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Securities
6 Months Ended
Jun. 30, 2020
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

​

​

Allowance

    

    

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

​

for Credit

​

Fair

June 30, 2020:

    

Cost

    

Gains

    

Losses

​

​

Losses

​

Value

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

​

$

32,597

​

$

639

​

$

—

​

$

—

​

$

33,236

Obligations of U.S. government corporations and

agencies

​

 

77,349

​

 

2,752

​

 

(57)

​

​

—

​

 

80,044

Obligations of states and political subdivisions

​

 

272,885

​

 

10,047

​

 

(38)

​

​

—

​

 

282,894

Commercial mortgage-backed securities

​

​

230,352

​

​

10,956

​

​

(3)

​

​

—

​

​

241,305

Residential mortgage-backed securities

​

 

940,842

​

 

29,475

​

 

(124)

​

​

—

​

 

970,193

Corporate debt securities

​

 

87,404

​

 

1,826

​

 

(36)

​

​

—

​

 

89,194

Total

​

$

1,641,429

​

$

55,695

​

$

(258)

​

$

—

​

$

1,696,866

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

    

​

    

Gross

    

Gross

    

    

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

December 31, 2019:

    

Cost

    

Gains

    

Losses

    

Value

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

​

$

51,472

​

$

265

​

$

—

​

$

51,737

Obligations of U.S. government corporations and

agencies

​

 

160,364

​

 

2,684

​

 

(48)

​

 

163,000

Obligations of states and political subdivisions

​

 

262,492

​

 

5,810

​

 

(11)

​

 

268,291

Commercial mortgage-backed securities

​

​

137,733

​

​

1,700

​

​

(146)

​

​

139,287

Residential mortgage-backed securities

​

 

912,308

​

 

10,282

​

 

(624)

​

 

921,966

Corporate debt securities

​

 

102,696

​

 

1,280

​

 

—

​

 

103,976

Total

​

$

1,627,065

​

$

22,021

​

$

(829)

​

$

1,648,257

​

​

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

​

    

Amortized

    

Fair

June 30, 2020:

    

Cost

    

Value

Due in one year or less

​

$

132,192

​

$

133,749

Due after one year through five years

​

 

241,337

​

 

250,413

Due after five years through ten years

​

 

241,496

​

 

252,566

Due after ten years

​

 

1,026,404

​

 

1,060,138

Total

​

$

1,641,429

​

$

1,696,866

​

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, 

​

    

2020

    

2019

2020

    

2019

Gross security gains

​

$

146

​

$

391

$

1,707

​

$

391

Gross security (losses)

​

​

(3)

 

​

(400)

​

(8)

 

​

(583)

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

​

$

143

​

$

(9)

$

1,699

​

$

(192)

(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 $638.1 million and $704.4 million on June 30, 2020 and December 31, 2019, respectively, were pledged as collateral for public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.

​

The following information pertains to debt securities with gross unrealized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Less than 12 months, gross

​

12 months or more, gross

​

Total, gross

​

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

June 30, 2020:

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

Obligations of U.S. government corporations and

agencies

​

5,648

​

​

(57)

​

​

—

​

​

—

​

​

5,648

​

​

(57)

Obligations of states and political subdivisions

​

6,432

​

​

(38)

​

​

—

​

​

—

​

​

6,432

​

​

(38)

Commercial mortgage-backed securities

​

4,963

​

​

(3)

​

​

—

​

​

—

​

​

4,963

​

​

(3)

Residential mortgage-backed securities

 

35,830

​

 

(120)

​

 

937

​

 

(4)

​

 

36,767

​

 

(124)

Corporate debt securities

 

4,222

​

 

(36)

​

 

—

​

 

—

​

 

4,222

​

 

(36)

Total temporarily impaired securities

$

57,095

​

$

(254)

​

$

937

​

$

(4)

​

$

58,032

​

$

(258)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Less than 12 months, gross

​

12 months or more, gross

​

Total, gross

​

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

December 31, 2019:

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

Obligations of U.S. government corporations and

agencies

​

6,362

​

​

(48)

​

​

—

​

​

—

​

​

6,362

​

​

(48)

Obligations of states and political subdivisions(1)

​

4,981

​

​

(11)

​

​

1,548

​

​

—

​

​

6,529

​

​

(11)

Commercial mortgage-backed securities

​

33,322

​

​

(144)

​

​

2,044

​

​

(2)

​

​

35,366

​

​

(146)

Residential mortgage-backed securities

 

78,326

​

 

(245)

​

 

50,259

​

 

(379)

​

 

128,585

​

 

(624)

Corporate debt securities

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total temporarily impaired securities

$

122,991

​

$

(448)

​

$

53,851

​

$

(381)

​

$

176,842

​

$

(829)

(1)Unrealized losses for 12 months or more, gross, was less than one thousand dollars.

​

Debt securities available for sale are not within the scope of CECL, however, the accounting for credit losses on these securities is affected by ASC 326-30. As of June 30, 2020, the Company’s debt security portfolio consisted of 1,106 securities. The total number of debt securities in the investment portfolio in an unrealized loss position as of June 30, 2020 was 24 and represented an unrealized loss of 0.45% of the aggregate fair value. 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 impairment related to noncredit factors is recognized in accumulated other comprehensive income, net of applicable taxes, at June 30, 2020. As of June 30, 2020, the Company did not hold general obligation bonds of any single issuer, the aggregate of which exceeded 10% of the Company’s stockholders’ equity.