XML 40 R13.htm IDEA: XBRL DOCUMENT v3.19.3
Investments
 9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Investments INVESTMENTS

The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available for sale and held to maturity:
 
 
September 30, 2019
(in thousands)
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
Available for sale securities:
 
 
 
 
 
 
 
Obligations of U.S. Government-sponsored enterprises
$
9,949

 
$
84

 
$
—

 
$
10,033

Obligations of states and political subdivisions
164,263

 
6,298

 
(248
)
 
170,313

Agency mortgage-backed securities
917,102

 
18,021

 
(1,012
)
 
934,111

U.S. Treasury bills
9,969

 
278

 
—

 
10,247

Corporate debt securities
116,355

 
6,274

 
—

 
122,629

          Total securities available for sale
$
1,217,638

 
$
30,955

 
$
(1,260
)
 
$
1,247,333

Held to maturity securities:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
12,468

 
$
167

 
$
—

 
$
12,635

Agency mortgage-backed securities
48,318

 
670

 
—

 
48,988

          Total securities held to maturity
$
60,786

 
$
837


$
—


$
61,623



 
December 31, 2018
(in thousands)
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Fair Value
Available for sale securities:
 
 
 
 
 
 
 
    Obligations of U.S. Government-sponsored enterprises
$
99,926

 
$
—

 
$
(1,428
)
 
$
98,498

    Obligations of states and political subdivisions
26,566

 
327

 
(83
)
 
26,810

    Agency mortgage-backed securities
596,825

 
1,160

 
(11,849
)
 
586,136

U.S. Treasury Bills
$
9,962

 
$
—

 
$
(37
)
 
$
9,925

          Total securities available for sale
$
733,279

 
$
1,487

 
$
(13,397
)
 
$
721,369

Held to maturity securities:
 
 
 
 
 
 
 
   Obligations of states and political subdivisions
$
12,506

 
$
16

 
$
(114
)
 
$
12,408

   Agency mortgage-backed securities
53,173

 
—

 
(1,647
)
 
51,526

          Total securities held to maturity
$
65,679

 
$
16

 
$
(1,761
)
 
$
63,934



At September 30, 2019 and December 31, 2018, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government agencies and sponsored enterprises. Securities having a fair value of $416.0 million and $433.7 million at September 30, 2019 and December 31, 2018, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions.

The amortized cost and estimated fair value of debt securities at September 30, 2019, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 4 years.

 
Available for sale
 
Held to maturity
(in thousands)
Amortized Cost
 
Estimated Fair Value
 
Amortized Cost
 
Estimated Fair Value
Due in one year or less
$
1,079

 
$
1,086

 
$
—

 
$
—

Due after one year through five years
27,564

 
28,081

 
3,879

 
3,929

Due after five years through ten years
127,062

 
133,705

 
8,589

 
8,706

Due after ten years
144,831

 
150,350

 
—

 
—

Agency mortgage-backed securities
917,102

 
934,111

 
48,318

 
48,988

 
$
1,217,638

 
$
1,247,333


$
60,786


$
61,623



The following table represents a summary of investment securities that had an unrealized loss:
 
September 30, 2019
Less than 12 months
 
12 months or more
 
Total
(in thousands)
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
Obligations of states and political subdivisions
$
36,066

 
$
248

 
$
—

 
$
—

 
$
36,066

 
$
248

Agency mortgage-backed securities
124,823

 
352

 
55,333

 
660

 
180,156

 
1,012

 
$
160,889

 
$
600


$
55,333


$
660


$
216,222


$
1,260

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
Less than 12 months
 
12 months or more
 
Total
(in thousands)
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
Obligations of U.S. Government-sponsored enterprises
$
19,622

 
$
322

 
$
78,876

 
$
1,106

 
$
98,498

 
$
1,428

Obligations of states and political subdivisions
3,102

 
15

 
14,156

 
182

 
17,258

 
197

Agency mortgage-backed securities
87,357

 
2,211

 
389,770

 
11,285

 
477,127

 
13,496

U.S. Treasury bills
—

 
—

 
9,925

 
37

 
9,925

 
37

 
$
110,081

 
$
2,548


$
492,727


$
12,610


$
602,808


$
15,158



The unrealized losses at both September 30, 2019, and December 31, 2018, were primarily attributable to changes in market interest rates since the securities were purchased. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include among other considerations (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, (4) structure of the security, and (5) the intent to sell the security or whether it is more likely than not the Company would be required to sell the security before its anticipated recovery in market value. At September 30, 2019, management performed its quarterly analysis of all securities with an unrealized loss and concluded no individual securities were other-than-temporarily impaired.