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Securities | 9 Months Ended
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Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | The following table presents the fair values of our securities portfolio at the dates presented:
(dollars in thousands) | September 30, 2018 |  | December 31, 2017
Debt securities available-for-sale |  | $ | 677,221 |  |  |  | $ | 693,147 |
Marketable equity securities |  | 5,314 |  |  |  | 5,144 |
Total Securities |  | $ | 682,535 |  |  |  | $ | 698,291 |
Debt Securities Available-for-Sale The following tables present the amortized cost and fair value of debt securities available-for-sale as of September 30, 2018 and debt and equity securities available-for-sale as of December 31, 2017:
| September 30, 2018 |  | December 31, 2017
(dollars in thousands) | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
U.S. Treasury securities |  | $ | 9,956 |  |  |  | $ | — |  |  |  | $ | (400 | ) |  |  | $ | 9,556 |  |  |  | $ | 19,943 |  |  |  | $ | — |  |  |  | $ | (154 | ) |  |  | $ | 19,789 |
Obligations of U.S. government corporations and agencies |  | 139,272 |  |  |  | — |  |  |  | (2,288 | ) |  |  | 136,984 |  |  |  | 162,045 |  |  |  | 341 |  |  |  | (193 | ) |  |  | 162,193 |
Collateralized mortgage obligations of U.S. government corporations and agencies |  | 141,283 |  |  |  | — |  |  |  | (3,623 | ) |  |  | 137,660 |  |  |  | 109,916 |  |  |  | 93 |  |  |  | (1,321 | ) |  |  | 108,688 |
Residential mortgage-backed securities of U.S. government corporations and agencies |  | 26,837 |  |  |  | 219 |  |  |  | (606 | ) |  |  | 26,450 |  |  |  | 32,388 |  |  |  | 679 |  |  |  | (213 | ) |  |  | 32,854 |
Commercial mortgage-backed securities of U.S. government corporations and agencies (1) |  | 253,090 |  |  |  | — |  |  |  | (8,494 | ) |  |  | 244,596 |  |  |  | 244,018 |  |  |  | 247 |  |  |  | (2,044 | ) |  |  | 242,221 |
Obligations of states and political subdivisions |  | 120,396 |  |  |  | 1,741 |  |  |  | (162 | ) |  |  | 121,975 |  |  |  | 123,159 |  |  |  | 4,285 |  |  |  | (42 | ) |  |  | 127,402 |
Total Debt Securities Available-for-Sale |  | 690,834 |  |  |  | 1,960 |  |  |  | (15,573 | ) |  |  | 677,221 |  |  |  | 691,469 |  |  |  | 5,645 |  |  |  | (3,967 | ) |  |  | 693,147 |
Total equity securities (2) |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,815 |  |  |  | 1,330 |  |  |  | (1 | ) |  |  | 5,144 |
Total Securities |  | $ | 690,834 |  |  |  | $ | 1,960 |  |  |  | $ | (15,573 | ) |  |  | $ | 677,221 |  |  |  | $ | 695,284 |  |  |  | $ | 6,975 |  |  |  | $ | (3,968 | ) |  |  | $ | 698,291 |
(1) Includes a $5.9 million security purchase that was pending settlement as of December 31, 2017. (2) ASU No. 2016-01 was adopted January 1, 2018, resulting in separate classification of our marketable equity securities previously included in available-for-sale securities. The following tables present the fair value and the age of gross unrealized losses on debt securities available-for-sale by investment category as of the dates presented:
| September 30, 2018
| Less Than 12 Months |  | 12 Months or More |  | Total
(dollars in thousands) | Number of Securities |  |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Securities |  |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Securities |  |  | Fair Value |  |  | Unrealized Losses |
U.S. Treasury securities |  | — |  |  | $ | — |  |  |  | $ | — |  |  |  | 1 |  |  | $ | 9,556 |  |  |  | $ | (400 | ) |  |  | 1 |  |  | $ | 9,556 |  |  |  | $ | (400 | )
Obligations of U.S. government corporations and agencies |  | 17 |  |  | 135,988 |  |  |  | (2,280 | ) |  |  | 1 |  |  | 995 |  |  |  | (8 | ) |  |  | 18 |  |  | 136,983 |  |  |  | (2,288 | )
Collateralized mortgage obligations of U.S. government corporations and agencies |  | 10 |  |  | 64,732 |  |  |  | (1,365 | ) |  |  | 8 |  |  | 48,308 |  |  |  | (2,258 | ) |  |  | 18 |  |  | 113,040 |  |  |  | (3,623 | )
Residential mortgage-backed securities of U.S. government corporations and agencies |  | 4 |  |  | 9,361 |  |  |  | (182 | ) |  |  | 2 |  |  | 7,194 |  |  |  | (424 | ) |  |  | 6 |  |  | 16,555 |  |  |  | (606 | )
Commercial mortgage-backed securities of U.S. government corporations and agencies |  | 17 |  |  | 148,398 |  |  |  | (4,474 | ) |  |  | 10 |  |  | 96,198 |  |  |  | (4,020 | ) |  |  | 27 |  |  | 244,596 |  |  |  | (8,494 | )
Obligations of states and political subdivisions |  | 7 |  |  | 28,998 |  |  |  | (162 | ) |  |  | — |  |  | — |  |  |  | — |  |  |  | 7 |  |  | 28,998 |  |  |  | (162 | )
Total Temporarily Impaired Debt Securities |  | 55 |  |  | $ | 387,477 |  |  |  | $ | (8,463 | ) |  |  | 22 |  |  | $ | 162,251 |  |  |  | $ | (7,110 | ) |  |  | 77 |  |  | $ | 549,728 |  |  |  | $ | (15,573 | )
| December 31, 2017
| Less Than 12 Months |  | 12 Months or More |  | Total
(dollars in thousands) | Number of Securities |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Securities |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Securities |  | Fair Value |  |  | Unrealized Losses |
U.S. Treasury securities | 3 |  | $ | 19,789 |  |  | $ | (154 | ) |  | — |  | $ | — |  |  | $ | — |  |  | 3 |  | $ | 19,789 |  |  | $ | (154 | )
Obligations of U.S. government corporations and agencies | 9 |  | 63,635 |  |  | (144 | ) |  | 1 |  | 10,017 |  |  | (49 | ) |  | 10 |  | 73,652 |  |  | (193 | )
Collateralized mortgage obligations of U.S. government corporations and agencies | 7 |  | 47,465 |  |  | (248 | ) |  | 7 |  | 45,809 |  |  | (1,073 | ) |  | 14 |  | 93,274 |  |  | (1,321 | )
Residential mortgage-backed securities of U.S. government corporations and agencies | 1 |  | 2,333 |  |  | (10 | ) |  | 2 |  | 8,638 |  |  | (203 | ) |  | 3 |  | 10,971 |  |  | (213 | )
Commercial mortgage-backed securities of U.S. government corporations and agencies | 14 |  | 128,300 |  |  | (775 | ) |  | 5 |  | 48,746 |  |  | (1,269 | ) |  | 19 |  | 177,046 |  |  | (2,044 | )
Obligations of states and political subdivisions | 2 |  | 10,330 |  |  | (42 | ) |  | — |  | — |  |  | — |  |  | 2 |  | 10,330 |  |  | (42 | )
Total Temporarily Impaired Debt Securities | 36 |  | $ | 271,852 |  |  | $ | (1,373 | ) |  | 15 |  | $ | 113,210 |  |  | $ | (2,594 | ) |  | 51 |  | $ | 385,062 |  |  | $ | (3,967 | )
We do not believe any individual unrealized loss as of September 30, 2018 represents an other than temporary impairment, or OTTI. At September 30, 2018 there were 77 debt securities and at December 31, 2017 there were 51 debt securities in an unrealized loss position. The unrealized losses on debt securities were primarily attributable to changes in interest rates and not related to the credit quality of these securities. All debt securities were determined to be investment grade and paying principal and interest according to the contractual terms of the security. We do not intend to sell and it is more likely than not that we will not be required to sell any of the securities in an unrealized loss position before recovery of their amortized cost. The following table presents net unrealized gains and losses, net of tax, on debt securities available-for-sale included in accumulated other comprehensive loss, for the periods presented:
| September 30, 2018 |  | December 31, 2017
(dollars in thousands) | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Net Unrealized (Losses)/Gains |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Net Unrealized Gains/(Losses) |
Total unrealized gains/(losses) on debt securities available-for-sale (1) | $ | 1,960 |  |  | $ | (15,573 | ) |  | $ | (13,613 | ) |  | $ | 5,645 |  |  | $ | (3,967 | ) |  | $ | 1,678 |
Income tax (expense) benefit | (416 | ) |  | 3,307 |  |  | 2,891 |  |  | (1,982 | ) |  | 1,393 |  |  | (589 | )
Net Unrealized (Losses)/Gains, Net of Tax Included in Accumulated Other Comprehensive Loss | $ | 1,544 |  |  | $ | (12,266 | ) |  | $ | (10,722 | ) |  | $ | 3,663 |  |  | $ | (2,574 | ) |  | $ | 1,089 |
(1) Gross unrealized gains and losses of $862 at December 31, 2017 have been restated to reflect the reclassifications from OCI to retained earnings due to the adoption of ASU No. 2016-01
The amortized cost and fair value of debt securities available-for-sale at September 30, 2018 by contractual maturity are included in the table below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
| September 30, 2018
(dollars in thousands) | Amortized Cost |  |  | Fair Value |
Obligations of the U.S. Treasury, U.S. government corporations and agencies, and obligations of states and political subdivisions |  |  |
Due in one year or less | $ | 20,871 |  |  | $ | 20,878 |
Due after one year through five years | 147,573 |  |  | 146,653 |
Due after five years through ten years | 72,590 |  |  | 71,938 |
Due after ten years | 28,590 |  |  | 29,046 |
Debt Securities Available-for-Sale With Maturities | 269,624 |  |  | 268,515 |
Collateralized mortgage obligations of U.S. government corporations and agencies | 141,283 |  |  | 137,660 |
Residential mortgage-backed securities of U.S. government corporations and agencies | 26,837 |  |  | 26,450 |
Commercial mortgage-backed securities of U.S. government corporations and agencies | 253,090 |  |  | 244,596 |
Total Debt Securities Available-for-Sale | $ | 690,834 |  |  | $ | 677,221 |
At September 30, 2018 and December 31, 2017, debt securities with carrying values of $270 million and $249 million were pledged for various regulatory and legal requirements. Marketable Equity Securities The following table presents realized and unrealized net gains and losses for our marketable equity securities for the periods presented:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(dollars in thousands) | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Marketable Equity Securities |  |  |  |  |  |  |
Net market (losses)/gains recognized | $ | (111 | ) |  | $ | 318 |  |  | $ | 171 |  |  | $ | 5,542 |
Less: Net gains recognized for equity securities sold | — |  |  | — |  |  | — |  |  | 3,987 |
Unrealized (Losses)/Gains on Equity Securities Still Held | $ | (111 | ) |  | $ | 318 |  |  | $ | 171 |  |  | $ | 1,555 |
Prior to January 1, 2018, net unrealized gains and losses, net of tax, on marketable equity securities were included in AOCI for the periods presented. Net unrealized gains and losses, net of tax, on marketable equity securities of $0.9 million were reclassified from AOCI to retained earnings at January 1, 2018. As of January 1, 2018, gains and losses on marketable equity securities are included in other noninterest income on the Consolidated Statements of Comprehensive Income.

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