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Investment Securities
 9 Months Ended
Sep. 30, 2019
Investment Securities [Abstract]  
Investment Securities 4 - INVESTMENT SECURITIES

The following tables set forth the amortized cost and estimated fair values of the Bank’s investment securities.

September 30, 2019

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

(in thousands)

Cost

Gains

Losses

Value

Held-to-Maturity Securities:

State and municipals

$

3,737

$

24

$

—

$

3,761

Pass-through mortgage securities

246

16

—

262

$

3,983

$

40

$

—

$

4,023

Available-for-Sale Securities:

State and municipals

$

380,556

$

10,796

$

(187)

$

391,165

Pass-through mortgage securities

61,222

1,212

(22)

62,412

Collateralized mortgage obligations

142,974

3,130

(106)

145,998

Corporate bonds

119,000

—

(2,575)

116,425

U.S. Treasury bills

12,493

2

—

12,495

$

716,245

$

15,140

$

(2,890)

$

728,495

December 31, 2018

Held-to-Maturity Securities:

State and municipals

$

5,142

$

36

$

—

$

5,178

Pass-through mortgage securities

267

11

—

278

Collateralized mortgage obligations

95

1

—

96

$

5,504

$

48

$

—

$

5,552

Available-for-Sale Securities:

State and municipals

$

422,235

$

3,220

$

(5,417)

$

420,038

Pass-through mortgage securities

66,631

24

(1,169)

65,486

Collateralized mortgage obligations

154,378

886

(363)

154,901

Corporate bonds

119,000

—

(1,410)

117,590

$

762,244

$

4,130

$

(8,359)

$

758,015

At September 30, 2019 and December 31, 2018, investment securities with a carrying value of $412,681,000 and $342,712,000, respectively, were pledged as collateral to secure public deposits, borrowed funds and derivative liabilities.

There were no holdings of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity at September 30, 2019 and December 31, 2018.

Securities With Unrealized Losses. The following tables set forth securities with unrealized losses presented by the length of time the securities have been in a continuous unrealized loss position.

September 30, 2019

Less than

12 Months

12 Months

or More

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(in thousands)

Value

Loss

Value

Loss

Value

Loss

State and municipals

$

7,665

$

(41)

$

5,095

$

(146)

$

12,760

$

(187)

Pass-through mortgage securities

—

—

4,128

(22)

4,128

(22)

Collateralized mortgage obligations

6,489

(106)

—

—

6,489

(106)

Corporate bonds

116,425

(2,575)

—

—

116,425

(2,575)

Total temporarily impaired

$

130,579

$

(2,722)

$

9,223

$

(168)

$

139,802

$

(2,890)

December 31, 2018

State and municipals

$

102,882

$

(1,639)

$

62,995

$

(3,778)

$

165,877

$

(5,417)

Pass-through mortgage securities

38,421

(142)

23,425

(1,027)

61,846

(1,169)

Collateralized mortgage obligations

32,577

(89)

7,342

(274)

39,919

(363)

Corporate bonds

97,590

(1,410)

—

—

97,590

(1,410)

Total temporarily impaired

$

271,470

$

(3,280)

$

93,762

$

(5,079)

$

365,232

$

(8,359)

Because the unrealized losses reflected in the preceding tables are deemed by management to be attributable to changes in interest rates and not credit losses, and because management does not have the intent to sell these securities and it is not more likely than not that it will be required to sell these securities before their anticipated recovery, the Bank does not consider these securities to be other-than-temporarily impaired at September 30, 2019.

Sales of Available-for-Sale Securities. Sales of available-for-sale securities were as follows:

Nine Months Ended

Three Months Ended

(in thousands)

September 30,

September 30,

2019

2018

2019

2018

Proceeds

$

—

$

169,631

$

—

$

169,631

Gross gains

$

—

$

300

$

—

$

300

Gross losses

—

(5,260)

—

(5,260)

Net loss

$

—

$

(4,960)

$

—

$

(4,960)

Income tax benefit related to the net realized loss for the nine and three months ended September 30, 2018 was $1,495,000.

Sales of Held-to-Maturity Securities. There were no sales of held-to-maturity securities during the nine months ended September 30, 2019 and 2018.

Maturities. The following table sets forth by maturity the amortized cost and fair value of the Bank’s state and municipal securities, corporate bonds and U.S. Treasury bills at September 30, 2019 based on the earlier of their stated maturity or, if applicable, their pre-refunded date. The remaining securities in the Bank’s investment securities portfolio are mortgage-backed securities, consisting of pass-through mortgage securities and collateralized mortgage obligations. Although these securities are expected to have substantial periodic repayments they are reflected in the table below in aggregate amounts.

(in thousands)

Amortized Cost

Fair Value

Held-to-Maturity Securities:

Within one year

$

2,734

$

2,752

After 1 through 5 years

1,003

1,009

After 5 through 10 years

—

—

After 10 years

—

—

Mortgage-backed securities

246

262

$

3,983

$

4,023

Available-for-Sale Securities:

Within one year

$

24,939

$

24,991

After 1 through 5 years

58,668

59,617

After 5 through 10 years

276,196

277,886

After 10 years

152,246

157,591

Mortgage-backed securities

204,196

208,410

$

716,245

$

728,495