Available for Sale Debt Securities

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Available for Sale Debt Securities

Available for Sale Debt Securities

Available for sale debt securities at December 31, 2019 and 2018 are summarized as follows (in thousands):

	2019
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Mortgage-backed securities	$	936,196	12,367	(1,133)	947,430
State and municipal obligations	3,907		172	—	4,079
Corporate obligations	25,032		393	(15)	25,410
	$	965,135	12,932	(1,148)	976,919

	2018
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
Mortgage-backed securities	$	1,048,415	2,704	(16,150)	1,034,969
State and municipal obligations	2,828		84	—	2,912
Corporate obligations	25,039		268	(109)	25,198
	$	1,076,282	3,056	(16,259)	1,063,079

Available for sale debt securities having a carrying value of $536.4 million and $524.2 million at December 31, 2019 and 2018, respectively, are pledged to secure securities sold under repurchase agreements and municipal deposits.

The amortized cost and fair value of available for sale debt securities at December 31, 2019, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

	2019
	Amortized cost		Fair value
Due after one year through five years	$	3,003	3,074
Due after five years through ten years	25,936		26,415
	$	28,939	29,489

Mortgage-backed securities totaling $936.2 million at amortized cost and $947.4 million at fair value are excluded from the table above as their expected lives are anticipated to be shorter than the contractual maturity date due to principal prepayments.

For 2019, there were no sales or calls of securities from the available for sale debt securities. During 2018, the Company sold 15,046 VISA Class B common shares at a gross gain of approximately $2.2 million. For 2017, there were no sales or calls of securities from the available for sale debt securities portfolio.

For the years ended December 31, 2019, 2018 and 2017, the Company did not incur an other-than-temporary impairment charge on available for sale debt securities.

The following tables represent the Company’s disclosure on available for sale debt securities with temporary impairment (in thousands):

	December 31, 2019 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Mortgage-backed securities	$	136,270	(629)	46,819	(504)	183,089	(1,133)
Corporate obligations	2,013		(15)	—	—	2,013	(15)
	$	138,283	(644)	46,819	(504)	185,102	(1,148)

	December 31, 2018 Unrealized Losses
	Less than 12 months			12 months or longer		Total
	Fair value		Gross unrealized losses	Fair value	Gross unrealized losses	Fair value	Gross unrealized losses
Mortgage-backed securities	$	218,175	(2,173)	545,880	(13,977)	764,055	(16,150)
Corporate obligations	7,897		(109)	—	—	7,897	(109)
	$	226,072	(2,282)	545,880	(13,977)	771,952	(16,259)

The Company estimates the loss projections for each non-agency mortgage-backed security by stressing the individual loans collateralizing the security and applying a range of expected default rates, loss severities, and prepayment speeds in

conjunction with the underlying credit enhancement for each security. Based on specific assumptions about collateral and vintage, a range of possible cash flows was identified to determine whether other-than-temporary impairment existed during the year ended December 31, 2019. Based on its detailed review of the available for sale debt securities portfolio, the Company believes that as of December 31, 2019, securities with unrealized loss positions shown above did not represent impairments that are other-than-temporary. The Company does not have the intent to sell securities in a temporary loss position at December 31, 2019, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery. The number of securities in an unrealized loss position as of December 31, 2019 totaled 50, compared with 175 at December 31, 2018. The decrease in the number of securities in an unrealized loss position at December 31, 2019 was due to lower current market interest rates compared to rates at December 31, 2018. All temporarily impaired securities were investment grade at December 31, 2019. There was one private-label mortgage-backed security in an unrealized loss position at December 31, 2019, with an amortized cost of $17,000 and unrealized loss of $1,000. This private-label mortgage-backed security was investment grade at December 31, 2019.