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Securities
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Securities
 
 
March 31, 2020
(Dollar amounts in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
U.S. Government agencies
 
$
98,780

 
$
2,762

 
$
(38
)
 
$
101,504

Mortgage Backed Securities - residential
 
235,774

 
9,082

 
—

 
244,856

Mortgage Backed Securities - commercial
 
21,891

 
798

 
—

 
22,689

Collateralized mortgage obligations
 
276,125

 
8,461

 
(220
)
 
284,366

State and municipal obligations
 
259,907

 
12,410

 
(188
)
 
272,129

Municipal taxable
 
725

 
1

 
—

 
726

U.S. Treasury
 
2,501

 
37

 
—

 
2,538

Collateralized debt obligations
 
—

 
3,233

 
—

 
3,233

TOTAL
 
$
895,703

 
$
36,784

 
$
(446
)
 
$
932,041

 
 
December 31, 2019
(Dollar amounts in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
U.S. Government agencies
 
$
102,490

 
$
1,293

 
$
(150
)
 
$
103,633

Mortgage Backed Securities-residential
 
240,753

 
2,979

 
(350
)
 
243,382

Mortgage Backed Securities-commercial
 
22,036

 
73

 
(5
)
 
22,104

Collateralized mortgage obligations
 
280,797

 
1,735

 
(1,221
)
 
281,311

State and municipal obligations
 
253,277

 
11,265

 
(108
)
 
264,434

Municipal taxable
 
728

 
2

 
—

 
730

U.S. Treasury
 
7,494

 
10

 
—

 
7,504

Collateralized debt obligations
 
—

 
3,619

 
—

 
3,619

TOTAL
 
$
907,575

 
$
20,976

 
$
(1,834
)
 
$
926,717


 
Contractual maturities of debt securities at March 31, 2020 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and equity securities are shown separately.
 
 
Available-for-Sale
 
 
Amortized
 
Fair
(Dollar amounts in thousands)
 
Cost
 
Value
Due in one year or less
 
$
10,297

 
$
10,359

Due after one but within five years
 
57,759

 
59,055

Due after five but within ten years
 
43,921

 
45,180

Due after ten years
 
249,936

 
265,536

 
 
361,913

 
380,130

Mortgage-backed securities and collateralized mortgage obligations
 
533,790

 
551,911

TOTAL
 
$
895,703

 
$
932,041


 
There were $244 thousand in gross gains and $50 thousand in losses from investment sales/calls realized by the Corporation for the three months ended March 31, 2020. For the three months ended March 31, 2019 there were $2 thousand in gross gains and $6 thousand in losses on sales of investment securities.
 
The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at March 31, 2020 and December 31, 2019. 
 
 
March 31, 2020
 
 
Less Than 12 Months
 
More Than 12 Months
 
Total
 
 
 
 
Unrealized
 
 
 
Unrealized
 
 
 
Unrealized
(Dollar amounts in thousands)
 
Fair Value
 
Losses
 
Fair Value
 
Losses
 
Fair Value
 
Losses
U.S. Government agencies
 
$
3,756

 
$
(38
)
 
$
—

 
$
—

 
$
3,756

 
$
(38
)
Mortgage Backed Securities - Residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collateralized mortgage obligations
 
9,178

 
(220
)
 
—

 
—

 
9,178

 
(220
)
State and municipal obligations
 
8,587

 
(131
)
 
464

 
(57
)
 
9,051

 
(188
)
U.S. Treasury
 
—

 
—

 
—

 
—

 
—

 
—

Total temporarily impaired securities
 
$
21,521

 
$
(389
)
 
$
464

 
$
(57
)
 
$
21,985

 
$
(446
)
 
 
 
December 31, 2019
 
 
Less Than 12 Months
 
More Than 12 Months
 
Total
 
 
 
 
Unrealized
 
 
 
Unrealized
 
 
 
Unrealized
(Dollar amounts in thousands)
 
Fair Value
 
Losses
 
Fair Value
 
Losses
 
Fair Value
 
Losses
US Government Agencies
 
$
29,183

 
$
(150
)
 
$
—

 
$
—

 
$
29,183

 
$
(150
)
Mortgage Backed Securities - Residential
 
$
55,665

 
$
(243
)
 
$
18,724

 
$
(107
)
 
$
74,389

 
$
(350
)
Mortgage Backed Securities - Commercial
 
4,391

 
(5
)
 
—

 
—

 
4,391

 
(5
)
Collateralized mortgage obligations
 
33,398

 
(314
)
 
61,781

 
(907
)
 
95,179

 
(1,221
)
State and municipal obligations
 
8,996

 
(61
)
 
461

 
(47
)
 
9,457

 
(108
)
Total temporarily impaired securities
 
$
131,633

 
$
(773
)
 
$
80,966

 
$
(1,061
)
 
$
212,599

 
$
(1,834
)

 
Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under FASB ASC 320, Investments - Debt and Equity Securities. However, certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, that had credit ratings at the time of purchase of below AA are evaluated using the model outlined in FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets.
 
When OTTI occurs under either model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment.

Gross unrealized losses on investment securities were $446 thousand as of March 31, 2020 and $1.8 million as of December 31, 2019. A majority of these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer. Based upon our review of the issuers, we do not believe these investments to be other than temporarily impaired. Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery.

There is one remaining collateralized debt obligations security with previously recorded OTTI but there was no additional OTTI recorded in 2020 or 2019. During the quarter ended June 30, 2018, an obligation was called, resulting in the elimination of the OTTI associated with that obligation. A recovery of previously recorded OTTI of $4.2 million was received and recognized in non-interest income for the period. In addition the Corporation received $2.4 million of interest income associated with the call.

The table below presents a rollforward of the credit losses recognized in earnings for the three month period ended March 31, 2020 and 2019:
 
 
Three Months Ended March 31,
(Dollar amounts in thousands)
 
2020
 
2019
Beginning balance
 
$
2,974

 
$
2,974

Increases to the amount related to the credit
 
 

 
 

Loss for which other-than-temporary was previously recognized
 
—

 
—

Reductions for increases in cash flows collected
 
—

 
—

Reductions for securities called during the period
 
—

 
—

Ending balance
 
$
2,974

 
$
2,974