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Securities | 12 Months Ended
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Dec. 31, 2019
Investments Debt And Equity Securities [Abstract] |
Securities | Note 4—Securities The following tables summarize the amortized cost and fair values of securities available-for-sale, securities held-to-maturity and equity and other securities at December 31, 2019 and 2018 and the corresponding amounts of gross unrealized gains and losses:
2019 |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury Notes |  | $ | 41,403 |  |  | $ | 427 |  |  | $ | — |  |  | $ | 41,830 |
U.S. Government agencies |  |  | 165,162 |  |  |  | 542 |  |  |  | (754 | ) |  |  | 164,950 |
Obligations of states, municipalities, and political subdivisions |  |  | 92,806 |  |  |  | 2,075 |  |  |  | (49 | ) |  |  | 94,832 |
Residential mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency |  |  | 490,427 |  |  |  | 2,163 |  |  |  | (2,354 | ) |  |  | 490,236 |
Non-agency |  |  | 109,501 |  |  |  | 593 |  |  |  | (272 | ) |  |  | 109,822 |
Commercial mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency |  |  | 159,650 |  |  |  | 1,092 |  |  |  | (1,041 | ) |  |  | 159,701 |
Non-agency |  |  | 31,144 |  |  |  | 130 |  |  |  | — |  |  |  | 31,274 |
Corporate securities |  |  | 48,796 |  |  |  | 571 |  |  |  | (37 | ) |  |  | 49,330 |
Asset-backed securities |  |  | 44,515 |  |  |  | — |  |  |  | (198 | ) |  |  | 44,317 |
Total |  | $ | 1,183,404 |  |  | $ | 7,593 |  |  | $ | (4,705 | ) |  | $ | 1,186,292 |
2019 |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Held-to-maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of states, municipalities, and political subdivisions |  | $ | 4,412 |  |  | $ | 86 |  |  | $ | — |  |  | $ | 4,498 |
Total |  | $ | 4,412 |  |  | $ | 86 |  |  | $ | — |  |  | $ | 4,498 |
Note 4—Securities (continued)
2018 |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury Notes |  | $ | 52,775 |  |  | $ | 81 |  |  | $ | (189 | ) |  | $ | 52,667 |
U.S. Government agencies |  |  | 187,427 |  |  |  | 367 |  |  |  | (1,296 | ) |  |  | 186,498 |
Obligations of states, municipalities, and political subdivisions |  |  | 60,686 |  |  |  | 133 |  |  |  | (586 | ) |  |  | 60,233 |
Residential mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency |  |  | 284,038 |  |  |  | 101 |  |  |  | (11,176 | ) |  |  | 272,963 |
Non-agency |  |  | 84,998 |  |  |  | 199 |  |  |  | (1,576 | ) |  |  | 83,621 |
Commercial mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency |  |  | 93,543 |  |  |  | 55 |  |  |  | (3,164 | ) |  |  | 90,434 |
Non-agency |  |  | 31,458 |  |  |  | — |  |  |  | (1,000 | ) |  |  | 30,458 |
Corporate securities |  |  | 34,716 |  |  |  | 67 |  |  |  | (610 | ) |  |  | 34,173 |
Other securities |  |  | 4,613 |  |  |  | 2,127 |  |  |  | (131 | ) |  |  | 6,609 |
Total |  | $ | 834,254 |  |  | $ | 3,130 |  |  | $ | (19,728 | ) |  | $ | 817,656 |
2018 |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Held-to-maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of states, municipalities, and political subdivisions |  | $ | 23,835 |  |  | $ | 40 |  |  | $ | (210 | ) |  | $ | 23,665 |
Residential mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency |  |  | 40,082 |  |  |  | 93 |  |  |  | (531 | ) |  |  | 39,644 |
Non-agency |  |  | 35,349 |  |  |  | — |  |  |  | (919 | ) |  |  | 34,430 |
Total |  | $ | 99,266 |  |  | $ | 133 |  |  | $ | (1,660 | ) |  | $ | 97,739 |
The Company did not classify securities as trading during 2019 and 2018. The Company adopted the provisions of ASU No. 2016-01 as of January 1, 2019. The adoption of this ASU resulted in the reclassification of available-for-sale equity securities, at fair value to a separate line item on the Company’s Consolidated Statements of Financial Condition, and the reclassification of $1.4 million from other comprehensive income to retained earnings, representing the net unrealized gain, net of tax, on available-for-sale for sale equity securities at the date of adoption. At December 31, 2018, the Company held $6.6 million of equity investment securities which were reported as available-for-sale securities, at fair value, and are now reported as equity and other securities, at fair value. Additionally, the Company adopted the provisions of ASU No. 2017-12 on January 1, 2019, and elected to reclassify $94.8 million of securities held-to-maturity to securities available-for-sale, which did not impact the Consolidated Statements of Operations. Note 4—Securities (continued) Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2019 and 2018 are summarized as follows:
|  |  |  |  |  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
2019 |  | # of Securities |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies |  |  | 8 |  |  | $ | 49,318 |  |  | $ | (662 | ) |  | $ | 20,283 |  |  | $ | (92 | ) |  | $ | 69,601 |  |  | $ | (754 | )
Obligations of states, municipalities and political subdivisions |  |  | 7 |  |  |  | 13,309 |  |  |  | (45 | ) |  |  | 1,419 |  |  |  | (4 | ) |  |  | 14,728 |  |  |  | (49 | )
Residential mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency |  |  | 50 |  |  |  | 132,703 |  |  |  | (666 | ) |  |  | 193,363 |  |  |  | (1,688 | ) |  |  | 326,066 |  |  |  | (2,354 | )
Non-agency |  |  | 9 |  |  |  | 36,902 |  |  |  | (206 | ) |  |  | 10,126 |  |  |  | (66 | ) |  |  | 47,028 |  |  |  | (272 | )
Commercial mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency |  |  | 13 |  |  |  | 67,649 |  |  |  | (563 | ) |  |  | 32,678 |  |  |  | (478 | ) |  |  | 100,327 |  |  |  | (1,041 | )
Corporate securities |  |  | 4 |  |  |  | 6,103 |  |  |  | (37 | ) |  |  | — |  |  |  | — |  |  |  | 6,103 |  |  |  | (37 | )
Asset-backed securities |  |  | 8 |  |  |  | 37,738 |  |  |  | (198 | ) |  |  | — |  |  |  | — |  |  |  | 37,738 |  |  |  | (198 | )
Total |  |  | 99 |  |  | $ | 343,722 |  |  | $ | (2,377 | ) |  | $ | 257,869 |  |  | $ | (2,328 | ) |  | $ | 601,591 |  |  | $ | (4,705 | )
|  |  |  |  |  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
2018 |  | # of Securities |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury Notes |  |  | 18 |  |  | $ | 23,835 |  |  | $ | (52 | ) |  | $ | 9,865 |  |  | $ | (137 | ) |  | $ | 33,700 |  |  | $ | (189 | )
U.S. Government agencies |  |  | 25 |  |  |  | 43,487 |  |  |  | (80 | ) |  |  | 50,101 |  |  |  | (1,216 | ) |  |  | 93,588 |  |  |  | (1,296 | )
Obligations of states, municipalities and political subdivisions |  |  | 56 |  |  |  | 13,926 |  |  |  | (97 | ) |  |  | 18,563 |  |  |  | (489 | ) |  |  | 32,489 |  |  |  | (586 | )
Residential mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency |  |  | 42 |  |  |  | 4,288 |  |  |  | (45 | ) |  |  | 254,121 |  |  |  | (11,131 | ) |  |  | 258,409 |  |  |  | (11,176 | )
Non-agency |  |  | 8 |  |  |  | 59,107 |  |  |  | (1,378 | ) |  |  | 4,009 |  |  |  | (198 | ) |  |  | 63,116 |  |  |  | (1,576 | )
Commercial mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency |  |  | 9 |  |  |  | 21,356 |  |  |  | (447 | ) |  |  | 52,640 |  |  |  | (2,717 | ) |  |  | 73,996 |  |  |  | (3,164 | )
Non-agency |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | 30,458 |  |  |  | (1,000 | ) |  |  | 30,458 |  |  |  | (1,000 | )
Corporate securities |  |  | 15 |  |  |  | 25,762 |  |  |  | (342 | ) |  |  | 4,642 |  |  |  | (268 | ) |  |  | 30,404 |  |  |  | (610 | )
Other securities |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 2,844 |  |  |  | (131 | ) |  |  | 2,844 |  |  |  | (131 | )
Total |  |  | 179 |  |  | $ | 191,761 |  |  | $ | (2,441 | ) |  | $ | 427,243 |  |  | $ | (17,287 | ) |  | $ | 619,004 |  |  | $ | (19,728 | )
Note 4—Securities (continued)
|  |  |  |  |  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
2018 |  | # of Securities |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
Held-to-maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of states, municipalities, and political subdivisions |  |  | 23 |  |  | $ | 8,127 |  |  | $ | (58 | ) |  | $ | 8,792 |  |  | $ | (152 | ) |  | $ | 16,919 |  |  | $ | (210 | )
Residential mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency |  |  | 16 |  |  |  | 6,625 |  |  |  | (150 | ) |  |  | 21,139 |  |  |  | (381 | ) |  |  | 27,764 |  |  |  | (531 | )
Non-agency |  |  | 7 |  |  |  | 21,499 |  |  |  | (503 | ) |  |  | 12,931 |  |  |  | (416 | ) |  |  | 34,430 |  |  |  | (919 | )
Total |  |  | 46 |  |  | $ | 36,251 |  |  | $ | (711 | ) |  | $ | 42,862 |  |  | $ | (949 | ) |  | $ | 79,113 |  |  | $ | (1,660 | )
Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities which had an unrealized loss for other than temporary impairment and determined all declines in value to be temporary. There were 99 securities available-for-sale with unrealized losses at December 31, 2019, compared to 179 at December 31, 2018. There were no securities held-to-maturity with unrealized losses at December 31, 2019, compared to 46 at December 31, 2018. The Company anticipates full recovery of amortized cost with respect to these securities by maturity, or sooner, in the event of a more favorable market interest rate environment. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity. The proceeds from all sales and calls of securities were available-for-sale, and the associated gains and losses for the years ended December 31, 2019, 2018, and 2017 are listed below:
|  | 2019 |  |  | 2018 |  |  | 2017 |
Proceeds |  | $ | 92,103 |  |  | $ | 5,134 |  |  | $ | 8 |
Gross gains |  |  | 1,274 |  |  |  | 164 |  |  |  | 8 |
Gross losses |  |  | 123 |  |  |  | — |  |  |  | — |
Securities pledged at December 31, 2019 and 2018 had carrying amounts of $301.1 million and $244.7 million, respectively. At December 31, 2019 and 2018, of those pledged, the carrying amounts of securities pledged as collateral for public fund deposits were $240.4 million and $197.8 million, respectively, and for customer repurchase agreements of $55.7 million and $46.9 million, respectively. At December 31, 2019 and 2018, there were no securities pledged for advances from the Federal Home Loan Bank. Other securities were pledged for derivative positions, letters of credit and for purposes required or permitted by law. At December 31, 2019 and 2018, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. Note 4—Securities (continued) At December 31, 2019, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
|  | Amortized Cost |  |  | Fair Value |
Available-for-sale |  |  |  |  |  |  |  |
Due in one year or less |  | $ | 51,901 |  |  | $ | 52,093 |
Due from one to five years |  |  | 99,605 |  |  |  | 100,593 |
Due from five to ten years |  |  | 136,479 |  |  |  | 137,843 |
Due after ten years |  |  | 104,697 |  |  |  | 104,730 |
Mortgage and asset-backed securities |  |  | 790,722 |  |  |  | 791,033 |
Total |  | $ | 1,183,404 |  |  | $ | 1,186,292 |
Held-to-maturity |  |  |  |  |  |  |  |
Due from one to five years |  | $ | 3,800 |  |  | $ | 3,866 |
Due from five to ten years |  |  | 612 |  |  |  | 632 |
Total |  | $ | 4,412 |  |  | $ | 4,498 |

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