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v3.20.2

Securities | 6 Months Ended
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Jun. 30, 2020
Investments Debt And Equity Securities [Abstract] |
Securities | Note 2 — Securities The following is a summary of securities available for sale as of the dates indicated:
|  |  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gain |  |  | Loss |  |  | Value |
|  | (in thousands) |
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 44,982 |  |  | $ | 280 |  |  | $ | — |  |  | $ | 45,262 |
U.S. government agency and sponsored agency obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  | 413,278 |  |  |  | 422 |  |  |  | (437 | ) |  |  | 413,263 |
Collateralized mortgage obligations |  |  | 120,080 |  |  |  | 390 |  |  |  | (176 | ) |  |  | 120,294 |
Debt securities |  |  | 77,160 |  |  |  | 9 |  |  |  | (17 | ) |  |  | 77,152 |
Total U.S. government agency and sponsored agency obligations |  |  | 610,518 |  |  |  | 821 |  |  |  | (630 | ) |  |  | 610,709 |
Total securities available for sale |  | $ | 655,500 |  |  | $ | 1,101 |  |  | $ | (630 | ) |  | $ | 655,971 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 34,947 |  |  | $ | 259 |  |  | $ | — |  |  |  | 35,206 |
U.S. government agency and sponsored agency obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  | 406,813 |  |  |  | 4,334 |  |  |  | (347 | ) |  | $ | 410,800 |
Collateralized mortgage obligations |  |  | 164,232 |  |  |  | 792 |  |  |  | (432 | ) |  |  | 164,592 |
Debt securities |  |  | 23,733 |  |  |  | 168 |  |  |  | (22 | ) |  |  | 23,879 |
Total U.S. government agency and sponsored agency obligations |  |  | 594,778 |  |  |  | 5,294 |  |  |  | (801 | ) |  |  | 599,271 |
Total securities available for sale |  | $ | 629,725 |  |  | $ | 5,553 |  |  | $ | (801 | ) |  | $ | 634,477 |
The amortized cost and estimated fair value of securities as of June 30, 2020, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities.
|  | Available for Sale |
|  | Amortized |  |  | Estimated |
|  | Cost |  |  | Fair Value |
|  | (in thousands) |
Within one year |  | $ | 45,358 |  |  | $ | 45,379 |
Over one year through five years |  |  | 121,596 |  |  |  | 122,202 |
Over five years through ten years |  |  | 48,702 |  |  |  | 48,812 |
Over ten years |  |  | 439,844 |  |  |  | 439,578 |
Total |  | $ | 655,500 |  |  | $ | 655,971 |
CECL (ASU 2016-13) requires the Company to assess its available-for-sales securities portfolio for impairment on an at least quarterly basis. The Company performed an impairment assessment of the Bank’s investment in debt securities in accordance with this standard. This assessment took into account the credit quality of these debt securities and determined that since all were U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, they all have the backing of the U.S. government, and thus no credit impairment is expected. Gross unrealized losses on securities available for sale, the estimated fair value of the related securities and the number of securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows as of June 30, 2020 and December 31, 2019:
|  | Holding Period |
|  | Less than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Gross |  |  | Estimated |  |  | Number |  |  | Gross |  |  | Estimated |  |  | Number |  |  | Gross |  |  | Estimated |  |  | Number |
|  | Unrealized |  |  | Fair |  |  | of |  |  | Unrealized |  |  | Fair |  |  | of |  |  | Unrealized |  |  | Fair |  |  | of |
|  | Loss |  |  | Value |  |  | Securities |  |  | Loss |  |  | Value |  |  | Securities |  |  | Loss |  |  | Value |  |  | Securities |
|  | (in thousands, except number of securities) |
June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | — |  |  | $ | 29,988 |  |  |  | 4 |  |  | $ | — |  |  | $ | — |  |  |  | — |  |  | $ | — |  |  | $ | 29,988 |  |  |  | 4 |
U.S. government agency and sponsored agency obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  |  | (437 | ) |  |  | 192,403 |  |  |  | 23 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (437 | ) |  |  | 192,403 |  |  |  | 23 |
Collateralized mortgage obligations |  |  | (176 | ) |  |  | 46,693 |  |  |  | 12 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (176 | ) |  |  | 46,693 |  |  |  | 12 |
Debt securities |  |  | (17 | ) |  |  | 32,483 |  |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (17 | ) |  |  | 32,483 |  |  |  | 5 |
Total U.S. government agency and sponsored agency obligations |  |  | (630 | ) |  |  | 271,579 |  |  |  | 40 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (630 | ) |  |  | 271,579 |  |  |  | 40 |
Total |  | $ | (630 | ) |  | $ | 301,567 |  |  |  | 44 |  |  | $ | — |  |  | $ | — |  |  |  | — |  |  | $ | (630 | ) |  | $ | 301,567 |  |  |  | 44 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency and sponsored agency obligations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | (186 | ) |  | $ | 51,261 |  |  |  | 17 |  |  | $ | (161 | ) |  | $ | 18,757 |  |  |  | 14 |  |  | $ | (347 | ) |  | $ | 70,018 |  |  |  | 31 |
Collateralized mortgage obligations |  |  | (112 | ) |  |  | 41,419 |  |  |  | 14 |  |  |  | (320 | ) |  |  | 39,936 |  |  |  | 36 |  |  |  | (432 | ) |  |  | 81,355 |  |  |  | 50 |
Debt securities |  |  | (20 | ) |  |  | 8,235 |  |  |  | 2 |  |  |  | (3 | ) |  |  | 2,997 |  |  |  | 1 |  |  |  | (22 | ) |  |  | 11,233 |  |  |  | 3 |
Total U.S. government agency and sponsored agency obligations |  |  | (318 | ) |  |  | 100,916 |  |  |  | 33 |  |  |  | (483 | ) |  |  | 61,690 |  |  |  | 51 |  |  |  | (801 | ) |  |  | 162,606 |  |  |  | 84 |
Total |  | $ | (318 | ) |  | $ | 100,916 |  |  |  | 33 |  |  | $ | (483 | ) |  | $ | 61,690 |  |  |  | 51 |  |  | $ | (801 | ) |  | $ | 162,606 |  |  |  | 84 |
The unrealized losses in the U.S. government agency and sponsored agency obligations, were caused by fluctuations in interest rates. These securities are not deemed to have credit risk due to their long history with no credit losses, and the explicit guarantee of the U.S. government of timely payment of principal and interest to investors. The Company does not intend to sell the securities and it is not more likely than not that it will be required to sell them before recovery of their amortized cost. Realized gains and losses on sales of securities and proceeds from sales of securities were as follows for the periods indicated:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
|  | (in thousands) |
Gross realized gains on sales of securities |  | $ | 15,712 |  |  | $ | 634 |  |  | $ | 15,712 |  |  | $ | 1,359 |
Gross realized losses on sales of securities |  |  | — |  |  |  | (64 | ) |  |  | — |  |  |  | (64 | )
Net realized gains on sales of securities |  | $ | 15,712 |  |  | $ | 570 |  |  | $ | 15,712 |  |  | $ | 1,295 |
Proceeds from sales of securities |  | $ | 495,566 |  |  |  | 44,119 |  |  | $ | 495,566 |  |  |  | 113,306 |
During the three months ended June 30, 2020 and 2019, there was a $15.7 million and $570,000 net gain in earnings resulting from the sale of securities, respectively. A net unrealized gain of $15.3 million and $792,000 related to these securities had previously been recorded in accumulated other comprehensive income as of the beginning of the period in 2020 and 2019, respectively. During the six months ended June 30, 2020, there were $15.7 million securities sales transactions in net gains in earnings resulting from $15.3 million previously recorded for unrealized gains in accumulated other comprehensive income. During the six months ended June 30, 2019, there were $1.3 million in net gains in earnings resulting from the sale of securities which had $586,000 in previously recorded unrealized gains in accumulated other comprehensive income. Securities available for sale with market values of $50.0 million and $30.2 million as of June 30, 2020 and 2019, respectively, were pledged to secure public deposits and for other purposes as required or permitted by law.

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