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Securities (Tables)
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Debt Securities, Available-for-sale
The amortized cost, estimated fair value, and allowance for credit losses of debt securities available-for-sale and held-to-maturity at March 31, 2020, and December 31, 2019, are as follows (in thousands):
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
 
At March 31, 2020
 
 
 
 
 
 
 
 
 
Debt securities available-for-sale:
 
 
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
149,261

 
$
4,051

 
$
(4
)
 
$
153,308

 
 
State and municipal obligations
25

 
—

 
—

 
25

 
 
Total investment securities
149,286

 
4,051

 
(4
)
 
153,333

 
 
Mortgage-backed securities - FNMA
397

 
8

 
—

 
405

 
 
Total debt securities available-for-sale
$
149,683

 
$
4,059

 
$
(4
)
 
$
153,738

 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Allowance for Credit Losses
At March 31, 2020
 
 
 
 
 
 
 
 
 
Debt securities held-to-maturity:
 
 
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
6,238

 
$
54

 
$
—

 
$
6,292

 
$
—

State and municipal obligations
232,167

 
3,014

 
(425
)
 
234,756

 
(35
)
Corporate debt securities
82,277

 
510

 
(8,568
)
 
74,219

 
(1,651
)
Total investment securities
320,682

 
3,578

 
(8,993
)
 
315,267

 
(1,686
)
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
FHLMC
198,263

 
5,835

 
(30
)
 
204,068

 
—

FNMA
240,839

 
7,604

 
(165
)
 
248,278

 
—

GNMA
104,891

 
2,027

 
(416
)
 
106,502

 
—

SBA
6,108

 
9

 
(46
)
 
6,071

 
—

CMO
49,904

 
—

 
(1,508
)
 
48,396

 
(843
)
Total mortgage-backed securities
600,005

 
15,475

 
(2,165
)
 
613,315

 
(843
)
Total debt securities held-to-maturity
$
920,687

 
$
19,053

 
$
(11,158
)
 
$
928,582

 
$
(2,529
)
Total debt securities
$
1,070,370

 
$
23,112

 
$
(11,162
)
 
$
1,082,320

 
$
(2,529
)


 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
At December 31, 2019
 
 
 
 
 
 
 
Debt securities available-for-sale:
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
U.S. government and agency obligations
$
149,120

 
$
1,408

 
$
(93
)
 
$
150,435

State and municipal obligations
25

 
—

 
—

 
25

Total investment securities
149,145

 
1,408

 
(93
)
 
150,460

Mortgage-backed securities - FNMA
495

 
5

 
—

 
500

Total debt securities available-for-sale
$
149,640

 
$
1,413

 
$
(93
)
 
$
150,960

 
 
 
 
 
 
 
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
December 31, 2019
 
 
 
 
 
 
 
Debt securities held-to-maturity:
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
U.S. government and agency obligations
$
4,984

 
$
14

 
$
—

 
$
4,998

State and municipal obligations
124,430

 
1,537

 
(208
)
 
125,759

Corporate debt securities
79,547

 
833

 
(2,421
)
 
77,959

Total investment securities
208,961

 
2,384

 
(2,629
)
 
208,716

Mortgage-backed securities:
 
 
 
 
 
 
 
FHLMC
206,985

 
2,221

 
(524
)
 
208,682

FNMA
244,428

 
2,680

 
(493
)
 
246,615

GNMA
110,661

 
939

 
(212
)
 
111,388

SBA
1,940

 
—

 
(51
)
 
1,889

Total mortgage-backed securities
564,014

 
5,840

 
(1,280
)
 
568,574

Total debt securities held-to-maturity
$
772,975

 
$
8,224

 
$
(3,909
)
 
$
777,290

Total debt securities
$
922,615

 
$
9,637

 
$
(4,002
)
 
$
928,250
Carrying Value of Held-to-Maturity Investment Securities
The amortized cost, estimated fair value, and allowance for credit losses of debt securities available-for-sale and held-to-maturity at March 31, 2020, and December 31, 2019, are as follows (in thousands):
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
 
At March 31, 2020
 
 
 
 
 
 
 
 
 
Debt securities available-for-sale:
 
 
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
149,261

 
$
4,051

 
$
(4
)
 
$
153,308

 
 
State and municipal obligations
25

 
—

 
—

 
25

 
 
Total investment securities
149,286

 
4,051

 
(4
)
 
153,333

 
 
Mortgage-backed securities - FNMA
397

 
8

 
—

 
405

 
 
Total debt securities available-for-sale
$
149,683

 
$
4,059

 
$
(4
)
 
$
153,738

 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Allowance for Credit Losses
At March 31, 2020
 
 
 
 
 
 
 
 
 
Debt securities held-to-maturity:
 
 
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
6,238

 
$
54

 
$
—

 
$
6,292

 
$
—

State and municipal obligations
232,167

 
3,014

 
(425
)
 
234,756

 
(35
)
Corporate debt securities
82,277

 
510

 
(8,568
)
 
74,219

 
(1,651
)
Total investment securities
320,682

 
3,578

 
(8,993
)
 
315,267

 
(1,686
)
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
FHLMC
198,263

 
5,835

 
(30
)
 
204,068

 
—

FNMA
240,839

 
7,604

 
(165
)
 
248,278

 
—

GNMA
104,891

 
2,027

 
(416
)
 
106,502

 
—

SBA
6,108

 
9

 
(46
)
 
6,071

 
—

CMO
49,904

 
—

 
(1,508
)
 
48,396

 
(843
)
Total mortgage-backed securities
600,005

 
15,475

 
(2,165
)
 
613,315

 
(843
)
Total debt securities held-to-maturity
$
920,687

 
$
19,053

 
$
(11,158
)
 
$
928,582

 
$
(2,529
)
Total debt securities
$
1,070,370

 
$
23,112

 
$
(11,162
)
 
$
1,082,320

 
$
(2,529
)


 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
At December 31, 2019
 
 
 
 
 
 
 
Debt securities available-for-sale:
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
U.S. government and agency obligations
$
149,120

 
$
1,408

 
$
(93
)
 
$
150,435

State and municipal obligations
25

 
—

 
—

 
25

Total investment securities
149,145

 
1,408

 
(93
)
 
150,460

Mortgage-backed securities - FNMA
495

 
5

 
—

 
500

Total debt securities available-for-sale
$
149,640

 
$
1,413

 
$
(93
)
 
$
150,960

 
 
 
 
 
 
 
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
December 31, 2019
 
 
 
 
 
 
 
Debt securities held-to-maturity:
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
U.S. government and agency obligations
$
4,984

 
$
14

 
$
—

 
$
4,998

State and municipal obligations
124,430

 
1,537

 
(208
)
 
125,759

Corporate debt securities
79,547

 
833

 
(2,421
)
 
77,959

Total investment securities
208,961

 
2,384

 
(2,629
)
 
208,716

Mortgage-backed securities:
 
 
 
 
 
 
 
FHLMC
206,985

 
2,221

 
(524
)
 
208,682

FNMA
244,428

 
2,680

 
(493
)
 
246,615

GNMA
110,661

 
939

 
(212
)
 
111,388

SBA
1,940

 
—

 
(51
)
 
1,889

Total mortgage-backed securities
564,014

 
5,840

 
(1,280
)
 
568,574

Total debt securities held-to-maturity
$
772,975

 
$
8,224

 
$
(3,909
)
 
$
777,290

Total debt securities
$
922,615

 
$
9,637

 
$
(4,002
)
 
$
928,250


The carrying value of the debt securities held-to-maturity at March 31, 2020, and December 31, 2019, is as follows (in thousands):
 
 
March 31, 2020
 
December 31, 2019
Amortized cost
$
920,687

 
$
772,975

Net loss on date of transfer from available-for-sale
(13,347
)
 
(13,347
)
Allowance for credit loss
(2,529
)
 
—

Accretion of net unrealized loss on securities reclassified as held-to-maturity
9,444

 
9,245

Carrying value
$
914,255

 
$
768,873
Debt Securities, Held-to-maturity, Allowance for Credit Loss
The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity by major security type for the three months ended March 31, 2020 (in thousands):
 
Investment securities
 
Mortgage-backed securities
Allowance for credit losses
 
 
 
Beginning balance
$
—

 
$
—

Impact of CECL adoption
(1,268
)
 
—

Provision for credit loss expense
(418
)
 
(843
)
Total ending allowance balance
$
(1,686
)
 
$
(843
)
Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity
The amortized cost and estimated fair value of investment securities at March 31, 2020 by contractual maturity are shown below (in thousands). Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At March 31, 2020, corporate debt securities with an amortized cost of $57.0 million and estimated fair value of $49.0 million were callable prior to the maturity date.
 
March 31, 2020
Amortized
Cost
 
Estimated
Fair Value
Less than one year
$
82,453

 
$
82,780

Due after one year through five years
199,795

 
204,837

Due after five years through ten years
77,653

 
70,576

Due after ten years
110,067

 
110,407

 
$
469,968

 
$
468,600
Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-Maturity
The estimated fair value and unrealized losses of debt securities available-for-sale and held-to-maturity at March 31, 2020 and December 31, 2019, segregated by the duration of the unrealized losses, are as follows (in thousands):
 
At March 31, 2020
 
Less than 12 months
 
12 months or longer
 
Total
 
Estimated
Fair
Value
 
Unrealized
Losses
 
Estimated
Fair
Value
 
Unrealized
Losses
 
Estimated
Fair
Value
 
Unrealized
Losses
Debt securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Investment securities - U.S. government and agency obligations
$
4,900

 
$
(4
)
 
$
—

 
$
—

 
$
4,900

 
$
(4
)
Total debt securities available-for-sale
4,900

 
(4
)
 
—

 
—

 
4,900

 
(4
)
Debt securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
—

 
—

 
—

 
—

 
—

 
—

State and municipal obligations
38,712

 
(247
)
 
8,532

 
(178
)
 
47,244

 
(425
)
Corporate debt securities
20,259

 
(1,528
)
 
31,292

 
(7,040
)
 
51,551

 
(8,568
)
Total investment securities
58,971

 
(1,775
)
 
39,824

 
(7,218
)
 
98,795

 
(8,993
)
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
FHLMC
1,653

 
(22
)
 
1,772

 
(8
)
 
3,425

 
(30
)
FNMA
20,857

 
(154
)
 
444

 
(11
)
 
21,301

 
(165
)
GNMA
15,906

 
(266
)
 
7,222

 
(150
)
 
23,128

 
(416
)
SBA
—

 
—

 
1,763

 
(46
)
 
1,763

 
(46
)
CMO
48,396

 
(1,508
)
 
—

 
—

 
48,396

 
(1,508
)
Total mortgage-backed securities
86,812

 
(1,950
)
 
11,201

 
(215
)
 
98,013

 
(2,165
)
Total debt securities held-to-maturity
145,783

 
(3,725
)
 
51,025

 
(7,433
)
 
196,808

 
(11,158
)
Total debt securities
$
150,683

 
$
(3,729
)
 
$
51,025

 
$
(7,433
)
 
$
201,708

 
$
(11,162
)
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2019
 
Less than 12 months
 
12 months or longer
 
Total
 
Estimated
Fair
Value
 
Unrealized
Losses
 
Estimated
Fair
Value
 
Unrealized
Losses
 
Estimated
Fair
Value
 
Unrealized
Losses
Debt securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Investment securities - U.S. government and agency obligations
$
25,021

 
$
(54
)
 
$
22,451

 
$
(39
)
 
$
47,472

 
$
(93
)
Total debt securities available-for-sale
25,021

 
(54
)
 
22,451

 
(39
)
 
47,472

 
(93
)
Debt securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
 
 
 
 
State and municipal obligations
7,308

 
(58
)
 
14,531

 
(150
)
 
21,839

 
(208
)
Corporate debt securities
9,727

 
(213
)
 
37,628

 
(2,208
)
 
47,355

 
(2,421
)
Total investment securities
17,035

 
(271
)
 
52,159

 
(2,358
)
 
69,194

 
(2,629
)
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
FHLMC
6,329

 
(29
)
 
38,641

 
(495
)
 
44,970

 
(524
)
FNMA
13,682

 
(59
)
 
38,568

 
(434
)
 
52,250

 
(493
)
GNMA
30,268

 
(93
)
 
19,828

 
(119
)
 
50,096

 
(212
)
SBA
—

 
—

 
1,889

 
(51
)
 
1,889

 
(51
)
Total mortgage-backed securities
50,279

 
(181
)
 
98,926

 
(1,099
)
 
149,205

 
(1,280
)
Total debt securities held-to-maturity
67,314

 
(452
)
 
151,085

 
(3,457
)
 
218,399

 
(3,909
)
Total debt securities
$
92,335

 
$
(506
)
 
$
173,536

 
$
(3,496
)
 
$
265,871

 
$
(4,002
)
Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt Securities

At March 31, 2020, the amortized cost, estimated fair value and credit rating of the individual corporate debt securities in an unrealized loss position for greater than one year are as follows (in thousands):
Security Description
Amortized
Cost
 
Estimated
Fair Value
 
Credit Rating
Moody’s/
S&P
Chase Capital
$
10,000

 
$
8,300

 
Baa1/BBB-
Wells Fargo Capital
5,000

 
4,200

 
A1/BBB
Huntington Capital
5,000

 
3,850

 
Baa2/BB+
Keycorp Capital
5,000

 
4,100

 
Baa2/BB+
PNC Capital
5,000

 
4,010

 
Baa1/BBB-
State Street Capital
3,332

 
2,732

 
A3/BBB
SunTrust Capital
5,000

 
4,100

 
Not Rated/BBB-
 
$
38,332

 
$
31,292

 
 
Debt Securities, Held-to-maturity, Credit Quality Indicator The following table summarized the amortized cost of debt securities held-to-maturity at March 31, 2020, aggregated by credit quality indicator (in thousands):
 
AAA
 
AA
 
A
 
BBB
 
BB
 
Total
As of March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Investment securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
—

 
$
6,238

 
$
—

 
$
—

 
$
—

 
$
6,238

State and municipal obligations
41,863

 
135,634

 
49,366

 
5,304

 
—

 
232,167

Corporate debt securities
—

 
1,493

 
17,450

 
52,803

 
10,531

 
82,277

Total investment securities
41,863

 
143,365

 
66,816

 
58,107

 
10,531

 
320,682

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
CMO
16,924

 
32,980

 
—

 
—

 
—

 
49,904

Total mortgage-backed securities
16,924

 
32,980

 
—

 
—

 
—

 
49,904

Total debt securities held-to-maturity
$
58,787

 
$
176,345

 
$
66,816

 
$
58,107

 
$
10,531

 
$
370,586