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Investment Securities Available-for-Sale | 6 Months Ended
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Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract] |
Investment Securities Available-for-Sale | Note 3. Investment Securities Available-for-Sale Amortized cost and estimated fair value of securities available-for-sale are summarized as follows:
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
June 30, 2019 |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(dollars in thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
U. S. agency securities |  | $ | 225,389 |  |  | $ | 940 |  |  | $ | 659 |  |  | $ | 225,670 |
Residential mortgage backed securities |  |  | 440,243 |  |  |  | 5,186 |  |  |  | 1,884 |  |  |  | 443,545 |
Municipal bonds |  |  | 67,835 |  |  |  | 1,503 |  |  |  | — |  |  |  | 69,338 |
Corporate bonds |  |  | 6,502 |  |  |  | 70 |  |  |  | — |  |  |  | 6,572 |
Other equity investments |  |  | 218 |  |  |  | — |  |  |  | — |  |  |  | 218 |
|  | $ | 740,187 |  |  | $ | 7,699 |  |  | $ | 2,543 |  |  | $ | 745,343 |
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
December 31, 2018 |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(dollars in thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
U. S. agency securities |  | $ | 260,150 |  |  | $ | 228 |  |  | $ | 4,033 |  |  | $ | 256,345 |
Residential mortgage backed securities |  |  | 477,949 |  |  |  | 1,575 |  |  |  | 7,293 |  |  |  | 472,231 |
Municipal bonds |  |  | 45,814 |  |  |  | 439 |  |  |  | 484 |  |  |  | 45,769 |
Corporate bonds |  |  | 9,503 |  |  |  | 79 |  |  |  | 6 |  |  |  | 9,576 |
Other equity investments |  |  | 218 |  |  |  | — |  |  |  | — |  |  |  | 218 |
|  | $ | 793,634 |  |  | $ | 2,321 |  |  | $ | 11,816 |  |  | $ | 784,139 |
In addition, at June 30, 2019 and December 31, 2018 the Company held $34.0 million and $23.5 million, respectively, in equity securities in a combination of Federal Reserve Bank (“FRB”) and Federal Home Loan Bank (“FHLB”) stocks, which are required to be held for regulatory purposes and which are not marketable, and therefore are carried at cost. Gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position are as follows:
|  |  |  |  | Less than |  |  | 12Months |  |  |  |
|  |  |  |  | 12Months |  |  | or Greater |  |  | Total |
|  |  |  |  | Estimated |  |  |  |  |  | Estimated |  |  |  |  |  | Estimated |  |  |  |
June 30, 2019 |  | Number of |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(dollars in thousands) |  | Securities |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
U. S. agency securities |  |  | 39 |  |  | $ | 26,149 |  |  | $ | 50 |  |  | $ | 99,252 |  |  | $ | 609 |  |  | $ | 125,401 |  |  | $ | 659 |
Residential mortgage backed securities |  |  | 103 |  |  |  | 4,234 |  |  |  | 13 |  |  |  | 174,316 |  |  |  | 1,871 |  |  |  | 178,550 |  |  |  | 1,884 |
Municipal bonds |  |  | 2 |  |  |  | 1,500 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,500 |  |  |  | — |
|  |  | 144 |  |  | $ | 31,883 |  |  | $ | 63 |  |  | $ | 273,568 |  |  | $ | 2,480 |  |  | $ | 305,451 |  |  | $ | 2,543 |
|  |  |  |  | Less than |  |  | 12Months |  |  |  |  |  |  |
|  |  |  |  | 12Months |  |  | or Greater |  |  | Total |
|  |  |  |  | Estimated |  |  |  |  |  | Estimated |  |  |  |  |  | Estimated |  |  |  |
December 31, 2018 |  | Number of |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(dollars in thousands) |  | Securities |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
U. S. agency securities |  |  | 58 |  |  | $ | 72,679 |  |  | $ | 533 |  |  | $ | 144,636 |  |  | $ | 3,500 |  |  | $ | 217,315 |  |  | $ | 4,033 |
Residential mortgage backed securities |  |  | 151 |  |  |  | 61,199 |  |  |  | 527 |  |  |  | 225,995 |  |  |  | 6,766 |  |  |  | 287,194 |  |  |  | 7,293 |
Municipal bonds |  |  | 11 |  |  |  | 4,299 |  |  |  | 50 |  |  |  | 17,041 |  |  |  | 434 |  |  |  | 21,340 |  |  |  | 484 |
Corporate bonds |  |  | 1 |  |  |  | 1,494 |  |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | 1,494 |  |  |  | 6 |
|  |  | 221 |  |  | $ | 139,671 |  |  | $ | 1,116 |  |  | $ | 387,672 |  |  | $ | 10,700 |  |  | $ | 527,343 |  |  | $ | 11,816 |
The unrealized losses that exist are generally the result of changes in market interest rates and interest spread relationships since original purchases. The weighted average duration of debt securities, which comprise99.9 % of total investment securities, is relatively short at3.0 years. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. The Company does not believe that the investment securities that were in an unrealized loss position as of June 30, 2019 represent an other-than-temporary impairment. The Company does not intend to sell the investments and it is more likely than not that the Company will not have to sell the securities before recovery of its amortized cost basis, which may be at maturity. The amortized cost and estimated fair value of investments available-for-sale at June 30, 2019 and December 31, 2018 by contractual maturity are shown in the table below. Expected maturities for residential mortgage backed securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | June 30, 2019 |  |  | December 31, 2018 |
|  | Amortized |  |  | Estimated |  |  | Amortized |  |  | Estimated |
(dollars in thousands) |  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |
U. S. agency securities maturing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oneyear or less |  | $ | 114,260 |  |  | $ | 114,564 |  |  | $ | 128,148 |  |  | $ | 125,545 |
Afteroneyear throughfiveyears |  |  | 103,105 |  |  |  | 103,042 |  |  |  | 119,856 |  |  |  | 118,883 |
Fiveyears throughtenyears |  |  | 8,024 |  |  |  | 8,064 |  |  |  | 12,146 |  |  |  | 11,917 |
Residential mortgage backed securities |  |  | 440,243 |  |  |  | 443,545 |  |  |  | 477,949 |  |  |  | 472,231 |
Municipal bonds maturing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oneyear or less |  |  | 6,947 |  |  |  | 6,977 |  |  |  | 8,097 |  |  |  | 8,167 |
Afteroneyear throughfiveyears |  |  | 13,426 |  |  |  | 13,694 |  |  |  | 15,025 |  |  |  | 15,081 |
Fiveyears throughtenyears |  |  | 46,399 |  |  |  | 47,468 |  |  |  | 21,626 |  |  |  | 21,385 |
Aftertenyears |  |  | 1,063 |  |  |  | 1,199 |  |  |  | 1,066 |  |  |  | 1,136 |
Corporate bonds maturing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Afteroneyear throughfiveyears |  |  | 5,002 |  |  |  | 5,072 |  |  |  | 8,003 |  |  |  | 8,076 |
Aftertenyears |  |  | 1,500 |  |  |  | 1,500 |  |  |  | 1,500 |  |  |  | 1,500 |
Other equity investments |  |  | 218 |  |  |  | 218 |  |  |  | 218 |  |  |  | 218 |
|  | $ | 740,187 |  |  | $ | 745,343 |  |  | $ | 793,634 |  |  | $ | 784,139 |
For thesixmonths ended June 30, 2019, gross realized gains on sales of investments securities were $ 1.5 million, primarily due to $829 thousand of noninterest income recognized during March 2019 on interest rate swap terminations, and there were no gross realized losses on sales of investment securities. For thesixmonths ended June 30, 2018, gross realized gains on sales of investments securities were $93 thousand and gross realized losses on sales of investment securities were $25 thousand. Proceeds from sales and calls of investment securities for thethreemonths ended June 30, 2019 were $42.1 million compared to $29.0 million for the same period in2018 . The carrying value of securities pledged as collateral for certain government deposits, securities sold under agreements to repurchase, and certain lines of credit with correspondent banks at June 30, 2019 and December 31, 2018 was $ 460.6 million and $ 528.2 million, respectively, which is well in excess of required amounts in order to operationally provide significant reserve amounts for new business. As of June 30, 2019 and December 31, 2018, there were no holdings of securities of anyoneissuer, other than the U.S. Government and U.S. agency securities, which exceededtenpercent of shareholders’ equity.

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