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Investment Securities | 6 Months Ended
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Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The amortized cost, estimated fair values and allowance for credit losses of investments in debt securities are summarized in the following tables:
| June 30, 2020 |  |  |  |  |  |  |  |
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Estimated Fair Value
Debt Securities Available for Sale |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 414,494 |  |  | $ | 20,320 |  |  | $ | — |  |  | $ | — |  |  | $ | 434,814 |
Obligations of states and political subdivisions | 104,811 |  |  | 4,835 |  |  | — |  |  | — |  |  | 109,646 |
Corporate bonds | 2,444 |  |  | 126 |  |  | — |  |  | — |  |  | 2,570 |
Asset backed securities | 465,746 |  |  | 37 |  |  | (16,533) |  |  | — |  |  | 449,250 |
Total debt securities available for sale | $ | 987,495 |  |  | $ | 25,318 |  |  | $ | (16,533) |  |  | $ | — |  |  | $ | 996,280 |
| June 30, 2020 |  |  |  |  |  |  |  |
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Allowance for Credit Losses
Debt Securities Held to Maturity |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 324,976 |  |  | $ | 16,596 |  |  | $ | — |  |  | $ | 341,572 |  |  | $ | — |
Obligations of states and political subdivisions | 12,189 |  |  | 418 |  |  | — |  |  | 12,607 |  |  | — |
Total debt securities held to maturity | $ | 337,165 |  |  | $ | 17,014 |  |  | $ | — |  |  | $ | 354,179 |  |  | $ | — |
| December 31, 2019 |  |  |  |  |  |
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Debt Securities Available for Sale |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 466,139 |  |  | $ | 7,261 |  |  | $ | (420) |  |  | $ | 472,980 |
Obligations of states and political subdivisions | 106,373 |  |  | 3,229 |  |  | (1) |  |  | 109,601 |
Corporate bonds | 2,430 |  |  | 102 |  |  | — |  |  | 2,532 |
Asset backed securities | 371,809 |  |  | 129 |  |  | (6,913) |  |  | 365,025 |
Total debt securities available for sale | $ | 946,751 |  |  | $ | 10,721 |  |  | $ | (7,334) |  |  | $ | 950,138 |
Debt Securities Held to Maturity |  |  |  |  |  |  |
Obligations of U.S. government agencies | 361,785 |  |  | 6,072 |  |  | (480) |  |  | 367,377 |
Obligations of states and political subdivisions | 13,821 |  |  | 327 |  |  | — |  |  | 14,148 |
Total debt securities held to maturity | $ | 375,606 |  |  | $ | 6,399 |  |  | $ | (480) |  |  | $ | 381,525 |
There were no sales of investment securities during the three and six months ended June 30, 2020 and 2019, respectively. Investment securities with an aggregate carrying value of $479,242,000 and $466,321,000 at June 30, 2020 and December 31, 2019, respectively, were pledged as collateral for specific borrowings, lines of credit or local agency deposits. The amortized cost and estimated fair value of debt securities at June 30, 2020 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At June 30, 2020, obligations of U.S. government corporations and agencies with a cost basis totaling $739,470,000 consist almost entirely of residential real estate mortgage-backed securities whose contractual maturity, or principal repayment, will follow the repayment of the underlying mortgages. For purposes of the following table, the entire outstanding balance of these mortgage-backed securities issued by U.S. government corporations and agencies is categorized based on final maturity date. At June 30, 2020, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S. government corporations and agencies to be approximately 3.26 years. Average remaining life is defined as the time span after which the principal balance has been reduced by half. As of June 30, 2020, the contractual final maturity for available for sale and held to maturity investment securities is as follows:
Debt Securities | Available for Sale |  |  |  | Held to Maturity |  |
(in thousands) | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Due in one year | $ | 600 |  |  | $ | 600 |  |  | $ | 1,287 |  |  | $ | 1,289 |
Due after one year through five years | 17,981 |  |  | 18,690 |  |  | — |  |  | — |
Due after five years through ten years | 114,403 |  |  | 113,718 |  |  | 21,156 |  |  | 22,231 |
Due after ten years | 854,511 |  |  | 863,272 |  |  | 314,722 |  |  | 330,659 |
Totals | $ | 987,495 |  |  | $ | 996,280 |  |  | $ | 337,165 |  |  | $ | 354,179 |
Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
June 30, 2020: | Less than 12 months |  |  |  | 12 months or more |  |  |  | Total |  |
(in thousands) | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
Debt Securities Available for Sale |  |  |  |  |  |  |  |  |  |  |
Asset backed securities | $ | 153,086 |  |  | $ | (2,742) |  |  | $ | 291,893 |  |  | $ | (13,791) |  |  | $ | 444,979 |  |  | $ | (16,533) |
December 31, 2019: | Less than 12 months |  |  |  | 12 months or more |  |  |  | Total |  |
(in thousands) | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
Debt Securities Available for Sale |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 36,709 |  |  | $ | (309) |  |  | $ | 23,852 |  |  | $ | (111) |  |  | $ | 60,561 |  |  | $ | (420) |
Obligations of states and political subdivisions | 778 |  |  | (1) |  |  | — |  |  | — |  |  | 778 |  |  | (1) |
Asset backed securities | 237,463 |  |  | (4,535) |  |  | 99,981 |  |  | (2,378) |  |  | 337,444 |  |  | (6,913) |
Total debt securities available for sale | $ | 274,950 |  |  | $ | (4,845) |  |  | $ | 123,833 |  |  | $ | (2,489) |  |  | $ | 398,783 |  |  | $ | (7,334) |
Debt Securities Held to Maturity |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | 18,813 |  |  | (142) |  |  | 62,952 |  |  | (338) |  |  | 81,765 |  |  | (480) |
Asset backed securities: The unrealized losses on investments in asset backed securities were caused by increases in required yields by investors for these types of securities. At the time of purchase, each of these securities was rated AA or AAA and through June 30, 2020 has not experienced any deterioration in credit rating. At June 30, 2020, 13 asset backed securities had unrealized losses with aggregate depreciation of 3.58% from the Company’s amortized cost basis. The Company continues to monitor these securities for changes in credit rating or other indications of credit deterioration. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses recorded as of June 30, 2020. The Company monitors credit quality of debt securities held-to-maturity through the use of credit rating. The Company monitors the credit rating on a monthly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator:
| June 30, 2020 |  |  |  | December 31, 2019 |  |
| AAA/AA/A |  | BBB/BB/B |  | AAA/AA/A |  | BBB/BB/B
| (In thousands) |  |  |  | (In thousands) |  |
Debt Securities Held to Maturity |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 324,976 |  |  | $ | — |  |  | $ | 361,785 |  |  | $ | — |
Obligations of states and political subdivisions | 11,496 |  |  | 693 |  |  | 13,136 |  |  | 685 |
Total debt securities held to maturity | $ | 336,472 |  |  | $ | 693 |  |  | $ | 374,921 |  |  | $ | 685 |

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- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 321 -URI http://asc.fasb.org/topic&trid=75115024 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 325 -URI http://asc.fasb.org/topic&trid=2197064 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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