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Securities
6 Months Ended
Jun. 30, 2019
Securities  
Securities

Note 3: Securities

​

The table below provides the amortized cost, unrealized gains and losses and fair values of debt securities summarized by major category (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

    

​

    

Gross

    

Gross

    

    

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

June 30, 2019:

    

Cost

    

Gains

    

Losses

    

Value

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

​

$

58,308

​

$

260

​

$

(33)

​

$

58,535

Obligations of U.S. government corporations and

agencies

​

 

287,444

​

 

3,370

​

 

(48)

​

 

290,766

Obligations of states and political subdivisions

​

 

274,301

​

 

4,683

​

 

(54)

​

 

278,930

Commercial mortgage-backed securities

​

​

122,510

​

​

1,678

​

​

(33)

​

​

124,155

Residential mortgage-backed securities

​

 

951,998

​

 

10,394

​

 

(1,255)

​

 

961,137

Corporate debt securities

​

 

133,053

​

 

1,514

​

 

(17)

​

 

134,550

Total

​

$

1,827,614

​

$

21,899

​

$

(1,440)

​

$

1,848,073

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt securities held to maturity

    

​

​

    

​

​

    

​

​

    

​

​

Obligations of states and political subdivisions(1)

​

$

15,708

​

$

226

​

$

—

​

$

15,934

(1)Gross unrealized losses less than one thousand dollars.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

    

​

    

Gross

    

Gross

    

    

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

December 31, 2018:

    

Cost

    

Gains

    

Losses

    

Value

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

​

$

25,824

​

$

1

​

$

(414)

​

$

25,411

Obligations of U.S. government corporations and

agencies

​

 

53,096

​

 

7

​

 

(761)

​

 

52,342

Obligations of states and political subdivisions

​

 

171,131

​

 

484

​

 

(1,571)

​

 

170,044

Commercial mortgage-backed securities

​

​

2,003

​

​

—

​

​

(61)

​

​

1,942

Residential mortgage-backed securities

​

 

322,646

​

 

245

​

 

(7,143)

​

 

315,748

Corporate debt securities

​

 

132,513

​

 

61

​

 

(376)

​

 

132,198

Total

​

$

707,213

​

$

798

​

$

(10,326)

​

$

697,685

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt securities held to maturity

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of states and political subdivisions

​

$

33,947

​

$

68

​

$

(87)

​

$

33,928

Commercial mortgage-backed securities

​

​

59,054

​

​

11

​

​

(1,003)

​

​

58,062

Residential mortgage-backed securities

​

​

515,659

​

​

1,748

​

​

(6,037)

​

​

511,370

Total

​

$

608,660

​

$

1,827

​

$

(7,127)

​

$

603,360

​

In adopting ASU 2017-12, the Company reassessed the classification of certain investments during the first quarter of 2019 and transferred $573.6 million of securities from held to maturity to available for sale. The transfer occurred at fair value and had a related unrealized loss of $4.8 million recorded in other comprehensive income.

​

The amortized cost and fair value of debt securities, by contractual maturity or pre-refunded date, are shown below. Mortgages underlying mortgage-backed securities may be called or prepaid; therefore, actual maturities could differ from the contractual maturities. All mortgage-backed securities were issued by U.S. government agencies and corporations (dollars in thousands).

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt securities available for sale

​

Debt securities held to maturity

​

    

Amortized

    

Fair

    

Amortized

    

Fair

June 30, 2019:

    

Cost

    

Value

    

Cost

    

Value

Due in one year or less

​

$

220,023

​

$

220,304

​

$

2,724

​

$

2,729

Due after one year through five

years

​

 

418,649

​

 

424,241

​

 

11,861

​

 

12,035

Due after five years through ten

years

​

 

263,388

​

 

267,989

​

 

1,123

​

 

1,170

Due after ten years

​

 

925,554

​

 

935,539

​

 

—

​

 

—

Total

​

$

1,827,614

​

$

1,848,073

​

$

15,708

​

$

15,934

​

Realized gains and losses related to sales and calls of debt securities available for sale are summarized as follows (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 

​

Six Months Ended June 30, 

​

    

2019

    

2018

    

2019

    

2018

Gross security gains

​

$

391

​

$

—

​

$

391

​

$

—

Gross security (losses)

​

​

(401)

 

​

—

 

​

(584)

 

​

—

Net (losses) gains on sales of securities(1)

​

$

(10)

​

$

—

​

$

(193)

​

$

—

(1)Net (losses) gains on sales of securities reported on the unaudited Consolidated Statements of Income includes sale of equity securities, excluded in this table.

​

Debt securities with carrying amounts of $755.1 million and $498.3 million on June 30, 2019 and December 31, 2018, respectively, were pledged as collateral for public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.

​

Information pertaining to debt securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For less than

​

For greater

​

​

​

​

​

​

​

12 months, gross

​

than 12 months, gross

​

Total, gross

​

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

June 30, 2019:

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

$

—

​

$

—

​

$

24,768

​

$

(33)

​

$

24,768

​

$

(33)

Obligations of U.S. government corporations and

agencies(1)

​

51

​

​

—

​

​

22,468

​

​

(48)

​

​

22,519

​

​

(48)

Obligations of states and political subdivisions

​

1,394

​

​

(8)

​

​

24,192

​

​

(46)

​

​

25,586

​

​

(54)

Commercial mortgage-backed securities

​

—

​

​

—

​

​

14,746

​

​

(33)

​

​

14,746

​

​

(33)

Residential mortgage-backed securities

 

13,629

​

 

(8)

​

 

183,552

​

 

(1,247)

​

 

197,181

​

 

(1,255)

Corporate debt securities

 

1,765

​

 

(7)

​

 

15,049

​

 

(10)

​

 

16,814

​

 

(17)

Total temporarily impaired securities

$

16,839

​

$

(23)

​

$

284,775

​

$

(1,417)

​

$

301,614

​

$

(1,440)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt securities held to maturity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of states and political subdivisions(1)

$

—

​

$

—

​

$

500

​

$

—

​

$

500

​

$

—

(1)Unrealized losses less than one thousand dollars.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For less than

​

For greater

​

​

​

​

​

​

​

 12 months, gross

​

than 12 months, gross

​

Total, gross

​

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

December 31, 2018:

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

$

995

​

$

(4)

​

$

24,343

​

$

(410)

​

$

25,338

​

$

(414)

Obligations of U.S. government corporations and

agencies

​

749

​

​

(3)

​

​

50,744

​

​

(758)

​

​

51,493

​

​

(761)

Obligations of states and political subdivisions

​

49,893

​

​

(460)

​

​

77,651

​

​

(1,111)

​

​

127,544

​

​

(1,571)

Commercial mortgage-backed securities

​

—

​

​

—

​

​

1,942

​

​

(61)

​

​

1,942

​

​

(61)

Residential mortgage-backed securities

 

48,387

​

 

(496)

​

 

247,573

​

 

(6,647)

​

 

295,960

​

 

(7,143)

Corporate debt securities

 

90,713

​

 

(268)

​

 

15,083

​

 

(108)

​

 

105,796

​

 

(376)

Total temporarily impaired securities

$

190,737

​

$

(1,231)

​

$

417,336

​

$

(9,095)

​

$

608,073

​

$

(10,326)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt securities held to maturity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of states and political subdivisions

$

9,531

​

$

(33)

​

$

9,538

​

$

(54)

​

$

19,069

​

$

(87)

Commercial mortgage-backed securities

​

12,067

​

​

(212)

​

​

45,041

​

​

(791)

​

​

57,108

​

​

(1,003)

Residential mortgage-backed securities

​

77,071

​

​

(974)

​

​

245,128

​

​

(5,063)

​

​

322,199

​

​

(6,037)

Total temporarily impaired securities

$

98,669

​

$

(1,219)

​

$

299,707

​

$

(5,908)

​

$

398,376

​

$

(7,127)

​

Debt securities are periodically evaluated for other-than-temporary impairment (“OTTI”). As of June 30, 2019, the Company’s debt security portfolio consisted of 1,273 securities. The total number of debt securities in the investment portfolio in an unrealized loss position as of June 30, 2019 was 126 and represented an unrealized loss of 0.47% of the aggregate amortized cost. The unrealized losses relate to changes in market interest rates and market conditions that do not represent credit-related impairments.  Furthermore, the Company does not intend to sell such securities and it is more likely than not that the Company will recover the amortized cost prior to being required to sell the debt securities. Full collection of the amounts due according to the contractual terms of the debt securities is expected; therefore, the Company does not consider these investments to be OTTI at June 30, 2019. As of June 30, 2019, the Company did not hold general obligation bonds of any single issuer, the aggregate of which exceeded 10% of the Company’s stockholders’ equity.