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Securities | 3 Months Ended
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Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | SECURITIES Trading Securities The Company had trading securities of $1.8 million and $1.5 million as of March 31, 2019 and December 31, 2018, respectively. These securities are held in a rabbi trust and will be used for future payments associated with the Company’s nonqualified 401(k) Restoration Plan and Nonqualified Deferred Compensation Plan. Equity Securities The Company had equity securities of $20.4 million and $19.5 million as of March 31, 2019 and December 31, 2018, respectively. These securities consist primarily of mutual funds held in a rabbi trust and will be used for future payments associated with the Company’s supplemental executive retirement plans. The following table represents a summary of the gains and losses that relates to equity securities for the periods indicated:
| Three Months Ended
| March 31
| 2019 |  | 2018
Net gains (losses) recognized during the period on equity securities | $ | 907 |  |  | $ | (485 | )
Less: net gains recognized during the period on equity securities sold during the period | 3 |  |  | 2 |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | $ | 904 |  |  | $ | (487 | )
Available for Sale and Held to Maturity Securities The following table presents a summary of the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale and securities held to maturity for the periods indicated:
| March 31, 2019 |  | December 31, 2018
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
| (Dollars in thousands)
Available for sale securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency securities | $ | 32,477 |  |  | $ | 25 |  |  | $ | (47 | ) |  | $ | 32,455 |  |  | $ | 32,477 |  |  | $ | — |  |  | $ | (439 | ) |  | $ | 32,038 |
Agency mortgage-backed securities | 217,163 |  |  | 1,674 |  |  | (1,042 | ) |  | 217,795 |  |  | 222,491 |  |  | 1,020 |  |  | (3,406 | ) |  | 220,105 |
Agency collateralized mortgage obligations | 133,025 |  |  | 338 |  |  | (1,832 | ) |  | 131,531 |  |  | 138,149 |  |  | 197 |  |  | (3,435 | ) |  | 134,911 |
State, county, and municipal securities | 1,716 |  |  | 23 |  |  | — |  |  | 1,739 |  |  | 1,719 |  |  | 16 |  |  | — |  |  | 1,735 |
Single issuer trust preferred securities issued by banks | 717 |  |  | 4 |  |  | — |  |  | 721 |  |  | 717 |  |  | — |  |  | (10 | ) |  | 707 |
Pooled trust preferred securities issued by banks and insurers | 1,660 |  |  | — |  |  | (346 | ) |  | 1,314 |  |  | 1,678 |  |  | — |  |  | (349 | ) |  | 1,329 |
Small business administration pooled securities | 52,549 |  |  | 160 |  |  | (575 | ) |  | 52,134 |  |  | 53,317 |  |  | — |  |  | (1,390 | ) |  | 51,927 |
Total available for sale securities | $ | 439,307 |  |  | $ | 2,224 |  |  | $ | (3,842 | ) |  | $ | 437,689 |  |  | $ | 450,548 |  |  | $ | 1,233 |  |  | $ | (9,029 | ) |  | $ | 442,752 |
Held to maturity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 1,004 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 1,017 |  |  | $ | 1,004 |  |  | $ | 11 |  |  | $ | — |  |  | $ | 1,015 |
Agency mortgage-backed securities | 259,599 |  |  | 3,238 |  |  | (955 | ) |  | 261,882 |  |  | 252,484 |  |  | 1,548 |  |  | (3,104 | ) |  | 250,928 |
Agency collateralized mortgage obligations | 337,804 |  |  | 2,208 |  |  | (4,307 | ) |  | 335,705 |  |  | 332,775 |  |  | 869 |  |  | (6,920 | ) |  | 326,724 |
Single issuer trust preferred securities issued by banks | 1,500 |  |  | — |  |  | (10 | ) |  | 1,490 |  |  | 1,500 |  |  | — |  |  | (10 | ) |  | 1,490 |
Small business administration pooled securities | 23,336 |  |  | 115 |  |  | (389 | ) |  | 23,062 |  |  | 23,727 |  |  | 105 |  |  | (349 | ) |  | 23,483 |
Total held to maturity securities | $ | 623,243 |  |  | $ | 5,574 |  |  | $ | (5,661 | ) |  | $ | 623,156 |  |  | $ | 611,490 |  |  | $ | 2,533 |  |  | $ | (10,383 | ) |  | $ | 603,640 |
Total | $ | 1,062,550 |  |  | $ | 7,798 |  |  | $ | (9,503 | ) |  | $ | 1,060,845 |  |  | $ | 1,062,038 |  |  | $ | 3,766 |  |  | $ | (19,412 | ) |  | $ | 1,046,392 |
When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The actual maturities of certain securities may differ from the contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. A schedule of the contractual maturities of securities available for sale and securities held to maturity as of March 31, 2019 is presented below:
| Due in one year or less |  | Due after one year to five years |  | Due after five to ten years |  | Due after ten years |  | Total
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
| (Dollars in thousands)
Available for sale securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency securities | $ | 10,005 |  |  | $ | 9,965 |  |  | $ | 10,003 |  |  | $ | 10,028 |  |  | $ | 12,469 |  |  | $ | 12,462 |  |  | $ | — |  |  | $ | — |  |  | $ | 32,477 |  |  | $ | 32,455 |
Agency mortgage-backed securities | 7 |  |  | 7 |  |  | 52,054 |  |  | 51,871 |  |  | 88,335 |  |  | 88,705 |  |  | 76,767 |  |  | 77,212 |  |  | 217,163 |  |  | 217,795 |
Agency collateralized mortgage obligations | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 133,025 |  |  | 131,531 |  |  | 133,025 |  |  | 131,531 |
State, county, and municipal securities | — |  |  | — |  |  | 1,022 |  |  | 1,026 |  |  | 694 |  |  | 713 |  |  | — |  |  | — |  |  | 1,716 |  |  | 1,739 |
Single issuer trust preferred securities issued by banks | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 717 |  |  | 721 |  |  | 717 |  |  | 721 |
Pooled trust preferred securities issued by banks and insurers | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,660 |  |  | 1,314 |  |  | 1,660 |  |  | 1,314 |
Small business administration pooled securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 52,549 |  |  | 52,134 |  |  | 52,549 |  |  | 52,134 |
Total available for sale securities | $ | 10,012 |  |  | $ | 9,972 |  |  | $ | 63,079 |  |  | $ | 62,925 |  |  | $ | 101,498 |  |  | $ | 101,880 |  |  | $ | 264,718 |  |  | $ | 262,912 |  |  | $ | 439,307 |  |  | $ | 437,689 |
Held to maturity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | — |  |  | $ | — |  |  | $ | 1,004 |  |  | $ | 1,017 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,004 |  |  | $ | 1,017 |
Agency mortgage-backed securities | — |  |  | — |  |  | 11,786 |  |  | 11,724 |  |  | 34,127 |  |  | 34,044 |  |  | 213,686 |  |  | 216,114 |  |  | 259,599 |  |  | 261,882 |
Agency collateralized mortgage obligations | — |  |  | — |  |  | — |  |  | — |  |  | 553 |  |  | 551 |  |  | 337,251 |  |  | 335,154 |  |  | 337,804 |  |  | 335,705 |
Single issuer trust preferred securities issued by banks | — |  |  | — |  |  | — |  |  | — |  |  | 1,500 |  |  | 1,490 |  |  | — |  |  | — |  |  | 1,500 |  |  | 1,490 |
Small business administration pooled securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23,336 |  |  | 23,062 |  |  | 23,336 |  |  | 23,062 |
Total held to maturity securities | $ | — |  |  | $ | — |  |  | $ | 12,790 |  |  | $ | 12,741 |  |  | $ | 36,180 |  |  | $ | 36,085 |  |  | $ | 574,273 |  |  | $ | 574,330 |  |  | $ | 623,243 |  |  | $ | 623,156 |
Total | $ | 10,012 |  |  | $ | 9,972 |  |  | $ | 75,869 |  |  | $ | 75,666 |  |  | $ | 137,678 |  |  | $ | 137,965 |  |  | $ | 838,991 |  |  | $ | 837,242 |  |  | $ | 1,062,550 |  |  | $ | 1,060,845 |
Inclusive in the table above is $5.3 million of callable securities at March 31, 2019. The carrying value of securities pledged to secure public funds, trust deposits, repurchase agreements and for other purposes, as required or permitted by law, was $388.7 million and $361.1 million at March 31, 2019 and December 31, 2018, respectively. At March 31, 2019 and December 31, 2018, the Company had no investments in obligations of individual states, counties, or municipalities which exceeded 10% of stockholders’ equity. Other-Than-Temporary Impairment ("OTTI") The Company continually reviews investment securities for the existence of OTTI, taking into consideration current market conditions, the extent and nature of changes in fair value, issuer rating changes and trends, the credit worthiness of the obligor of the security, volatility of earnings, current analysts’ evaluations, the Company’s intent to sell the security, whether it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery, as well as other qualitative factors. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value are not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. The following tables show the gross unrealized losses and fair value of the Company’s investments in an unrealized loss position, which the Company has not deemed to be OTTI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
| March 31, 2019
|  |  | Less than 12 months |  | 12 months or longer |  | Total
| # of holdings |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
| (Dollars in thousands)
U.S. government agency securities | 3 |  |  | $ | 4,306 |  |  | $ | (1 | ) |  | $ | 22,428 |  |  | $ | (46 | ) |  | $ | 26,734 |  |  | $ | (47 | )
Agency mortgage-backed securities | 110 |  |  | — |  |  | — |  |  | 246,113 |  |  | (1,997 | ) |  | 246,113 |  |  | (1,997 | )
Agency collateralized mortgage obligations | 41 |  |  | — |  |  | — |  |  | 285,297 |  |  | (6,139 | ) |  | 285,297 |  |  | (6,139 | )
Single issuer trust preferred securities issued by banks and insurers | 1 |  |  | 1,490 |  |  | (10 | ) |  | — |  |  | — |  |  | 1,490 |  |  | (10 | )
Pooled trust preferred securities issued by banks and insurers | 1 |  |  | — |  |  | — |  |  | 1,314 |  |  | (346 | ) |  | 1,314 |  |  | (346 | )
Small business administration pooled securities | 6 |  |  | — |  |  | — |  |  | 59,347 |  |  | (964 | ) |  | 59,347 |  |  | (964 | )
Total temporarily impaired securities | 162 |  |  | $ | 5,796 |  |  | $ | (11 | ) |  | $ | 614,499 |  |  | $ | (9,492 | ) |  | $ | 620,295 |  |  | $ | (9,503 | )
| December 31, 2018
|  |  | Less than 12 months |  | 12 months or longer |  | Total
| # of holdings |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
| (Dollars in thousands)
U.S.government agency securities | 3 |  |  | $ | 9,960 |  |  | $ | (43 | ) |  | $ | 22,078 |  |  | $ | (396 | ) |  | $ | 32,038 |  |  | $ | (439 | )
Agency mortgage-backed securities | 144 |  |  | 104,616 |  |  | (1,363 | ) |  | 222,850 |  |  | (5,147 | ) |  | 327,466 |  |  | (6,510 | )
Agency collateralized mortgage obligations | 48 |  |  | 57,871 |  |  | (398 | ) |  | 279,229 |  |  | (9,957 | ) |  | 337,100 |  |  | (10,355 | )
Single issuer trust preferred securities issued by banks and insurers | 2 |  |  | 2,197 |  |  | (20 | ) |  | — |  |  | — |  |  | 2,197 |  |  | (20 | )
Pooled trust preferred securities issued by banks and insurers | 1 |  |  | — |  |  | — |  |  | 1,329 |  |  | (349 | ) |  | 1,329 |  |  | (349 | )
Small business administration pooled securities | 7 |  |  | 28,257 |  |  | (662 | ) |  | 40,621 |  |  | (1,077 | ) |  | 68,878 |  |  | (1,739 | )
Total temporarily impaired securities | 205 |  |  | $ | 202,901 |  |  | $ | (2,486 | ) |  | $ | 566,107 |  |  | $ | (16,926 | ) |  | $ | 769,008 |  |  | $ | (19,412 | )
The Company does not intend to sell these investments and has determined, based upon available evidence, that it is more likely than not that the Company will not be required to sell each security before the recovery of its amortized cost basis. As a result, the Company does not consider these investments to be OTTI and accordingly, there was no OTTI recorded for the three months ended March 31, 2019 and 2018. There was no cumulative credit related component of OTTI as of March 31, 2019 or December 31, 2018. The Company made this determination by reviewing various qualitative and quantitative factors regarding each investment category, such as current market conditions, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, and current analysts’ evaluations. As a result of the Company’s review of these qualitative and quantitative factors, the causes of the impairments listed in the table above by category are as follows at March 31, 2019:
• | U.S. Government Agency Securities, Agency Mortgage-Backed Securities, Agency Collateralized Mortgage Obligations and Small Business Administration Pooled Securities: These portfolios have contractual terms that generally do not permit the issuer to settle the securities at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. Government or one of its agencies.
• | Single Issuer Trust Preferred Securities: This portfolio consists of one security, which is investment grade. The unrealized loss on this security is attributable to the illiquid nature of the trust preferred market in the current economic environment. Management evaluates various financial metrics for the issuers, including regulatory capital ratios of the issuers.
• Pooled Trust Preferred Securities: This portfolio consists of one below investment grade security which is performing. The unrealized loss on this security is attributable to the illiquid nature of the trust preferred market in the current economic and regulatory environment. Management evaluates collateral credit and instrument structure, including current and expected deferral and default rates and timing. In addition, discount rates are determined by evaluating comparable spreads observed currently in the market for similar instruments.

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