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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Unrealized Gain (Loss) on Investments [Table Text Block]

The following tables present information related to the Corporation’s investment securities at September 30, 2014 and December 31, 2013.

		September 30, 2014
		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
		(dollars in thousands)
Investment Securities Available-for-Sale:

U.S. Treasury and agency securities		$	11,517			$	—			$	(132	)		$	11,385
Federal agency obligations			33,110				75				(193	)			32,992
Residential mortgage pass-through securities			58,459				1,332				(100	)			59,691
Commercial mortgage pass-through securities			3,057				—				(41	)			3,016
Obligations of U.S. states and political subdivisions			8,204				225				—				8,429
Trust preferred securities			16,085				465				(236	)			16,314
Corporate bonds and notes			129,550				6,300				(10	)			135,840
Asset-backed securities			21,603				151				(1	)			21,753
Certificates of deposit			2,098				32				(6	)			2,124
Equity securities			376				—				(87	)			289
Mutual funds and money market funds			15,808				—				(139	)			15,669
Total		$	299,867			$	8,580			$	(945	)		$	307,502

Investment Securities Held-to-Maturity:
U.S. Treasury and agency securities		$	28,212			$	251			$	—			$	28,463
Federal agency obligations			21,119				112				(74	)			21,157
Residential mortgage pass-through securities			2,616				7				—				2,623
Commercial mortgage pass-through securities			4,304				38				(19	)			4,323
Obligations of U.S. states and political subdivisions			123,379				3,914				(151	)			127,142
Corporate bonds and notes			37,937				762				(14	)			38,685
Total		$	217,567			$	5,084			$	(258	)		$	222,393

Total investment securities		$	517,434			$	13,664			$	(1,203	)		$	529,895

		December 31, 2013
		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
		(dollars in thousands)
Investment Securities Available-for-Sale:
U.S. Treasury and agency securities		$	14,344			$	—			$	(825	)		$	13,519
Federal agency obligations			20,567				29				(655	)			19,941
Residential mortgage pass-through securities			48,312				791				(229	)			48,874
Commercial mortgage pass-through securities			7,145				3				(157	)			6,991
Obligations of U.S. states and political subdivisions			30,804				711				(55	)			31,460
Trust preferred securities			19,763				150				(510	)			19,403
Corporate bonds and notes			154,182				4,930				(482	)			158,630
Asset-backed securities			15,733				246				—				15,979
Certificates of deposit			2,250				32				(20	)			2,262
Equity securities			376				—				(89	)			287
Mutual funds and money market funds			5,671				68				(15	)			5,724
Total		$	319,147			$	6,960			$	(3,037	)		$	323,070
Investment Securities Held-to-Maturity:
U.S. Treasury and agency securities		$	28,056			$	—			$	(1,019	)		$	27,037
Federal agency obligations			15,249				23				(389	)			14,883
Residential mortgage-backed securities			2,246				—				(64	)			2,182
Commercial mortgage-backed securities			4,417				41				(62	)			4,396
Obligations of U.S. states and political subdivisions			127,418				1,303				(3,688	)			125,033
Corporate bonds and notes			37,900				149				(622	)			37,427
Total		$	215,286			$	1,516			$	(5,844	)		$	210,958
Total investment securities		$	534,433			$	8,476			$	(8,881	)		$	534,028

Investments Classified by Contractual Maturity Date [Table Text Block]

The following table presents information for investment securities available-for-sale at September 30, 2014, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer.

		September 30, 2014
		Amortized Cost				Fair Value
		(in thousands)
Investment Securities Available-for-Sale:
Due in one year or less		$	14,395			$	14,543
Due after one year through five years			43,153				44,425
Due after five years through ten years			110,494				115,594
Due after ten years			54,125				54,275
Residential mortgage pass-through securities			58,459				59,691
Commercial mortgage pass-through securities			3,057				3,016
Equity securities			376				289
Mutual funds and money market funds			15,808				15,669
Total		$	299,867			$	307,502
Investment Securities Held-to-Maturity:
Due in one year or less		$	7,059			$	7,140
Due after one year through five years			7,907				8,056
Due after five years through ten years			69,114				70,359
Due after ten years			126,567				129,892
Residential mortgage-backed securities			2,616				2,623
Commercial mortgage pass-through securities			4,304				4,323
Total		$	217,567			$	222,393

Total investment securities		$	517,434			$	529,895

Schedule of Realized Gain (Loss) [Table Text Block]

Gross gains and losses from the sales of investment securities for the three-month and nine-month periods ended September 30, 2014 and 2013 were as follows:

		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2014				2013				2014				2013
Gross gains on sales of investment securities		$	111			$	343			$	2,122			$	1,375
Gross losses on sales of investment securities			—				—				22				89
Net gains on sales of investment securities			111				343				2,100				1,286
Less: tax provision on gross gains			42				96				601				353
Gross gains on sales of investments, net of tax		$	69			$	247			$	1,499			$	933

Schedule of OTTI Charges for period

The following summarizes OTTI charges for the periods indicated.

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
(in thousands)		2014				2013				2014				2013
Other than temporary impairment charges		$	—			$	—			$	—			$	—
Principal losses on a variable rate CMO			—				—				—				24
Total other-than-temporary impairment charges		$	—			$	—			$	—			$	24

Schedule of Preferred Security and Associated Ratings [Table Text Block]

The following table presents detailed information for each trust preferred security held by the Corporation at September 30, 2014 which has at least one rating below investment grade.

Issuer		Single Issuer or Pooled		Class/ Tranche		Amortized Cost				Fair Value				Gross Unrealized Gain (Loss)				Lowest Credit Rating Assigned		Number of Banks Currently Performing				Deferrals and Defaults as % of Original Collateral		Expected Deferral/Defaults as % of Remaining Performing Collateral
		(dollars in thousands)
Countrywide Capital IV		Single		n/a		$	1,771			$	1,813				42			BB			1			None		None
Countrywide Capital V		Single		n/a			2,747				2,827				80			BB			1			None		None
Countrywide Capital V		Single		n/a			250				257				7			BB			1			None		None
Nationsbank Cap Trust III		Single		n/a			1,575				1,339				(236	)		BB			1			None		None
Morgan Stanley Cap Trust IV		Single		n/a			2,500				2,517				17			BB			1			None		None
Morgan Stanley Cap Trust IV		Single		n/a			1,742				1,760				18			BB			1			None		None
Goldman Sachs		Single		n/a			1,000				1,137				137			BB			1			None		None
Stifel Financial		Single		n/a			4,500				4,664				164			BBB-			1			None		None
Total						$	16,085			$	16,314				229

Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block]

Credit Loss Portion of OTTI Recognized in Earnings on Debt Securities

		Nine Months Ended September 30, 2014				Year Ended December 31, 2013
		(in thousands)
Balance of credit-related OTTI at January 1,		$	—			$	4,450
Addition:
Credit losses on investment securities for which other-than-temporary impairment was not previously recognized			—				652
Reduction:
Credit losses on investment securities sold during the period			—				(5,102	)
Balance of credit-related OTTI at period end		$	—			$	—

Schedule of Unrealized Loss on Investments [Table Text Block]

The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position at September 30, 2014 and December 31, 2013:

		September 30, 2014
		Total								Less than 12 Months								12 Months or Longer
		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
		(in thousands)
Investment Securities Available-for-Sale:
U.S. Treasury and agency securities		$	9,488			$	(132	)		$	4,744			$	(57	)		$	4,744			$	(75	)
Federal agency obligations			22,682				(193	)			18,601				(113	)			4,081				(80	)
Residential mortgage pass-through securities			16,327				(100	)			16,327				(100	)			—				—
Commercial mortgage pass-through securities			3,016				(41	)			—				—				3,016				(41	)
Trust preferred securities			1,338				(236	)			—				—				1,338				(236	)
Corporate bonds and notes			3,002				(10	)			3,002				(10	)			—				—
Asset-backed securities			1,952				(1	)			1,952				(1	)			—				—
Certificates of deposit			216				(6	)			216				(6	)			—				—
Equity securities			289				(87	)			—				—				289				(87	)
Mutual funds and money market funds			11,361				(139	)			10,379				(122	)			982				(17	)
Total			69,671			$	(945	)		$	55,221			$	(409	)		$	14,450			$	(536	)
Investment Securities Held-to-Maturity:
Federal agency obligations		$	8,325			$	(74	)		$	8,325			$	(74	)		$	—			$	—
Commercial mortgage pass-through securities			1,392				(19	)			—				—				1,392				(19	)
Obligations of U.S. states and political subdivisions			14,789				(151	)			3,336				(4	)			11,453				(147	)
Corporate bonds and notes			2,700				(14	)			2,700				(14	)			—				—
Total			27,206				(258	)			14,361				(92	)			12,845				(166	)
Total Temporarily Impaired Securities		$	96,877			$	(1,203	)		$	69,582			$	(501	)		$	27,295			$	(702	)

		December 31, 2013
		Total								Less than 12 Months								12 Months or Longer
		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
		(in thousands)
Investment Securities Available-for-Sale:
U.S. Treasury and agency securities		$	13,519			$	(825	)		$	13,519			$	(825	)		$	—			$	—
Federal agency obligation			17,200				(655	)			17,200				(655	)			—				—
Residential mortgage pass-through securities			18,293				(229	)			18,293				(229	)			—				—
Commercial mortgage pass-through securities			2,924				(157	)			2,924				(157	)			—				—
Obligations of U.S. states and political subdivisions			4,199				(55	)			4,199				(55	)			—				—
Trust preferred securities			5,306				(510	)			4,031				(211	)			1,275				(299	)
Corporate bonds and notes			32,498				(482	)			30,533				(448	)			1,965				(34	)
Certificates of deposit			552				(20	)			552				(20	)			—				—
Equity securities			287				(89	)			—				—				287				(89	)
Mutual funds and money market funds			985				(15	)			—				—				985				(15	)
Total			95,763				(3,037	)			91,251				(2,600	)			4,512				(437	)
Investment Securities Held-to-Maturity:
U.S. Treasury and agency securities		$	27,037			$	(1,019	)		$	27,037			$	(1,019	)		$	—			$	—
Federal agency obligation			13,492				(389	)			13,197				(388	)			295				(1	)
Residential mortgage pass-through securities			2,182				(64	)			2,182				(64	)			—				—
Commercial mortgage pass-through securities			1,395				(62	)			1,395				(62	)			—				—
Obligations of U.S. states and political subdivisions			66,034				(3,688	)			57,072				(2,957	)			8,962				(731	)
Corporate bonds and notes			27,210				(622	)			27,210				(622	)			—				—
Total			137,350				(5,844	)			128,093				(5,112	)			9,257				(732	)
Total Temporarily Impaired Securities		$	233,113			$	(8,881	)		$	219,344			$	(7,712	)		$	13,769			$	(1,169	)

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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