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Investment Securities
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Investments Securities Investment Securities
The following table shows the amortized cost, the estimated fair value and the allowance for credit losses of the held-to-maturity securities and available-for-sale securities at September 30, 2020 and the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at December 31, 2019, by contractual maturity within each type:
 At September 30, 2020At December 31, 2019
(Dollars in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Allowance for Credit LossesFair ValueAmortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Securities Held-to-Maturity
U.S. government corporations and agencies:
After 1 year to 5 years$6,998 $202 $— $— $7,200 $6,997 $66 $— $7,063 
6,998 202 — — 7,200 6,997 66 — 7,063 
Residential mortgage-backed securities:
After 5 years to 10 years7,065 286 — — 7,351 9,083 129 — 9,212 
Over 10 years162,754 5,071 — — 167,825 175,972 2,749 (110)178,611 
169,819 5,357 — — 175,176 185,055 2,878 (110)187,823 
Total$176,817 $5,559 $— $— $182,376 $192,052 $2,944 $(110)$194,886 
Securities Available-for-Sale
U.S. government corporations and agencies:
Within 1 year$— $— $— — $— $301 $— $(1)$300 
— — — — — 301 — (1)300 
State and political subdivisions:
After 1 year to 5 years3,645 41 — — 3,686 4,717 23 — 4,740 
After 5 years to 10 years11,387 114 — — 11,501 29,563 292 — 29,855 
15,032 155 — — 15,187 34,280 315 — 34,595 
Residential mortgage-backed securities:
Within 1 year12 — — — 12 304 9 — 313 
After 1 year to 5 years93 2 — — 95 611 3 (1)613 
After 5 years to 10 years2,112 72 — — 2,184 36,893 107 (21)36,979 
Over 10 years77,400 2,041 (61)— 79,380 80,630 378 (453)80,555 
79,617 2,115 (61)— 81,671 118,438 497 (475)118,460 
Collateralized mortgage obligations:
After 5 years to 10 years821 30 — — 851 2,377 6 (22)2,361 
Over 10 years4,982 — (3)— 4,979 — — — — 
5,803 30 (3)— 5,830 2,377 6 (22)2,361 
Corporate bonds:
Within 1 year999 4 — — 1,003 6,012 1 (4)6,009 
After 1 year to 5 years29,751 1,637 (1)(1)31,386 29,606 596 (61)30,141 
After 5 years to 10 years60,000 — (5,159)(691)54,150 — — — — 
Over 10 years— — — — — 60,000 — (4,942)55,058 
90,750 1,641 (5,160)(692)86,539 95,618 597 (5,007)91,208 
Total$191,202 $3,941 $(5,224)$(692)$189,227 $251,014 $1,415 $(5,505)$246,924 

Gross unrealized gains and losses are recognized in accumulated other comprehensive income (loss) and changes in the allowance for credit loss are recorded in provision for credit loss expense. Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties and mortgage-backed securities typically prepay at a rate faster than contractually due.

Securities with a carrying value of $289.6 million and $340.8 million at September 30, 2020 and December 31, 2019, respectively, were pledged to secure public funds deposits and other contractual obligations. In addition, securities of $38.9
million and $12.5 million were pledged to secure credit derivatives and interest rate swaps at September 30, 2020 and December 31, 2019, respectively. See Note 11, "Derivative Instruments and Hedging Activities" for additional information.

The following table presents information related to sales of securities available-for-sale during the nine months ended September 30, 2020 and 2019:
 Nine Months Ended September 30,
(Dollars in thousands)20202019
Securities available-for-sale:
Proceeds from sales$65,621 $24,987 
Gross realized gains on sales831 65 
Gross realized losses on sales14 24 
Tax expense related to net realized gains on sales172 9 

At September 30, 2020 and December 31, 2019, there were no reportable investments in any single issuer representing more than 10% of shareholders’ equity.

The following table shows the fair value of securities that were in an unrealized loss position for which an allowance for credit losses has not been recorded at September 30, 2020 and December 31, 2019, by the length of time those securities were in a continuous loss position.
 Less than
Twelve Months		Twelve Months
or Longer		Total
(Dollars in thousands)Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
At September 30, 2020
Securities Held-to-Maturity
Total$— $— $— $— $— $— 
Securities Available-for-Sale
Residential mortgage-backed securities$8,747 $(60)$32 $(1)$8,779 $(61)
Collateralized mortgage obligations4,979 (3)— — 4,979 (3)
Total$13,726 $(63)$32 $(1)$13,758 $(64)
At December 31, 2019
Securities Held-to-Maturity
Residential mortgage-backed securities$26,767 $(110)$— $— $26,767 $(110)
Total$26,767 $(110)$— $— $26,767 $(110)
Securities Available-for-Sale
U.S. government corporations and agencies$— $— $300 $(1)$300 $(1)
Residential mortgage-backed securities21,827 (62)48,672 (413)70,499 (475)
Collateralized mortgage obligations— — 1,295 (22)1,295 (22)
Corporate bonds998 — 65,506 (5,007)66,504 (5,007)
Total$22,825 $(62)$115,773 $(5,443)$138,598 $(5,505)

At September 30, 2020, the fair value of available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded was $13.8 million, including unrealized losses of $64 thousand. These holdings were comprised of four federal agency mortgage-backed securities, which are U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The Corporation does not intend to sell the securities in an unrealized loss position and is unlikely to be required to sell these securities before a recovery of fair value, which may be maturity. The Corporation concluded that the decline in fair value of these securities was not indicative of a credit loss. The Corporation did not recognize any other-than-temporary impairment charges for the nine months ended September 30, 2019.

At September 30, 2020, no held-to-maturity securities held by the Corporation were in an unrealized loss position. The Corporation did not recognize any credit losses on held-to-maturity debt securities for the nine months ended September 30, 2020 or other-than-temporary impairment charges for the nine months ended September 30, 2019.
The table below presents a rollforward by major security type for the three and nine months ended September 30, 2020 of the allowance for credit losses on securities available-for-sale.

(Dollars in thousands)Corporate Bonds
Three months ended September 30, 2020
Securities Available-for-Sale
Beginning balance$(855)
Additions for securities for which no previous expected credit losses were recognized(1)
Change in securities for which a previous expected credit loss was recognized164 
Ending balance$(692)
Nine months ended September 30, 2020
Securities Available-for-Sale
Beginning balance$— 
Adjustment to initially apply ASU No. 2016-13 for CECL(300)
Additions for securities for which no previous expected credit losses were recognized(1)
Change in securities for which a previous expected credit loss was recognized(391)
Ending balance$(692)

At September 30, 2020, the fair value of available-for-sale securities in an unrealized loss position for which an allowance for credit losses has been recorded was $55.1 million, including unrealized losses of $5.9 million, and allowance for credit losses of $692 thousand. These holdings were comprised of eight investment grade corporate bonds which fluctuate in value based on changes in market conditions, which for these underlying securities was primarily due to changes in the interest rate environment. The Corporation does not have the intent to sell these securities and it is not likely that it will be required to sell the securities before their anticipated recovery. The underlying issuers continue to make timely interest payments on the securities. The Corporation concluded that a portion of decline in the value of these securities was indicative of a credit loss and recorded a provision for credit losses of $392 thousand for the nine months ended September 30, 2020. The Corporation did not record any other-than-temporary impairment charges for the nine months ended September 30, 2019.

The Corporation recognized a $321 thousand net loss and $12 thousand net gain on equity securities during the nine months ended September 30, 2020 and 2019, respectively, in other noninterest income. There were no sales of equity securities during the nine months ended September 30, 2020 or September 30, 2019.