Securities

3 Months Ended

Mar. 31, 2020

Investments Debt And Equity Securities [Abstract]

Note 4—Securities

The following tables summarize the amortized cost and fair values of securities available-for-sale and securities held-to-maturity as of the dates shown and the corresponding amounts of gross unrealized gains and losses:

March 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	37,424	$	877	$	—		$	38,301
U.S. Government agencies		132,687		1,024		—			133,711
Obligations of states, municipalities, and political subdivisions		98,321		3,078		(107	)		101,292
Residential mortgage-backed securities
Agency		596,664		16,569		(12	)		613,221
Non-agency		87,683		385		(959	)		87,109
Commercial mortgage-backed securities
Agency		195,255		3,784		(579	)		198,460
Non-agency		31,064		—		(521	)		30,543
Corporate securities		51,691		655		(1,257	)		51,089
Asset-backed securities		50,516		—		(4,759	)		45,757
Total	$	1,281,305	$	26,372	$	(8,194	)	$	1,299,483

March 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity
Obligations of states, municipalities, and political subdivisions	$	4,408	$	108	$	—	$	4,516
Total	$	4,408	$	108	$	—	$	4,516

December 31, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	41,403	$	427	$	—		$	41,830
U.S. Government agencies		165,162		542		(754	)		164,950
Obligations of states, municipalities, and political subdivisions		92,806		2,075		(49	)		94,832
Residential mortgage-backed securities
Agency		490,427		2,163		(2,354	)		490,236
Non-agency		109,501		593		(272	)		109,822
Commercial mortgage-backed securities
Agency		159,650		1,092		(1,041	)		159,701
Non-agency		31,144		130		—			31,274
Corporate securities		48,796		571		(37	)		49,330
Asset-backed securities		44,515		—		(198	)		44,317
Total	$	1,183,404	$	7,593	$	(4,705	)	$	1,186,292

December 31, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity
Obligations of states, municipalities, and political subdivisions	$	4,412	$	86	$	—	$	4,498
Total	$	4,412	$	86	$	—	$	4,498

The Company did not classify securities as trading during the three months ended March 31, 2020 or during 2019.

Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2020 and December 31, 2019, are summarized as follows:

			Less than 12 Months					12 Months or Longer				Total
March 31, 2020	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-sale
Obligations of states, municipalities and political subdivisions		7	$	5,951	$	(107	)	$	—	$	—	$	5,951	$	(107	)
Residential mortgage-backed securities
Agency		1		564		(12	)		—		—		564		(12	)
Non-agency		10		52,821		(959	)		—		—		52,821		(959	)
Commercial mortgage-backed securities
Agency		6		53,000		(579	)		—		—		53,000		(579	)
Non-agency		5		30,543		(521	)		—		—		30,543		(521	)
Corporate securities		12		22,426		(1,257	)		—		—		22,426		(1,257	)
Asset-backed securities		9		39,757		(4,759	)		—		—		39,757		(4,759	)
Total		50	$	205,062	$	(8,194	)	$	—	$	—	$	205,062	$	(8,194	)

			Less than 12 Months					12 Months or Longer					Total
December 31, 2019	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Government agencies		8	$	49,318	$	(662	)	$	20,283	$	(92	)	$	69,601	$	(754	)
Obligations of states, municipalities and political subdivisions		7		13,309		(45	)		1,419		(4	)		14,728		(49	)
Residential mortgage-backed securities
Agency		50		132,703		(666	)		193,363		(1,688	)		326,066		(2,354	)
Non-agency		9		36,902		(206	)		10,126		(66	)		47,028		(272	)
Commercial mortgage-backed securities
Agency		13		67,649		(563	)		32,678		(478	)		100,327		(1,041	)
Corporate securities		4		6,103		(37	)		—		—			6,103		(37	)
Asset-backed securities		8		37,738		(198	)		—		—			37,738		(198	)
Total		99	$	343,722	$	(2,377	)	$	257,869	$	(2,328	)	$	601,591	$	(4,705	)

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities that had an unrealized loss for other than temporary impairment and determined all declines in value to be temporary. There were 50 securities available-for-sale with unrealized losses at March 31, 2020. There were no securities held-to-maturity with unrealized losses at March 31, 2020. The Company anticipates full recovery of amortized cost with respect to these securities by maturity, or sooner, in the event of a more favorable market interest rate environment. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

The proceeds from all sales of securities available-for-sale, and the associated gains and losses, for the three months ended March 31, 2020 and 2019 are listed below:

	For the Three Months Ended
	March 31,
	2020		2019
Proceeds	$	45,417	$	—
Gross gains		1,457		—
Gross losses		82		—

There were $1.4 million in net gains reclassified from accumulated other comprehensive income into earnings for the three months ended March 31, 2020. There were no gains reclassified from accumulated other comprehensive income into earnings for the three months ended March 31, 2019.

Securities posted as collateral were $1.1 billion and $552.4 million at March 31, 2020 and December 31, 2019, respectively, of which carrying amounts of $369.7 million and $301.1 million were pledged at March 31, 2020 and December 31, 2019, respectively. At March 31, 2020 and December 31, 2019, of those pledged, the carrying amounts of securities pledged as collateral for public fund deposits were $299.3 million and $240.4 million, respectively, and for customer repurchase agreements of $65.3 million and $55.7 million, respectively. At March 31, 2020 and December 31, 2019, there were no securities pledged for advances from the Federal Home Loan Bank. Other securities were pledged for derivative positions, letters of credit and for purposes required or permitted by law. At March 31, 2020 and December 31, 2019, 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 March 31, 2020, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	43,747	$	44,142
Due from one to five years		65,496		66,370
Due from five to ten years		136,058		137,383
Due after ten years		125,338		122,255
Mortgage-backed securities		910,666		929,333
Total	$	1,281,305	$	1,299,483
Held-to-maturity
Due in one year or less	$	506	$	508
Due from one to five years		3,902		4,008
Total	$	4,408	$	4,516