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Securities | 6 Months Ended
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Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | SECURITIES The following table presents the fair values of our securities portfolio at the dates presented:
(dollars in thousands) | June 30, 2020 |  |  | December 31, 2019 |
Available-for-sale debt securities |  | $ | 801,703 |  |  |  | $ | 779,133 |
Marketable equity securities |  | 2,663 |  |  |  | 5,150 |
Total Securities |  | $ | 804,366 |  |  |  | $ | 784,283 |
Available-for-Sale Debt Securities The following tables present the amortized cost and fair value of available-for-sale debt securities as of the dates presented:
| June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  | December 31, 2019 |  |  |  |  |  |  |  |  |  |
(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 |  | $ | 9,975 |  |  |  | $ | 380 |  |  |  | $ | — |  |  |  | $ | 10,355 |  |  |  | $ | 9,969 |  |  |  | $ | 71 |  |  |  | $ | — |  |  |  | $ | 10,040 |
Obligations of U.S. government corporations and agencies |  | 158,869 |  |  |  | 4,835 |  |  |  | (1) |  |  |  | 163,703 |  |  |  | 155,969 |  |  |  | 1,773 |  |  |  | (45) |  |  |  | 157,697 |
Collateralized mortgage obligations of U.S. government corporations and agencies |  | 172,938 |  |  |  | 8,224 |  |  |  | — |  |  |  | 181,162 |  |  |  | 186,879 |  |  |  | 2,773 |  |  |  | (304) |  |  |  | 189,348 |
Residential mortgage-backed securities of U.S. government corporations and agencies |  | 18,891 |  |  |  | 877 |  |  |  | — |  |  |  | 19,768 |  |  |  | 22,120 |  |  |  | 321 |  |  |  | (23) |  |  |  | 22,418 |
Commercial mortgage-backed securities of U.S. government corporations and agencies |  | 269,673 |  |  |  | 14,877 |  |  |  | — |  |  |  | 284,550 |  |  |  | 273,771 |  |  |  | 2,680 |  |  |  | (581) |  |  |  | 275,870 |
Corporate obligations |  | 5,026 |  |  |  | 12 |  |  |  | — |  |  |  | 5,038 |  |  |  | 7,603 |  |  |  | 24 |  |  |  | — |  |  |  | 7,627 |
Obligations of states and political subdivisions |  | 130,002 |  |  |  | 7,125 |  |  |  | — |  |  |  | 137,127 |  |  |  | 112,116 |  |  |  | 4,017 |  |  |  | — |  |  |  | 116,133 |
Total Available-for-Sale Debt Securities (1) |  | $ | 765,374 |  |  |  | $ | 36,330 |  |  |  | $ | (1) |  |  |  | $ | 801,703 |  |  |  | $ | 768,427 |  |  |  | $ | 11,659 |  |  |  | $ | (953) |  |  |  | $ | 779,133 |
(1) Excludes interest receivable of $3.4 million at June 30, 2020 and $3.4 million at December 31, 2019. Interest receivable is included in other assets in the consolidated balance sheets. The following tables present the fair value and the age of gross unrealized losses on available-for-sale debt securities by investment category as of the dates presented:
| June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 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 | 1 |  | 49,990 |  |  | (1) |  |  | — |  | — |  |  | — |  |  | 1 |  | 49,990 |  |  | (1) |
Collateralized mortgage obligations of U.S. government corporations and agencies | 1 |  | 1 |  |  | — |  |  | — |  | — |  |  | — |  |  | 1 |  | 1 |  |  | — |
Residential mortgage-backed securities of U.S. government corporations and agencies | — |  | — |  |  | — |  |  | — |  | — |  |  | — |  |  | — |  | — |  |  | — |
Commercial mortgage-backed securities of U.S. government corporations and agencies | — |  | — |  |  | — |  |  | — |  | — |  |  | — |  |  | — |  | — |  |  | — |
Corporate bonds | — |  | — |  |  | — |  |  | — |  | — |  |  | — |  |  | — |  | — |  |  | — |
Obligations of states and political subdivisions | — |  | — |  |  | — |  |  | — |  | — |  |  | — |  |  | — |  | — |  |  | — |
Total | 2 |  | $ | 49,991 |  |  | $ | (1) |  |  | — |  | $ | — |  |  | $ | — |  |  | 2 |  | $ | 49,991 |  |  | $ | (1) |
| December 31, 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 |  | 22,638 |  |  | (45) |  |  | — |  | — |  |  | — |  |  | 3 |  | 22,638 |  |  | (45) |
Collateralized mortgage obligations of U.S. government corporations and agencies | 6 |  | 23,393 |  |  | (73) |  |  | 6 |  | 25,254 |  |  | (231) |  |  | 12 |  | 48,647 |  |  | (304) |
Residential mortgage-backed securities of U.S. government corporations and agencies | 1 |  | 982 |  |  | (2) |  |  | 1 |  | 2,534 |  |  | (21) |  |  | 2 |  | 3,516 |  |  | (23) |
Commercial mortgage-backed securities of U.S. government corporations and agencies | 9 |  | 90,005 |  |  | (581) |  |  | — |  | — |  |  | — |  |  | 9 |  | 90,005 |  |  | (581) |
Corporate bonds | 1 |  | 79 |  |  | — |  |  | — |  | — |  |  | — |  |  | 1 |  | 79 |  |  | — |
Obligations of states and political subdivisions | — |  | — |  |  | — |  |  | — |  | — |  |  | — |  |  | — |  | — |  |  | — |
Total Temporarily Impaired Debt Securities | 20 |  | $ | 137,097 |  |  | $ | (701) |  |  | 7 |  | $ | 27,788 |  |  | $ | (252) |  |  | 27 |  | $ | 164,885 |  |  | $ | (953) |
We evaluate quarterly securities with unrealized losses to determine if the decline in fair value has resulted from credit losses or other factors. There were two debt securities in an unrealized loss position at June 30, 2020 and 27 debt securities in an unrealized loss position at December 31, 2019. 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 unrealized losses on debt securities were 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 concluded that the allowance for credit losses for debt securities was immaterial at June 30, 2020. Prior to the adoption of ASU 2016-13 there was no other than temporary impairment, or OTTI, recorded during the six months ended June 30, 2019. The following table presents net unrealized gains and losses, net of tax, on available-for-sale debt securities included in accumulated other comprehensive income/(loss), for the periods presented:
| June 30, 2020 |  |  |  |  |  | December 31, 2019 |  |  |  |
(dollars in thousands) | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Net Unrealized Gains/(Losses) |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Net Unrealized Gains/(Losses)
Total unrealized gains/(losses) on available-for-sale debt securities | $ | 36,330 |  |  | $ | (1) |  |  | $ | 36,329 |  |  | $ | 11,659 |  |  | $ | (953) |  |  | $ | 10,706 |
Income tax (expense) benefit | (7,736) |  |  | — |  |  | (7,736) |  |  | (2,486) |  |  | 203 |  |  | (2,283) |
Net Unrealized Gains/(Losses), Net of Tax Included in Accumulated Other Comprehensive Income/(Loss) | $ | 28,594 |  |  | $ | (1) |  |  | $ | 28,593 |  |  | $ | 9,173 |  |  | $ | (750) |  |  | $ | 8,423 |
The amortized cost and fair value of available-for-sale debt securities at June 30, 2020 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, 2020 |  |
(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 | $ | 106,927 |  |  | $ | 107,417 |
Due after one year through five years | 105,757 |  |  | 111,561 |
Due after five years through ten years | 55,138 |  |  | 58,778 |
Due after ten years | 31,024 |  |  | 33,429 |
Available-for-Sale Debt Securities With Maturities | 298,846 |  |  | 311,185 |
Collateralized mortgage obligations of U.S. government corporations and agencies | 172,938 |  |  | 181,162 |
Residential mortgage-backed securities of U.S. government corporations and agencies | 18,891 |  |  | 19,768 |
Commercial mortgage-backed securities of U.S. government corporations and agencies | 269,673 |  |  | 284,550 |
Corporate Securities | 5,026 |  |  | 5,038 |
Total Available-for-Sale Debt Securities | $ | 765,374 |  |  | $ | 801,703 |
Debt securities with carrying values of $340.6 million at June 30, 2020 and $286.0 million at December 31, 2019 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) | 2020 |  | 2019 |  | 2020 |  | 2019
Marketable Equity Securities |  |  |  |  |  |  |
Net gains and losses recognized during the period on equity securities | $ | 448 |  |  | $ | 52 |  |  | $ | (1,137) |  |  | $ | (266) |
Less: Net gains and losses recognized during the period on equity securities sold during the period | 142 |  |  | — |  |  | 142 |  |  | — |
Unrealized Losses/Gains Recognized During the Reporting Period on Equity Securities Still Held at the Reporting Date | $ | 306 |  |  | $ | 52 |  |  | $ | (1,279) |  |  | $ | (266) |
Total unrealized gains and losses on marketable equity securities recognized during the current period are included in other noninterest income on the Consolidated Statements of Comprehensive (Loss) Income.

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