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Securities
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
(In Thousands, Except Number of Securities)
 
 
 
 
 
 
 
 

The amortized cost and fair value of securities available for sale were as follows as of the dates presented:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
December 31, 2019
 
 
 
 
 
 
 
U.S. Treasury securities
$
498

 
$
1

 
$
—

 
$
499

Obligations of other U.S. Government agencies and corporations
2,518

 
16

 
(3
)
 
2,531

Obligations of states and political subdivisions
218,362

 
5,134

 
(365
)
 
223,131

Residential mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
708,970

 
8,951

 
(1,816
)
 
716,105

Government agency collateralized mortgage obligations
172,178

 
1,322

 
(262
)
 
173,238

Commercial mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
30,372

 
659

 
(24
)
 
31,007

Government agency collateralized mortgage obligations
76,456

 
1,404

 
(109
)
 
77,751

Trust preferred securities
12,153

 
—

 
(2,167
)
 
9,986

Other debt securities
55,364

 
1,133

 
(132
)
 
56,365

 
$
1,276,871

 
$
18,620

 
$
(4,878
)
 
$
1,290,613

 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
December 31, 2018
 
 
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
$
2,536

 
$
13

 
$
(38
)
 
$
2,511

Obligations of states and political subdivisions
200,798

 
3,038


(567
)

203,269

Residential mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
621,690

 
719

 
(9,126
)
 
613,283

Government agency collateralized mortgage obligations
332,697

 
274

 
(5,982
)
 
326,989

Commercial mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
21,957

 
257

 
(384
)
 
21,830

Government agency collateralized mortgage obligations
28,446

 
24

 
(135
)
 
28,335

Trust preferred securities
12,359

 
—

 
(1,726
)
 
10,633

Other debt securities
44,046

 
192

 
(311
)
 
43,927

 
$
1,264,529

 
$
4,517

 
$
(18,269
)
 
$
1,250,777


Securities sold were as follows for the periods presented:
 
Carrying Value
 
Net Proceeds
 
Gain/(Loss)
Twelve months ended December 31, 2019
 
 
 
 
 
Obligations of states and political subdivisions
$
11,799

 
$
11,813

 
$
14

Residential mortgage backed securities:
 
 
 
 
 
Government agency mortgage backed securities
72,556

 
71,944

 
(612
)
Government agency collateralized mortgage obligations
122,692

 
120,892

 
(1,800
)
Commercial mortgage backed securities:
 
 
 
 
 
Government agency mortgage backed securities
4,838

 
4,720

 
(118
)
Other debt securities
252

 
257

 
5

Other equity securities
—

 
2,859

 
2,859

 
$
212,137

 
$
212,485

 
$
348


 
Carrying Value
 
Net Proceeds
 
Gain/(Loss)
Twelve months ended December 31, 2018
 
 
 
 
 
Obligations of states and political subdivisions
$
901

 
$
893

 
$
(8
)
Residential mortgage backed securities:
 
 
 
 
 
Government agency mortgage backed securities
943

 
942

 
(1
)
Government agency collateralized mortgage obligations
559

 
552

 
(7
)
 
$
2,403

 
$
2,387

 
$
(16
)
 
Carrying Value
 
Net Proceeds
 
Gain/(Loss)
Twelve months ended December 31, 2017
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
$
11,088

 
$
10,974

 
$
(114
)
Obligations of states and political subdivisions
110,019

 
112,199

 
2,180

Residential mortgage backed securities:
 
 
 
 
 
Government agency mortgage backed securities
264,924

 
263,217

 
(1,707
)
Government agency collateralized mortgage obligations
72,153

 
71,781

 
(372
)
Commercial mortgage backed securities:
 
 
 
 
 
Government agency mortgage backed securities
14,104

 
14,082

 
(22
)
Government agency collateralized mortgage obligations
6,289

 
6,289

 
—

Trust preferred securities
9,346

 
9,403

 
57

Other debt securities
7,269

 
7,395

 
126

 
$
495,192

 
$
495,340

 
$
148


The sales of other equity securities included in the table above for the twelve months ended December 31, 2019 represent the Company’s sale of the majority of its shares of Visa Class B common stock during the third quarter of 2019.
Included in the table above for the twelve months ended December 31, 2017 are securities sold by the Company during the fourth quarter of 2017 in an effort to manage its consolidated assets below $10,000,000 at December 31, 2017, in order to delay the adverse impact on the Company of the Durbin Amendment to the Dodd-Frank Act, which applies to banking institutions with assets over $10,000,000 at year-end. Securities sold to achieve this strategy had an aggregate carrying value of $446,880 on the dates of sale, and the Company collected net proceeds of $446,971, resulting in a $91 net gain on the sales.
Gross realized gains and gross realized losses on sales of securities available for sale were as follows for the periods presented:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Gross gains on sales of securities available for sale
$
2,979

 
$
11

 
$
2,497

Gross losses on sales of securities available for sale
(2,631
)
 
(27
)
 
(2,349
)
Gain on sales of securities available for sale, net
$
348

 
$
(16
)
 
$
148


At December 31, 2019 and 2018, securities with a carrying value of approximately $416,849 and $619,308, respectively, were pledged to secure government, public, trust, and other deposits. Securities with a carrying value of $27,754 and $18,299 were pledged as collateral for short-term borrowings and derivative instruments at December 31, 2019 and 2018, respectively.
The amortized cost and fair value of securities at December 31, 2019 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.
 
Available for Sale
 
Amortized
Cost
 
Fair
Value
Due within one year
$
17,132

 
$
17,294

Due after one year through five years
30,969

 
31,820

Due after five years through ten years
78,892

 
81,860

Due after ten years
120,038

 
118,890

Residential mortgage backed securities:
 
 
 
Government agency mortgage backed securities
708,970

 
716,105

Government agency collateralized mortgage obligations
172,178

 
173,238

Commercial mortgage backed securities:
 
 
 
Government agency mortgage backed securities
30,372

 
31,007

Government agency collateralized mortgage obligations
76,456

 
77,751

Other debt securities
41,864

 
42,648

 
$
1,276,871

 
$
1,290,613


The following table presents the gross unrealized losses and fair value of investment securities, aggregated by investment category and the length of time the investments have been in a continuous unrealized loss position, as of the dates presented:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 12 Months
 
12 Months or More
 
Total
 
#
 
Fair
Value
 
Unrealized
Losses
 
#
 
Fair
Value
 
Unrealized
Losses
 
#
 
Fair
Value
 
Unrealized
Losses
Available for Sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
0
 
$
—

 
$
—

 
1
 
$
1,008

 
$
(3
)
 
1
 
$
1,008

 
$
(3
)
Obligations of states and political subdivisions
26
 
33,902

 
(365
)
 
0
 
—

 
—

 
26
 
33,902

 
(365
)
Residential mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
37
 
233,179

 
(1,504
)
 
16
 
20,775

 
(312
)
 
53
 
253,954

 
(1,816
)
Government agency collateralized mortgage obligations
11
 
45,319

 
(262
)
 
0
 
—

 
—

 
11
 
45,319

 
(262
)
Commercial mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
1
 
4,976

 
(23
)
 
2
 
1,190

 
(1
)
 
3
 
6,166

 
(24
)
Government agency collateralized mortgage obligations
1
 
4,910

 
(109
)
 
0
 
—

 
—

 
1
 
4,910

 
(109
)
Trust preferred securities
0
 
—

 
—

 
2
 
9,986

 
(2,167
)
 
2
 
9,986

 
(2,167
)
Other debt securities
3
 
8,737

 
(131
)
 
1
 
741

 
(1
)
 
4
 
9,478

 
(132
)
Total
79
 
$
331,023

 
$
(2,394
)
 
22
 
$
33,700

 
$
(2,484
)
 
101
 
$
364,723

 
$
(4,878
)
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
0
 
$
—

 
$
—

 
2
 
$
1,480

 
$
(38
)
 
2
 
$
1,480

 
$
(38
)
Obligations of states and political subdivisions
34
 
22,159

 
(193
)
 
26
 
16,775

 
(374
)
 
60
 
38,934

 
(567
)
Residential mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
91
 
354,731

 
(3,945
)
 
73
 
125,757

 
(5,181
)
 
164
 
480,488

 
(9,126
)
Government agency collateralized mortgage obligations
24
 
97,451

 
(840
)
 
60
 
140,076

 
(5,142
)
 
84
 
237,527

 
(5,982
)
Commercial mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
5
 
6,506

 
(74
)
 
4
 
7,468

 
(310
)
 
9
 
13,974

 
(384
)
Government agency collateralized mortgage obligations
2
 
9,950

 
(23
)
 
1
 
4,888

 
(112
)
 
3
 
14,838

 
(135
)
Trust preferred securities
0
 
—

 
—

 
2
 
10,633

 
(1,726
)
 
2
 
10,633

 
(1,726
)
Other debt securities
12
 
19,011

 
(88
)
 
3
 
5,621

 
(223
)
 
15
 
24,632

 
(311
)
Total
168
 
$
509,808

 
$
(5,163
)
 
171
 
$
312,698

 
$
(13,106
)
 
339
 
$
822,506

 
$
(18,269
)

The Company does not intend to sell any of the securities in an unrealized loss position, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be maturity. Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period greater than twelve months, the Company is collecting principal and interest payments from the respective issuers as scheduled. As such, the Company did not record any other-than-temporary impairment for the years ended December 31, 2019 and 2018.
The Company holds investments in pooled trust preferred securities that had a cost basis of $12,153 and $12,359 and a fair value of $9,986 and $10,633 at December 31, 2019 and 2018, respectively. As of December 31, 2019, the investments in pooled trust preferred securities consisted of two securities representing interests in various tranches of trusts collateralized by debt issued by 148 financial institutions. Management’s determination of the fair value of each of its holdings in pooled trust preferred securities is based on the current credit ratings, the known deferrals and defaults by the underlying issuing financial institutions and the degree to which future deferrals and defaults would be required to occur before the cash flow for the Company’s tranches is negatively impacted. In addition, management continually monitors key credit quality and capital ratios of the issuing institutions.
This determination is further supported by quarterly valuations, which are performed by third parties, of each security obtained by the Company. The Company does not intend to sell the investments before recovery of the investments' amortized cost, and it is not more likely than not that the Company will be required to sell the investments before recovery of the investments’ amortized cost, which may be at maturity. At December 31, 2019, management did not, and does not currently, believe such securities will be settled at a price less than the amortized cost of each investment, but the Company previously concluded that it was probable that there had been an adverse change in estimated cash flows for both trust preferred securities and recognized credit related impairment losses on these securities in 2011. For the years ended December 31, 2019, 2018 and 2017, the Company determined the pooled trust preferred securities and their estimated cash flow were fairly valued, and no additional impairment was recognized during these periods.
The following table provides information regarding the Company’s investments in pooled trust preferred securities at December 31, 2019:
Name
 
Single/
Pooled
 
Class/
Tranche
 
Amortized
Cost
 
Fair
Value
 
Unrealized
Loss
 
Lowest
Credit
Rating
 
Issuers
Currently
in Deferral
or Default
XXIII
 
Pooled
 
B-2
 
$
8,182

 
$
6,410

 
$
(1,772
)
 
BB
 
15%
XXVI
 
Pooled
 
B-2
 
3,971

 
3,576

 
(395
)
 
B
 
19%
 
 
 
 
 
 
$
12,153

 
$
9,986

 
$
(2,167
)
 
 
 
 

The following table provides a summary of the cumulative credit related losses recognized in earnings for which a portion of OTTI has been recognized in other comprehensive income:
 
2019
 
2018
Balance at January 1
$
(261
)
 
$
(261
)
Additions related to credit losses for which OTTI was not previously recognized
—

 
—

Increases in credit loss for which OTTI was previously recognized
—

 
—

Reductions for securities sold during the period
—

 
—

Balance at December 31
$
(261
)
 
$
(261
)