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Securities
 12 Months Ended
Dec. 31, 2019
Investments Debt And Equity Securities [Abstract]  
Securities

(4) SECURITIES

 

The following table summarizes the amortized cost and estimated fair values of debt securities held for investment:

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair

Value

 

 

 

(Dollars in thousands)

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities (1)

 

$

93

 

 

$

4

 

 

$

—

 

 

$

97

 

States and political subdivisions

 

 

1,310

 

 

 

1

 

 

 

(5

)

 

 

1,306

 

Other securities

 

 

500

 

 

 

—

 

 

 

—

 

 

 

500

 

Total

 

$

1,903

 

 

$

5

 

 

$

(5

)

 

$

1,903

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities (1)

 

$

133

 

 

$

5

 

 

$

—

 

 

$

138

 

States and political subdivisions

 

 

795

 

 

 

—

 

 

 

—

 

 

 

795

 

Other securities

 

 

500

 

 

 

—

 

 

 

—

 

 

 

500

 

Total

 

$

1,428

 

 

$

5

 

 

$

—

 

 

$

1,433

 

 

The following table summarizes the amortized cost and estimated fair values of debt securities available for sale:

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair

Value

 

 

 

(Dollars in thousands)

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

409,488

 

 

$

4,974

 

 

$

(13

)

 

$

414,449

 

U.S. federal agencies

 

 

23,039

 

 

 

23

 

 

 

(38

)

 

 

23,024

 

Mortgage backed securities (1)

 

 

16,941

 

 

 

128

 

 

 

(64

)

 

 

17,005

 

States and political subdivisions

 

 

22,294

 

 

 

282

 

 

 

(45

)

 

 

22,531

 

Asset backed securities

 

 

13,320

 

 

 

—

 

 

 

(606

)

 

 

12,714

 

Total

 

$

485,082

 

 

$

5,407

 

 

$

(766

)

 

$

489,723

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

699,882

 

 

$

1,108

 

 

$

(3,524

)

 

$

697,466

 

U.S. federal agencies

 

 

30,079

 

 

 

—

 

 

 

(161

)

 

 

29,918

 

Mortgage backed securities (1)

 

 

2,352

 

 

 

114

 

 

 

—

 

 

 

2,466

 

States and political subdivisions

 

 

27,246

 

 

 

277

 

 

 

(112

)

 

 

27,411

 

Asset backed securities

 

 

14,015

 

 

 

—

 

 

 

(572

)

 

 

13,443

 

Total

 

$

773,574

 

 

$

1,499

 

 

$

(4,369

)

 

$

770,704

 

 

(1)

Primarily consists of FHLMC, FNMA, GNMA and mortgage backed securities through U.S. agencies.

 

The maturities of debt securities held for investment and available for sale are summarized in the following table using contractual maturities. Actual maturities may differ from contractual maturities due to obligations that are called or prepaid. For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been presented at their contractual maturity.

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

Amortized

Cost

 

 

Estimated

Fair

Value

 

 

Amortized

Cost

 

 

Estimated

Fair

Value

 

 

 

(Dollars in thousands)

 

Held for Investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual maturity of debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Within one year

 

$

300

 

 

$

300

 

 

$

495

 

 

$

495

 

After one year but within five years

 

 

1,058

 

 

 

1,055

 

 

 

369

 

 

 

370

 

After five years but within ten years

 

 

543

 

 

 

546

 

 

 

562

 

 

 

565

 

After ten years

 

 

2

 

 

 

2

 

 

 

2

 

 

 

3

 

Total

 

$

1,903

 

 

$

1,903

 

 

$

1,428

 

 

$

1,433

 

Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contractual maturity of debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Within one year

 

$

186,373

 

 

$

186,539

 

 

$

411,256

 

 

$

410,327

 

After one year but within five years

 

 

252,519

 

 

 

257,430

 

 

 

313,416

 

 

 

311,924

 

After five years but within ten years

 

 

5,873

 

 

 

6,008

 

 

 

7,524

 

 

 

7,685

 

After ten years

 

 

40,317

 

 

 

39,746

 

 

 

41,378

 

 

 

40,768

 

Total debt securities

 

$

485,082

 

 

$

489,723

 

 

$

773,574

 

 

$

770,704

 

 

The following is a detail of proceeds from sales and realized securities losses, on available for sale debt securities:

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

(Dollars in thousands)

 

Proceeds

 

$

—

 

 

$

31,285

 

 

$

—

 

Gross losses realized

 

 

—

 

 

 

109

 

 

 

—

 

 

Realized gains/losses on debt and equity securities are reported as securities transactions within the noninterest income section of the consolidated statement of comprehensive income.

The following table is a summary of the Company’s book value of debt securities that were pledged as collateral for public funds on deposit, repurchase agreements and for other purposes as required or permitted by law:

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

(Dollars in thousands)

 

Book value of pledged securities

 

$

445,702

 

 

$

472,053

 

 

The following table summarizes debt securities with unrealized losses, segregated by the duration of the unrealized loss, at December 31, 2019 and 2018 respectively:

 

 

 

Less than 12 Months

 

 

More than 12 Months

 

 

Total

 

 

 

Estimated

Fair Value

 

 

Unrealized

Losses

 

 

Estimated

Fair Value

 

 

Unrealized

Losses

 

 

Estimated

Fair Value

 

 

Unrealized

Losses

 

 

 

(Dollars in thousands)

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held for Investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities

 

$

—

 

 

$

—

 

 

$

3

 

 

$

—

 

 

$

3

 

 

$

—

 

States and political subdivisions

 

 

1,016

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

1,016

 

 

 

5

 

Total

 

$

1,016

 

 

$

5

 

 

$

3

 

 

$

—

 

 

$

1,019

 

 

$

5

 

Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

8,999

 

 

$

10

 

 

$

19,988

 

 

$

3

 

 

$

28,987

 

 

$

13

 

U.S. federal agencies

 

 

10,362

 

 

 

19

 

 

 

2,700

 

 

 

19

 

 

 

13,062

 

 

 

38

 

Mortgage backed securities

 

 

15,165

 

 

 

64

 

 

 

—

 

 

 

—

 

 

 

15,165

 

 

 

64

 

States and political subdivisions

 

 

3,890

 

 

 

45

 

 

 

—

 

 

 

—

 

 

 

3,890

 

 

 

45

 

Asset backed securities

 

 

—

 

 

 

—

 

 

 

12,714

 

 

 

606

 

 

 

12,714

 

 

 

606

 

Total

 

$

38,416

 

 

$

138

 

 

$

35,402

 

 

$

628

 

 

$

73,818

 

 

$

766

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held for Investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities

 

$

—

 

 

$

—

 

 

$

4

 

 

$

—

 

 

$

4

 

 

$

—

 

Total

 

$

—

 

 

$

—

 

 

$

4

 

 

$

—

 

 

$

4

 

 

$

—

 

Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

296,438

 

 

$

90

 

 

$

261,639

 

 

$

3,434

 

 

$

558,077

 

 

$

3,524

 

U.S. federal agencies

 

 

1,705

 

 

 

7

 

 

 

27,035

 

 

 

154

 

 

 

28,740

 

 

 

161

 

Mortgage backed securities

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

2

 

 

 

—

 

States and political subdivisions

 

 

1,593

 

 

 

3

 

 

 

11,527

 

 

 

109

 

 

 

13,120

 

 

 

112

 

Asset backed securities

 

 

—

 

 

 

—

 

 

 

13,443

 

 

 

572

 

 

 

13,443

 

 

 

572

 

Total

 

$

299,737

 

 

$

100

 

 

$

313,645

 

 

$

4,269

 

 

$

613,382

 

 

$

4,369

 

 

Declines in the fair value of held for investment and available-for-sale debt securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Management has the ability and intent to hold the debt securities classified as held for investment until they mature, at which time the Company will receive full value for the debt securities. Furthermore, as of December 31, 2019 and 2018, the Company also had the ability and intent to hold the debt securities classified as available for sale for a period of time sufficient for a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying debt securities were purchased. The fair value of those debt securities having unrealized losses is expected to recover as the securities approach their maturity date or repricing date, or if market yields for such investments decline. Management has no intent or requirement to sell before the recovery of the unrealized loss; therefore, no significant impairment loss was realized in the Company’s consolidated statement of comprehensive income.