Investments (Tables)

9 Months Ended

Sep. 30, 2018

Aggregate Carrying And Approximate Market Values Of Available-For-Sale Securities

The amortized cost and estimated fair values of the Company's securities are shown in the following table (in thousands):



	September 30, 2018								December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities available-for-sale:
U.S. Treasuries and U.S.
government agencies	$	1	$	—	$	—	$	1	$	2	$	—	$	—	$	2
Obligations of states and
political subdivisions	92,972		265		1,673		91,564		94,552		2,051		407		96,196
Mortgage-backed securities:
U.S. government agencies	469,810		222		22,286		447,746		425,559		1,093		7,305		419,347
Private label	523		6		—		529		649		3		—		652
Trust preferred securities	4,772		26		—		4,798		4,764		26		54		4,736
Corporate securities⁽¹⁾	17,086		7		172		16,921		21,916		475		123		22,268
Total Debt Securities	585,164		526		24,131		561,559		547,442		3,648		7,889		543,201
Marketable equity securities	—		—		—		—		2,136		3,563		—		5,699
Investment funds	1,526		—		82		1,444		1,525		—		36		1,489
Total Securities
Available-for-Sale	$	586,690	$	526	$	24,213	$	563,003	$	551,103	$	7,211	$	7,925	$	550,389

Aggregate Carrying And Approximate Market Values Of Held-To-Maturity Securities



Securities held-to-maturity:
Mortgage-backed securities:
U.S. government agencies	$	53,812	$	—	$	971	$	52,841	$	60,449	$	1,222	$	25	$	61,646
Trust preferred securities	4,000		—		—		4,000		4,000		—		—		4,000
Total Securities
Held-to-Maturity	$	57,812	$	—	$	971	$	56,841	$	64,449	$	1,222	$	25	$	65,646

Aggregate Carrying And Approximate Market Values of Marketable and Non-Marketable Securities



Other investment securities:
Non-marketable equity securities	$	17,316	$	—	$	—	$	17,316	$	14,147	$	—	$	—	$	14,147
Marketable equity securities⁽¹⁾	11,559		—		—		11,559		—		—		—		—
Total Other Investment
Securities	$	28,875	$	—	$	—	$	28,875	$	14,147	$	—	$	—	$	14,147

⁽¹⁾ Effective January 1, 2018, the Company's equity and perpetual preferred securities are measured at fair value through net income.

Gross Unrealized Losses And Fair Value Of Investments

The following table shows the gross unrealized losses and fair value of the Company’s investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):



	September 30, 2018
	Less Than Twelve Months				Twelve Months or Greater				Total
	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Securities available-for-sale:
Obligations of states and political subdivisions	$	45,560	$	653	$	19,197	$	1,020	$	64,757	$	1,673
Mortgage-backed securities:
U.S. Government agencies	239,964		8,325		191,172		13,961		431,136		22,286
Corporate securities	14,922		172		—		—		14,922		172
Investment funds	1,500		82		—		—		1,500		82
Total available-for-sale	$	301,946	$	9,232	$	210,369	$	14,981	$	512,315	$	24,213

Securities held-to-maturity:
Mortgage-backed securities
U.S. Government agencies	$	52,841	$	971	$	—	$	—	$	52,841	$	971
Total held-to-maturity	$	52,841	$	971	$	—	$	—	$	52,841	$	971



	December 31, 2017
	Less Than Twelve Months				Twelve Months or Greater				Total
	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Securities available-for-sale:
Obligations of states and political subdivisions	$	4,913	$	28	$	19,440	$	379	$	24,353	$	407
Mortgage-backed securities:
U.S. Government agencies	172,807		1,887		140,226		5,418		313,033		7,305
Trust preferred securities	4,475		54		—		—		4,475		54
Corporate securities	3,357		49		2,350		74		5,707		123
Investment funds	1,500		36		—		—		1,500		36
Total available-for-sale	$	187,052	$	2,054	$	162,016	$	5,871	$	349,068	$	7,925

Securities held-to-maturity:
Mortgage-backed securities
U.S. Government agencies	$	7,182	$	25	$	—	$	—	$	7,182	$	25
Total held-to-maturity	$	7,182	$	25	$	—	$	—	$	7,182	$	25

Amortized Cost And Estimated Fair Value Of Debt Securities By Contractual Maturity

The amortized cost and estimated fair value of debt securities at September 30, 2018, by contractual maturity, are shown in the following table (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Mortgage-backed securities have been allocated to their respective maturity groupings based on their contractual maturity.



	Amortized Cost		Estimated Fair Value
Available-for-Sale Debt Securities
Due in one year or less	$	2,685	$	2,684
Due after one year through five years	10,504		10,493
Due after five years through ten years	81,069		76,996
Due after ten years	490,906		471,386
Total	$	585,164	$	561,559

Held-to-Maturity Debt Securities
Due in one year or less	$	—	$	—
Due after one year through five years	—		—
Due after five years through ten years	—		—
Due after ten years	57,812		56,841
Total	$	57,812	$	56,841

Gross Gains And Losses Realized

. Additionally, on January 1, 2018, the Company reclassified $2.7 million, net of deferred taxes, from other comprehensive income to retained earnings on the consolidated balance sheets to recognize the prior period fair value impact of these securities. During the nine months ended September 30, 2017, the Company realized $4.3 million of investment gains. These gains represented partial recoveries of impairment charges previously recognized on pooled trust preferred securities. As a result of these sales, the Company no longer holds any pooled trust preferred securities in its investment portfolio.



	Three months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017

Equity and perpetual preferred securities:
Unrealized gains recognized on securities still held	$	383	$	—	$	1,155	$	—

Gross realized gains on securities sold	$	—	$	—	—		4,276
Gross realized losses on securities sold	—		—		—		—
Net investment security gains	$	—	$	—	$	—	$	4,276