Investment Securities

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 3. Investment Securities

(in thousands)

The amortized cost and estimated fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income at December 31, 2019 and 2018 were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized
2019	Cost		Gains		Losses		Fair Value
Securities available-for-sale
Obligations of U.S.
Government agencies	$	97,400	$	—	$	289	$	97,111
Mortgage-backed securities		308,310		640		2,050		306,900
State, County, Municipals		59,724		708		60		60,372
Total	$	465,434	$	1,348	$	2,399	$	464,383

			Gross		Gross
	Amortized		Unrealized		Unrealized
2018	Cost		Gains		Losses		Fair Value
Securities available-for-sale
Obligations of U.S.
Government agencies	$	99,366	$	—	$	3,388	$	95,978
Mortgage-backed securities		259,742		5		12,373		247,374
State, County, Municipals		105,591		67		4,264		101,394
Total	$	464,699	$	72	$	20,025	$	444,746

The following tables show the gross unrealized losses and fair value of the Company’s investments classified as AFS investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2019 and 2018.

A summary of unrealized loss information for AFS securities, categorized by security type follows:

December 31, 2019	Less than 12 months				12 months or more				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S.
Government agencies	$	76,682		217	$	20,429		72	$	97,111		289
Mortgage backed securities		101,730		871		76,630		1,179		178,360		2,050
State, County, Municipal		8,280		37		3,731		23		12,011		60
Total	$	186,692		1,125	$	100,790		1,274	$	287,482		2,399

December 31, 2018	Less than 12 months				12 months or more				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S.
Government agencies	$	—		—	$	95,978		3,388	$	95,978		3,388
Mortgage backed securities		12,258		179		234,929		12,194		247,187		12,373
State, County, Municipal		12,624		285		76,536		3,979		89,160		4,264
Total	$	24,882		464	$	407,443		19,561	$	432,325		20,025

The Company’s unrealized losses on its Obligations of United States Government agencies, Mortgage backed securities and State, County and Municipal bonds are the result of an upward trend in interest rates, mainly in the mid-term sector. The Company does not intend to sell any of the securities in an unrealized loss position, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be at maturity. Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period greater than twelve months, the Company is collecting principal and interest from the respective issuers as scheduled. None of the unrealized losses disclosed in the previous table are related to credit deterioration. As such, the Company did not record any other-than-temporary impairment for the years ended December 31, 2019 or 2018.

The amortized cost and estimated fair value of securities at December 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
Securities AFS
Due in one year or less	$	345	$	345
Due after one year through five years		89,920		89,681
Due after five years through ten years		18,678		18,808
Due after ten years		48,181		48,649
Residential mortgage backed securities		259,309		258,415
Commercial mortgage backed securities		49,001		48,485
Total	$	465,434	$	464,383

Investment securities with fair values of $413,275 and $357,231 at December 31, 2019 and December 31, 2018, respectively, were pledged as collateral for public deposits and securities sold under agreement to repurchase.

Gross realized gains and losses are included in net gains on sales of securities. Total gross realized gains and gross realized losses from the sale of investment securities for each of the years ended December 31 were:

	2019		2018		2017
Gross realized gains	$	414	$	171	$	633
Gross realized losses		223		160		528
Net realized gains	$	191	$	11	$	105