Investments (Tables)

3 Months Ended

Mar. 31, 2017

The following table shows a comparison of amortized cost and fair values of investment securities at March 31, 2017 and December 31, 2016:



(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI
March 31, 2017
Available for Sale:
U.S. government agencies	$	25,000	$	0	$	703	$	24,297	$	0
Commercial mortgage-backed agencies		51,321		0		927		50,394		0
Collateralized mortgage obligations		19,670		11		370		19,311		0
Obligations of states and political subdivisions		22,423		322		167		22,578		0
Collateralized debt obligations		27,790		0		7,433		20,357		(3,797)
Total available for sale	$	146,204	$	333	$	9,600	$	136,937	$	(3,797)

Held to Maturity:
U.S. government agencies	$	15,772	$	518	$	0	$	16,290	$	0
Residential mortgage-backed agencies		51,515		145		348		51,312		0
Commercial mortgage-backed agencies		17,509		252		0		17,761		0
Collateralized mortgage obligations		4,593		0		102		4,491		0
Obligations of states and political subdivisions		8,630		517		85		9,062		0
Total held to maturity	$	98,019	$	1,432	$	535	$	98,916	$	0

December 31, 2016
Available for Sale:
U.S. government agencies	$	25,000	$	0	$	747	$	24,253		0
Commercial mortgage-backed agencies		52,978		1		757		52,222		0
Collateralized mortgage obligations		19,953		13		399		19,567		0
Obligations of states and political subdivisions		23,700		255		251		23,704		0
Collateralized debt obligations		27,930		0		7,676		20,254		(3,961)
Total available for sale	$	149,561	$	269	$	9,830	$	140,000	$	(3,961)
Held to Maturity:
U.S. government agencies	$	15,738	$	512	$	0	$	16,250	$	0
Residential mortgage-backed agencies		50,384		160		279		50,265		0
Commercial mortgage-backed agencies		17,584		248		0		17,832		0
Collateralized mortgage obligations		4,833		0		149		4,684		0
Obligations of states and political subdivisions		8,630		490		170		8,950		0
Total held to maturity	$	97,169	$	1,410	$	598	$	97,981	$	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:


	Three months ended
	March 31,
(in thousands)	2017		2016
Proceeds	$	3,830	$	10,771
Realized gains		8		277
Realized losses		17		71

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 March 31, 2017 and December 31, 2016, 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
March 31, 2017
Available for Sale:
U.S. government agencies	$	24,297	$	703	$	0	$	0
Commercial mortgage-backed agencies		50,394		927		0		0
Collateralized mortgage obligations		18,445		370		0		0
Obligations of states and political subdivisions		6,660		104		2,979		63
Collateralized debt obligations		0		0		20,357		7,433
Total available for sale	$	99,796	$	2,104	$	23,336	$	7,496

Held to Maturity:
Residential mortgage-backed agencies	$	22,960	$	348	$	0	$	0
Collateralized mortgage obligations		4,491		102		0		0
Obligations of states and political subdivisions		2,420		85		0		0
Total held to maturity	$	29,871	$	535	$	0	$	0


December 31, 2016
Available for Sale:
U.S. government agencies	$	24,253	$	747	$	0	$	0
Commercial mortgage-backed agencies		51,604		757		0		0
Collateralized mortgage obligations		14,706		399		0		0
Obligations of states and political subdivisions		8,079		160		2,934		91
Collateralized debt obligations		0		0		20,254		7,676
Total available for sale	$	98,642	$	2,063	$	23,188	$	7,767
Held to Maturity:
Residential mortgage-backed agencies	$	20,899	$	279	$	0	$	0
Commercial mortgage-backed agencies		4,684		149		0		0
Obligations of states and political subdivisions		2,335		170		0		0
Total held to maturity	$	27,918	$	598	$	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 three-month periods ended March 31, 2017 and 2016:




	Three months ended March 31,
(in thousands)	2017		2016
Balance of credit-related OTTI at January 1	$	3,124	$	3,133
Reduction for increases in cash flows expected to be collected		(2)		(36)
Balance of credit-related OTTI at March 31	$	3,122	$	3,097

Amortized Cost and Fair Values Classified by Contractual Maturity Date


	March 31, 2017
(in thousands)	Amortized Cost		Fair Value
Contractual Maturity
Available for sale:
Due after one year through five years	$	10,662	$	10,541
Due after five years through ten years		18,687		18,174
Due after ten years		45,864		38,517
		75,213		67,232
Commercial mortgage-backed agencies		51,321		50,394
Collateralized mortgage obligations		19,670		19,311
Total available for sale	$	146,204	$	136,937
Held to Maturity:
Due after five years through ten years	$	15,772	$	16,290
Due after ten years		8,630		9,062
		24,402		25,352
Residential mortgage-backed agencies	$	51,515	$	51,312
Commercial mortgage-backed agencies		17,509		17,761
Collateralized mortgage obligations		4,593		4,491
Total held to maturity	$	98,019	$	98,916