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Investment Securities | 12 Months Ended
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Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | INVESTMENT SECURITIES The amortized cost, gross unrealized gains, gross unrealized losses and approximate market value of the Corporation's investment securities at the dates indicated were:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available for sale at December 31, 2019 |  |  |  |  |  |  |
U.S. Government-sponsored agency securities | $ | 38,529 |  |  | $ | 346 |  |  | $ | — |  |  | $ | 38,875 |
State and municipal | 859,511 |  |  | 41,092 |  |  | 807 |  |  | 899,796 |
U.S. Government-sponsored mortgage-backed securities | 842,349 |  |  | 10,378 |  |  | 1,404 |  |  | 851,323 |
Corporate obligations | 31 |  |  | — |  |  | — |  |  | 31 |
Total available for sale | 1,740,420 |  |  | 51,816 |  |  | 2,211 |  |  | 1,790,025 |
Held to maturity at December 31, 2019 |  |  |  |  |  |  |
U.S. Government-sponsored agency securities | 15,619 |  |  | 1 |  |  | 37 |  |  | 15,583 |
State and municipal | 354,115 |  |  | 15,151 |  |  | 107 |  |  | 369,159 |
U.S. Government-sponsored mortgage-backed securities | 434,804 |  |  | 6,921 |  |  | 401 |  |  | 441,324 |
Foreign investment | 1,500 |  |  | — |  |  | — |  |  | 1,500 |
Total held to maturity | 806,038 |  |  | 22,073 |  |  | 545 |  |  | 827,566 |
Total Investment Securities | $ | 2,546,458 |  |  | $ | 73,889 |  |  | $ | 2,756 |  |  | $ | 2,617,591 |
Available for sale at December 31, 2018 |  |  |  |  |  |  |
U.S. Government-sponsored agency securities | $ | 13,493 |  |  | $ | 92 |  |  | $ | 3 |  |  | $ | 13,582 |
State and municipal | 605,994 |  |  | 5,995 |  |  | 5,854 |  |  | 606,135 |
U.S. Government-sponsored mortgage-backed securities | 530,209 |  |  | 634 |  |  | 8,396 |  |  | 522,447 |
Corporate obligations | 31 |  |  | — |  |  | — |  |  | 31 |
Total available for sale | 1,149,727 |  |  | 6,721 |  |  | 14,253 |  |  | 1,142,195 |
Held to maturity at December 31, 2018 |  |  |  |  |  |  |
U.S. Government-sponsored agency securities | 22,618 |  |  | — |  |  | 545 |  |  | 22,073 |
State and municipal | 197,909 |  |  | 2,858 |  |  | 872 |  |  | 199,895 |
U.S. Government-sponsored mortgage-backed securities | 268,860 |  |  | 713 |  |  | 3,323 |  |  | 266,250 |
Foreign investment | 1,000 |  |  | — |  |  | 1 |  |  | 999 |
Total held to maturity | 490,387 |  |  | 3,571 |  |  | 4,741 |  |  | 489,217 |
Total Investment Securities | $ | 1,640,114 |  |  | $ | 10,292 |  |  | $ | 18,994 |  |  | $ | 1,631,412 |
The change in unrealized gains/losses from December 31, 2018 to December 31, 2019 is primarily due to the changes in interest rates. The longer term points on the yield curve have declined since year-end which increases the fair value of securities held in the portfolio. The following table shows the Corporation’s gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2019 and 2018:
| Less than 12 Months |  | 12 Months or Longer |  | Total
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
Temporarily Impaired Available for Sale Securities at December 31, 2019 |  |  |  |  |  |  |  |  |  |  |
State and municipal | $ | 76,273 |  |  | $ | 807 |  |  | $ | — |  |  | $ | — |  |  | $ | 76,273 |  |  | $ | 807 |
U.S. Government-sponsored mortgage-backed securities | 127,673 |  |  | 1,326 |  |  | 20,796 |  |  | 78 |  |  | 148,469 |  |  | 1,404 |
Total Temporarily Impaired Available for Sale Securities | 203,946 |  |  | 2,133 |  |  | 20,796 |  |  | 78 |  |  | 224,742 |  |  | 2,211 |
Temporarily Impaired Held to Maturity Securities at December 31, 2019 |  |  |  |  |  |  |  |  |  |  |
U.S. Government-sponsored agency securities | 3,016 |  |  | 4 |  |  | 12,467 |  |  | 33 |  |  | 15,483 |  |  | 37 |
State and municipal | 22,947 |  |  | 107 |  |  | — |  |  | — |  |  | 22,947 |  |  | 107 |
U.S. Government-sponsored mortgage-backed securities | 124,253 |  |  | 364 |  |  | 7,991 |  |  | 37 |  |  | 132,244 |  |  | 401 |
Total Temporarily Impaired Held to Maturity Securities | 150,216 |  |  | 475 |  |  | 20,458 |  |  | 70 |  |  | $ | 170,674 |  |  | 545 |
Total Temporarily Impaired Investment Securities | $ | 354,162 |  |  | $ | 2,608 |  |  | $ | 41,254 |  |  | $ | 148 |  |  | $ | 395,416 |  |  | $ | 2,756 |
| Less than 12 Months |  | 12 Months or Longer |  | Total
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
Temporarily Impaired Available for Sale Securities at December 31, 2018 |  |  |  |  |  |  |  |  |  |  |
U.S. Government-sponsored agency securities | $ | 1,490 |  |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,490 |  |  | $ | 3 |
State and municipal | 234,431 |  |  | 3,958 |  |  | 38,028 |  |  | 1,896 |  |  | 272,459 |  |  | 5,854 |
U.S. Government-sponsored mortgage-backed securities | 196,601 |  |  | 2,400 |  |  | 217,121 |  |  | 5,996 |  |  | 413,722 |  |  | 8,396 |
Total Temporarily Impaired Available for Sale Securities | 432,522 |  |  | 6,361 |  |  | 255,149 |  |  | 7,892 |  |  | 687,671 |  |  | 14,253 |
Temporarily Impaired Held to Maturity Securities at December 31, 2018 |  |  |  |  |  |  |  |  |  |  |
U.S. Government-sponsored agency securities | — |  |  | — |  |  | 22,073 |  |  | 545 |  |  | 22,073 |  |  | 545 |
State and municipal | 14,952 |  |  | 369 |  |  | 16,786 |  |  | 503 |  |  | 31,738 |  |  | 872 |
U.S. Government-sponsored mortgage-backed securities | 102,828 |  |  | 876 |  |  | 87,268 |  |  | 2,447 |  |  | 190,096 |  |  | 3,323 |
Foreign investment | — |  |  | — |  |  | 999 |  |  | 1 |  |  | 999 |  |  | 1 |
Total Temporarily Impaired Held to Maturity Securities | 117,780 |  |  | 1,245 |  |  | 127,126 |  |  | 3,496 |  |  | 244,906 |  |  | 4,741 |
Total Temporarily Impaired Investment Securities | $ | 550,302 |  |  | $ | 7,606 |  |  | $ | 382,275 |  |  | $ | 11,388 |  |  | $ | 932,577 |  |  | $ | 18,994 |
Certain investments in debt securities are reported in the financial statements at amounts less than their historical cost. The historical cost of these investments totaled $398,172,000 and $951,571,000 at December 31, 2019 and 2018, respectively. Total fair value of these investments was $395,416,000 and $932,577,000, which was approximately 15.2 and 57.1 percent of the Corporation's available for sale and held to maturity investment portfolio at December 31, 2019 and 2018, respectively. The Corporation's management believes the decline in fair value for these securities was temporary. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income during the period the OTTI is identified. The Corporation’s management has evaluated all securities with unrealized losses for OTTI and concluded no OTTI existed at December 31, 2019. In determining the fair value of the investment securities portfolio, the Corporation utilizes a third party for portfolio accounting services, including market value input, for those securities classified as Level I and Level II in the fair value hierarchy. The Corporation has obtained an understanding of what inputs are being used by the vendor in pricing the portfolio and how the vendor classified these securities based upon these inputs. From these discussions, the Corporation’s management is comfortable that the classifications are proper. The Corporation has gained trust in the data for two reasons: (a) independent spot testing of the data is conducted by the Corporation through obtaining market quotes from various brokers on a periodic basis; and (b) actual gains or loss resulting from the sale of certain securities has proven the data to be accurate over time. Fair value of securities classified as Level 3 in the valuation hierarchy was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. U.S. Government-Sponsored Mortgage-Backed Securities The unrealized losses on the Corporation's investment in mortgage-backed securities were a result of interest rate changes. The Corporation expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Corporation does not consider those investments to be other-than-temporarily impaired at December 31, 2019. As noted in the table above, the mortgage-backed securities portfolio contains unrealized losses of $1,404,000 on twenty-seven securities and $401,000 on fifteen securities in the available for sale and held to maturity portfolios, respectively. All these securities are issued by a government-sponsored entity. State and Municipal Securities and U.S. Government-Sponsored Agency Securities The unrealized losses on the Corporation's investments in securities of state and political subdivisions and U.S. Government-Sponsored Agency securities were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Corporation does not consider those investments to be other-than-temporarily impaired at December 31, 2019. As noted in the table above, the state and municipal securities portfolio contains unrealized losses of $807,000 on thirty-eight securities and $107,000 on eighteen securities in the available for sale and held to maturity portfolios, respectively. The U.S. Government-Sponsored Agency securities portfolio contains no unrealized loses in the available for sale portfolio, and $37,000 on three securities in the held to maturity portfolio. The amortized cost and fair value of securities available for sale and held to maturity at December 31, 2019 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
| Available for Sale |  | Held to Maturity
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Maturity Distribution at December 31, 2019 |  |  |  |  |  |  |
Due in one year or less | $ | 1,134 |  |  | $ | 1,136 |  |  | $ | 9,920 |  |  | $ | 10,105 |
Due after one through five years | 5,031 |  |  | 5,141 |  |  | 45,197 |  |  | 45,654 |
Due after five through ten years | 74,745 |  |  | 76,920 |  |  | 84,153 |  |  | 88,844 |
Due after ten years | 817,161 |  |  | 855,505 |  |  | 231,964 |  |  | 241,639 |
| 898,071 |  |  | 938,702 |  |  | 371,234 |  |  | 386,242 |
U.S. Government-sponsored mortgage-backed securities | 842,349 |  |  | 851,323 |  |  | 434,804 |  |  | 441,324 |
Total Investment Securities | $ | 1,740,420 |  |  | $ | 1,790,025 |  |  | $ | 806,038 |  |  | $ | 827,566 |
Securities with a carrying value of approximately $503,427,000, $416,155,000 and $475,999,000 were pledged at December 31, 2019, 2018 and 2017, respectively, to secure certain deposits and securities sold under repurchase agreements, and for other purposes as permitted or required by law. The book value of securities sold under agreements to repurchase amounted to $182,856,000 at December 31, 2019, and $116,691,000 at December 31, 2018. Gross gains and losses on the sales and redemptions of available for sale securities for the for the years indicated are shown below.
| 2019 |  | 2018 |  | 2017
Sales and Redemptions of Available for Sale Securities: |  |  |  |  |
Gross gains | $ | 4,415 |  |  | $ | 4,269 |  |  | $ | 2,681 |
Gross losses | — |  |  | — |  |  | 50 |

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