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Investment Securities
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
 
The amortized cost and estimated fair value of investment securities were as follows:
 
 
December 31, 2019
 
 
Amortized
Cost
 
Gross Unrealized
Gain
 
Gross Unrealized
Loss
 
Estimated
Fair Value
 
 
(dollars in thousands)
Investment securities available-for-sale:
 
 

 
 
 
 
 
 
U.S. Treasury
 
$
60,457

 
$
3,137

 
$
(39
)
 
$
63,555

Agency
 
240,348

 
7,686

 
(1,676
)
 
246,358

Corporate debt
 
149,150

 
2,217

 
(14
)
 
151,353

Municipal bonds
 
384,032

 
13,450

 
(184
)
 
397,298

Collateralized mortgage obligation: residential
 
9,869

 
123

 
(8
)
 
9,984

Mortgage-backed securities: residential
 
494,404

 
7,603

 
(2,171
)
 
499,836

Total investment securities available-for-sale
 
1,338,260

 
34,216

 
(4,092
)
 
1,368,384

Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
 
36,114

 
922

 
—

 
37,036

Other
 
1,724

 
—

 
—

 
1,724

Total investment securities held-to-maturity
 
37,838

 
922

 
—

 
38,760

Total investment securities
 
$
1,376,098

 
$
35,138

 
$
(4,092
)
 
$
1,407,144


 
 
December 31, 2018
 
 
Amortized
Cost
 
Gross Unrealized
Gain
 
Gross Unrealized
Loss
 
Estimated
Fair Value
 
 
(dollars in thousands)
Investment securities available-for-sale:
 
 

 
 

 
 

 
 

U.S. Treasury
 
$
59,688

 
$
1,224

 
$
—

 
$
60,912

Agency
 
128,958

 
1,631

 
(519
)
 
130,070

Corporate debt
 
104,158

 
291

 
(906
)
 
103,543

Municipal bonds
 
238,914

 
1,941

 
(2,225
)
 
238,630

Collateralized mortgage obligation: residential
 
24,699

 
64

 
(425
)
 
24,338

Mortgage-backed securities: residential
 
554,751

 
1,112

 
(10,134
)
 
545,729

Total investment securities available-for-sale
 
1,111,168

 
6,263

 
(14,209
)
 
1,103,222

Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
 
43,381

 
148

 
(686
)
 
42,843

Other
 
1,829

 
—

 
—

 
1,829

Total investment securities held-to-maturity
 
45,210

 
148

 
(686
)
 
44,672

Total investment securities
 
$
1,156,378

 
$
6,411

 
$
(14,895
)
 
$
1,147,894


 
Unrealized gains and losses on investment securities available-for-sale are recognized in stockholders’ equity as accumulated other comprehensive income or loss. At December 31, 2019, the Company had accumulated other comprehensive income of $30.1 million, or $21.5 million net of tax, compared to accumulated other comprehensive loss of $7.9 million, or $5.6 million net of tax, at December 31, 2018. 

    
Beginning the first quarter of 2019, the Bank no longer had HOA reverse repurchase agreements and unpledged all the supporting mortgage-backed securities. At December 31, 2018, mortgage-backed securities with an estimated par value of $20.3 million and a fair value of $20.9 million were pledged as collateral for the Bank’s HOA reverse repurchase agreements, which totaled $75,000. The average balance of repurchase agreement facilities was $15.0 million during the year ended December 31, 2018.

At December 31, 2019 and 2018, there were not holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.
 
The Company reviews individual securities classified as available-for-sale to determine whether a decline in fair value below the amortized cost basis is temporary, meaning: (i) those declines were due to interest rate changes and not to a deterioration in the creditworthiness of the issuers of those investment securities and (ii) we have the ability to hold those securities until there is a recovery in their values or until their maturity.

If it is probable that the Company will be unable to collect all amounts due according to contractual terms of the debt security not impaired at acquisition, an other-than-temporary impairment shall be considered to have occurred. If an OTTI occurs, the cost basis of the security will be written down to its fair value as the new cost basis and the write down accounted for as a realized loss. There were no OTTI for the years ended December 31, 2019, 2018 and 2017.

The table below shows the number, fair value and gross unrealized holding losses of the Company’s investment securities by investment category and length of time that the securities have been in a continuous unrealized loss position.

 
December 31, 2019
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Losses
 
(dollars in thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
1

 
$
10,194

 
$
(39
)
 
—

 
$
—

 
$
—

 
1

 
$
10,194

 
$
(39
)
Agency
13

 
102,874

 
(1,340
)
 
9

 
13,514

 
(336
)
 
22

 
116,388

 
(1,676
)
Corporate debt
1

 
1,017

 
(14
)
 
—

 
—

 
—

 
1

 
1,017

 
(14
)
Municipal bonds
12

 
30,541

 
(184
)
 
—

 
—

 
—

 
12

 
30,541

 
(184
)
Collateralized mortgage obligation: residential
—

 
—

 
—

 
1

 
603

 
(8
)
 
1

 
603

 
(8
)
Mortgage-backed securities: residential
18

 
130,014

 
(1,681
)
 
11

 
26,886

 
(490
)
 
29

 
156,900

 
(2,171
)
Total investment securities available-for-sale
45

 
274,640

 
(3,258
)
 
21

 
41,003

 
(834
)
 
66

 
315,643

 
(4,092
)
Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total investment securities held-to-maturity
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total investment securities
45

 
$
274,640

 
$
(3,258
)
 
21

 
$
41,003

 
$
(834
)
 
66

 
$
315,643

 
$
(4,092
)
 
December 31, 2018
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Losses
 
(dollars in thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
—

 
$
—

 
$
—

 
—

 
$
—

 
$
—

 
—

 
$
—

 
$
—

Agency
15

 
$
26,229

 
$
(333
)
 
6

 
$
10,434

 
$
(186
)
 
21

 
$
36,663

 
$
(519
)
Corporate debt
9

 
47,805

 
(471
)
 
8

 
19,369

 
(435
)
 
17

 
67,174

 
(906
)
Municipal bonds
60

 
45,083

 
(369
)
 
102

 
69,693

 
(1,856
)
 
162

 
114,776

 
(2,225
)
Collateralized mortgage obligation: residential
1

 
814

 
(1
)
 
8

 
18,104

 
(424
)
 
9

 
18,918

 
(425
)
Mortgage-backed securities: residential
20

 
70,839

 
(435
)
 
120

 
324,864

 
(9,699
)
 
140

 
395,703

 
(10,134
)
Total available-for-sale
105

 
190,770

 
(1,609
)
 
244

 
442,464

 
(12,600
)
 
349

 
633,234

 
(14,209
)
Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
3

 
11,256

 
(81
)
 
3

 
15,741

 
(605
)
 
6

 
26,997

 
(686
)
Other
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total held-to-maturity
3

 
11,256

 
(81
)
 
3

 
15,741

 
(605
)
 
6

 
26,997

 
(686
)
Total securities
108

 
$
202,026

 
$
(1,690
)
 
247

 
$
458,205

 
$
(13,205
)
 
355

 
$
660,231

 
$
(14,895
)


    
The amortized cost and estimated fair value of investment securities available-for-sale at December 31, 2019, by contractual maturity, are shown in the table below.
 
 
 
Due in One Year
or Less
 
Due after One Year
through Five Years
 
Due after Five Years
through Ten Years
 
Due after
Ten Years
 
Total
 
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
 
(dollars in thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury
 
$
499

 
$
500

 
$
20,163

 
$
20,586

 
$
39,795

 
$
42,469

 
$
—

 
$
—

 
$
60,457

 
$
63,555

Agency
 
1,000

 
1,014

 
40,647

 
42,162

 
166,244

 
169,070

 
32,457

 
34,112

 
240,348

 
246,358

Corporate
 
—

 
—

 
—

 
—

 
135,407

 
137,518

 
13,743

 
13,835

 
149,150

 
151,353

Municipal bonds
 
—

 
—

 
1,842

 
1,952

 
26,024

 
26,996

 
356,166

 
368,350

 
384,032

 
397,298

Collateralized mortgage obligation: residential
 
—

 
—

 
—

 
—

 
610

 
603

 
9,259

 
9,381

 
9,869

 
9,984

Mortgage-backed securities: residential
 
—

 
—

 
2,258

 
2,352

 
193,771

 
195,933

 
298,375

 
301,551

 
494,404

 
499,836

Total investment securities available-for-sale
 
1,499

 
1,514

 
64,910

 
67,052

 
561,851

 
572,589

 
710,000

 
727,229

 
1,338,260

 
1,368,384

Investment securities held-to-maturity:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Mortgage-backed securities: residential
 
—

 
—

 
908

 
942

 
—

 
—

 
35,206

 
36,094

 
36,114

 
37,036

Other
 
—

 
—

 
—

 
—

 
—

 
—

 
1,724

 
1,724

 
1,724

 
1,724

Total investment securities held-to-maturity
 
—

 
—

 
908

 
942

 
—

 
—

 
36,930

 
37,818

 
37,838

 
38,760

Total investment securities
 
$
1,499

 
$
1,514

 
$
65,818

 
$
67,994

 
$
561,851

 
$
572,589

 
$
746,930

 
$
765,047

 
$
1,376,098

 
$
1,407,144



During the years ended December 31, 2019, 2018 and 2017, the Company recognized gross realized gains on sales of available-for-sale securities in the amounts of $10.3 million, $1.6 million and $3.1 million, respectively. During the years ended December 31, 2019, 2018 and 2017, the Company recognized gross realized losses on sales of available-for-sale securities in the amounts of $1.8 million, $208,000 and $386,000, respectively. The Company had net proceeds from the sale or maturity/call of available-for-sale securities of $551.8 million, $407.0 million and $268.6 million during the years ended December 31, 2019, 2018 and 2017, respectively.

Investment securities with carrying values of $125.7 million and $215.3 million as of December 31, 2019 and 2018, respectively, were pledged to secure public deposits, other borrowings and for other purposes as required or permitted by law.


FHLB, FRB and other stock

At December 31, 2019, the Company had $17.3 million in FHLB stock, $51.7 million in FRB stock and $24.1 million in other stock, all carried at cost. During the years ended December 31, 2019, 2018 and 2017, FHLB had repurchased $18.3 million, $24.9 million and $10.3 million, respectively, of the Company’s excess FHLB stock through their stock repurchase program. The Company evaluates its investments in FHLB and other stock for impairment periodically, including their capital adequacy and overall financial condition. No impairment losses have been recorded through December 31, 2019.