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Investment Securities | 12 Months Ended
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Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at December 31, 2019 and 2018 were as follows (in thousands):
December 31, 2019 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Fair Value
Available-for-sale: |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations & agencies | $ | 106,428 |  |  | $ | 952 |  |  | $ | (60 | ) |  | $ | 107,320 |
Obligations of states and political subdivisions | 172,460 |  |  | 5,990 |  |  | (17 | ) |  | 178,433 |
Mortgage-backed securities: GSE residential | 391,307 |  |  | 5,331 |  |  | (512 | ) |  | 396,126 |
Other securities | 4,028 |  |  | 141 |  |  | — |  |  | 4,169 |
Total available-for-sale | $ | 674,223 |  |  | $ | 12,414 |  |  | $ | (589 | ) |  | $ | 686,048 |
Held-to-maturity: |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations & agencies | $ | 69,542 |  |  | $ | 99 |  |  | $ | (69 | ) |  | $ | 69,572 |
December 31, 2018 |  |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations & agencies | $ | 201,380 |  |  | $ | 504 |  |  | $ | (3,235 | ) |  | $ | 198,649 |
Obligations of states and political subdivisions | 193,195 |  |  | 1,224 |  |  | (1,840 | ) |  | 192,579 |
Mortgage-backed securities: GSE residential | 304,372 |  |  | 486 |  |  | (6,186 | ) |  | 298,672 |
Other securities | 2,278 |  |  | 96 |  |  | — |  |  | 2,374 |
Total available-for-sale | $ | 701,225 |  |  | $ | 2,310 |  |  | $ | (11,261 | ) |  | $ | 692,274 |
Held-to-maturity: |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations & agencies | $ | 69,436 |  |  | $ | — |  |  | $ | (1,527 | ) |  | $ | 67,909 |
Proceeds from sales of investment securities, realized gains and losses and income tax expense were as follows during the years ended December 31, 2019, 2018 and 2017 (in thousands):
| 2019 |  | 2018 |  | 2017
Proceeds from sales | $ | 60,900 |  |  | $ | 13,152 |  |  | $ | 159,663 |
Gross gains | 875 |  |  | 941 |  |  | 773 |
Gross losses | (73 | ) |  | (40 | ) |  | (157 | )
Income tax expense | 233 |  |  | 261 |  |  | 216 |
The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, and held-to-maturity presented at amortized cost at December 31, 2019 and the weighted average yield for each range of maturities (in thousands):
| One year or less |  | After 1 through 5 years |  | After 5 through 10 years |  | After ten years |  | Total
Available-for-sale: |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 97,088 |  |  | $ | 10,232 |  |  | $ | — |  |  | $ | — |  |  | $ | 107,320 |
Obligations of state and political subdivisions | 30,565 |  |  | 68,896 |  |  | 77,953 |  |  | 1,019 |  |  | 178,433 |
Mortgage-backed securities: GSE residential | 1,517 |  |  | 296,145 |  |  | 98,464 |  |  | — |  |  | 396,126 |
Other securities | 2,002 |  |  | 1,754 |  |  | — |  |  | 413 |  |  | 4,169 |
Total investments | $ | 131,172 |  |  | $ | 377,027 |  |  | $ | 176,417 |  |  | $ | 1,432 |  |  | $ | 686,048 |
Weighted average yield | 2.70 | % |  | 2.88 | % |  | 2.81 | % |  | 3.07 | % |  | 2.83 | %
Full tax-equivalent yield | 2.94 | % |  | 3.08 | % |  | 3.32 | % |  | 4.08 | % |  | 3.12 | %
Held-to-maturity: |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 64,511 |  |  | $ | 5,031 |  |  | $ | — |  |  | $ | — |  |  | $ | 69,542 |
Weighted average yield | 1.89 | % |  | 2.06 | % |  | — | % |  | — | % |  | 1.90 | %
Full tax-equivalent yield | 1.89 | % |  | 2.06 | % |  | — | % |  | — | % |  | 1.90 | %
The weighted average yields are calculated on the basis of the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax-equivalent yields have been calculated using a 21% tax rate. With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at December 31, 2019. Investment securities carried at approximately $688 million and $628 million at December 31, 2019 and 2018, respectively, were pledged to secure public deposits and repurchase agreements and for other purposes as permitted or required by law. The following table presents the aging of gross unrealized losses and fair value by investment category as of December 31, 2019 and 2018 (in thousands):
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 23,375 |  |  | $ | (60 | ) |  | $ | — |  |  | $ | — |  |  | $ | 23,375 |  |  | $ | (60 | )
Obligations of states and political subdivisions | 3,469 |  |  | (16 | ) |  | 347 |  |  | (1 | ) |  | 3,816 |  |  | (17 | )
Mortgage-backed securities: GSE residential | 67,080 |  |  | (322 | ) |  | 20,888 |  |  | (190 | ) |  | 87,968 |  |  | (512 | )
Total | $ | 93,924 |  |  | $ | (398 | ) |  | $ | 21,235 |  |  | $ | (191 | ) |  | $ | 115,159 |  |  | $ | (589 | )
Held-to-maturity: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 14,996 |  |  | $ | (25 | ) |  | $ | 24,565 |  |  | $ | (44 | ) |  | $ | 39,561 |  |  | $ | (69 | )
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 16,095 |  |  | $ | (148 | ) |  | $ | 105,549 |  |  | $ | (3,087 | ) |  | $ | 121,644 |  |  | $ | (3,235 | )
Obligations of states and political subdivisions | 38,782 |  |  | (450 | ) |  | 42,741 |  |  | (1,390 | ) |  | 81,523 |  |  | (1,840 | )
Mortgage-backed securities: GSE residential | 81,435 |  |  | (1,150 | ) |  | 171,321 |  |  | (5,036 | ) |  | 252,756 |  |  | (6,186 | )
Total | $ | 136,312 |  |  | $ | (1,748 | ) |  | $ | 319,611 |  |  | $ | (9,513 | ) |  | $ | 455,923 |  |  | $ | (11,261 | )
Held-to-maturity: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 19,683 |  |  | $ | (147 | ) |  | $ | 48,226 |  |  | $ | (1,380 | ) |  | $ | 67,909 |  |  | $ | (1,527 | )
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies. At December 31, 2019, there were no available-for-sale U.S. Treasury securities and obligations of U.S. government corporations and agencies in a continuous unrealized loss position for twelve months or more. At December 31, 2018, there were twenty-three available-for-sale U.S. Treasury securities and obligations of U.S. government corporations and agencies with a fair value of $105,549,000 and unrealized losses of $3,087,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2019 there were four held-to-maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies with a fair value of $24,565,000 and unrealized losses of $44,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2018 there were nine held-to maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies with a fair value of $48,226,000 and unrealized losses of $1,380,000 in a continuous unrealized loss position for twelve months or more. Obligations of states and political subdivisions. At December 31, 2019 there was one obligations of states and political subdivisions with a fair value of $347,000 and unrealized losses of $1,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2018, there were eighty-four obligations of states and political subdivisions with a fair value of $42,741,000 and unrealized losses of $1,390,000 in a continuous unrealized loss position for twelve months or more. Mortgage-backed Securities: GSE Residential. At December 31, 2019 there were fourteen mortgage-backed securities with a fair value of $20,888,000 and unrealized losses of $190,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2018, there were sixty-nine mortgage-backed security with a fair value of $171,321,000 and unrealized losses of $5,036,000 in a continuous unrealized loss position for twelve months or more. Other-than-temporary Impairment Upon acquisition of a security, the Company determines whether it is within the scope of the accounting guidance for investments in debt and equity securities or whether it must be evaluated for impairment under the accounting guidance for beneficial interests in securitized financial assets. Credit Losses Recognized on Investments As described above, the Company’s investments in trust preferred securities experienced fair value deterioration due to credit losses but were not otherwise other-than-temporarily impaired. The following table provides information about those trust preferred securities for which only a credit loss was recognized in income and other losses were recorded in other comprehensive income (loss) for the years ended December 31, 2019, 2018 and 2017 (in thousands).
| Accumulated Credit Losses as of December 31:
| 2019 |  | 2018 |  | 2017
Credit losses on trust preferred securities held: |  |  |  |  |
Beginning of period | $ | — |  |  | $ | 1,111 |  |  | $ | 1,111 |
Additions related to OTTI losses not previously recognized | — |  |  | — |  |  | — |
Reductions due to sales / (recoveries) | — |  |  | (1,111 | ) |  | — |
Reductions due to change in intent or likelihood of sale | — |  |  | — |  |  | — |
Additions related to increases in previously recognized OTTI losses | — |  |  | — |  |  | — |
Reductions due to increases in expected cash flows | — |  |  | — |  |  | — |
End of period | $ | — |  |  | $ | — |  |  | $ | 1,111 |
On May 29, 2018 the Company sold its trust preferred security. This sale resulted in a recovery of all of the book value of the security. The net proceeds exceed the aggregate book value of these securities by approximately $846,000 and this amount was recorded as a security gain during the second quarter of 2018. Maturities of investment securities were as follows at December 31, 2019 (in thousands):
|  | Amortized Cost |  | Estimated Fair Value
Available-for-sale: |  |  |  |
Due in one year or less |  | $ | 128,892 |  |  | $ | 129,656 |
Due after one-five years |  | 78,637 |  |  | 80,882 |
Due after five-ten years |  | 74,167 |  |  | 77,953 |
Due after ten years |  | 1,220 |  |  | 1,431 |
|  | 282,916 |  |  | 289,922 |
Mortgage-backed securities: GSE residential |  | 391,307 |  |  | 396,126 |
Total available-for-sale |  | 674,223 |  |  | 686,048 |
Held-to-maturity: |  |  |  |
Due in one year or less |  | 64,511 |  |  | 64,501 |
Due after one-five years |  | 5,031 |  |  | 5,071 |
Total held-to-maturity |  | $ | 69,542 |  |  | $ | 69,572 |
Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

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