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Securities
 9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities
 
 
September 30, 2019
(Dollar amounts in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
U.S. Government agencies
 
$
105,115

 
$
2,205

 
$
(44
)
 
$
107,276

Mortgage Backed Securities - residential
 
214,486

 
2,558

 
(308
)
 
216,736

Mortgage Backed Securities - commercial
 
24,193

 
231

 
—

 
24,424

Collateralized mortgage obligations
 
306,699

 
2,243

 
(904
)
 
308,038

State and municipal obligations
 
257,889

 
11,842

 
(75
)
 
269,656

Municpal taxable
 
731

 
1

 
—

 
732

U.S. Treasury
 
9,471

 
7

 
—

 
9,478

Collateralized debt obligations
 
7

 
3,597

 
—

 
3,604

TOTAL
 
$
918,591

 
$
22,684

 
$
(1,331
)
 
$
939,944

 
 
December 31, 2018
(Dollar amounts in thousands)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
U.S. Government agencies
 
$
25,617

 
$
218

 
$
(471
)
 
$
25,364

Mortgage Backed Securities-residential
 
182,050

 
723

 
(4,030
)
 
178,743

Collateralized mortgage obligations
 
352,823

 
217

 
(9,424
)
 
343,616

State and municipal obligations
 
232,457

 
2,767

 
(1,289
)
 
233,935

Collateralized debt obligations
 
137

 
3,121

 
—

 
3,258

TOTAL
 
$
793,084

 
$
7,046

 
$
(15,214
)
 
$
784,916


 
Contractual maturities of debt securities at September 30, 2019 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and equity securities are shown separately.
 
 
Available-for-Sale
 
 
Amortized
 
Fair
(Dollar amounts in thousands)
 
Cost
 
Value
Due in one year or less
 
$
17,600

 
$
17,633

Due after one but within five years
 
64,741

 
65,565

Due after five but within ten years
 
73,343

 
75,416

Due after ten years
 
217,529

 
232,132

 
 
373,213

 
390,746

Mortgage-backed securities and collateralized mortgage obligations
 
545,378

 
549,198

TOTAL
 
$
918,591

 
$
939,944


 
There were $6 thousand and $24 thousand in gross gains and zero and $6 thousand in losses from investment sales/calls realized by the Corporation for the three and nine months ended September 30, 2019. For the three and nine months ended September 30, 2018 there were $3 thousand and $5 thousand in gross gains and no losses on sales of investment securities.
 
The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at September 30, 2019 and December 31, 2018. 
 
 
September 30, 2019
 
 
Less Than 12 Months
 
More Than 12 Months
 
Total
 
 
 
 
Unrealized
 
 
 
Unrealized
 
 
 
Unrealized
(Dollar amounts in thousands)
 
Fair Value
 
Losses
 
Fair Value
 
Losses
 
Fair Value
 
Losses
U.S. Government agencies
 
$
9,362

 
$
(44
)
 
$
—

 
$
—

 
$
9,362

 
$
(44
)
Mortgage Backed Securities - Residential
 
$
34,500

 
$
(129
)
 
$
22,585

 
$
(179
)
 
$
57,085

 
$
(308
)
Collateralized mortgage obligations
 
60,615

 
(186
)
 
65,977

 
(718
)
 
126,592

 
(904
)
State and municipal obligations
 
11,015

 
(37
)
 
459

 
(38
)
 
11,474

 
(75
)
U.S. Treasury
 
1,993

 
—

 
—

 
—

 
1,993

 
—

Total temporarily impaired securities
 
$
117,485

 
$
(396
)
 
$
89,021

 
$
(935
)
 
$
206,506

 
$
(1,331
)
 
 
 
December 31, 2018
 
 
Less Than 12 Months
 
More Than 12 Months
 
Total
 
 
 
 
Unrealized
 
 
 
Unrealized
 
 
 
Unrealized
(Dollar amounts in thousands)
 
Fair Value
 
Losses
 
Fair Value
 
Losses
 
Fair Value
 
Losses
US Government Agencies
 
$
3,052

 
$
(4
)
 
$
11,356

 
$
(467
)
 
$
14,408

 
$
(471
)
Mortgage Backed Securities - Residential
 
$
39,997

 
$
(553
)
 
$
111,423

 
$
(3,477
)
 
$
151,420

 
$
(4,030
)
Collateralized mortgage obligations
 
52,838

 
(455
)
 
241,373

 
(8,969
)
 
294,211

 
(9,424
)
State and municipal obligations
 
34,229

 
(276
)
 
41,742

 
(1,013
)
 
75,971

 
(1,289
)
Total temporarily impaired securities
 
$
130,116

 
$
(1,288
)
 
$
405,894

 
$
(13,926
)
 
$
536,010

 
$
(15,214
)

 
Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under FASB ASC 320, Investments - Debt and Equity Securities. However, certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, that had credit ratings at the time of purchase of below AA are evaluated using the model outlined in FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets.
 
When OTTI occurs under either model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment.

Gross unrealized losses on investment securities were $1.3 million as of September 30, 2019 and $15.2 million as of December 31, 2018. A majority of these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer. Based upon our review of the issuers, we do not believe these investments to be other than temporarily impaired. Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery.

There is one remaining collateralized debt obligations security with previously recorded OTTI but there was no additional OTTI recorded in 2019 or 2018. During the quarter ended June 30, 2018, an obligation was called, resulting in the elimination of the OTTI associated with that obligation. A recovery of previously recorded OTTI of $4.2 million was received and recognized in non-interest income for the period. In addition the Corporation received $2.4 million of interest income associated with the call.

The table below presents a rollforward of the credit losses recognized in earnings for the three and nine month periods ended September 30, 2019 and 2018:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(Dollar amounts in thousands)
 
2019
 
2018
 
2019
 
2018
Beginning balance
 
$
2,974

 
$
2,974

 
$
2,974

 
$
7,132

Increases to the amount related to the credit
 
 

 
 

 
 

 
 

Loss for which other-than-temporary was previously recognized
 
—

 
—

 
—

 
—

Reductions for increases in cash flows collected
 
—

 
—

 
—

 
—

Reductions for securities called during the period
 
—

 
—

 
—

 
(4,158
)
Ending balance
 
$
2,974

 
$
2,974

 
$
2,974

 
$
2,974