Investments (Tables)

6 Months Ended

Jun. 30, 2017

The following table shows a comparison of amortized cost and fair values of investment securities at June 30, 2017 and December 31, 2016:



(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCL
June 30, 2017
Available for Sale:
U.S. government agencies	$	25,000	$	0	$	576	$	24,424	$	0
Commercial mortgage-backed agencies		42,854		7		518		42,343		0
Collateralized mortgage obligations		29,416		5		400		29,021		0
Obligations of states and political subdivisions		18,714		419		70		19,063		0
Collateralized debt obligations		19,762		0		5,415		14,347		(3,908)
Total available for sale	$	135,746	$	431	$	6,979	$	129,198	$	(3,908)

Held to Maturity:
U.S. government agencies	$	15,806	$	574	$	0	$	16,380	$	0
Residential mortgage-backed agencies		52,064		181		385		51,860		0
Commercial mortgage-backed agencies		17,437		410		0		17,847		0
Collateralized mortgage obligations		4,537		0		61		4,476		0
Obligations of states and political subdivisions		8,510		1,301		9		9,802		0
Total held to maturity	$	98,354	$	2,466	$	455	$	100,365	$	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 Gains 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)	2017		2016		2017		2016
Proceeds	$	18,530	$	25,591	$	14,700	$	14,820
Realized gains		52		415		44		138
Realized losses		69		188		52		117

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, 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
June 30, 2017
Available for Sale:
U.S. government agencies	$	24,424	$	576	$	0	$	0
Commercial mortgage-backed agencies		22,827		187		9,801		331
Collateralized mortgage obligations		24,556		346		3,707		54
Obligations of states and political subdivisions		2,090		20		2,795		50
Collateralized debt obligations		0		0		14,347		5,415
Total available for sale	$	73,897	$	1,129	$	30,650	$	5,850

Held to Maturity:
Residential mortgage-backed agencies	$	24,580	$	283	$	3,781	$	102
Collateralized mortgage obligations		4,476		61		0		0
Obligations of states and political subdivisions		2,376		9		0		0
Total held to maturity	$	31,432	$	353	$	3,781	$	102


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 six- and three-month periods ended June 30, 2017 and 2016:




	Six months ended June 30,
(in thousands)	2017		2016
Balance of credit-related OTTI at January 1	$	3,124	$	3,133
Decreases for previously recognized credit-related OTTI due to transfer		0		(3,045)
Additions for decreases in cash flows expected to be collected		0		33
Reduction for increases in cash flows expected to be collected		(57)		(5)
Balance of credit-related OTTI at June 30	$	3,067	$	116


	Three months ended June 30,
(in thousands)	2017		2016
Balance of credit-related OTTI at April 1	$	3,122	$	3,097
Decreases for previously recognized credit-related OTTI due to transfer		0		(3,045)
Additions for decreases in cash flows expected to be collected		0		66
Reduction for increases in cash flows expected to be collected		(55)		(2)
Balance of credit-related OTTI at June 30	$	3,067	$	116

Amortized Cost and Fair Values Classified by Contractual Maturity Date


	June 30, 2017
(in thousands)	Amortized Cost		Fair Value
Contractual Maturity
Available for sale:
Due after one year through five years	$	10,657	$	10,544
Due after five years through ten years		18,268		17,872
Due after ten years		34,551		29,418
		63,476		57,834
Commercial mortgage-backed agencies		42,854		42,343
Collateralized mortgage obligations		29,416		29,021
Total available for sale	$	135,746	$	129,198
Held to Maturity:
Due after five years through ten years	$	15,806	$	16,380
Due after ten years		8,510		9,802
		24,316		26,182
Residential mortgage-backed agencies	$	52,064	$	51,860
Commercial mortgage-backed agencies		17,437		17,847
Collateralized mortgage obligations		4,537		4,476
Total held to maturity	$	98,354	$	100,365