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SECURITIES (Tables)
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Schedule of Securities

The amortized cost, gross unrealized gains and losses and estimated fair value of securities at March 31, 2020 and December 31, 2019 are summarized as follows (in thousands):
 
March 31, 2020
 
Amortized Cost
 
Fair
Value
Trading:
 
 
 
Corporate bonds
$
27,203

 
$
21,040

 
$
27,203

 
$
21,040

 
March 31, 2020
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Allowance for Credit Losses
 
Fair
Value
Available-for-Sale:
 
 
 
 
 
 
 
 
 
U.S. Government and agency obligations
$
82,197

 
$
520

 
$
(954
)
 
$
—

 
$
81,763

Municipal bonds
171,486

 
9,726

 
(173
)
 
—

 
181,039

Corporate bonds
30,094

 
1,101

 
(209
)
 
—

 
30,986

Mortgage-backed or related securities
1,252,606

 
54,711

 
(518
)
 
—

 
1,306,799

Asset-backed securities
8,130

 
—

 
(493
)
 
—

 
7,637

 
$
1,544,513

 
$
66,058

 
$
(2,347
)
 
$
—

 
$
1,608,224

 
March 31, 2020
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair
Value
 
Allowance for Credit Losses
Held-to-Maturity:
 
 
 
 
 
 
 
 
 
U.S. Government and agency obligations
$
373

 
$
8

 
$
—

 
$
381

 
$
—

Municipal bonds
380,483

 
10,830

 
(2,292
)
 
389,021

 
61

Corporate bonds
3,325

 
—

 
(10
)
 
3,315

 
37

Mortgage-backed or related securities
53,763

 
2,769

 
(12
)
 
56,520

 
—

 
$
437,944

 
$
13,607

 
$
(2,314
)
 
$
449,237

 
$
98



 
December 31, 2019
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair
Value
Trading:
 
 
 
 
 
 
 
Corporate bonds
$
27,203

 
 
 
 
 
$
25,636

 
$
27,203

 
 
 
 
 
$
25,636

Available-for-Sale:
 
 
 
 
 
 
 
U.S. Government and agency obligations
$
90,468

 
$
286

 
$
(1,156
)
 
$
89,598

Municipal bonds
101,927

 
5,233

 
(3
)
 
107,157

Corporate bonds
4,357

 
14

 
(6
)
 
4,365

Mortgage-backed or related securities
1,324,999

 
20,325

 
(3,013
)
 
1,342,311

Asset-backed securities
8,195

 
—

 
(69
)
 
8,126

 
$
1,529,946

 
$
25,858

 
$
(4,247
)
 
$
1,551,557

Held-to-Maturity:
 
 
 
 
 
 
 
U.S. Government and agency obligations
$
385

 
$
4

 
$
—

 
$
389

Municipal bonds
177,208

 
3,733

 
(2,213
)
 
178,728

Corporate bonds
3,353

 
—

 
(11
)
 
3,342

Mortgage-backed or related securities
55,148

 
921

 
(723
)
 
55,346

 
$
236,094

 
$
4,658

 
$
(2,947
)
 
$
237,805
Schedule of Securities with Continuous Loss Position
At March 31, 2020, the gross unrealized losses and the fair value for securities available-for-sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position were as follows (in thousands):
 
March 31, 2020
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
 
Fair
Value
 
Unrealized Losses
Available-for-Sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government and agency obligations
$
2,575

 
$
(18
)
 
$
56,531

 
$
(936
)
 
$
59,106

 
$
(954
)
Municipal bonds
11,767

 
(173
)
 
—

 
—

 
11,767

 
(173
)
Corporate bonds
4,148

 
(209
)
 
—

 
—

 
4,148

 
(209
)
Mortgage-backed or related securities
42,545

 
(487
)
 
7,218

 
(31
)
 
49,763

 
(518
)
Asset-backed securities
1,371

 
(53
)
 
5,871

 
(440
)
 
7,242

 
(493
)
 
$
62,406

 
$
(940
)
 
$
69,620

 
$
(1,407
)
 
$
132,026

 
$
(2,347
)
Schedule of Securities by Contractual Maturity Date
The amortized cost and estimated fair value of securities at March 31, 2020, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.
 
March 31, 2020
 
Trading
 
Available-for-Sale
 
Held-to-Maturity
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Maturing in one year or less
$
—

 
$
—

 
$
2,500

 
$
2,496

 
$
807

 
$
808

Maturing after one year through five years
—

 
—

 
66,644

 
68,453

 
59,949

 
61,827

Maturing after five years through ten years
—

 
—

 
352,386

 
370,139

 
44,006

 
46,085

Maturing after ten years through twenty years
27,203

 
21,040

 
265,561

 
277,549

 
124,627

 
126,785

Maturing after twenty years
—

 
—

 
857,422

 
889,587

 
208,555

 
213,732

 
$
27,203

 
$
21,040

 
$
1,544,513

 
$
1,608,224

 
$
437,944

 
$
449,237
Schedule of Pledged Securities
The following table presents, as of March 31, 2020, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):
 
March 31, 2020
 
Carrying Value
 
Amortized Cost
 
Fair
Value
Purpose or beneficiary:
 
 
 
 
 
State and local governments public deposits
$
155,588

 
$
154,453

 
$
160,654

Interest rate swap counterparties
28,049

 
26,923

 
28,432

Repurchase agreements
153,285

 
147,608

 
153,286

Other
2,665

 
2,665

 
2,733

Total pledged securities
$
339,587

 
$
331,649

 
$
345,105



The Company monitors the credit quality of held-to-maturity debt securities through the use of credit rating. Credit ratings are reviewed and updated quarterly. The following table summarizes the amortized cost of held-to-maturity debt securities by credit rating at March 31, 2020 (in thousands):

 
March 31, 2020
 
U.S. Government and agency obligations
 
Municipal bonds
 
Corporate bonds
 
Mortgage-backed or related securities
 
Total
AAA/AA/A
$
—

 
$
348,662

 
$
500

 
$
—

 
$
349,162

BBB/BB/B
—

 
—

 
—

 
—

 
—

Not Rated
373

 
31,821

 
2,825

 
53,763

 
88,782

 
$
373

 
$
380,483

 
$
3,325

 
$
53,763

 
$
437,944



The following table presents the activity in the allowance for credit losses for held-to-maturity debt securities by major type for the three months ended March 31, 2020 (in thousands):

 
Three Months Ended
March 31, 2020
 
U.S. Government and agency obligations
 
Municipal bonds
 
Corporate bonds
 
Mortgage-backed or related securities
 
Total
Allowance for credit losses - securities
 
 
 
 
 
 
 
 
 
Beginning Balance
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Impact of adopting ASC 326
—

 
28

 
35

 
—

 
63

Provision for credit losses
—

 
33

 
2

 
—

 
35

Securities charged-off
—

 
—

 
—

 
—

 
—

Recoveries
—

 
—

 
—

 
—

 
—

Ending Balance
$
—

 
$
61

 
$
37

 
$
—

 
$
98
Debt Instrument, Credit Rating
The Company monitors the credit quality of held-to-maturity debt securities through the use of credit rating. Credit ratings are reviewed and updated quarterly. The following table summarizes the amortized cost of held-to-maturity debt securities by credit rating at March 31, 2020 (in thousands):

 
March 31, 2020
 
U.S. Government and agency obligations
 
Municipal bonds
 
Corporate bonds
 
Mortgage-backed or related securities
 
Total
AAA/AA/A
$
—

 
$
348,662

 
$
500

 
$
—

 
$
349,162

BBB/BB/B
—

 
—

 
—

 
—

 
—

Not Rated
373

 
31,821

 
2,825

 
53,763

 
88,782

 
$
373

 
$
380,483

 
$
3,325

 
$
53,763

 
$
437,944
Debt Securities, Held-to-maturity, Allowance for Credit Loss
The following table presents the activity in the allowance for credit losses for held-to-maturity debt securities by major type for the three months ended March 31, 2020 (in thousands):

 
Three Months Ended
March 31, 2020
 
U.S. Government and agency obligations
 
Municipal bonds
 
Corporate bonds
 
Mortgage-backed or related securities
 
Total
Allowance for credit losses - securities
 
 
 
 
 
 
 
 
 
Beginning Balance
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Impact of adopting ASC 326
—

 
28

 
35

 
—

 
63

Provision for credit losses
—

 
33

 
2

 
—

 
35

Securities charged-off
—

 
—

 
—

 
—

 
—

Recoveries
—

 
—

 
—

 
—

 
—

Ending Balance
$
—

 
$
61

 
$
37

 
$
—

 
$
98