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Investment Securities
 12 Months Ended
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities
 
The amortized cost and estimated fair value of securities were as follows:
 
 
December 31, 2017
 
 
Amortized
Cost
 
Unrealized
Gain
 
Unrealized
Loss
 
Estimated
Fair Value
 
 
(dollars in thousands)
Investment securities available-for-sale
 
 

 
 
 
 
 
 
Agency
 
$
47,051

 
$
236

 
$
(78
)
 
$
47,209

Corporate
 
78,155

 
1,585

 
(194
)
 
79,546

Municipal bonds
 
228,929

 
3,942

 
(743
)
 
232,128

Collateralized mortgage obligation: residential
 
33,984

 
132

 
(335
)
 
33,781

Mortgage-backed securities: residential
 
398,664

 
266

 
(4,165
)
 
394,765

Total investment securities available-for-sale
 
786,783

 
6,161

 
(5,515
)
 
787,429

Investment securities held-to-maturity
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
 
17,153

 
—

 
(209
)
 
16,944

Other
 
1,138

 
—

 
—

 
1,138

Total investment securities held-to-maturity
 
18,291

 
—

 
(209
)
 
18,082

Total investment securities
 
$
805,074

 
$
6,161

 
$
(5,724
)
 
$
805,511

 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
Amortized
 
Unrealized
 
Unrealized
 
Estimated
 
 
Cost
 
Gain
 
Loss
 
Fair Value
 
 
(dollars in thousands)
Investment securities available-for-sale
 
 

 
 

 
 

 
 

Corporate
 
$
37,475

 
$
372

 
$
(205
)
 
$
37,642

Municipal bonds
 
120,155

 
338

 
(1,690
)
 
118,803

Collateralized mortgage obligation: residential
 
31,536

 
25

 
(173
)
 
31,388

Mortgage-backed securities: residential
 
196,496

 
69

 
(3,435
)
 
193,130

Total investment securities available-for-sale
 
385,662

 
804

 
(5,503
)
 
380,963

Investment securities held-to-maturity
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
 
7,375

 
—

 
(104
)
 
7,271

Other
 
1,190

 
—

 
—

 
1,190

Total investment securities held-to-maturity
 
8,565

 
—

 
(104
)
 
8,461

Total investment securities
 
$
394,227

 
$
804

 
$
(5,607
)
 
$
389,424

 
 
Unrealized gains and losses on investment securities available-for-sale are recognized in stockholders’ equity as accumulated other comprehensive income or loss. At December 31, 2017, the Company had accumulated other comprehensive income of $646,000, or $415,000 net of tax, compared to accumulated other comprehensive loss of $4.7 million or $2.7 million net of tax, at December 31, 2016. 

At December 31, 2017, mortgage-backed securities with an estimated par value of $55.6 million and a fair value of $57.0 million were pledged as collateral for the Bank’s three inverse putable reverse repurchase agreements which totaled $28.5 million and HOA reverse repurchase agreements which totaled $17.6 million.

At December 31, 2017 and 2016, there were not holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity.
 
The Company reviews individual securities classified as available-for-sale to determine whether a decline in fair value below the amortized cost basis is temporary (i) those declines were due to interest rate changes and not to a deterioration in the creditworthiness of the issuers of those investment securities, and (ii) we have the ability to hold those securities until there is a recovery in their values or until their maturity.

If it is probable that the Company will be unable to collect all amounts due according to contractual terms of the debt security not impaired at acquisition, an other-than-temporary impairment shall be considered to have occurred. If an OTTI occurs, the cost basis of the security will be written down to its fair value as the new cost basis and the write down accounted for as a realized loss. 

The Company realized OTTI recovery of $2,000 as of December 31, 2017, which relates to investment income from previously charged-off investments. As of December 31, 2016, the Company realized OTTI losses net of recoveries of $205,000. A $207,000 OTTI was taken in the first quarter of 2016, related to a CRA investment purchased in June of 2014 with a par value of $50, and a book value of $500,000. In March of 2016, the shareholders of the investment voted to approve a sale of the institution at a per share acquisition price less than the Bank's book value, and the sale closed in July 2016. The Company is currently waiting to receive the proceeds for its outstanding shares. As a result, the Bank's current holdings were written down and the loss recognized. The Company did not realize any OTTI losses in 2015.

The table below shows the number, fair value and gross unrealized holding losses of the Company’s investment securities by investment category and length of time that the securities have been in a continuous loss position.
 
December 31, 2017
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
(dollars in thousands)
Investment securities available-for-sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
6

 
$
13,754

 
$
(78
)
 
—

 
$
—

 
$
—

 
6

 
$
13,754

 
$
(78
)
Corporate
4

 
10,079

 
(64
)
 
2

 
6,076

 
(130
)
 
6

 
16,155

 
(194
)
Municipal bonds
103

 
61,313

 
(268
)
 
30

 
15,658

 
(475
)
 
133

 
76,971

 
(743
)
Collateralized mortgage obligation: residential
5

 
13,971

 
(149
)
 
3

 
8,943

 
(186
)
 
8

 
22,914

 
(335
)
Mortgage-backed securities: residential
66

 
220,951

 
(1,600
)
 
41

 
110,062

 
(2,565
)
 
107

 
331,013

 
(4,165
)
Total investment securities available-for-sale
184

 
320,068

 
(2,159
)
 
76

 
140,739

 
(3,356
)
 
260

 
460,807

 
(5,515
)
Investment securities held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
2

 
10,745

 
(133
)
 
1

 
6,198

 
(76
)
 
3

 
16,943

 
(209
)
Total investment securities held-to-maturity
2

 
10,745

 
(133
)
 
1

 
6,198

 
(76
)
 
3

 
16,943

 
(209
)
Total investment securities
186

 
$
330,813

 
$
(2,292
)
 
77

 
$
146,937

 
$
(3,432
)
 
263

 
$
477,750

 
$
(5,724
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
Less than 12 months
 
12 months or Longer
 
Total
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
Number
 
Fair
Value
 
Gross
Unrealized
Holding
Losses
 
(dollars in thousands)
Investment securities available-for-sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
3

 
$
7,609

 
$
(205
)
 
—

 
$
—

 
$
—

 
3

 
$
7,609

 
$
(205
)
Municipal bonds
152

 
85,750

 
(1,690
)
 
—

 
—

 
—

 
152

 
85,750

 
(1,690
)
Collateralized mortgage obligation: residential
5

 
19,092

 
(173
)
 
—

 
—

 
—

 
5

 
19,092

 
(173
)
Mortgage-backed securities: residential
55

 
149,740

 
(2,916
)
 
4

 
16,039

 
(519
)
 
59

 
165,779

 
(3,435
)
Total available-for-sale
215

 
262,191

 
(4,984
)
 
4

 
16,039

 
(519
)
 
219

 
278,230

 
(5,503
)
Investment securities held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities: residential
1

 
7,271

 
(104
)
 
—

 
—

 
—

 
1

 
7,271

 
(104
)
Total held-to-maturity
1

 
7,271

 
(104
)
 
—

 
—

 
—

 
1

 
7,271

 
(104
)
Total securities
216

 
$
269,462

 
$
(5,088
)
 
4

 
$
16,039

 
$
(519
)
 
220

 
$
285,501

 
$
(5,607
)


The amortized cost and estimated fair value of investment securities available for sale at December 31, 2017, by contractual maturity are shown in the table below.
 
 
 
One Year
or Less
 
More than One
Year to Five Years
 
More than Five Years
to Ten Years
 
More than
Ten Years
 
Total
 
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
 
(dollars in thousands)
Investment securities available-for-sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
$
—

 
$
—

 
$
—

 
$
—

 
$
15,156

 
$
15,164

 
$
31,895

 
$
32,045

 
$
47,051

 
$
47,209

Corporate
 
—

 
—

 
—

 
—

 
78,155

 
79,546

 
—

 
—

 
78,155

 
79,546

Municipal bonds
 
4,124

 
4,121

 
32,390

 
32,424

 
72,845

 
73,312

 
119,570

 
122,271

 
228,929

 
232,128

Collateralized mortgage obligation: residential
 
—

 
—

 
—

 
—

 
1,069

 
1,071

 
32,915

 
32,710

 
33,984

 
33,781

Mortgage-backed securities: residential
 
2,591

 
2,583

 
2,647

 
2,611

 
65,541

 
65,014

 
327,885

 
324,557

 
398,664

 
394,765

Total investment securities available-for-sale
 
6,715

 
6,704

 
35,037

 
35,035

 
232,766

 
234,107

 
512,265

 
511,583

 
786,783

 
787,429

Investment securities held-to-maturity
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Mortgage-backed securities: residential
 
—

 
—

 
—

 
—

 
—

 
—

 
17,153

 
16,944

 
17,153

 
16,944

Other
 
—

 
—

 
—

 
—

 
—

 
—

 
1,138

 
1,138

 
1,138

 
1,138

Total investment securities held-to-maturity
 
—

 
—

 
—

 
—

 
—

 
—

 
18,291

 
18,082

 
18,291

 
18,082

Total investment securities
 
$
6,715

 
$
6,704

 
$
35,037

 
$
35,035

 
$
232,766

 
$
234,107

 
$
530,556

 
$
529,665

 
$
805,074

 
$
805,511



During the years ended December 31, 2017, 2016 and 2015, the Company recognized gross gains on sales of available-for-sale securities in the amount of $3.1 million, $1.8 million and $317,000, respectively. During the years ended December 31, 2017, 2016 and 2015, the Company recognized gross losses on sales of available-for-sale securities in the amount of $386,000, $9,000 and $27,000, respectively. The Company had net proceeds from the sale or maturity/call of available-for-sale securities of $269 million, $231 million and $28 million during the years ended December 31, 2017, 2016 and 2015, respectively.

FHLB, FRB and other stock

At December 31, 2017, the Company had $17.3 million in FHLB stock, $25.3 million in FRB stock, and $23.3 million in other stock, all carried at cost. During the years ended December 31, 2017 and 2015, FHLB had repurchased $10.3 million and $16.4 million, respectively, of the Company’s excess FHLB stock through their stock repurchase program. During the year ended December 31, 2016, FHLB did not repurchase any of the Company’s excess FHLB stock through their stock repurchase program. The Company evaluates its investments in FHLB and other stock for impairment periodically, including their capital adequacy and overall financial condition. No impairment losses have been recorded through December 31, 2017.