| Securities |
3) Securities The amortized cost and estimated fair value of securities at year-end were as follows: | | | | | | | | | | | | | | | | | | | | Gross | | Gross | | Allowance | | Estimated | | | Amortized | | Unrealized | | Unrealized | | for Credit | | Fair | December 31, 2020 | | Cost | | Gains | | (Losses) | | Losses | | Value | | | | (Dollars in thousands) | Securities available-for-sale: | | | | | | | | | | | | | | | | Agency mortgage-backed securities | | $ | 170,215 | | $ | 5,111 | | $ | — | | $ | — | | $ | 175,326 | U.S. Treasury | | | 59,797 | | | 651 | | | — | | | — | | | 60,448 | Total | | $ | 230,012 | | $ | 5,762 | | $ | — | | $ | — | | $ | 235,774 | | | | | | | | | | | | | | | | | | | | | Gross | | Gross | | Estimated | | Allowance | | | Amortized | | Unrecognized | | Unrecognized | | Fair | | for Credit | December 31, 2020 | | Cost | | Gains | | (Losses) | | Value | | Losses | | | | (Dollars in thousands) | Securities held-to-maturity: | | | | | | | | | | | | | | | | Agency mortgage-backed securities | | $ | 228,652 | | $ | 6,075 | | $ | (230) | | $ | 234,497 | | $ | — | Municipals - exempt from Federal tax | | | 68,791 | | | 1,639 | | | — | | | 70,430 | | | (54) | Total | | $ | 297,443 | | $ | 7,714 | | $ | (230) | | $ | 304,927 | | $ | (54) |
| | | | | | | | | | | | | | | | | Gross | | Gross | | Estimated | | | Amortized | | Unrealized | | Unrealized | | Fair | December 31, 2019 | | Cost | | Gains | | (Losses) | | Value | | | | (Dollars in thousands) | Securities available-for-sale: | | | | | | | | | | | | | Agency mortgage-backed securities | | $ | 283,598 | | $ | 934 | | $ | (171) | | $ | 284,361 | U.S. Treasury | | | 118,939 | | | 1,525 | | | — | | | 120,464 | Total | | $ | 402,537 | | $ | 2,459 | | $ | (171) | | $ | 404,825 | | | | | | | | | | | | | | | | | | Gross | | Gross | | Estimated | | | Amortized | | Unrecognized | | Unrecognized | | Fair | December 31, 2019 | | Cost | | Gains | | (Losses) | | Value | | | | (Dollars in thousands) | Securities held-to-maturity: | | | | | | | | | | | | | Agency mortgage-backed securities | | $ | 285,344 | | $ | 1,206 | | $ | (968) | | $ | 285,582 | Municipals - exempt from Federal tax | | | 81,216 | | | 1,313 | | | (4) | | | 82,525 | Total | | $ | 366,560 | | $ | 2,519 | | $ | (972) | | $ | 368,107 |
Securities with unrealized losses at year end, aggregated by investment category and length of time that individual securities have been in an unrealized loss position are as follows: | | | | | | | | | | | | | | | | | | | | | Less Than 12 Months | | 12 Months or More | | Total | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | December 31, 2020 | | Value | | (Losses) | | Value | | (Losses) | | Value | | (Losses) | | | | (Dollars in thousands) | Securities held-to-maturity: | | | | | | | | | | | | | | | | | | | Agency mortgage-backed securities | | $ | 30,930 | | | (230) | | $ | — | | $ | — | | $ | 30,930 | | $ | (230) | Total | | $ | 30,930 | | $ | (230) | | $ | — | | $ | — | | $ | 30,930 | | $ | (230) |
| | | | | | | | | | | | | | | | | | | | | Less Than 12 Months | | 12 Months or More | | Total | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | December 31, 2019 | | Value | | (Losses) | | Value | | (Losses) | | Value | | (Losses) | | | | (Dollars in thousands) | Securities available-for-sale: | | | | | | | | | | | | | | | | | | | Agency mortgage-backed securities | | $ | 100,816 | | $ | (105) | | $ | 27,534 | | $ | (66) | | $ | 128,350 | | $ | (171) | Total | | $ | 100,816 | | $ | (105) | | $ | 27,534 | | $ | (66) | | $ | 128,350 | | $ | (171) | | | | | | | | | | | | | | | | | | | | Securities held-to-maturity: | | | | | | | | | | | | | | | | | | | Agency mortgage-backed securities | | $ | 50,060 | | $ | (178) | | $ | 88,128 | | $ | (790) | | $ | 138,188 | | $ | (968) | Municipals - exempt from Federal tax | | | 1,556 | | | (4) | | | — | | | — | | | 1,556 | | | (4) | Total | | $ | 51,616 | | $ | (182) | | $ | 88,128 | | $ | (790) | | $ | 139,744 | | $ | (972) |
There were no holdings of securities of any one issuer, other than the U.S. Government and its sponsored entities, in an amount greater than 10% of shareholders’ equity. At December 31, 2020, the Company held 407 securities (116 available-for-sale and 291 held-to-maturity), of which five had fair values below amortized cost. At December 31, 2020, there were $30,930,000 of agency mortgage-backed securities held-to-maturity, carried with an unrealized loss for less than 12 months. The total unrealized loss for securities less than 12 months was ($230,000) at December 31, 2020. The unrealized losses were due to higher interest rates at period end compared to when the securities were purchased. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline. The Company does not believe that it is more likely than not that the Company will be required to sell a security in an unrealized loss position prior to recovery in value. The Company does not consider these securities to have credit-related losses at December 31, 2020. The proceeds from sales of securities and the resulting gains and losses are listed below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2020 | | 2019 | | 2018 | | | | | (Dollars in thousands) | | Proceeds | | $ | 56,598 | | $ | 167,551 | | $ | 94,291 | | Gross gains | | | 277 | | | 1,094 | | | 1,243 | | Gross losses | | | — | | | (433) | | | (977) | |
The amortized cost and fair value of debt securities as of December 31, 2020, by contractual maturity, are shown below. The expected maturities will differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. | | | | | | | | | | Available-for-sale | | | | Amortized | | Estimated | | | | Cost | | Fair Value | | | | | (Dollars in thousands) | | Due 3 months or less | | $ | 14,988 | | $ | 15,039 | | Due after 3 months through one year | | | 44,809 | | | 45,409 | | Agency mortgage-backed securities | | | 170,215 | | | 175,326 | | Total | | $ | 230,012 | | $ | 235,774 | |
| | | | | | | | | | Held-to-maturity | | | | Amortized | | Estimated | | | | Cost | | Fair Value | | | | | (Dollars in thousands) | | Due after 3 months through one year | | $ | 493 | | $ | 499 | | Due after one through five years | | | 10,390 | | | 10,757 | | Due after five through ten years | | | 31,509 | | | 32,149 | | Due after ten years | | | 26,399 | | | 27,025 | | Agency mortgage-backed securities | | | 228,652 | | | 234,497 | | Total | | $ | 297,443 | | $ | 304,927 | |
Securities with amortized cost of $40,238,000 and $32,773,000 as of December 31, 2020 and 2019 were pledged to secure public deposits and for other purposes as required or permitted by law or contract. The table below presents a roll-forward by major security type for the year ended December 31, 2020 of the allowance for credit losses on debt securities held-to-maturity held at period end: | | | | | Municipals | | | (Dollars in thousands) | Beginning balance January 1, 2020 | $ | - | Impact of adopting Topic 326 | | 58 | Provision (credit) for credit loss | | (4) | Ending balance December 31, 2020 | $ | 54 |
For the year ended December 31, 2020, there was a reduction of $4,000 to the allowance for credit losses on the Company’s held-to-maturity municipal investment securities portfolio. This reduction was the result of a reduction in municipal securities amortized balances resulting from regular payments. The bond ratings for the Company’s municipal investment securities at December 31, 2020 were consistent with the ratings at January 1, 2020.
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