealized Losses

Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government-sponsored agencies

$
1,069 

 

$
(9)

 

$
19,580 

 

$
(80)

 

$
20,649 

 

$
(89)

Collateralized mortgage obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government-sponsored agencies

 
5,075 

 

 
(40)

 

 
34,159 

 

 
(796)

 

$
39,234 

 

$
(836)

Federal agencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 -

 

 

 -

Municipal obligations

 

 -

 

 

 -

 

 
631 

 

 
(7)

 

 
631 

 

 
(7)

Corporate obligations

 

 -

 

 

 -

 

 
6,995 

 

 
(1,306)

 

 
6,995 

 

 
(1,306)

Total temporarily impaired securities

$
6,144 

 

$
(49)

 

$
61,365 

 

$
(2,189)

 

$
67,509 

 

$
(2,238)

 

Debt Securities for which Credit Loss was Recognized in Income and Other Losses Recorded in Other Comprehensive Income

The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income. 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Credit Losses

 

Three Months Ended

 

June 30,

 

2015

 

2014

Credit losses on debt securities held

 

 

 

 

 

Beginning of period

$
109 

 

$
1,205 

Reductions related to actual losses incurred

 

 -

 

 
(500)

As of June 30,

$
109 

 

$
705 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Credit Losses

 

Six Months Ended

 

June 30,

 

2015

 

2014

Credit losses on debt securities held

 

 

 

 

 

Beginning of year

$
109 

 

$
1,205 

Reductions related to actual losses incurred

 

 -

 

 
(500)

As of June 30,

$
109 

 

$
705 

 

Pooled Trust Preferred Collateralized Debt Obligations

The following table provides additional information related to the Bank’s investment in pooled trust preferred securities as of June 30, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deal Name

 

Class

 

Original Par

 

Book Value

 

Fair Value

 

Unrealized loss

 

Realized Losses
YTD

 

Lowest Current Rating

 

Number of Banks / Insurance Cos. Currently Performing

 

Total Number of Banks and Insurance Cos. In Issuance (Unique)

 

Actual Deferrals/
Defaults
(as a % of original collateral)

 

 

Total Projected Defaults
(as a % of performing collateral) (1)

 

 

Excess subordination (after taking into account best estimate of future deferrals/
defaults) (2)

 

 

 

(Dollars in Thousands)

 

Alesco Preferred Funding IX

 

A2A

 

 
1,000 

 

 
911 

 

 
548 

 

 
(363)

 

 

 -

 

BB+

 

42 

 

51 

 

10.04 

%

 

12.95 

%

 

55.14 

%

U.S. Capital Funding I

 

B1

 

 
3,000 

 

 
2,891 

 

 
1,974 

 

 
(917)

 

 

 -

 

B3

 

28 

 

33 

 

9.44 

%

 

7.02 

%

 

10.33 

%

 

 

 

 

$
4,000 

 

$
3,802 

 

$
2,522 

 

$
(1,280)

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  A  10% recovery is applied to all projected defaults by depository institutions. A 15% recovery is applied to all projected defaults by insurance companies.  No recovery is applied to current defaults.

(2)  Excess subordination represents the additional defaults in excess of both current and projected defaults that the CDO can absorb before the bond experiences any credit impairment. Excess subordinated percentage is calculated by (a) determining what percentage of defaults a deal can experience before the bond has credit impairment, and (b) subtracting from this default breakage percentage both total current and expected future default percentages.