SECURITIES AVAILABLE FOR SALE

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

At September 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 September 30, 2019 and December 31, 2018.


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


States and political subdivisions	$	77,553	$	5,159	$	0	$	82,712

GSE residential CMOs	70,214		1,142		355		71,001


Private label commercial CMOs	87,848		146		227		87,767
Asset-backed and other	242,119		153		2,632		239,640
Totals	$	477,734	$	6,600	$	3,214	$	481,120
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 September 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
September 30, 2019



GSE residential CMOs	3	27,100		45		1	12,147		310		4	39,247		355


Private label commercial CMOs	7	33,093		71		6	34,644		156		13	67,737		227
Asset-backed and other	15	176,324		2,258		2	18,324		374		17	194,648		2,632
Totals	25	$	236,517	$	2,374	9	$	65,115	$	840	34	$	301,632	$	3,214
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 September 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 September 30, 2019 or at December 31, 2018.

The following table summarizes amortized cost and fair value of AFS securities by contractual maturity at September 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	$	230	$	230
Due after one year through five years	0		0
Due after five years through ten years	26,456		27,952
Due after ten years	50,867		54,530
CMOs	158,062		158,768
Asset-backed and other	242,119		239,640
	$	477,734	$	481,120

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


	Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands)	2019		2018		2019		2018
Proceeds from sale of AFS securities	$	25,575	$	25,070	$	199,910	$	113,180
Gross gains	2,328		185		4,956		1,237
Gross losses	0		156		225		346

AFS securities with a fair value of $161,627,000 and $164,233,000 at September 30, 2019 and December 31, 2018 were pledged to secure public funds and for other purposes as required or permitted by law.