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INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES
Investment Securities Available for Sale
Investment securities as of September 30, 2020 and December 31, 2019 were as follows:​
​September 30, 2020
(dollars in thousands)Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Allowance
for credit
losses on
investments		Fair
value
Investment securities available for sale​​​​​
U.S. government sponsored entities and U.S. agency securities
$32,276 $461 $20 $— $32,717 
Mortgage-backed securities - agency282,389 6,796 6 — 289,179 
Mortgage-backed securities - non-agency23,712 260 — — 23,972 
State and municipal securities120,998 7,009 3 2 128,002 
Corporate securities136,652 1,375 1,760 306 135,961 
Total available for sale securities$596,027 $15,901 $1,789 $308 $609,831 
​December 31, 2019
(dollars in thousands)Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Allowance
for credit
losses on
investments		Fair
value
Investment securities available for sale​​​​​
U.S. government sponsored entities and U.S. agency securities
$59,600 $442 $22 N/A$60,020 
Mortgage-backed securities - agency321,840 3,368 234 N/A324,974 
Mortgage-backed securities - non-agency17,198 3 53 N/A17,148 
State and municipal securities119,371 5,195 11 N/A124,555 
Corporate securities121,159 2,131 554 N/A122,736 
Total available for sale securities$639,168 $11,139 $874 N/A$649,433 
​
The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at September 30, 2020. Expected maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be prepaid without penalties. The maturities of all other investment securities available for sale are based on final contractual maturity.​
(dollars in thousands)Amortized
cost		Fair
value
Investment securities available for sale​​
Within one year$28,407 $28,730 
After one year through five years63,844 66,583 
After five years through ten years171,593 173,883 
After ten years26,082 27,484 
Mortgage-backed securities306,101 313,151 
Total available for sale securities$596,027 $609,831 
​
Proceeds and gross realized gains and losses on sales on investment securities available for sale for the three and nine months ended September 30, 2020 and 2019 are summarized as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(dollars in thousands)2020201920202019
Investment securities available for sale
Proceeds from sales(1)
$28,256 $1,025 $28,256 $29,490 
Gross realized gains on sales1,721 25 1,721 151 
Gross realized losses on sales— — — (190)
_____________________________________________________
(1)Proceeds from sales of investment securities available for sale as of September 30, 2020 were pending settlement.
The table below presents a rollforward by major security type for the three and nine months ended September 30, 2020 of the ACL on investment securities available for sale held at period end:​
(dollars in thousands)State and municipal
securities		Corporate
securities
Change in allowance for credit losses on investment securities for the three months ended September 30, 2020:
Balance, beginning of period$1 $126 
Additions1 243 
Reductions— (63)
Balance, end of period$2 $306 
Change in allowance for credit losses on investment securities for the nine months ended September 30, 2020:
Balance, beginning of period$— $— 
Impact of adopting ASC 326— — 
Additions20 389 
Reductions(18)(83)
Balance, end of period$2 $306 
Unrealized losses and fair values for investment securities available for sale as of September 30, 2020, for which an ACL has not been recorded, and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:​
​September 30, 2020
​Less than 12 Months12 Months or moreTotal
(dollars in thousands)Fair
value		Unrealized
loss		Fair
value		Unrealized
loss		Fair
value		Unrealized
loss
Investment securities available for sale
U.S. government sponsored entities and U.S. agency securities$9,980 $20 $— $— $9,980 $20 
Mortgage-backed securities - agency2,502 6 — — 2,502 6 
Corporate securities27,916 868 — — 27,916 868 
Total available for sale securities$40,398 $894 $— $— $40,398 $894 
​
​December 31, 2019
​Less than 12 Months12 Months or moreTotal
(dollars in thousands)Fair
value		Unrealized
loss		Fair
value		Unrealized
loss		Fair
value		Unrealized
loss
Investment securities available for sale​​​​​​
U.S. government sponsored entities and U.S. agency securities
$7,200 $22 $— $— $7,200 $22 
Mortgage-backed securities - agency75,336 170 7,170 64 82,506 234 
Mortgage-backed securities - non-agency11,059 53 — — 11,059 53 
State and municipal securities1,813 11 — — 1,813 11 
Corporate securities20,269 481 3,915 73 24,184 554 
Total available for sale securities$115,677 $737 $11,085 $137 $126,762 $874 
​
For all of the above investment securities, the unrealized losses are generally due to changes in interest rates and other market conditions, and unrealized losses are considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates.
At September 30, 2020, 16 investment securities available for sale had unrealized losses with aggregate depreciation of 2.17% from their amortized cost basis. The unrealized losses related principally to the fluctuations in the current rate environment. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal
government or its agencies and whether downgrades by bond rating agencies have occurred. The Company does not intend to sell and it is likely that the Company will not be required to sell the securities prior to their anticipated recovery.
Equity Securities
Equity securities are recorded at fair value and totaled $9.1 million and $5.6 million at September 30, 2020 and December 31, 2019, respectively.
Proceeds and gross realized gains on sales of equity securities as well as net unrealized gains on equity securities for the three and nine months ended September 30, 2020 and 2019 are summarized as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(dollars in thousands)2020201920202019
Equity securities
Proceeds from sales$— $— $— $105 
Gross realized gains on sales— — — 78 
Net unrealized gains135 54 317 92 
Net unrealized gains on equity securities were recorded as other income in the consolidated statements of income.