Investment Securities

3 Months Ended

Mar. 31, 2021

Investments Debt And Equity Securities [Abstract]

Note 3 -- Investment Securities

The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at March 31, 2021 and December 31, 2020 were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2021
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations & agencies	$	174,789	$	377	$	(3,636	)	$	171,530
Obligations of states and political subdivisions		249,776		9,226		(1,283	)		257,719
Mortgage-backed securities: GSE residential		620,102		7,988		(6,138	)		621,952
Other securities		36,116		699		(68	)		36,747
Total available-for-sale	$	1,080,783	$	18,290	$	(11,125	)	$	1,087,948
Held-to-maturity:
U.S. Treasury securities and obligations of U.S. government corporations & agencies	$	5,012	$	80	$	—		$	5,092
Annuity		2,033		—		—			2,033
Total held-to-maturity	$	7,045	$	80	$	—		$	7,125
December 31, 2020
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations & agencies	$	127,067	$	790	$	(788	)	$	127,069
Obligations of states and political subdivisions		237,886		11,995		(37	)		249,844
Mortgage-backed securities: GSE residential		479,470		12,038		(160	)		491,348
Other securities		10,740		252		(13	)		10,979
Total available-for-sale	$	855,163	$	25,075	$	(998	)	$	879,240
Held-to-maturity:
U.S. Treasury securities and obligations of U.S. government corporations & agencies	$	5,016	$	103	$	—		$	5,119

The Company also had $300,000 and $218,000 of equity securities, at fair value, as of March 31, 2021 and December 31, 2020, respectively. The Company's held-to-maturity securities are government agency-backed securities for which the risk of loss is minimal. As such, as of March 31, 2021, the Company did not record an allowance for credit losses on its held-to-maturity securities.

Realized gains and losses resulting from sales of securities were as follows during the three months ended March 31, 2021 and 2020 (in thousands):

	Three months March 31,
	2021		2020
Gross gains	$	4	$	531
Gross losses		—		—

The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, and held-to-maturity presented at amortized cost, at March 31, 2021 and the weighted average yield for each range of maturities (dollars in thousands):

	One year or less			After 1 through 5 years			After 5 through 10 years			After ten years			Total
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	105,823		$	54,392		$	11,315		$	—		$	171,530
Obligations of state and political subdivisions		29,540			71,481			152,466			4,232			257,719
Mortgage-backed securities: GSE residential		26,948			293,661			301,343			—			621,952
Other securities		12,042			20,070			4,635			—			36,747
Total available-for-sale investments	$	174,353		$	439,604		$	469,759		$	4,232		$	1,087,948
Weighted average yield		1.87	%		2.28	%		1.69	%		2.57	%		1.96	%
Full tax-equivalent yield		2.06	%		2.45	%		1.94	%		3.52	%		2.17	%
Held to Maturity:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	5,012		$	—		$	—		$	—		$	5,012
Annuity		—									2,033			2,033
Total held-to-maturity	$	5,012		$	—		$	—		$	2,033		$	7,045
Weighted average yield		2.06	%		—	%		—	%		—	%		2.06	%
Full tax-equivalent yield		2.06	%		—	%		—	%		—	%		2.06	%

The weighted average yields are calculated based on the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax-equivalent yields have been calculated using a 21% tax rate. With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at March 31, 2021.

Investment securities carried at approximately $621 million and $531 million at March 31, 2021 and December 31, 2020, respectively, were pledged to secure public deposits and repurchase agreements and for other purposes as permitted or required by law.

The following table presents the aging of gross unrealized losses and fair value by investment category as of March 31, 2021 and December 31, 2020 (in thousands):

	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
March 31, 2021
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	144,404	$	(3,636	)	$	—	$	—		$	144,404	$	(3,636	)
Obligations of states and political subdivisions		51,381		(1,283	)		—		—			51,381		(1,283	)
Mortgage-backed securities: GSE residential		230,029		(5,155	)		129,370		(983	)		359,399		(6,138	)
Other securities		12,679		(68	)		—		—			12,679		(68	)
Total	$	438,493	$	(10,142	)	$	129,370	$	(983	)	$	567,863	$	(11,125	)
December 31, 2020
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	59,211	$	(788	)	$	—	$	—		$	59,211	$	(788	)
Obligations of states and political subdivisions		5,380		(37	)		—		—			5,380		(37	)
Mortgage-backed securities: GSE residential		57,609		(160	)		2,377		—			59,986		(160	)
Other securities		3,977		(13	)		—		—			3,977		(13	)
Total	$	126,177	$	(998	)	$	2,377	$	—		$	128,554	$	(998	)

U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies. At March 31, 2021 and December 31, 2020, there were no available-for sale or held-to-maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies in a continuous unrealized loss position for twelve months or more.

Obligations of states and political subdivisions. At March 31, 2021 and December 31, 2020, there were no obligations of states and political subdivisions in a continuous loss position for twelve months or more.

Mortgage-backed Securities: GSE Residential. At March 31, 2021, there were twelve mortgage-backed securities with a fair value of $129,370,000 and unrealized losses of $(983,000) in a continuous unrealized loss position for twelve months or more. At December 31, 2020 there were two mortgage-backed securities with a fair value of $2,377,000 and unrealized losses of $0 in a continuous unrealized loss position for twelve months or more.

Other securities. At March 31, 2021, and December 31, 2020, there were no other securities in a continuous unrealized loss position for twelve months or more.

The Company does not believe any unrealized losses as of March 31, 2021 represents other than temporary impairment ("OTTI"). However, given the uncertainty of the financial markets, the Company may be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any additional OTTI will depend on the decline in the underlying cash flows of the securities. 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 the period the other-than-temporary impairment is identified.