| Investment Securities |
Note 2 — Investment Securities
Amortized cost and approximate fair values of investment securities available for sale are summarized as follows:
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Gross Unrealized Losses |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Less |
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12 |
|
|
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|
|
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|
|
|
|
|
|
Gross |
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Than |
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Months |
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|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
12 |
|
|
or |
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|
Fair |
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|
(in thousands) |
|
Cost |
|
|
Gain |
|
|
Months |
|
|
Longer |
|
|
Value |
|
|
As of December 31, 2016 |
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U.S. Government-sponsored securities |
|
$ |
119,202 |
|
|
$ |
71 |
|
|
$ |
(669 |
) |
|
$ |
(1 |
) |
|
$ |
118,603 |
|
|
Municipal securities |
|
|
25,176 |
|
|
|
401 |
|
|
|
(58 |
) |
|
|
- |
|
|
|
25,519 |
|
|
Mortgage-backed securities |
|
|
182,867 |
|
|
|
679 |
|
|
|
(1,111 |
) |
|
|
(614 |
) |
|
|
181,821 |
|
|
Corporate securities |
|
|
10,000 |
|
|
|
28 |
|
|
|
(32 |
) |
|
|
(330 |
) |
|
|
9,666 |
|
|
|
|
$ |
337,245 |
|
|
$ |
1,179 |
|
|
$ |
(1,870 |
) |
|
$ |
(945 |
) |
|
$ |
335,609 |
|
|
As of December 31, 2015 |
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|
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|
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|
|
|
|
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U.S. Government-sponsored securities |
|
$ |
104,591 |
|
|
$ |
11 |
|
|
$ |
(612 |
) |
|
|
- |
|
|
$ |
103,990 |
|
|
Municipal securities |
|
|
36,820 |
|
|
|
926 |
|
|
|
(7 |
) |
|
|
(9 |
) |
|
|
37,730 |
|
|
Mortgage-backed securities |
|
|
181,857 |
|
|
|
940 |
|
|
|
(724 |
) |
|
|
(687 |
) |
|
|
181,386 |
|
|
Corporate securities |
|
|
10,000 |
|
|
|
- |
|
|
|
(253 |
) |
|
|
(117 |
) |
|
|
9,630 |
|
|
|
|
$ |
333,268 |
|
|
$ |
1,877 |
|
|
$ |
(1,596 |
) |
|
$ |
(813 |
) |
|
$ |
332,736 |
|
Carrying amounts and estimated fair values of securities held-to-maturity are as follows:
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|
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Gross Unrealized Losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less |
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
Than |
|
|
Months |
|
|
|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
12 |
|
|
or |
|
|
Fair |
|
|
(in thousands) |
|
Cost |
|
|
Gain |
|
|
Months |
|
|
Longer |
|
|
Value |
|
|
As of December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Municipal securities |
|
$ |
73,512 |
|
|
$ |
105 |
|
|
$ |
(579 |
) |
|
$ |
(38 |
) |
|
$ |
73,000 |
|
|
Certificates of deposit |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
$ |
73,512 |
|
|
$ |
105 |
|
|
$ |
(579 |
) |
|
$ |
(38 |
) |
|
$ |
73,000 |
|
|
As of December 31, 2015 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal securities |
|
$ |
63,650 |
|
|
$ |
238 |
|
|
$ |
(74 |
) |
|
$ |
(2 |
) |
|
$ |
63,812 |
|
|
Certificates of deposit |
|
|
2,232 |
|
|
|
5 |
|
|
|
- |
|
|
|
- |
|
|
|
2,237 |
|
|
|
|
$ |
65,882 |
|
|
$ |
243 |
|
|
$ |
(74 |
) |
|
$ |
(2 |
) |
|
$ |
66,049 |
|
Note 2 — Investment Securities – Continued
The amortized cost and estimated fair values of investment securities that are available-for-sale and held-to-maturity at December 31, 2016, by contractual maturity, are as follows:
|
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|
Available-for-sale |
|
|
Held-to-maturity |
|
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|
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Amortized |
|
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Fair |
|
|
Amortized |
|
|
Fair |
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(in thousands) |
|
Cost |
|
|
Value |
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|
Cost |
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|
Value |
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Securities maturing in: |
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|
|
|
|
|
|
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|
|
|
|
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One year or less |
|
$ |
22,211 |
|
|
$ |
22,288 |
|
|
$ |
10,099 |
|
|
$ |
10,107 |
|
|
After one year through five years |
|
|
110,702 |
|
|
|
110,290 |
|
|
|
46,310 |
|
|
|
46,102 |
|
|
After five years through ten years |
|
|
93,472 |
|
|
|
92,908 |
|
|
|
12,403 |
|
|
|
12,218 |
|
|
After ten years |
|
|
110,860 |
|
|
|
110,123 |
|
|
|
4,700 |
|
|
|
4,573 |
|
|
|
|
$ |
337,245 |
|
|
$ |
335,609 |
|
|
$ |
73,512 |
|
|
$ |
73,000 |
|
Expected maturities may differ from contractual maturities because issuers may have the right to call obligations with or without penalties.
As of December 31, 2016, the Company held 302 investment securities with fair values less than amortized cost. Management evaluated these investment securities and determined that the decline in value is temporary and related to the change in market interest rates since purchase. The decline in value is not related to any company or industry specific event. The Company anticipates full recovery of the amortized cost with respect to these securities at maturity, or sooner in the event of a more favorable market interest rate environment.
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