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Securities Available for Sale
 12 Months Ended
Dec. 31, 2019
Debt Securities, Available-for-sale [Abstract]  
Securities Available for Sale
SECURITIES AVAILABLE FOR SALE
The following is a summary of securities available for sale at December 31, 2019 and 2018:
 
December 31, 2019
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
(Dollars in thousands)
Debt securities:
 
 
 
 
 
 


U.S. Government agency and U.S.
  Government sponsored enterprises:
 
 
 
 
 
 
 
Collateralized mortgage obligations
$
735,094

 
$
4,220

 
$
(2,659
)
 
$
736,655

Mortgage-backed securities:
 
 
 
 
 
 
 
Residential
353,073

 
1,422

 
(1,598
)
 
352,897

Commercial
541,043

 
13,441

 
(2,360
)
 
552,124

Corporate securities
5,000

 
—

 
(800
)
 
4,200

Municipal securities
69,631

 
831

 
(351
)
 
70,111

Total investment securities available for sale
$
1,703,841

 
$
19,914

 
$
(7,768
)
 
$
1,715,987

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
(Dollars in thousands)
Debt securities:
 
 
 
 
 
 
 
U.S. Government agency and U.S.
  Government sponsored enterprises:
 
 
 
 
 
 
 
Collateralized mortgage obligations
$
914,710

 
$
1,541

 
(21,129
)
 
$
895,122

Mortgage-backed securities:
 
 
 
 
 
 
 
Residential
415,659

 
47

 
(13,101
)
 
402,605

Commercial
481,081

 
1,024

 
(12,979
)
 
469,126

Corporate securities
5,000

 
—

 
(1,174
)
 
3,826

Municipal securities
77,168

 
398

 
(1,980
)
 
75,586

Total investment securities available for sale
$
1,893,618

 
$
3,010

 
$
(50,363
)
 
$
1,846,265

 
 
 
 
 
 
 
 

As of December 31, 2019 and December 31, 2018, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.
At December 31, 2019, $9.1 million in unrealized gains on securities available for sale net of taxes were included in accumulated other comprehensive income. At December 31, 2018, $32.7 million in unrealized losses on securities available for sale net of taxes were included in accumulated other comprehensive loss. During the twelve months ended December 31, 2019, the Company recognized net gains on sales and calls of securities available for sale in the amount of $282 thousand. There were no reclassifications out of accumulated other comprehensive loss into earnings during the twelve months ended December 31, 2018.
The proceeds from sales of securities and total gains and losses are listed below:
 
Year ended December 31,
 
2019
 
2018
 
2017
 
(Dollars in thousands)
Proceeds from investments sold
$
115,628

 
$
—

 
$
128,791

 
 
 
 
 
 
Gains from sales of securities
750

 
—

 
402

Losses from sales of securities
(469
)
 
—

 
(101
)
Gains from called securities
1

 
—

 
—

Net gain on sales or called securities
$
282

 
$
—

 
$
301



Tax provision recorded on the net gains on sales and calls of securities available for sale was approximately $69 thousand, $0, and $142 thousand, for the years ended December 31, 2019, 2018, and 2017, respectively.
The amortized cost and estimated fair value of investment securities at December 31, 2019, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Collateralized mortgage obligations and mortgage-backed securities are not due at a single maturity date are shown separately.
 
December 31, 2019
 
Amortized
Cost
 
Estimated
Fair Value
 
(Dollars in thousands)
Available for sale:
 
 
 
Due within one year
$
80

 
$
80

Due after one year through five years
349

 
351

Due after five years through ten years
—

 
—

Due after ten years
74,202

 
73,880

U.S. Government agency and U.S. Government sponsored enterprises:
 
 
 
Collateralized mortgage obligations
735,094

 
736,655

Mortgage-backed securities:
 
 
 
Residential
353,073

 
352,897

Commercial
541,043

 
552,124

Total
$
1,703,841

 
$
1,715,987

 
 
 
 


Securities with fair values of approximately $340.9 million and $354.6 million at December 31, 2019 and December 31, 2018, respectively, were pledged to secure public deposits, for various borrowings, and for other purposes as required or permitted by law.
The following tables show the Company’s investments’ gross unrealized losses and estimated fair values, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated.
 
 
December 31, 2019
 
 
Less than 12 months
 
12 months or longer
 
Total
Description of
Securities
 
Number 
of
Securities
 
Fair Value
 
Gross
Unrealized
Losses
 
Number of
Securities
 
Fair Value
 
Gross
Unrealized
Losses
 
Number 
of
Securities
 
Fair Value
 
Gross
Unrealized
Losses
 
 
 (Dollars in thousands)
Collateralized mortgage obligations*
 
20

 
$
108,236

 
$
(721
)
 
32

 
$
183,050

 
$
(1,938
)
 
52

 
$
291,286

 
$
(2,659
)
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential*
 
6

 
84,107

 
(267
)
 
16

 
129,457

 
(1,331
)
 
22

 
213,564

 
(1,598
)
Commercial*
 
7

 
68,452

 
(1,037
)
 
5

 
73,697

 
(1,323
)
 
12

 
142,149

 
(2,360
)
Corporate securities
 
—

 
—

 
—

 
1

 
4,200

 
(800
)
 
1

 
4,200

 
(800
)
Municipal securities
 
2

 
8,942

 
(39
)
 
3

 
15,437

 
(312
)
 
5

 
24,379

 
(351
)
Total
 
35

 
$
269,737

 
$
(2,064
)
 
57

 
$
405,841

 
$
(5,704
)
 
92

 
$
675,578

 
$
(7,768
)

 
 
December 31, 2018
 
 
Less than 12 months
 
12 months or longer
 
Total
Description of
Securities
 
Number of
Securities
 
Fair Value
 
Gross
Unrealized
Losses
 
Number of
Securities
 
Fair Value
 
Gross
Unrealized
Losses
 
Number of
Securities
 
Fair Value
 
Gross
Unrealized
Losses
 
 
 (Dollars in thousands)
Collateralized mortgage obligations*
 
1

 
$
8,041

 
$
(28
)
 
93

 
$
700,095

 
$
(21,101
)
 
94

 
$
708,136

 
$
(21,129
)
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential*
 
4

 
19,973

 
(37
)
 
45

 
363,334

 
(13,064
)
 
49

 
383,307

 
(13,101
)
Commercial*
 
3

 
38,494

 
(218
)
 
27

 
312,428

 
(12,761
)
 
30

 
350,922

 
(12,979
)
Corporate securities
 
—

 
—

 
—

 
1

 
3,826

 
(1,174
)
 
1

 
3,826

 
(1,174
)
Municipal securities
 
13

 
5,528

 
(83
)
 
32

 
42,444

 
(1,897
)
 
45

 
47,972

 
(1,980
)
Total
 
21

 
$
72,036

 
$
(366
)
 
198

 
$
1,422,127

 
$
(49,997
)
 
219

 
$
1,494,163

 
$
(50,363
)
_________________________________    
* Investments in U.S. Government agency and U.S. Government sponsored enterprises
The Company evaluates securities for other-than-temporary-impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and the extent to which the fair values of the securities have been less than the cost of the securities, the Company’s intention to sell, and/or whether it is more likely than not that the Company will be required to sell the security in an unrealized loss position before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, the Company considers, among other considerations, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.
The Company had collateralized mortgage obligations, mortgage-backed securities, corporate securities, and municipal securities that were in a continuous loss position for twelve months or longer at December 31, 2019. Corporate securities in a continuous loss position for twelve months or longer had total unrealized losses of $800 thousand at December 31, 2019. Municipal securities in a continuous loss position for twelve months or longer had total unrealized losses of $312 thousand at December 31, 2019 with the last of the securities scheduled to mature in November 2046. These securities were rated investment grade and there were no credit quality concerns with the issuer. Collateralized mortgage obligations, residential and commercial mortgage-backed securities in a continuous loss position for twelve months or longer had total unrealized losses of $1.9 million, $1.3 million, and $1.3 million, respectively, at December 31, 2019. These securities were investments in U.S. Government agency and U.S. Government sponsored enterprises and have high credit ratings (“AA” grade or better). The interest on these securities that were in an unrealized loss position have been paid as agreed, and the Company believes this will continue in the future and that the securities will be paid in full as scheduled. The market value declines for these securities were primarily due to movements in interest rates and are not reflective of management’s expectations of the Company’s ability to fully recover the investments, which may be at maturity. For these reasons, no OTTI was recognized on the securities that were in a continuous loss position for twelve months or longer at December 31, 2019.
The Company considers the losses on its investments in unrealized loss positions at December 31, 2019 to be temporary based on: 1) the likelihood of recovery; 2) the information relative to the extent and duration of the decline in market value; and 3) the Company’s intention not to sell, and management’s determination that it is more likely than not that the Company will not be required to sell a security in an unrealized loss position before recovery of its amortized cost basis.