Securities (Tables)

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Reconciliation of fair value of securities

The following table presents a summary of the amortized cost, gross unrealized holding gains and losses, other-than-temporary impairment recorded in other comprehensive income and fair value of securities available for sale and securities held to maturity for the periods below:



	June 30, 2014												December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses Other			Other-Than- Temporary Impairment			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses Other			Other-Than- Temporary Impairment			Fair Value
	(Dollars in thousands)
Available for sale securities
U.S. Government agency securities	$	41,346	$	120	$	(29	)	$	—		$	41,437	$	41,331	$	3	$	(885	)	$	—		$	40,449
Agency mortgage-backed securities	213,894		7,530		(1,369		)	—			220,055		232,742		6,405		(4,556		)	—			234,591
Agency collateralized mortgage obligations	53,941		296		(965		)	—			53,272		58,765		490		(1,102		)	—			58,153
State, county, and municipal securities	5,145		113		—			—			5,258		5,439		1		(28		)	—			5,412
Single issuer trust preferred securities issued by banks	2,937		52		—			—			2,989		2,960		14		(22		)	—			2,952
Pooled trust preferred securities issued by banks and insurers	7,984		—		(1,594		)	(1,299		)	5,091		8,083		—		(1,913		)	(2,329		)	3,841
Equity securities	11,157		989		(167		)	—			11,979		10,997		762		(295		)	—			11,464
Total available for sale securities	$	336,404	$	9,100	$	(4,124	)	$	(1,299	)	$	340,081	$	360,317	$	7,675	$	(8,801	)	$	(2,329	)	$	356,862
Held to maturity securities
U.S. Treasury securities	$	1,011	$	57	$	—		$	—		$	1,068	$	1,011	$	31	$	—		$	—		$	1,042
Agency mortgage-backed securities	170,217		4,704		—			—			174,921		155,067		1,917		(1,033		)	—			155,951
Agency collateralized mortgage obligations	195,478		2,404		(4,346		)	—			193,536		187,388		824		(6,176		)	—			182,036
State, county, and municipal securities	678		6		—			—			684		678		7		—			—			685
Single issuer trust preferred securities issued by banks	1,500		27		—			—			1,527		1,503		23		—			—			1,526
Corporate debt securities	5,004		204		—			—			5,208		5,005		210		—			—			5,215
Total held to maturity securities	$	373,888	$	7,402	$	(4,346	)	$	—		$	376,944	$	350,652	$	3,012	$	(7,209	)	$	—		$	346,455
Total	$	710,292	$	16,502	$	(8,470	)	$	(1,299	)	$	717,025	$	710,969	$	10,687	$	(16,010	)	$	(2,329	)	$	703,317

Schedule of contractual maturities of securities

A schedule of the contractual maturities of securities available for sale and securities held to maturity as of June 30, 2014 is presented below:



	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	181	$	192	$	454	$	457
Due after one year to five years	39,096		40,229		5,569		5,798
Due after five years to ten years	68,541		68,048		26,720		27,086
Due after ten years	217,429		219,633		341,145		343,603
Total debt securities	$	325,247	$	328,102	$	373,888	$	376,944
Equity securities	$	11,157	$	11,979	$	—	$	—
Total	$	336,404	$	340,081	$	373,888	$	376,944

Schedule of gross unrealized losses and fair value of investments

The following tables show the gross unrealized losses and fair value of the Company’s investments in an unrealized loss position, which the Company has not deemed to be OTTI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:



	June 30, 2014
		Less than 12 months					12 months or longer					Total
	# of holdings	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. Government agency securities	3	$	493	$	(2	)	$	9,981	$	(27	)	$	10,474	$	(29	)
Agency mortgage-backed securities	34	665		(6		)	46,015		(1,363		)	46,680		(1,369		)
Agency collateralized mortgage obligations	15	42,761		(502		)	100,254		(4,809		)	143,015		(5,311		)
Pooled trust preferred securities issued by banks and insurers	7	—		—			2,520		(1,594		)	2,520		(1,594		)
Equity securities	8	71		(2		)	1,462		(165		)	1,533		(167		)
Total temporarily impaired securities	67	$	43,990	$	(512	)	$	160,232	$	(7,958	)	$	204,222	$	(8,470	)



	December 31, 2013
		Less than 12 months					12 months or longer					Total
	# of holdings	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. government agency securities	39	$	39,950	$	(885	)	$	—	$	—		$	39,950	$	(885	)
Agency mortgage-backed securities	124	202,004		(5,217		)	5,108		(372		)	207,112		(5,589		)
Agency collateralized mortgage obligations	19	183,721		(7,278		)	—		—			183,721		(7,278		)
State, county, and municipal securities	13	3,838		(28		)	—		—			3,838		(28		)
Single issuer trust preferred securities issued by banks and insurers	2	1,341		(22		)	—		—			1,341		(22		)
Pooled trust preferred securities issued by banks and insurers	2	—		—			2,300		(1,913		)	2,300		(1,913		)
Equity securities	22	2,376		(90		)	3,520		(205		)	5,896		(295		)
Total temporarily impaired securities	221	$	433,230	$	(13,520	)	$	10,928	$	(2,490	)	$	444,158	$	(16,010	)

Schedule of Other Than Temorary Impairment [Table Text Block]

The following table shows the total OTTI that the Company recorded for the periods indicated:



	Three Months Ended						Six Months Ended
	June 30						June 30
	2014			2013			2014			2013
	(Dollars in thousands)
Gross change in OTTI recorded on certain investments	$	196		$	90		$	1,029		$	371
Portion of OTTI recognized in OCI	(196		)	(90		)	(1,029		)	(371		)
Total credit related OTTI losses recognized in earnings	$	—		$	—		—			$	—

Summary of cumulative credit related component of OTTI

The following table shows the cumulative credit related component of OTTI for the periods indicated:



	Three Months Ended						Six Months Ended
	June 30						June 30
	2014			2013			2014			2013
	(Dollars in thousands)
Balance at beginning of period	$	(9,997	)	$	(10,847	)	$	(9,997	)	$	(10,847	)
Add
Incurred on securities not previously impaired	—			—			—			—
Incurred on securities previously impaired	—			—			—			—
Less
Securities sold during the period	—			—			—			—
Reclassification due to changes in Company’s intent	—			—			—			—
Increases in cash flow expected to be collected	—			—			—			—
Balance at end of period	$	(9,997	)	$	(10,847	)	$	(9,997	)	$	(10,847	)

- Definition

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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