Securities (Tables)

9 Months Ended

Sep. 30, 2014

Available-for-sale Securities [Abstract]

The amortized cost, unrealized gains, unrealized losses and estimated fair values of securities at September 30, 2014, December 31, 2013, and September 30, 2013 are summarized as follows:



	September 30, 2014
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	22,643	$	919	$	47	$	23,515
Residential mortgage-backed securities:
Government-sponsored agencies	153,095		2,680		891		154,884
Nongovernment-sponsored entities	9,873		323		28		10,168
State and political subdivisions
General obligations	3,856		16		66		3,806
Water and sewer revenues	2,375		5		36		2,344
Other revenues	3,927		29		12		3,944
Corporate debt securities	—		—		—		—
Total taxable debt securities	195,769		3,972		1,080		198,661
Tax-exempt debt securities
State and political subdivisions
General obligations	46,610		2,047		62		48,595
Water and sewer revenues	12,436		224		25		12,635
Lease revenues	5,060		65		38		5,087
Lottery/casino revenues	4,287		115		—		4,402
Other revenues	12,624		440		50		13,014
Total tax-exempt debt securities	81,017		2,891		175		83,733
Equity securities	7		—		—		7
Total available for sale securities	$	276,793	$	6,863	$	1,255	$	282,401



	December 31, 2013
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	29,100	$	675	$	118	$	29,657
Residential mortgage-backed securities:
Government-sponsored agencies	155,270		2,019		1,573		155,716
Nongovernment-sponsored entities	11,519		321		21		11,819
State and political subdivisions
General obligations	9,317		—		475		8,842
Water and sewer revenues	3,229		—		114		3,115
Other revenues	4,051		4		142		3,913
Corporate debt securities	3,973		24		31		3,966
Total taxable debt securities	216,459		3,043		2,474		217,028
Tax-exempt debt securities
State and political subdivisions
General obligations	41,156		675		1,154		40,677
Water and sewer revenues	8,996		15		306		8,705
Lease revenues	7,956		—		391		7,565
Lottery/casino revenues	4,443		63		169		4,337
Other revenues	10,527		55		191		10,391
Total tax-exempt debt securities	73,078		808		2,211		71,675
Equity securities	77		—		—		77
Total available for sale securities	$	289,614	$	3,851	$	4,685	$	288,780



	September 30, 2013
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities:
U.S. Government and agencies and corporations	$	27,740	$	757	$	67	$	28,430
Residential mortgage-backed securities:
Government-sponsored agencies	149,569		2,444		1,226		150,787
Nongovernment-sponsored agencies	13,134		315		9		13,440
State and political subdivisions:
General obligations	9,064		—		383		8,681
Water and sewer revenues	3,234		1		91		3,144
Other revenues	3,298		—		112		3,186
Corporate debt securities	3,970		25		45		3,950
Total taxable debt securities	210,009		3,542		1,933		211,618
Tax-exempt debt securities:
State and political subdivisions:
General obligations	49,569		1,048		1,112		49,505
Water and sewer revenues	10,132		89		290		9,931
Lease revenues	8,869		1		441		8,429
Lottery/casino revenues	4,457		68		166		4,359
Other revenues	7,490		61		212		7,339
Total tax-exempt debt securities	80,517		1,267		2,221		79,563
Equity securities	77		—		—		77
Total available for sale securities	$	290,603	$	4,809	$	4,154	$	291,258

Summary Of Volume of State and Political Subdivision Securities Held in Portfolio

We own no such securities of any single issuer which we deem to be a concentration.



	September 30, 2014
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value

California	$	14,959	$	572	$	3	$	15,528
West Virginia	14,048		330		40		14,338
Illinois	8,963		255		35		9,183
Texas	7,391		418		44		7,765
Pennsylvania	7,404		148		6		7,546

Investments Classified by Contractual Maturity Date

The maturities, amortized cost and estimated fair values of securities at September 30, 2014, are summarized as follows:



Dollars in thousands	Amortized Cost		Estimated Fair Value
Due in one year or less	$	60,321	$	61,210
Due from one to five years	97,348		98,597
Due from five to ten years	23,114		23,764
Due after ten years	96,003		98,823
Equity securities	7		7
	$	276,793	$	282,401

Schedule of Realized Gain (Loss)

The proceeds from sales, calls and maturities of available for sale securities, including principal payments received on mortgage-backed obligations, and the related gross gains and losses realized, for the nine months ended September 30, 2014 are as follows:



	Proceeds from						Gross realized
Dollars in thousands	Sales		Calls and Maturities		Principle Payments		Gains		Losses

Securities available for sale	$	61,027	$	3,601	$	25,890	$	782	$	718

Summary of Other-Than-Temporary Impairment Losses on Securities

During the three and nine months ended September 30, 2014 and 2013, we recorded other-than-temporary impairment losses on residential mortgage-backed nongovernment sponsored entity securities as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
Dollars in thousands	2014		2013			2014			2013

Total other-than-temporary impairment losses	$	—	$	(38	)	$	(1	)	$	(155	)
Portion of loss recognized in other comprehensive income	—		—			—			37
Net impairment losses recognized in earnings	$	—	$	(38	)	$	(1	)	$	(118	)

Other than Temporary Impairment, Credit Losses Recognized in Earnings

Activity related to the credit component recognized on debt securities available for sale for which a portion of other-than-temporary impairment was recognized in other comprehensive income for the three and nine months ended September 30, 2014 is as follows:



	Three Months Ended September 30, 2014			Nine Months Ended September 30, 2014
In thousands	Total			Total
Beginning Balance	$	(3,021	)	$	(3,021	)
Additions for the credit component on debt securities in which other-than-temporary impairment was not previously recognized	(1		)	(1		)
Securities sold during the period	2,816			2,816
Ending Balance	$	(206	)	$	(206	)

Schedule of Unrealized Loss on Investments

Provided below is a summary of securities available for sale which were in an unrealized loss position at September 30, 2014 and December 31, 2013, including debt securities for which a portion of other-than-temporary impairment has been recognized in other comprehensive income.



	September 30, 2014
	Less than 12 months					12 months or more					Total
Dollars in thousands	Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss
Temporarily impaired securities
Taxable debt securities
U.S. Government agencies and corporations	$	1,399	$	(3	)	$	2,682	$	(44	)	$	4,081	$	(47	)
Residential mortgage-backed securities:
Government-sponsored agencies	38,707		(548		)	20,979		(343		)	59,686		(891		)
Nongovernment-sponsored entities	4,151		(28		)	58		—			4,209		(28		)
State and political subdivisions:
General obligations	707		(2		)	2,798		(64		)	3,505		(66		)
Water and sewer revenues	—		—			1,838		(36		)	1,838		(36		)
Other revenues	1,098		(12		)	—		—			1,098		(12		)
Corporate debt securities	—		—			—		—			—		—
Tax-exempt debt securities
State and political subdivisions:
General obligations	4,234		(12		)	2,613		(50		)	6,847		(62		)
Water and sewer revenues	2,188		(25		)	—		—			2,188		(25		)
Lease revenues	—		—			2,126		(38		)	2,126		(38		)
Lottery/casino revenues	—		—			—					—		—
Other revenues	—		—			1,949		(50		)	1,949		(50		)
Total temporarily impaired securities	52,484		(630		)	35,043		(625		)	87,527		(1,255		)
Other-than-temporarily impaired securities
Taxable debt securities
Residential mortgage-backed securities:
Nongovernment-sponsored entities	—		—			—		—			—		—
Total other-than-temporarily
impaired securities	—		—			—		—			—		—
Total	$	52,484	$	(630	)	$	35,043	$	(625	)	$	87,527	$	(1,255	)



	December 31, 2013
	Less than 12 months					12 months or more					Total
Dollars in thousands	Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss
Temporarily impaired securities
Taxable debt securities
U.S. Government agencies and corporations	$	10,868	$	(118	)	$	—	$	—		$	10,868	$	(118	)
Residential mortgage-backed securities:
Government-sponsored agencies	55,035		(1,385		)	13,249		(188		)	68,284		(1,573		)
Nongovernment-sponsored entities	2,407		(12		)	565		(7		)	2,972		(19		)
State and political subdivisions:
General obligations	4,505		(264		)	2,337		(211		)	6,842		(475		)
Water and sewer revenues	1,309		(31		)	1,554		(83		)	2,863		(114		)
Other revenues	3,142		(142		)	—		—			3,142		(142		)
Corporate debt securities	2,968		(31		)	—		—			2,968		(31		)
Tax-exempt debt securities
State and political subdivisions:
General obligations	19,603		(997		)	2,102		(157		)	21,705		(1,154		)
Water and sewer revenues	5,643		(224		)	983		(82		)	6,626		(306		)
Lease revenues	6,112		(349		)	958		(42		)	7,070		(391		)
Lottery/casino revenues	2,720		(132		)	554		(37		)	3,274		(169		)
Other revenues	8,815		(191		)	—		—			8,815		(191		)
Total temporarily impaired securities	123,127		(3,876		)	22,302		(807		)	145,429		(4,683		)
Other-than-temporarily impaired securities
Taxable debt securities
Residential mortgage-backed securities:
Nongovernment-sponsored entities	—		—			1		(2		)	1		(2		)
Total other-than-temporarily
impaired securities	—		—			1		(2		)	1		(2		)
Total	$	123,127	$	(3,876	)	$	22,303	$	(809	)	$	145,430	$	(4,685	)

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References+ Details

- 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.

+ References+ Details