Investment Securities

3 Months Ended

Mar. 31, 2020

Investments Debt And Equity Securities [Abstract]

Investment Securities

Note 4. Investment Securities

The carrying amount of investment securities and their approximate fair values are reflected in the following table:

March 31, 2020	Amortized Cost		Unrealized Gains		Unrealized Losses		Allowance for Credit Losses		Fair Value
US treasury securities	$	4,992	$	51	$	—	$	—	$	5,043
US government agencies		22,444		635		—		—		23,079
Mortgage-backed securities		514,899		22,950		558		—		537,291
Municipal bonds		8,479		283		7		—		8,755
Total	$	550,814	$	23,919	$	565	$	—	$	574,168
December 31, 2019
US treasury securities	$	4,988	$	27	$	—	$	—	$	5,015
US government agencies		22,444		335		—		—		22,779
Mortgage-backed securities		488,694		15,530		927		—		503,297
Municipal bonds		8,493		469		8		—		8,954
Total	$	524,619	$	16,361	$	935	$	—	$	540,045

During the three months ended March 31, 2020, two mortgage-backed securities totaling $4.5 million were sold resulting in a net loss of $79 thousand. During the three months ended March 31, 2019, $900 thousand of one municipal bond was sold resulting in a net gain of $5 thousand.

Accrued interest receivable on available-for-sale securities totaled $1.8 million and $1.6 million at March 31, 2020 and December 31, 2019, respectively, and is included in other assets in the accompanying consolidated balance sheet.

The following tables show debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.

	Less Than 12 Months				12 Months or More				Total
March 31, 2020	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	36,320	$	213	$	25,032	$	345	$	61,352	$	558
Municipal bonds		—		—		93		7		93		7
Total	$	36,320	$	213	$	25,125	$	352	$	61,445	$	565
	Less Than 12 Months				12 Months or More				Total
December 31, 2019	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	42,835	$	460	$	36,518	$	467	$	79,353	$	927
Municipal bonds		—		—		92		8		92		8
Total	$	42,835	$	460	$	36,610	$	475	$	79,445	$	935

Management evaluates available-for-sale debt securities to determine whether the unrealized loss is due to credit related factors or non-credit related factors. The evaluation considers the extent to which the security’s fair value is less than cost, the financial condition and near-term prospects of the issuer, and intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

At March 31, 2020, there were fifteen mortgage-backed securities and one municipal bond in unrealized loss positions for greater than 12 months and twelve mortgage-backed securities in unrealized loss positions for less than 12 months. Unrealized losses at December 31, 2019 were comprised of twenty-two mortgage-backed securities and one municipal bond in unrealized loss positions for greater than 12 months and twenty mortgage-backed securities in unrealized loss positions for less than 12 months.

These unrealized losses are primarily the result of non-credit related volatility in the market and market interest rates. Since none of the unrealized losses relate to marketability of the securities or the issuer’s ability to honor redemption obligations and the Company has the intent and ability to hold the securities for a sufficient period of time to recover unrealized losses, none of the losses have been recognized in the Company’s consolidated statements of income.

All mortgage-backed securities in the Company’s portfolio at March 31, 2020 and December 31, 2019 were backed by U.S. government sponsored enterprises (“GSEs”).

The following is a summary of investment securities by maturity:

	March 31, 2020
	Amortized cost		Fair value
US treasury securities
Within one year	$	4,992	$	5,043
Total		4,992		5,043
US government agencies
Within one year		7,007		7,070
One to five years		12,518		12,901
Five to ten years		2,919		3,108
Total		22,444		23,079
Mortgage-backed securities
One to five years		4,700		4,853
Five to ten years		178,652		191,718
After 10 years		331,547		340,720
Total		514,899		537,291
Municipal bonds
After 10 years		8,479		8,755
Total		8,479		8,755
Total	$	550,814	$	574,168

The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may repay sooner than scheduled.

There were no securities pledged at March 31, 2020 or December 31, 2019.