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Investments (Tables)
 6 Months Ended
Jun. 30, 2016
Investments [Abstract]  
Unrealized Gain (Loss) on Investments



The following table shows a comparison of amortized cost and fair values of investment securities at June 30, 2016 and December 31, 2015:





 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

(in thousands)

Amortized Cost

Gross Unrealized Gains

Gross Unrealized Losses

Fair Value

OTTI in AOCI

June 30, 2016

 

 

 

 

 

 

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

  U.S. government agencies

$

 25,050 

$

 217 

 

 0 

$

 25,267 

$

 0 

  Commercial mortgage-backed agencies

 

 57,091 

 

 1,331 

 

 0 

 

 58,422 

 

 0 

  Collateralized mortgage obligations

 

 11,205 

 

 93 

 

 0 

 

 11,298 

 

 0 

  Obligations of states and political subdivisions

 

 31,045 

 

 1,029 

 

 64 

 

 32,010 

 

 0 

  Collateralized debt obligations

 

 25,402 

 

 0 

 

 5,172 

 

 20,230 

 

 (471)

Total available for sale

$

 149,793 

$

 2,670 

$

 5,236 

$

 147,227 

$

 (471)



 

 

 

 

 

 

 

 

 

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

  U.S. government agencies

$

 17,744 

$

 1,327 

$

 0 

$

 19,071 

$

 0 

  Residential mortgage-backed agencies

 

 54,065 

 

 1,262 

 

 26 

 

 55,301 

 

 0 

  Commercial mortgage-backed agencies

 

 17,938 

 

 1,140 

 

 0 

 

 19,078 

 

 0 

  Collateralized mortgage obligations

 

 5,478 

 

 19 

 

 0 

 

 5,497 

 

 0 

  Obligations of states and political subdivisions

 

 2,505 

 

 506 

 

 0 

 

 3,011 

 

 0 

Total held to maturity

$

 97,730 

$

 4,254 

$

 26 

$

 101,958 

$

 0 



 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

  U.S. government agencies

 

 34,079 

 

 14 

 

 129 

 

 33,964 

 

 0 

  Residential mortgage-backed agencies

 

 14,285 

 

 105 

 

 220 

 

 14,170 

 

 0 

  Commercial mortgage-backed agencies

 

 43,780 

 

 52 

 

 196 

 

 43,636 

 

 0 

  Collateralized mortgage obligations

 

 9,690 

 

 43 

 

 123 

 

 9,610 

 

 0 

  Obligations of states and political subdivisions

 

 45,949 

 

 915 

 

 223 

 

 46,641 

 

 0 

  Collateralized debt obligations

 

 25,766 

 

 0 

 

 3,555 

 

 22,211 

 

 (799)

Total available for sale

$

 173,549 

$

 1,129 

$

 4,446 

$

 170,232 

$

 (799)

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

  U.S. government agencies

$

 24,704 

$

 634 

$

 0 

$

 25,338 

$

 0 

  Residential mortgage-backed agencies

 

 53,734 

 

 276 

 

 98 

 

 53,912 

 

 0 

  Commercial mortgage-backed agencies

 

 18,078 

 

 171 

 

 17 

 

 18,232 

 

 0 

  Collateralized mortgage obligations

 

 6,419 

 

 0 

 

 122 

 

 6,297 

 

 0 

  Obligations of states and political subdivisions

 

 2,625 

 

 338 

 

 0 

 

 2,963 

 

 0 

Total held to maturity

$

 105,560 

$

 1,419 

$

 237 

$

 106,742 

$

 0 



Proceeds from Sales and Realized Gain and Losses



Proceeds from sales of available for sale securities and the realized gains and losses are as follows:



 

 

 

 

 

 

 

 



Six months ended

Three months ended



June 30,

June 30,

(in thousands)

2016

2015

2016

2015

Proceeds

$

 25,591 

$

 24,667 

$

 14,820 

$

 9,578 

Realized gains

 

 415 

 

 156 

 

 138 

 

 140 

Realized losses

 

 188 

 

 173 

 

 117 

 

 60 



Gross Unrealized Losses and Fair Values of Securities

The following table shows the Corporation’s investment securities with gross unrealized losses and fair values at June 30, 2016 and December 31, 2015, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:





 

 

 

 

 

 

 

 



  Less than 12 months

12 months or more

(in thousands)

Fair Value

Unrealized Losses

Fair Value

Unrealized Losses

June 30, 2016

 

 

 

 

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

  Obligations of states and political subdivisions

 

 267 

 

 1 

 

 3,596 

 

 63 

  Collateralized debt obligations

 

 12,886 

 

 1,289 

 

 7,344 

 

 3,883 

Total available for sale

$

 13,153 

$

 1,290 

$

 10,940 

$

 3,946 



 

 

 

 

 

 

 

 

Held to Maturity:

 

 

 

 

 

 

 

 

  Residential mortgage-backed agencies

$

 3,505 

$

 21 

$

 1,919 

$

 5 

Total held to maturity

$

 3,505 

$

 21 

$

 1,919 

$

 5 







 

 

 

 

 

 

 

 

December 31, 2015

 

 

 

 

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

  U.S. government agencies

 

 23,929 

$

 129 

$

 0 

$

 0 

  Residential mortgage-backed agencies

 

 0 

 

 0 

 

 8,051 

 

 220 

  Commercial mortgage-backed agencies

 

 25,858 

 

 196 

 

 0 

 

 0 

  Collateralized mortgage obligations

 

 5,299 

 

 123 

 

 0 

 

 0 

  Obligations of states and political subdivisions

 

 11,537 

 

 104 

 

 4,048 

 

 119 

  Collateralized debt obligations

 

 0 

 

 0 

 

 7,688 

 

 3,555 

Total available for sale

$

 66,623 

$

 552 

$

 19,787 

$

 3,894 

Held to Maturity:

 

 

 

 

 

 

 

 

  Residential mortgage-backed agencies

 

 11,085 

 

 98 

 

 0 

 

 0 

  Commercial mortgage-backed agencies

 

 9,518 

 

 17 

 

 0 

 

 0 

  Collateralized mortgage obligations

 

 6,297 

 

 122 

 

 0 

 

 0 

Total held to maturity

$

 26,900 

$

 237 

$

 0 

$

 0 



Non-Cash OTTI Credit Losses Recognized in Earnings



The following tables present a cumulative roll-forward of the amount of non-cash OTTI charges related to credit losses which have been recognized in earnings for the trust preferred securities in the CDO portfolio held and not intended to be sold for the six- and three-month periods ended June 30, 2016 and 2015:



 

 

 

 



 

 

 

 



 

 

 

 



Six months ended June 30,

(in thousands)

2016

2015

Balance of credit-related OTTI at January 1

$

 3,133 

$

 12,583 

Decreases for previously recognized credit-related OTTI due to transfer

 

 (3,045)

 

 0 

Additions for decreases in cash flows expected to be collected

 

 33 

 

 0 

Reduction for increases in cash flows expected to be collected

 

 (5)

 

 (340)

Balance of credit-related OTTI at June 30

$

 116 

$

 12,243 







 

 

 

 



Three months ended June 30,

(in thousands)

2016

2015

Balance of credit-related OTTI at April 1

$

 3,097 

$

 12,416 

Decreases for previously recognized credit-related OTTI due to transfer

 

 (3,045)

 

 0 

Additions for decreases in cash flows expected to be collected

 

 66 

 

 0 

Reduction for increases in cash flows expected to be collected

 

 (2)

 

 (173)

Balance of credit-related OTTI at June 30

$

 116 

$

 12,243 

Amortized Cost and Fair Values Classified by Contractual Maturity Date



 

 

 

 



June 30, 2016

(in thousands)

Amortized Cost

Fair Value

Contractual Maturity

 

 

 

 

Available for sale:

 

 

 

 

Due in one year or less

$

 5,998 

$

 6,018 

Due after one year through five years

 

 19,921 

 

 20,134 

Due after five years through ten years

 

 6,201 

 

 6,390 

Due after ten years

 

 49,377 

 

 44,965 



 

 81,497 

 

 77,507 

Commercial mortgage-backed agencies

 

 57,091 

 

 58,422 

Collateralized mortgage obligations

 

 11,205 

 

 11,298 

 Total available for sale

$

 149,793 

$

 147,227 

Held to Maturity:

 

 

 

 

Due after five years through ten years

$

 15,670 

$

 16,799 

Due after ten years

 

 4,579 

 

 5,283 



 

 20,249 

 

 22,082 

Residential mortgage-backed agencies

$

 54,065 

 

 55,301 

Commercial mortgage-backed agencies

 

 17,938 

 

 19,078 

Collateralized mortgage obligations

 

 5,478 

 

 5,497 

Total held to maturity

$

 97,730 

$

 101,958