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Investments (Tables)
 9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost and Estimated Fair Value of Available-For-Sale Investment Securities

The amortized cost and estimated fair value of available-for-sale investment securities are as follows:

Amortized Cost And Estimated Fair Value

(dollars in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

    

Amortized
Cost

    

Gross
Unrealized
Gains

    

Gross
Unrealized
Losses

    

Estimated Fair
Value

U.S. government agencies

 

$

 14,408

 

$

168

 

$

 (131)

 

$

14,445

Mortgage-backed securities

 

 

409,922

 

 

3,483

 

 

(1,602)

 

 

411,803

State and political subdivisions

 

 

167,213

 

 

6,488

 

 

(43)

 

 

173,658

Total securities

 

$

 591,543

 

$

10,139

 

$

 (1,776)

 

$

599,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

    

Amortized
Cost

    

Gross
Unrealized
Gains

    

Gross
Unrealized
Losses

    

Estimated Fair
Value

U.S. government agencies

 

$

 15,553

 

$

 12

 

$

 (353)

 

$

 15,212

Mortgage-backed securities

 

 

414,208

 

 

398

 

 

(9,873)

 

 

404,733

State and political subdivisions

 

 

140,181

 

 

1,206

 

 

(853)

 

 

140,534

Total securities

 

$

 569,942

 

$

 1,616

 

$

 (11,079)

 

$

 560,479

 

Information Pertaining to Investment Securities Aggregated by Investment Category and Length of Time that Individual Securities in a Continuous Loss Position

Gross unrealized losses on our investment securities as of the indicated dates are disclosed in the table below, categorized by investment type and by the duration of time that loss positions on individual securities have continuously existed (over or under twelve months).

Investment Portfolio - Unrealized Losses

(dollars in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

Less than twelve months

 

Twelve months or more

 

    

Gross
Unrealized
Losses

    

Fair Value

    

Gross
Unrealized
Losses

    

Fair Value

U.S. government agencies

 

$

 (25)

 

$

 3,801

 

$

(106)

 

$

3,766

Mortgage-backed securities

 

 

(274)

 

 

63,536

 

 

(1,328)

 

 

115,855

State and political subdivisions

 

 

(39)

 

 

7,317

 

 

(4)

 

 

605

Total

 

$

(338)

 

$

74,654

 

$

(1,438)

 

$

120,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

Less than twelve months

 

Twelve months or more

 

    

Gross
Unrealized
Losses

    

Fair Value

    

Gross
Unrealized
Losses

    

Fair Value

U.S. government agencies

 

$

(54)

 

$

2,815

 

$

(299)

 

$

10,764

Mortgage-backed securities

 

 

(717)

 

 

69,686

 

 

(9,156)

 

 

273,230

State and political subdivisions

 

 

(249)

 

 

33,864

 

 

(604)

 

 

22,213

Total

 

$

(1,020)

 

$

106,365

 

$

(10,059)

 

$

306,207

 

Realized Gain (Loss) on Investments

The table below summarizes the Company’s gross realized gains and losses as well as gross proceeds from the sales of securities, for the periods indicated:

Investment Portfolio - Realized Gains/(Losses)

(dollars in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

    

2019

    

2018

 

2019

 

2018

Proceeds from sales, calls and maturities of securities available for sale

 

$

 4,255

 

$

 11,137

 

$

 30,895

 

$

 13,447

Gross gains on sales, calls and maturities of securities available for sale

 

 

 —

 

 

20

 

 

128

 

 

21

Gross losses on sales, calls and maturities of securities available for sale

 

 

 —

 

 

(19)

 

 

(99)

 

 

(19)

Net gains on sale of securities available for sale

 

$

 —

 

$

 1

 

$

 29

 

$

 2

 

Investments Classified by Contractual Maturity Date

 

The amortized cost and estimated fair value of investment securities available-for-sale at September 30, 2019 and December 31, 2018 are shown below, grouped by the remaining time to contractual maturity dates.  The expected life of investment securities may not be consistent with contractual maturity dates, since the issuers of the securities might have the right to call or prepay obligations with or without penalties.

Estimated Fair Value of Contractual Maturities

(dollars in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

    

Amortized Cost

    

Fair Value

Maturing within one year

 

$

 6,385

 

$

 6,512

Maturing after one year through five years

 

 

180,367

 

 

180,842

Maturing after five years through ten years

 

 

67,959

 

 

69,211

Maturing after ten years

 

 

117,752

 

 

122,836

 

 

 

 

 

 

 

Securities not due at a single maturity date:

 

 

 

 

 

 

U.S. government agencies collateralized by mortgage obligations

 

 

219,080

 

 

220,505

 

 

$

 591,543

 

$

 599,906

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

    

Amortized Cost

    

Fair Value

Maturing within one year

 

$

 7,726

 

$

 7,789

Maturing after one year through five years

 

 

199,840

 

 

195,519

Maturing after five years through ten years

 

 

47,802

 

 

47,661

Maturing after ten years

 

 

83,606

 

 

83,444

 

 

 

 

 

 

 

Securities not due at a single maturity date:

 

 

 

 

 

 

U.S. government agencies collateralized by mortgage obligations

 

 

230,968

 

 

226,066

 

 

$

 569,942

 

$

 560,479

 

Summary of Amortized Cost and Fair Values of General Obligation and Revenue Bonds

The following table summarizes the amortized cost and fair values of general obligation and revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the state in which the issuing municipality or agency operates for our largest geographic concentrations:

Revenue and General Obligation Bonds by Location

(dollars in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

December 31, 2018

 

 

Amortized

 

Fair Market

 

Amortized

 

Fair Market

General obligation bonds

    

Cost

    

Value

    

Cost

    

Value

State of issuance

 

 

 

 

 

 

 

 

 

 

 

 

Texas

 

$

 55,397

 

$

 57,447

 

$

 36,331

 

$

 36,199

California

 

 

24,037

 

 

25,231

 

 

26,928

 

 

27,357

Washington

 

 

16,703

 

 

17,625

 

 

16,036

 

 

16,062

Illinois

 

 

7,908

 

 

8,234

 

 

6,827

 

 

6,838

Ohio

 

 

7,670

 

 

7,802

 

 

8,639

 

 

8,601

Other (22 and 22 states, respectively)

 

 

33,536

 

 

34,528

 

 

21,530

 

 

21,576

Total general obligation bonds

 

 

145,251

 

 

150,867

 

 

116,291

 

 

116,633

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue bonds

 

 

 

 

 

 

 

 

 

 

 

 

State of issuance

 

 

 

 

 

 

 

 

 

 

 

 

Texas

 

 

6,249

 

 

6,508

 

 

7,526

 

 

7,506

Utah

 

 

4,664

 

 

4,770

 

 

5,364

 

 

5,353

Indiana

 

 

3,141

 

 

3,293

 

 

2,641

 

 

2,654

Washington

 

 

1,741

 

 

1,864

 

 

1,751

 

 

1,780

Pennsylvania

 

 

1,697

 

 

1,738

 

 

 —

 

 

 —

Other (9 and 11 states, respectively)

 

 

4,470

 

 

4,618

 

 

6,608

 

 

6,608

Total revenue bonds

 

 

21,962

 

 

22,791

 

 

23,890

 

 

23,901

Total obligations of states and political subdivisions

 

$

 167,213

 

$

 173,658

 

$

 140,181

 

$

 140,534

 

The revenue bonds in the Company’s investment securities portfolios were issued by government municipalities and agencies to fund public services such as utilities (water, sewer, and power), educational facilities, and general public and economic improvements.  The primary sources of revenue for these bonds are delineated in the table below, which shows the amortized cost and fair market values for the largest revenue concentrations as of the indicated dates.

Revenue Bonds by Type

(dollars in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

December 31, 2018

 

 

Amortized

 

Fair Market

 

Amortized

 

Fair Market

Revenue bonds

    

Cost

    

Value

    

Cost

    

Value

Revenue source:

 

 

 

 

 

 

 

 

 

 

 

 

Water

 

$

7,052

 

$

7,334

 

$

6,942

 

$

6,946

Sales Tax

 

 

3,954

 

 

4,123

 

 

2,932

 

 

2,901

College & University

 

 

3,007

 

 

3,134

 

 

2,583

 

 

2,604

Lease

 

 

1,888

 

 

1,917

 

 

2,053

 

 

2,068

Sewer

 

 

1,190

 

 

1,225

 

 

1,392

 

 

1,398

Other (13 sources)

 

 

4,871

 

 

5,058

 

 

7,988

 

 

7,984

Total revenue bonds

 

$

21,962

 

$

22,791

 

$

23,890

 

$

23,901