INVESTMENT SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | Note 4—INVESTMENT SECURITIES The amortized cost and estimated fair values of investment securities are summarized below: AVAILABLE-FOR-SALE:
At December 31, 2019, corporate and other securities available-for-sale included the following at fair value: mutual funds at $8.8 thousand and foreign debt of $10.0 thousand. At December 31, 2018, corporate and other securities available-for-sale included the following at fair value: mutual funds at $7.1 thousand and foreign debt of $10.0 thousand. Other investments, at cost, include Federal Home Loan Bank (“FHLB”) stock in the amount of $991.4 thousand and corporate stock in the amount of $1.0 million at December 31, 2019. The Company held $955.0 thousand of FHLB stock and $1.0 million in corporate stock at December 31, 2018. During the first quarter of 2019, the Company reclassified the portfolio of securities listed as held-to-maturity to available-for-sale. At the time of reclassification, the unrealized gain on securities was $124.3 thousand. There were no investment securities listed as held-to-maturity as of December 31, 2019. During the years ended December 31, 2019 and 2018, the Company received proceeds of $44.4 million and $44.3 million, respectively, from the sale of investment securities available-for-sale. For the year ended December 31, 2019, gross realized gains from the sale of investment securities available-for-sale amounted to $355.6 thousand and gross realized losses amounted to $219.6 thousand. For the year ended December 31, 2018, gross realized gains from the sale of investment securities available-for-sale amounted to $274 thousand and gross realized losses amounted to $616 thousand. The tax (benefit) provision applicable to the net realized gain was approximately $29 thousand, ($72) thousand, and $121 thousand for 2019, 2018 and 2017, respectively. The amortized cost and fair value of investment securities at December 31, 2019, by expected maturity, follow. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. Mortgage-backed securities are included in the year corresponding with the remaining expected life.
Securities with an amortized cost of $138.6 million and fair value of $139.3 million at December 31, 2019 were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase. Securities with an amortized cost of $118.4 million and fair value of $116.2 million at December 31, 2018 were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase. The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2019 and December 31, 2018.
Government Sponsored Enterprise, Mortgage-Backed Securities: The Company owned mortgage-backed securities (“MBSs”), including collateralized mortgage obligations (“CMOs”), issued by government sponsored enterprises (“GSEs”) with an amortized cost of $182.7 million and $117.9 million and approximate fair value of $183.6 million and $115.5 million at December 31, 2019 and December 31, 2018, respectively. As of December 31, 2019, and December 31, 2018, all of the MBSs issued by GSEs were classified as “Available for Sale.” Unrealized losses on certain of these investments are not considered to be “other than temporary,” and we have the intent and ability to hold these until they mature or recover the current book value. The contractual cash flows of the investments are guaranteed by the GSE. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment. Because the Company does not intend to sell these securities and it is more likely than not the Company will not be required sell these securities before a recovery of its amortized cost, which may be maturity, the Company does not consider the investments to be other-than-temporarily impaired at December 31, 2018. Non-agency Mortgage Backed Securities: The Company holds private label mortgage-backed securities (“PLMBSs”), including CMOs, at December 31, 2019 with an amortized cost of $73.5 thousand and approximate fair value of $73.5 thousand. The Company held private label mortgage-backed securities (“PLMBSs”), including CMOs, at December 31, 2018 with an amortized cost of $153.5 thousand and approximate fair value of $156.6 thousand. Management monitors each of these securities on a quarterly basis to identify any deterioration in the credit quality, collateral values and credit support underlying the investments. During the years ended December 31, 2019, December 31, 2018 and December 31, 2017, no OTTI charges were recorded in earnings for the PLMBS portfolio. At December 31, 2019 the Company does not own any securities rated below investment grade. State and Local Governments and Other: Management monitors these securities on a quarterly basis to identify any deterioration in the credit quality. Included in the monitoring is a review of the credit rating, a financial analysis and certain demographic data on the underlying issuer. The Company does not consider these securities to be OTTI at December 31, 2019 and December 31, 2018. |