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Investment Securities Available-for-Sale | 3 Months Ended
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Mar. 31, 2020
Investment Securities Available-for-Sale |
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
March 31, 2020 | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
(dollars in thousands) |  | Cost |  | Gains |  | Losses |  | Value
U. S. agency securities | ​ | $ | 146,948 | ​ | $ | 1,527 | ​ | $ | 716 | ​ | $ | 147,759
Residential mortgage backed securities | ​ |  | 531,784 | ​ |  | 16,110 | ​ |  | 506 | ​ |  | 547,388
Municipal bonds | ​ |  | 72,828 | ​ |  | 2,760 | ​ |  | — | ​ |  | 75,588
Corporate bonds | ​ |  | 52,087 | ​ |  | 969 | ​ |  | 72 | ​ |  | 52,984
U.S. Treasury | ​ | ​ | 34,986 | ​ | ​ | 13 | ​ | ​ | — | ​ | ​ | 34,999
Other equity investments | ​ |  | 198 | ​ |  | — | ​ |  | — | ​ |  | 198
​ | ​ | $ | 838,831 | ​ | $ | 21,379 | ​ | $ | 1,294 | ​ | $ | 858,916
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | Estimated
December 31, 2019 | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
(dollars in thousands) |  | Cost |  | Gains |  | Losses |  | Value
U. S. agency securities | ​ | $ | 180,228 | ​ | $ | 621 | ​ | $ | 1,055 | ​ | $ | 179,794
Residential mortgage backed securities | ​ |  | 541,490 | ​ |  | 4,337 | ​ |  | 1,975 | ​ |  | 543,852
Municipal bonds | ​ |  | 71,902 | ​ |  | 2,034 | ​ |  | 5 | ​ |  | 73,931
Corporate bonds | ​ |  | 10,530 | ​ |  | 203 | ​ |  | — | ​ |  | 10,733
U.S. Treasury | ​ | ​ | 34,844 | ​ | ​ | 11 | ​ | ​ | — | ​ | ​ | 34,855
Other equity investments | ​ |  | 198 | ​ |  | — | ​ |  | — | ​ |  | 198
​ | ​ | $ | 839,192 | ​ | $ | 7,206 | ​ | $ | 3,035 | ​ | $ | 843,363
​ In addition, at March 31, 2020 and December 31, 2019 the Company held $40.0 million and $35.2 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. Accrued interest on available for sale securities totaled $3.4 million and $3.2 million at March 31, 2020 and December 31, 2019, respectively, and was included in other assets in the consolidated balance sheets. Gross unrealized losses and fair value of available-for-sale securities for which an allowance for credit losses has not been recorded, by length of time that individual securities have been in a continuous unrealized loss position are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Less than | ​ | 12 Months | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | 12 Months | ​ | or Greater | ​ | Total
​ | ​ | ​ | ​ | Estimated | ​ | ​ | ​ | ​ | Estimated | ​ | ​ | ​ | ​ | Estimated | ​ | ​ | ​
March 31, 2020 | ​ | Number of | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized
(dollars in thousands) |  | Securities |  | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
U. S. agency securities |  | 23 | ​ | $ | 13,835 | ​ | $ | 162 | ​ | $ | 39,486 | ​ | $ | 554 | ​ | $ | 53,321 | ​ | $ | 716
Residential mortgage backed securities |  | 11 | ​ |  | 18,321 | ​ |  | 275 | ​ |  | 7,888 | ​ |  | 231 | ​ |  | 26,209 | ​ |  | 506
Corporate bonds |  | 1 | ​ |  | 2,955 | ​ |  | 72 | ​ |  | — | ​ |  | — | ​ |  | 2,955 | ​ |  | 72
​ |  | 35 | ​ | $ | 35,111 | ​ | $ | 509 | ​ | $ | 47,374 | ​ | $ | 785 | ​ | $ | 82,485 | ​ | $ | 1,294
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Less than | ​ | 12 Months | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | 12 Months | ​ | or Greater | ​ | Total
​ | ​ | ​ | ​ | Estimated | ​ | ​ | ​ | ​ | Estimated | ​ | ​ | ​ | ​ | Estimated | ​ | ​ | ​
December 31, 2019 | ​ | Number of | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized
(dollars in thousands) |  | Securities |  | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
U. S. agency securities |  | 36 | ​ | $ | 75,159 | ​ | $ | 439 | ​ | $ | 51,481 | ​ | $ | 616 | ​ | $ | 126,640 | ​ | $ | 1,055
Residential mortgage backed securities |  | 111 | ​ |  | 197,794 | ​ |  | 1,148 | ​ |  | 90,742 | ​ |  | 827 | ​ |  | 288,536 | ​ |  | 1,975
Municipal bonds |  | 1 | ​ |  | 1,994 | ​ |  | 5 | ​ |  | — | ​ |  | — | ​ |  | 1,994 | ​ |  | 5
​ |  | 148 | ​ | $ | 274,947 | ​ | $ | 1,592 | ​ | $ | 142,223 | ​ | $ | 1,443 | ​ | $ | 417,170 | ​ | $ | 3,035
​ The majority of the AFS debt securities in an unrealized loss position as of March 31, 2020, consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. As of March 31, 2020 total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The weighted average duration of debt securities, which comprise 99.9% of total investment securities, is relatively short at 2.6 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 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 March 31, 2020 and December 31, 2019 by contractual maturity are shown in the table below. Expected maturities for residential mortgage backed securities (“MBS”) will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2020 | ​ | December 31, 2019
​ | ​ | Amortized | ​ | Estimated | ​ | Amortized | ​ | Estimated
(dollars in thousands) |  | Cost |  | Fair Value |  | Cost |  | Fair Value
U. S. agency securities maturing: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
One year or less | ​ | $ | 61,706 | ​ | $ | 62,055 | ​ | $ | 96,332 | ​ | $ | 96,226
After one year through five years | ​ |  | 80,513 | ​ |  | 81,106 | ​ |  | 76,121 | ​ |  | 75,821
Five years through ten years | ​ |  | 4,729 | ​ |  | 4,598 | ​ |  | 7,775 | ​ |  | 7,747
Residential mortgage backed securities | ​ |  | 531,784 | ​ |  | 547,388 | ​ |  | 541,490 | ​ |  | 543,852
Municipal bonds maturing: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
One year or less | ​ |  | 6,400 | ​ |  | 6,456 | ​ |  | 5,897 | ​ |  | 5,969
After one year through five years | ​ |  | 20,844 | ​ |  | 21,437 | ​ |  | 21,416 | ​ |  | 21,953
Five years through ten years | ​ |  | 43,584 | ​ |  | 45,656 | ​ |  | 42,589 | ​ |  | 44,015
After ten years | ​ |  | 2,000 | ​ |  | 2,039 | ​ |  | 2,000 | ​ |  | 1,994
Corporate bonds maturing: | ​ |  | ​ | ​ |  | ​ | ​ |  |  | ​ |  |
One year or less | ​ | ​ | 10,972 | ​ | ​ | 11,054 | ​ | ​ | 502 | ​ | ​ | 508
After one year through five years | ​ |  | 35,891 | ​ |  | 36,600 | ​ |  | 8,528 | ​ |  | 8,725
After ten years | ​ |  | 5,224 | ​ |  | 5,330 | ​ |  | 1,500 | ​ |  | 1,500
U.S. treasury | ​ | ​ | 34,986 | ​ | ​ | 34,999 | ​ | ​ | 34,844 | ​ | ​ | 34,855
Other equity investments | ​ |  | 198 | ​ |  | 198 | ​ |  | 198 | ​ |  | 198
​ | ​ | $ | 838,831 | ​ | $ | 858,916 | ​ | $ | 839,192 | ​ | $ | 843,363
​ For the three months ended March 31, 2020, gross realized gains on sales of investments securities were $822 thousand and there were no gross realized losses on sales of investment securities. For the three months ended March 31, 2019, gross realized gains on sales of investments securities were $912 thousand and there were no gross realized losses on sales of investment securities. Proceeds from sales and calls of investment securities for the three months ended March 31, 2020 were $78.0 million compared to $22.8 million for the same period in 2019. 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 March 31, 2020 and December 31, 2019 was $364 million and $378 million, respectively, which is well in excess of required amounts in order to operationally provide significant reserve amounts for new business. As of March 31, 2020 and December 31, 2019, there were no holdings of securities of any one issuer, other than the U.S. Government and U.S. agency securities, which exceeded ten percent of shareholders’ equity.

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