XML 23 R12.htm IDEA: XBRL DOCUMENT v3.7.0.1
Note 4 - Securities
 3 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
NOTE
4.
SECURITIES
 
The following table presents the amortized costs, unrealized gains, unrealized losses and approximate fair values of our investment securities as of
March
31,
2017,
and
December
31,
2016.
 
 
 
As of March 31, 2017
 
 
 
 
 
 
 
Gross
 
 
Gross
 
 
 
 
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Estimated
 
(Amounts in thousands)
 
Cost
 
 
Gain
 
 
Loss
 
 
Fair Value
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government & agencies
   $
12,558
     $
12
     $
(74
 )   $
12,496
  
Obligations of state and political subdivisions
    
54,753
      
1,180
      
(270
 )    
55,663
  
Residential mortgage-backed securities and collateralized mortgage obligations
    
83,793
      
68
      
(1,469
 )    
82,392
  
Corporate securities
    
10,419
      
128
      
(99
 )    
10,448
  
Commercial mortgage-backed securities
    
16,815
      
7
      
(300
 )    
16,522
  
Other asset-backed securities
    
4,087
      
6
      
(80
 )    
4,013
  
Total
   $
182,425
     $
1,401
     $
(2,292
 )   $
181,534
  
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
   $
31,257
     $
870
     $
(332
 )   $
31,795
  
 
 
 
 
As of December 31, 2016
 
 
 
 
 
 
 
Gross
 
 
Gross
 
 
 
 
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Estimated
 
(Amounts in thousands)
 
Cost
 
 
Gain
 
 
Loss
 
 
Fair Value
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government & agencies
   $
10,427
     $
10
     $
(83
 )   $
10,354
  
Obligations of state and political subdivisions
    
58,847
      
1,001
      
(420
 )    
59,428
  
Residential mortgage-backed securities and collateralized mortgage obligations
    
71,068
      
33
      
(1,497
 )    
69,604
  
Corporate securities
    
16,153
      
103
      
(140
 )    
16,116
  
Commercial mortgage-backed securities
    
15,786
      
9
      
(281
 )    
15,514
  
Other asset-backed securities
    
4,237
      
8
      
(87
 )    
4,158
  
Total
   $
176,518
     $
1,164
     $
(2,508
 )   $
175,174
  
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
   $
31,187
     $
710
     $
(523
 )   $
31,374
  
 
 
The following table presents the expected maturities of investment securities at
March
31,
2017.
 
 
 
Available-For-Sale
 
 
Held-To-Maturity
 
(Amounts in thousands)
 
Amortized Cost
 
 
Fair Value
 
 
Amortized Cost
 
 
Fair Value
 
Amounts maturing in:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One year or less
   $
2,062
     $
2,067
     $
—
     $
—
  
After one year through five years
    
78,246
      
77,523
      
6,327
      
6,547
  
After five years through ten years
    
48,087
      
48,105
      
11,808
      
12,016
  
After ten years
    
54,030
      
53,839
      
13,122
      
13,232
  
Total
   $
182,425
     $
181,534
     $
31,257
     $
31,795
  
 
The amortized cost and fair value of residential mortgage-backed securities, collateralized mortgage obligations and commercial mortgage securities are presented by their expected average life, rather than contractual maturity, because the underlying loans
may
be repaid without prepayment penalties.
 
 
BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Notes to Consolidated Financial Statements (Unaudited)
 
 
The following table presents the fair value of the securities held for pledging, segregated by purpose, as of
March
31,
2017.
 
 
(Amounts in thousands)
 
Pledged
 
 
Available To Be
Pledged
 
 
Total Held For
Pledging Purposes
 
Public funds collateral
   $
18,328
     $
15,288
     $
33,616
  
Federal Home Loan Bank of San Francisco borrowings
    
—
      
25,342
      
25,342
  
Total
   $
18,328
     $
40,630
     $
58,958
  
 
 
The following table presents the cash proceeds from sales of securities and the associated gross realized gains and gross realized losses that have been included in earnings for the
three
months ended
March
31,
2017
and
2016.
 
 
 
Three Months Ended March 31,
 
(Amounts in thousands)
 
2017
 
 
2016
 
Proceeds from sales of securities
   $
13,927
     $
19,934
  
                 
Gross realized gains on sales of securities:
                
Obligations of state and political subdivisions
   $
51
     $
72
  
Residential mortgage-backed securities and collateralized mortgage obligations
    
17
      
—
  
Corporate securities
    
1
      
42
  
Commercial mortgage-backed securities
    
—
      
4
  
Other asset-backed securities
    
—
      
1
  
Total gross realized gains on sales of securities
    
69
      
119
  
Gross realized losses on sales of securities:
                
Corporate securities
    
(3
 )    
(25
 )
Total gross realized losses on sales of securities
    
(3
 )    
(25
 )
Gain on investment securities, net
   $
66
     $
94
  
 
 
 
Investment securities that were in an unrealized loss position as of
March
31,
2017
and
December
31,
2016
are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. In the opinion of management, these securities are considered only temporarily impaired due to changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities, and not due to concerns regarding the underlying credit of the issuers or underlying collateral.
 
 
 
As of March 31, 2017
 
 
 
Less Than 12 Months
 
 
12 Months or More
 
 
Total
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
(Amounts in thousands)
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
 
Value
 
 
Losses
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government & agencies
   $
9,204
     $
(74
 )   $
—
     $
—
     $
9,204
     $
(74
 )
Obligations of states and political subdivisions
    
15,993
      
(270
 )    
—
      
—
      
15,993
      
(270
 )
Residential mortgage-backed securities and collateralized mortgage obligations
    
67,189
      
(1,273
 )    
7,355
      
(196
 )    
74,544
      
(1,469
 )
Corporate securities
    
2,952
      
(99
 )    
—
      
—
      
2,952
      
(99
 )
Commercial mortgage-backed securities
    
9,793
      
(146
 )    
6,136
      
(154
 )    
15,929
      
(300
 )
Other asset-backed securities
    
2,180
      
(28
 )    
1,321
      
(52
 )    
3,501
      
(80
 )
Total temporarily impaired securities
   $
107,311
     $
(1,890
 )   $
14,812
     $
(402
 )   $
122,123
     $
(2,292
 )
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
   $
10,824
     $
(247
 )   $
945
     $
(85
 )   $
11,769
     $
(332
 )
 
 
 
BANK OF COMMERCE HOLDINGS & SUBSIDIARIES
Notes to Consolidated Financial Statements (Unaudited)
 
 
 
 
As of December 31, 2016
 
 
 
Less Than 12 Months
 
 
12 Months or More
 
 
Total
 
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
 
Fair
 
 
Unrealized
 
(Amounts in thousands)
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
 
Value
 
 
Loss
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government & agencies
   $
9,139
     $
(83
 )   $
—
     $
—
     $
9,139
     $
(83
 )
Obligations of states and political subdivisions
    
20,329
      
(420
 )    
—
      
—
      
20,329
      
(420
 )
Residential mortgage-backed securities and collateralized mortgage obligations
    
52,345
      
(1,396
 )    
4,108
      
(101
 )    
56,453
      
(1,497
 )
Corporate securities
    
8,908
      
(140
 )    
—
      
—
      
8,908
      
(140
 )
Commercial mortgage-backed securities
    
12,041
      
(191
 )    
2,849
      
(90
 )    
14,890
      
(281
 )
Other asset-backed securities
    
2,280
      
(28
 )    
1,346
      
(59
 )    
3,626
      
(87
 )
Total temporarily impaired securities
   $
105,042
     $
(2,258
 )   $
8,303
     $
(250
 )   $
113,345
     $
(2,508
 )
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
   $
11,639
     $
(425
 )   $
933
     $
(98
 )   $
12,572
     $
(523
 )
 
 
 
At
March
31,
2017
and at
December
31,
2016,
119
securities were in unrealized loss positions.
 
Other-Than-Temporary Impairment
For the
three
months ended
March
31,
2017,
we did
not
recognize any other-than-temporary impairment losses. We recognized
one
impairment loss of
$546
thousand during the
second
quarter of
2016
related to our investment in AgriBank and there were no other impairment losses recognized during the year ended
December
31,
2016.