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Securities
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
SECURITIES
The following table presents the fair values of our securities portfolio at the dates presented:
 
December 31,
 
2018
 
2017
Debt securities available-for-sale
 
$
680,056

 
 
$
693,147

Marketable equity securities
 
4,816

 
 
5,144

Total Securities
 
$
684,872

 
 
$
698,291

Debt Securities Available-for-Sale
The following tables present the amortized cost and fair value of debt securities available-for-sale as of December 31, 2018 and debt and equity securities available-for-sale as of December 31, 2017.
 
 
December 31, 2018
 
 
December 31, 2017
(dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
U.S. Treasury securities
 
$
9,958

 
$
—

 
$
(222
)
 
$
9,736

 
 
$
19,943

 
$
—

 
$
(154
)
 
$
19,789

Obligations of U.S. government corporations and agencies
 
129,267

 
68

 
(1,074
)
 
128,261

 
 
162,045

 
341

 
(193
)
 
162,193

Collateralized mortgage obligations of U.S. government corporations and agencies
 
149,849

 
795

 
(1,985
)
 
148,659

 
 
109,916

 
93

 
(1,321
)
 
108,688

Residential mortgage-backed securities of U.S. government corporations and agencies
 
24,564

 
203

 
(417
)
 
24,350

 
 
32,388

 
679

 
(213
)
 
32,854

Commercial mortgage-backed securities of U.S. government corporations and agencies(1)
 
251,660

 
—

 
(4,876
)
 
246,784

 
 
244,018

 
247

 
(2,044
)
 
242,221

Obligations of states and political subdivisions
 
119,872

 
2,448

 
(54
)
 
122,266

 
 
123,159

 
4,285

 
(42
)
 
127,402

Total Debt Securities Available-for-Sale
 
685,170

 
3,514

 
(8,628
)
 
680,056

 
 
691,469

 
5,645

 
(3,967
)
 
693,147

Total equity securities(2)
 
—

 
—

 
—

 
—

 
 
3,815

 
1,330

 
(1
)
 
5,144

Total
 
$
685,170

 
$
3,514

 
$
(8,628
)
 
$
680,056

 
 
$
695,284

 
$
6,975

 
$
(3,968
)
 
$
698,291


(1)Includes a $5.9 million security purchase that was pending settlement as of December 31, 2017.
(2)ASU No. 2016-01 was adopted January 1, 2018, resulting in separate classification of our marketable equity securities previously included in available-for-sale securities.
The following table shows the composition of gross and net realized gains and losses for the periods presented:
 
 
Years ended December 31,
(dollars in thousands)
2018
 
 
2017
 
 
2016
 
Gross realized gains
 
$
—

 
 
$
3,986

 
 
$
—

Gross realized losses
 
—

 
 
(986
)
 
 
—

Net Realized Gains
 
$
—

 
 
$
3,000

 
 
$
—


The following tables present the fair value and the age of gross unrealized losses on debt securities available-for-sale by investment category as of the dates presented:
 
December 31, 2018
 
Less Than 12 Months
 
12 Months or More
 
 
 
Total
(dollars in thousands)
Number
of
Securities

 
Fair
Value

Unrealized
Losses
 
 
Number
of
Securities

 
Fair
Value

Unrealized
Losses
 
 
Number
of
Securities

 
Fair
Value

Unrealized
Losses
 
U.S. Treasury securities
—

 
$
—

 
$
—

 
1

 
$
9,736

 
$
(222
)
 
1

 
$
9,736

 
$
(222
)
Obligations of U.S. government corporations and agencies
7

 
67,649

 
(613
)
 
6

 
35,760

 
(461
)
 
13

 
103,409

 
(1,074
)
Collateralized mortgage obligations of U.S. government corporations and agencies
2

 
12,495

 
(44
)
 
14

 
76,179

 
(1,941
)
 
16

 
88,674

 
(1,985
)
Residential mortgage-backed securities of U.S. government corporations and agencies
2

 
2,327

 
(45
)
 
3

 
9,241

 
(372
)
 
5

 
11,568

 
(417
)
Commercial mortgage-backed securities of U.S. government corporations and agencies
8

 
75,466

 
(1,032
)
 
19

 
171,318

 
(3,844
)
 
27

 
246,784

 
(4,876
)
Obligations of states and political subdivisions
2

 
9,902

 
(23
)
 
1

 
5,247

 
(31
)
 
3

 
15,149

 
(54
)
Total Temporarily Impaired Debt Securities
21

 
$
167,839

 
$
(1,757
)
 
44

 
$
307,481

 
$
(6,871
)
 
65

 
$
475,320

 
$
(8,628
)
 
December 31, 2017
 
Less Than 12 Months
 
12 Months or More
 
 
 
Total
(dollars in thousands)
Number
of
Securities

 
Fair 
Value

Unrealized
Losses
 
 
Number
of
Securities

 
Fair
Value

Unrealized
Losses
 
 
Number
of
Securities

 
Fair
Value

Unrealized
Losses
 
U.S. Treasury securities
3

 
$
19,789

 
$
(154
)
 
—

 
$
—

 
$
—

 
3

 
$
19,789

 
$
(154
)
Obligations of U.S. government corporations and agencies
9

 
63,635

 
(144
)
 
1

 
10,017

 
(49
)
 
10

 
73,652

 
(193
)
Collateralized mortgage obligations of U.S. government corporations and agencies
7

 
47,465

 
(248
)
 
7

 
45,809

 
(1,073
)
 
14

 
93,274

 
(1,321
)
Residential mortgage-backed securities of U.S. government corporations and agencies
1

 
2,333

 
(10
)
 
2

 
8,638

 
(203
)
 
3

 
10,971

 
(213
)
Commercial mortgage-backed securities of U.S. government corporations and agencies
14

 
128,300

 
(775
)
 
5

 
48,746

 
(1,269
)
 
19

 
177,046

 
(2,044
)
Obligations of states and political subdivisions
2

 
10,330

 
(42
)
 
—

 
—

 
—

 
2

 
10,330

 
(42
)
Total Temporarily Impaired Debt Securities
36

 
$
271,852

 
$
(1,373
)
 
15

 
$
113,210

 
$
(2,594
)
 
51

 
$
385,062

 
$
(3,967
)

We do not believe any individual unrealized loss as of December 31, 2018 represents an other-than-temporary impairment, or OTTI. At December 31, 2018, there were 65 debt securities and at December 31, 2017 there were 51 debt securities in an unrealized loss position. The unrealized losses on debt securities were primarily attributable to changes in interest rates and not related to the credit quality of the issuers. All debt securities are determined to be investment grade and paying principal and interest according to the contractual terms of the security. We do not intend to sell and it is more likely than not that we will not be required to sell any of the securities in an unrealized loss position before recovery of their amortized cost.
The following table presents net unrealized gains and losses, net of tax, on debt securities available-for-sale included in accumulated other comprehensive income/(loss), for the periods presented:
 
December 31, 2018
 
December 31, 2017
(dollars in thousands)
Gross Unrealized Gains

 
Gross Unrealized Losses

 
Net Unrealized Gains (Losses)

 
Gross Unrealized Gains

 
Gross Unrealized Losses

 
Net Unrealized Gains (Losses)

Total unrealized gains/(losses) on debt securities available-for-sale(1)
$
3,514

 
$
(8,628
)
 
$
(5,114
)
 
$
6,975

 
$
(3,968
)
 
$
3,007

Income tax (expense) benefit
(746
)
 
1,832

 
1,086

 
(2,450
)
 
1,394

 
(1,056
)
Net Unrealized Gains/(Losses), Net of Tax Included in Accumulated Other Comprehensive Income/(Loss)
$
2,768

 
$
(6,796
)
 
$
(4,028
)
 
$
4,525

 
$
(2,574
)
 
$
1,951


(1)Gross unrealized gains and losses of $0.9 million at December 31, 2017 have been restated to reflect the reclassifications from OCI to retained earnings due to the adoption of ASU No. 2016-01
The amortized cost and fair value of debt securities available-for-sale at December 31, 2018 by contractual maturity are included in the table below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
 
December 31, 2018
(dollars in thousands)
Amortized
Cost

 
Fair Value

Obligations of the U.S. Treasury, U.S. government corporations and agencies, and obligations of states and political subdivisions
 
 
 
Due in one year or less
$
11,137

 
$
11,155

Due after one year through five years
157,986

 
157,921

Due after five years through ten years
61,489

 
62,017

Due after ten years
28,485

 
29,170

Debt Securities Available-for-Sale With Maturities
259,097

 
260,263

Collateralized mortgage obligations of U.S. government corporations and agencies
149,849

 
148,659

Residential mortgage-backed securities of U.S. government corporations and agencies
24,564

 
24,350

Commercial mortgage-backed securities of U.S. government corporations and agencies
251,660

 
246,784

Total Debt Securities Available-for-Sale
$
685,170

 
$
680,056


At December 31, 2018 and 2017, debt securities with carrying values of $236 million and $249 million were pledged for various regulatory and legal requirements.
Marketable Equity Securities
The following table presents realized and unrealized net gains and losses for our marketable equity securities for the periods presented:
 
Years ended December 31,
(dollars in thousands)
2018

 
2017

 
2016

Marketable Equity Securities
 
 
 
 
 
Net market (losses)/gains
$
1,001

 
$
5,316

 
$
3,670

Less: Net gains for equity securities sold
—

 
3,987

 
—

Unrealized Gains on Equity Securities Still Held
$
1,001

 
$
1,329

 
$
3,670


Prior to January 1, 2018, net unrealized gains and losses, net of tax, on marketable equity securities were included in AOCI for the periods presented. Net unrealized gains and losses, net of tax, on marketable equity securities of $0.9 million were reclassified from AOCI to retained earnings at January 1, 2018. As of January 1, 2018, gains and losses on marketable equity securities are included in other noninterest income on the Consolidated Statements of Net Income.