Investment Securities

9 Months Ended

Sep. 30, 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 September 30, 2021 and December 31, 2020 were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
September 30, 2021
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	194,162	$	308	$	(2,786	)	$	191,684
Obligations of states and political subdivisions		328,394		11,310		(960	)		338,744
Mortgage-backed securities: GSE residential		783,400		6,300		(7,085	)		782,615
Other securities		33,076		883		(36	)		33,923
Total available-for-sale	$	1,339,032	$	18,801	$	(10,867	)	$	1,346,966
Held-to-maturity:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	5,004	$	31	$	—		$	5,035
Other securities		2,022		—		—			2,022
Total held-to-maturity	$	7,026	$	31	$	—		$	7,057
December 31, 2020
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and 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 and agencies	$	5,016	$	103	$	—		$	5,119

The Company also had $348,000 and $218,000 of equity securities, at fair value, as of September 30, 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 September 30, 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 and nine months ended September 30, 2021 and 2020 (in thousands):

	Three months September 30,					Nine months September 30,
	2021		2020			2021		2020
Gross gains	$	11	$	116		$	88	$	934
Gross losses		—		(21	)		—		(21	)

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 September 30, 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	$	116,855		$	63,561		$	11,268		$	—		$	191,684
Obligations of state and political subdivisions		24,335			82,566			224,078			7,765			338,744
Mortgage-backed securities: GSE residential		17,950			410,157			354,508			—			782,615
Other securities		6,055			24,860			3,008			—			33,923
Total available-for-sale investments	$	165,195		$	581,144		$	592,862		$	7,765		$	1,346,966
Weighted average yield		1.61	%		1.95	%		1.68	%		2.43	%		1.79	%
Full tax-equivalent yield		1.78	%		2.10	%		1.94	%		3.16	%		2.00	%
Held to maturity:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	5,004		$	—		$	—		$	—		$	5,004
Other securities		—									2,022			2,022
Total held-to-maturity	$	5,004		$	—		$	—		$	2,022		$	7,026
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 September 30, 2021.

Investment securities carried at approximately $740 million and $531 million at September 30, 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 September 30, 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
September 30, 2021
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	145,432	$	(2,435	)	$	9,649	$	(351	)	$	155,081	$	(2,786	)
Obligations of states and political subdivisions		87,767		(960	)		—		—			87,767		(960	)
Mortgage-backed securities: GSE residential		508,332		(7,084	)		93		(1	)		508,425		(7,085	)
Other securities		11,057		(36	)		—		—			11,057		(36	)
Total	$	752,588	$	(10,515	)	$	9,742	$	(352	)	$	762,330	$	(10,867	)
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 September 30, 2021 and December 31, 2020, there was one available-for-sale security with a fair value of $9,649,000 and unrealized losses of $351,000 in a continuous unrealized loss position for twelve months or more. There were no 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 September 30, 2021, 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 September 30, 2021, there were eleven mortgage-backed securities with a fair value of $93,000 and unrealized losses of $1,000 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 September 30, 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 September 30, 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.