XML 22 R11.htm IDEA: XBRL DOCUMENT v3.19.1
Securities
 3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities
Securities
(In Thousands, Except Number of Securities)

The amortized cost and fair value of securities available for sale were as follows as of the dates presented:
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
March 31, 2019
 
 
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
$
2,532

 
$
16

 
$
(23
)
 
$
2,525

Obligations of states and political subdivisions
179,758

 
4,064

 
(60
)
 
183,762

Residential mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
622,056

 
3,783

 
(3,773
)
 
622,066

Government agency collateralized mortgage obligations
321,088

 
1,093

 
(2,734
)
 
319,447

Commercial mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
21,816

 
362

 
(180
)
 
21,998

Government agency collateralized mortgage obligations
46,095

 
273

 
(38
)
 
46,330

Trust preferred securities
12,259

 
—

 
(2,013
)
 
10,246

Other debt securities
48,335

 
766

 
(122
)
 
48,979

 
$
1,253,939

 
$
10,357

 
$
(8,943
)
 
$
1,255,353

 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
December 31, 2018
 
 
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
$
2,536

 
$
13

 
$
(38
)
 
$
2,511

Obligations of states and political subdivisions
200,798

 
3,038

 
(567
)
 
203,269

Residential mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
621,690

 
719

 
(9,126
)
 
613,283

Government agency collateralized mortgage obligations
332,697

 
274

 
(5,982
)
 
326,989

Commercial mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
21,957

 
257

 
(384
)
 
21,830

Government agency collateralized mortgage obligations
28,446

 
24

 
(135
)
 
28,335

Trust preferred securities
12,359

 
—

 
(1,726
)
 
10,633

Other debt securities
44,046

 
192

 
(311
)
 
43,927

 
$
1,264,529

 
$
4,517

 
$
(18,269
)
 
$
1,250,777



Securities sold were as follows for the period presented:
 
Carrying Value
 
Net Proceeds
 
Gain/(Loss)
Three months ended March 31, 2019
 
 
 
 
 
Obligations of states and political subdivisions
$
10,368

 
$
10,384

 
$
16

Residential mortgage backed securities:
 
 
 
 
 
Government agency mortgage backed securities
230

 
227

 
$
(3
)
 
$
10,598

 
$
10,611

 
$
13

There were no securities sold during the three months ended March 31, 2018.
Gross realized gains and losses on sales of securities available for sale for three months ended March 31, 2019 and 2018, respectively, were as follows:
 
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
 
2019
 
2018
 
Gross gains on sales of securities available for sale
$
45

 
$
—

 
Gross losses on sales of securities available for sale
(32
)
 
—

 
Gains on sales of securities available for sale, net
$
13

 
$
—

 


At March 31, 2019 and December 31, 2018, securities with a carrying value of $553,451 and $619,308, respectively, were pledged to secure government, public and trust deposits. Securities with a carrying value of $19,629 and $18,299 were pledged as collateral for short-term borrowings and derivative instruments at March 31, 2019 and December 31, 2018, respectively.
The amortized cost and fair value of securities at March 31, 2019 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.
 
 
 
Available for Sale
 
 
Amortized
Cost
 
Fair
Value
Due within one year
 
$
36,647

 
$
36,919

Due after one year through five years
 
40,168

 
40,856

Due after five years through ten years
 
74,651

 
76,630

Due after ten years
 
51,868

 
50,926

Residential mortgage backed securities:
 
 
 
 
Government agency mortgage backed securities
 
622,056

 
622,066

Government agency collateralized mortgage obligations
 
321,088

 
319,447

Commercial mortgage backed securities:
 
 
 
 
Government agency mortgage backed securities
 
21,816

 
21,998

Government agency collateralized mortgage obligations
 
46,095

 
46,330

Other debt securities
 
39,550

 
40,181

 
 
$
1,253,939

 
$
1,255,353





The following table presents the age of gross unrealized losses and fair value by investment category as of the dates presented:
 
 
Less than 12 Months
 
12 Months or More
 
Total
 
#
 
Fair
Value
 
Unrealized
Losses
 
#
 
Fair
Value
 
Unrealized
Losses
 
#
 
Fair
Value
 
Unrealized
Losses
Available for Sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
0
 
$
—

 
$
—

 
2
 
$
1,494

 
$
(23
)
 
2
 
$
1,494

 
$
(23
)
Obligations of states and political subdivisions
1
 
855

 
(1
)
 
10
 
7,309

 
(59
)
 
11
 
8,164

 
(60
)
Residential mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
10
 
28,824

 
(72
)
 
96
 
242,222

 
(3,701
)
 
106
 
271,046

 
(3,773
)
Government agency collateralized mortgage obligations
3
 
16,043

 
(41
)
 
64
 
159,212

 
(2,693
)
 
67
 
175,255

 
(2,734
)
Commercial mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
0
 
—

 
—

 
4
 
7,543

 
(180
)
 
4
 
7,543

 
(180
)
Government agency collateralized mortgage obligations
0
 
—

 
—

 
1
 
4,962

 
(38
)
 
1
 
4,962

 
(38
)
Trust preferred securities
0
 
—

 
—

 
2
 
10,246

 
(2,013
)
 
2
 
10,246

 
(2,013
)
Other debt securities
8
 
5,763

 
(34
)
 
3
 
5,752

 
(88
)
 
11
 
11,515

 
(122
)
Total
22
 
$
51,485

 
$
(148
)
 
182
 
$
438,740

 
$
(8,795
)
 
204
 
$
490,225

 
$
(8,943
)
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
0
 
$
—

 
$
—

 
2
 
$
1,480

 
$
(38
)
 
2
 
$
1,480

 
$
(38
)
Obligations of states and political subdivisions
34
 
22,159

 
(193
)
 
26
 
16,775

 
(374
)
 
60
 
38,934

 
(567
)
Residential mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
91
 
354,731

 
(3,945
)
 
73
 
125,757

 
(5,181
)
 
164
 
480,488

 
(9,126
)
Government agency collateralized mortgage obligations
24
 
97,451

 
(840
)
 
60
 
140,076

 
(5,142
)
 
84
 
237,527

 
(5,982
)
Commercial mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
5
 
6,506

 
(74
)
 
4
 
7,468

 
(310
)
 
9
 
13,974

 
(384
)
Government agency collateralized mortgage obligations
2
 
9,950

 
(23
)
 
1
 
4,888

 
(112
)
 
3
 
14,838

 
(135
)
Trust preferred securities
0
 
—

 
—

 
2
 
10,633

 
(1,726
)
 
2
 
10,633

 
(1,726
)
Other debt securities
12
 
19,011

 
(88
)
 
3
 
5,621

 
(223
)
 
15
 
24,632

 
(311
)
Total
168
 
$
509,808

 
$
(5,163
)
 
171
 
$
312,698

 
$
(13,106
)
 
339
 
$
822,506

 
$
(18,269
)

 
The Company evaluates its investment portfolio for other-than-temporary-impairment (“OTTI”) on a quarterly basis. Impairment is assessed at the individual security level. The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. Impairment is considered to be other-than-temporary if the Company intends to sell the investment security or if the Company does not expect to recover the entire amortized cost basis of the security before the Company is required to sell the security or before the security’s maturity.

The Company does not intend to sell any securities in an unrealized loss position that it holds, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be at maturity. Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period greater than twelve months, the Company is collecting principal and interest payments from the respective issuers as scheduled. As such, the Company did not record any OTTI for the three months ended March 31, 2019 or 2018.
The Company holds investments in pooled trust preferred securities that had an amortized cost basis of $12,259 and $12,359 and a fair value of $10,246 and $10,633 at March 31, 2019 and December 31, 2018, respectively. At March 31, 2019, the investments in pooled trust preferred securities consisted of two securities representing interests in various tranches of trusts collateralized by debt issued by over 150 financial institutions. Management’s determination of the fair value of each of its holdings in pooled trust preferred securities is based on the current credit ratings, the known deferrals and defaults by the underlying issuing financial institutions and the degree to which future deferrals and defaults would be required to occur before the cash flow for the Company’s tranches is negatively impacted. In addition, management continually monitors key credit quality and capital ratios of the issuing institutions. This determination is further supported by quarterly valuations, which are performed by third parties, of each security obtained by the Company. The Company does not intend to sell the investments before recovery of the investments’ amortized cost, and it is not more likely than not that the Company will be required to sell the investments before recovery of the investments’ amortized cost, which may be at maturity. At March 31, 2019, management did not, and does not currently, believe such securities will be settled at a price less than the amortized cost of the investment, but the Company previously concluded that it was probable that there had been an adverse change in estimated cash flows for both trust preferred securities and recognized credit related impairment losses on these securities in 2011. No additional impairment was recognized during the three months ended March 31, 2019.
The following table provides information regarding the Company’s investments in pooled trust preferred securities at March 31, 2019:
 
Name
Single/
Pooled
 
Class/
Tranche
 
Amortized
Cost
 
Fair
Value
 
Unrealized
Loss
 
Lowest
Credit
Rating
 
Issuers
Currently in
Deferral or
Default
XXIII
Pooled
 
B-2
 
$
8,233

 
$
6,593

 
$
(1,640
)
 
BB
 
17
%
XXVI
Pooled
 
B-2
 
4,026

 
3,653

 
(373
)
 
B
 
20
%
 
 
 
 
 
$
12,259

 
$
10,246

 
$
(2,013
)
 
 
 
 


The following table provides a summary of the cumulative credit related losses recognized in earnings for which a portion of OTTI has been recognized in other comprehensive income:
 
 
2019
 
2018
Balance at January 1
$
(261
)
 
$
(261
)
Additions related to credit losses for which OTTI was not previously recognized
—

 
—

Increases in credit loss for which OTTI was previously recognized
—

 
—

Reductions for securities sold during the period
—

 
—

Balance at March 31
$
(261
)
 
$
(261
)