SECURITIES AVAILABLE FOR SALE

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

At June 30, 2019 and December 31, 2018, all investment securities were classified as AFS. The following table summarizes amortized cost and fair value of AFS securities, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI, at June 30, 2019 and December 31, 2018.


(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2019


States and political subdivisions	$	96,080	$	6,030	$	0	$	102,110

GSE residential CMOs	72,269		1,055		903		72,421


Private label commercial CMOs	94,354		299		225		94,428
Asset-backed and other	229,913		141		2,083		227,971
Totals	$	492,616	$	7,525	$	3,211	$	496,930
December 31, 2018


States and political subdivisions	$	144,596	$	1,919	$	1,511	$	145,004

GSE residential CMOs	110,421		332		2,689		108,064

Private label residential CMOs	144		0		1		143
Private label commercial CMOs	75,911		55		921		75,045
Asset-backed and other	138,535		126		1,073		137,588
Totals	$	469,607	$	2,432	$	6,195	$	465,844

The following table summarizes AFS securities with unrealized losses at June 30, 2019 and December 31, 2018, aggregated by major security type and length of time in a continuous unrealized loss position.


	Less Than 12 Months								12 Months or More							Total
(Dollars in thousands)	# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses
June 30, 2019



GSE residential CMOs	0	0		0		4	43,662		903		4	43,662		903


Private label commercial CMOs	11	49,100		175		3	21,846		50		14	70,946		225
Asset-backed and other	14	173,546		1,691		2	19,066		392		16	192,612		2,083
Totals	25	$	222,646	$	1,866	9	$	84,574	$	1,345	34	$	307,220	$	3,211
December 31, 2018


States and political subdivisions	27	$	46,585	$	662	6	$	23,036	$	849	33	$	69,621	$	1,511

GSE residential CMOs	1	18,037		122		7	46,168		2,567		8	64,205		2,689

Private label residential CMOs	1	143		1		0	0		0		1	143		1
Private label commercial CMOs	11	56,499		712		2	6,349		209		13	62,848		921
Asset-backed and other	6	78,900		859		3	10,808		214		9	89,708		1,073
Totals	46	$	200,164	$	2,356	18	$	86,361	$	3,839	64	$	286,525	$	6,195

States and Political Subdivisions. The unrealized losses presented in the table above have been caused by a widening of spreads and/or a rise in interest rates from the time these securities were purchased. Management considers the investment rating, the state of the issuer of the security and other credit support in determining whether the security is OTTI. Because 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 maturity, the Company does not consider these securities to be OTTI at December 31, 2018.

GSE Residential CMOs. The unrealized losses presented in the table above have been caused by a widening of spreads and/or a rise in interest rates from the time these securities were purchased. The contractual terms of these securities do not permit the issuer to settle the securities at a price less than its par value basis. Because 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 maturity, the Company does not consider these securities to be OTTI at June 30, 2019 or at December 31, 2018.

Private Label Residential CMOs, Private Label Commercial CMOs and Asset-backed and Other. The unrealized losses presented in the table above have been caused by a widening of spreads and/or a rise in interest rates from the time the securities were purchased. Because 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 maturity, the Company does not consider these securities to be OTTI at June 30, 2019 or at December 31, 2018.

The following table summarizes amortized cost and fair value of AFS securities by contractual maturity at June 30, 2019. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	Available for Sale
(Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	525	$	525
Due after one year through five years	0		0
Due after five years through ten years	23,446		24,326
Due after ten years	72,109		77,259
CMOs	166,623		166,849
Asset-backed and other	229,913		227,971
	$	492,616	$	496,930

The following table summarizes proceeds from sales of AFS securities and gross gains and gross losses for the three and six months ended June 30, 2019 and 2018.


	Three months ended June 30,						Six months ended June 30,
(Dollars in thousands)	2019		2018		2019		2018
Proceeds from sale of AFS securities	$	114,871	$	25,533	$	174,335	$	88,110
Gross gains	2,109		211		2,628		1,052
Gross losses	45		165		225		190

In July 2019, the Company sold an additional $18,000,000 of principally States and Political subdivisions securities at a net gain of approximately $2,300,000.

AFS securities with a fair value of $176,270,000 and $164,233,000 at June 30, 2019 and December 31, 2018 were pledged to secure public funds and for other purposes as required or permitted by law.