Securities

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

The following table presents the fair values of our securities portfolio at the dates presented:



(dollars in thousands)	June 30, 2019			December 31, 2018
Debt securities available-for-sale		$	664,037		$	680,056
Marketable equity securities		4,551			4,816
Total Securities		$	668,588		$	684,872

Debt Securities Available-for-Sale

The following tables present the amortized cost and fair value of debt securities available-for-sale as of the dates presented:



	June 30, 2019													December 31, 2018
(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		$	9,964		$	43		$	—			$	10,007		$	9,958		$	—		$	(222	)		$	9,736
Obligations of U.S. government corporations and agencies		128,260			1,532			(19		)		129,773			129,267			68			(1,074		)		128,261
Collateralized mortgage obligations of U.S. government corporations and agencies		147,692			3,029			(316		)		150,405			149,849			795			(1,985		)		148,659
Residential mortgage-backed securities of U.S. government corporations and agencies		20,704			289			(57		)		20,936			24,564			203			(417		)		24,350
Commercial mortgage-backed securities of U.S. government corporations and agencies		232,657			2,807			(172		)		235,292			251,660			—			(4,876		)		246,784
Obligations of states and political subdivisions		113,508			4,116			—				117,624			119,872			2,448			(54		)		122,266
Total Debt Securities Available-for-Sale		$	652,785		$	11,816		$	(564	)		$	664,037		$	685,170		$	3,514		$	(8,628	)		$	680,056

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:



	June 30, 2019
	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	—	$	—	$	—		—	$	—	$	—		—	$	—	$	—
Obligations of U.S. government corporations and agencies	—	—		—			3	24,932		(19		)	3	24,932		(19		)
Collateralized mortgage obligations of U.S. government corporations and agencies	1	3,613		(6		)	8	41,602		(310		)	9	45,215		(316		)
Residential mortgage-backed securities of U.S. government corporations and agencies	—	—		—			2	6,740		(57		)	2	6,740		(57		)
Commercial mortgage-backed securities of U.S. government corporations and agencies	—	—		—			5	48,119		(172		)	5	48,119		(172		)
Obligations of states and political subdivisions	—	—		—			—	—		—			—	—		—
Total Temporarily Impaired Debt Securities	1	$	3,613	$	(6	)	18	$	121,393	$	(558	)	19	$	125,006	$	(564	)



	December 31, 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	$	9,736	$	(222	)	1	$	9,736	$	(222	)
Obligations of U.S. government corporations and agencies	7	67,649		(613		)	6	35,760		(461		)	13	103,409		(1,074		)
Collateralized mortgage obligations of U.S. government corporations and agencies	2	12,495		(44		)	14	76,179		(1,941		)	16	88,674		(1,985		)
Residential mortgage-backed securities of U.S. government corporations and agencies	2	2,327		(45		)	3	9,241		(372		)	5	11,568		(417		)
Commercial mortgage-backed securities of U.S. government corporations and agencies	8	75,466		(1,032		)	19	171,318		(3,844		)	27	246,784		(4,876		)
Obligations of states and political subdivisions	2	9,902		(23		)	1	5,247		(31		)	3	15,149		(54		)
Total Temporarily Impaired Debt Securities	21	$	167,839	$	(1,757	)	44	$	307,481	$	(6,871	)	65	$	475,320	$	(8,628	)

We do not believe any individual unrealized loss as of June 30, 2019 represents an other than temporary impairment, or OTTI. At June 30, 2019 there were 19 debt securities in an unrealized loss position and at December 31, 2018, there were 65 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 issuers. 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 income/(loss), for the periods presented:



	June 30, 2019									December 31, 2018
(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	$	11,816		$	(564	)	$	11,252		$	3,514		$	(8,628	)	$	(5,114	)
Income tax (expense) benefit	(2,520		)	120			(2,400		)	(746		)	1,832			1,086
Net Unrealized Gains/(Losses), Net of Tax Included in Accumulated Other Comprehensive Income/(Loss)	$	9,296		$	(444	)	$	8,852		$	2,768		$	(6,796	)	$	(4,028	)

The amortized cost and fair value of debt securities available-for-sale at June 30, 2019 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.



	June 30, 2019
(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	$	47,630	$	47,770
Due after one year through five years	122,824		124,741
Due after five years through ten years	63,472		66,144
Due after ten years	17,805		18,750
Debt Securities Available-for-Sale With Maturities	251,731		257,405
Collateralized mortgage obligations of U.S. government corporations and agencies	147,692		150,405
Residential mortgage-backed securities of U.S. government corporations and agencies	20,705		20,936
Commercial mortgage-backed securities of U.S. government corporations and agencies	232,657		235,291
Total Debt Securities Available-for-Sale	$	652,785	$	664,037

Debt securities with carrying values of $201.2 million at June 30, 2019 and $236.0 million at December 31, 2018 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 June 30,				Six Months Ended June 30,
(dollars in thousands)	2019		2018		2019			2018
Marketable Equity Securities
Net market (losses)/gains recognized	$	52	$	230	$	(266	)	$	282
Less: Net gains recognized for equity securities sold	—		—		—			—
Unrealized (Losses)/Gains on Equity Securities Still Held	$	52	$	230	$	(266	)	$	282

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.