XML 111 R12.htm IDEA: XBRL DOCUMENT v3.20.1
INVESTMENT SECURITIES
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES
The amortized cost and estimated fair value of securities available for sale along with gross unrealized gains and losses are summarized as follows:
(dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized Losses
Estimated
Fair
Value
December 31, 2019
U.S. government sponsored agencies$22,246  $116  $—  $22,362  
State, county and municipal securities102,952  2,310  (2) 105,260  
Corporate debt securities51,720  1,281  (2) 52,999  
SBA pool securities73,704  617  (409) 73,912  
Mortgage-backed securities1,129,816  19,937  (883) 1,148,870  
Total debt securities$1,380,438  $24,261  $(1,296) $1,403,403  
December 31, 2018
State, county and municipal securities$149,670  $1,367  $(304) $150,733  
Corporate debt securities67,123  718  (527) 67,314  
SBA pool securities79,410  183  (1,789) 77,804  
Mortgage-backed securities902,773  3,989  (10,190) 896,572  
Total debt securities$1,198,976  $6,257  $(12,810) $1,192,423  

The following table shows the gross unrealized losses and estimated fair value of securities aggregated by category and length of time that securities have been in a continuous unrealized loss position at December 31, 2019 and 2018.
Less Than 12 Months12 Months or MoreTotal
(dollars in thousands)
Estimated
Fair
Value
Unrealized LossesEstimated
Fair
Value		Unrealized LossesEstimated
Fair
Value		Unrealized Losses
December 31, 2019
State, county and municipal securities$803  $(2) $—  $—  $803  $(2) 
Corporate debt securities2,573  (2) —  —  2,573  (2) 
SBA pool securities28,521  (285) 4,825  (124) 33,346  (409) 
Mortgage-backed securities99,279  (416) 52,326  (467) 151,605  (883) 
Total debt securities$131,176  $(705) $57,151  $(591) $188,327  $(1,296) 
December 31, 2018
State, county and municipal securities$23,784  $(52) $33,873  $(252) $57,657  $(304) 
Corporate debt securities17,291  (111) 17,952  (416) 35,243  (527) 
SBA pool securities1,291  (7) 61,966  (1,782) 63,257  (1,789) 
Mortgage-backed securities118,454  (573) 373,783  (9,617) 492,237  (10,190) 
Total debt securities$160,820  $(743) $487,574  $(12,067) $648,394  $(12,810) 

As of December 31, 2019, the Company’s security portfolio consisted of 557 securities, 84 of which were in an unrealized loss position. The majority of the unrealized losses are related to the Company’s mortgage-backed securities as discussed below.

At December 31, 2019, the Company held 62 mortgage-backed securities that were in an unrealized loss position, all of which were issued by U.S. government-sponsored entities and agencies. Because the decline in fair value is attributable to changes in interest rates, and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2019.

At December 31, 2019, the Company held 18 SBA pool securities, two state, county and municipal securities and two corporate securities that were in an unrealized loss position. Because the decline in fair value is attributable to changes in interest rates, and not credit quality, and because the Company does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2019.
During 2019 and 2018, the Company received timely and current interest and principal payments on all of the securities classified as corporate debt securities. The Company’s investments in subordinated debt include investments in regional and super-regional banks on which the Company prepares regular analysis through review of financial information or credit ratings. Investments in preferred securities are also concentrated in the preferred obligations of regional and super-regional banks through non-pooled investment structures. The Company did not have investments in “pooled” trust preferred securities at December 31, 2019 or 2018.

Management and the Company’s Asset and Liability Committee (the “ALCO Committee”) evaluate securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. While the majority of the unrealized losses on debt securities relate to changes in interest rates, corporate debt securities have also been affected by reduced levels of liquidity and higher risk premiums. Occasionally, management engages independent third parties to evaluate the Company’s position in certain corporate debt securities to aid management and the ALCO Committee in its determination regarding the status of impairment. The Company does not intend to sell these investment securities at an unrealized loss position at December 31, 2019, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity. Therefore, at December 31, 2019, these investments are not considered impaired on an other-than-temporary basis.

The amortized cost and estimated fair value of debt securities available for sale as of December 31, 2019, by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without penalty. Securities not due at a single maturity date are shown separately. Therefore, these securities are not included in the maturity categories in the following maturity summary.
(dollars in thousands)
Amortized
Cost
Estimated
Fair
Value
Due in one year or less$29,116  $29,298  
Due from one year to five years62,121  63,030  
Due from five to ten years91,717  93,822  
Due after ten years67,668  68,383  
Mortgage-backed securities1,129,816  1,148,870  
$1,380,438  $1,403,403  

Securities with a carrying value of approximately $679.6 million and $510.0 million at December 31, 2019 and 2018, respectively, serve as collateral to secure public deposits, securities sold under agreements to repurchase and for other purposes required or permitted by law.

The following table is a summary of sales activities in the Company's investment securities available for sale:
For the Years Ended December 31,
(dollars in thousands)201920182017
Gross gains on sales of securities$522  $390  $38  
Gross losses on sales of securities(464) (301) (1) 
Net realized gains on sales of securities available for sale$58  $89  $37  
Sales proceeds$64,995  $68,727  $3,090  

Total gain (loss) on securities reported on the consolidated statements of income is comprised of the following:
For the Years Ended December 31,
(dollars in thousands)201920182017
Net realized gains on sales of securities available for sale$58  $89  $37  
Unrealized holding gains (losses) on equity securities19  (126) —  
Net realized gains on sales of other investments61  —  —  
Total gain (loss) on securities$138  $(37) $37