Securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

The carrying values of investment securities at March 31, 2020 and December 31, 2019 are summarized in the following table (dollars in thousands):



	March 31, 2020				December 31, 2019
	Amount		Percent		Amount		Percent
Securities available for sale
U.S. Treasury	$	148,740	40.00	%	$	128,585	36.19	%
Other securities (FHLB, FHLMC and FNMA)	12,826		3.45		15,229		4.29
State and political subdivisions	210,273		56.55		211,489		59.52
Total securities available for sale	$	371,839	100.00	%	$	355,303	100.00	%

Investment securities have been classified in the consolidated balance sheets according to management’s intent. Available-for-sale securities consist of debt securities not classified as trading or held to maturity. Available-for-sale securities are stated at fair value, and unrealized holding gains and losses, net of the related deferred tax effect, are reported as a separate component of stockholders' equity. There were no trading or held to maturity securities as of March 31, 2020 or December 31, 2019. The carrying amount of available-for-sale securities and their approximate fair values were as follows as of March 31, 2020 and December 31, 2019 (in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
March 31, 2020:
U.S. Treasury	$	142,669	$	6,071	$	—		$	148,740
Other securities (FHLB, FHLMC and FNMA)	12,775		51		—			12,826
State and political subdivisions	211,607		1,135		(2,469		)	210,273
Total	$	367,051	$	7,257	$	(2,469	)	$	371,839
December 31, 2019:
U.S. Treasury	$	127,096	$	1,626	$	(137	)	$	128,585
Other securities (FHLB, FHLMC and FNMA)	15,287		—		(58		)	15,229
State and political subdivisions	208,686		2,938		(135		)	211,489
Total	$	351,069	$	4,564	$	(330	)	$	355,303

The amortized cost and estimated fair value of available-for-sale securities classified according to their contractual maturities at March 31, 2020, were as follows (in thousands):



	Amortized Cost		Fair Value
Due in one year or less	$	65,163	$	65,416
Due after one year through five years	206,921		212,657
Due after five years through ten years	82,468		81,957
Due over ten years	12,499		11,809
Total	$	367,051	$	371,839

As of March 31, 2020 investment securities with a carrying value of $13.51 million were pledged to collateralize derivative financial instruments and other borrowings.

Sales proceeds and gross realized gains and losses on available-for-sale securities were as follows (in thousands):



	March 31, 2020		March 31, 2019
Sales proceeds	$	313	$	—
Gross realized gains	10		—
Gross realized losses	—		—

The following table shows the fair value, gross unrealized losses and the percentage of fair value represented by gross unrealized losses of applicable investment securities owned by the Company, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2020 and December 31, 2019 (in thousands):



	Less than 12 months								12 months or more								Total
March 31, 2020 Description of Securities	#	Fair Value		Unrealized Loss			%		#	Fair Value		Unrealized Loss			%		#	Fair Value		Unrealized Loss			%
U.S. Treasury	—	$	—	$	—		—	%	—	$	—	$	—		—	%	—	$	—	$	—		—	%

Other securities (FHLB, FHLMC and FNMA)	—	—		—			—		—	—		—			—		—	—		—			—

State and political subdivisions	381	101,743		(2,460		)	2.42		9	1,086		(9		)	0.83		390	102,829		(2,469		)	2.40

Total temporarily impaired securities	381	$	101,743	$	(2,460	)	2.42	%	9	$	1,086	$	(9	)	0.83	%	390	$	102,829	$	(2,469	)	2.40	%



	Less than 12 months								12 months or more								Total
December 31, 2019 Description of Securities	#	Fair Value		Unrealized Loss			%		#	Fair Value		Unrealized Loss			%		#	Fair Value		Unrealized Loss			%
U.S. Treasury	11	$	27,932	$	(136	)	0.49	%	1	$	2,495	$	(1	)	0.04	%	12	$	30,427	$	(137	)	0.45	%

Other securities (FHLB, FHLMC and FNMA)	—	—		—			—		6	15,229		(58		)	0.38		6	15,229		(58		)	0.38

State and political subdivisions	66	17,881		(119		)	0.67		20	3,825		(16		)	0.42		86	21,706		(135		)	0.62

Total temporarily impaired securities	77	$	45,813	$	(255	)	0.56	%	27	$	21,549	$	(75	)	0.35	%	104	$	67,362	$	(330	)	0.49	%

The Company considered the following information in reaching the conclusion that the impairments disclosed in the table above are temporary and not other-than-temporary impairments. None of the unrealized losses in the above table was due to the deterioration in the credit quality of any of the issues that might result in the non-collection of contractual principal and interest. The unrealized losses are due to changes in interest rates. The Company has not recognized any unrealized loss in income because management does not have the intent to sell the securities included in the previous table. Management has concluded that it is more likely than not that the Company will not be required to sell these securities prior to recovery of the amortized cost basis.