Investment in Securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Note 11 – Investment in Securities

Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale are measured at fair value using Level 2 valuations. The market evaluation utilizes several sources which include “observable inputs” rather than “significant unobservable inputs” and therefore fall into the Level 2 category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows:

	March 31, 2020
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	288,631	$	12,010	$	—	$	300,641
U.S. government agencies		85,289		1,564		—		86,853
Certificates of deposit		500		—		—		500
Total	$	374,420	$	13,574	$	—	$	387,994

	December 31, 2019
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	310,720	$	13,727	$	—	$	324,447
U.S. government agencies		97,380		507		169		97,718
Certificates of deposit		500		—		—		500
Total	$	408,600	$	14,234	$	169	$	422,665

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The fair values of securities with unrealized losses are as follows:

	March 31, 2020
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
State and political subdivisions	$	—	$	—	$	—	$	—	$	—	$	—
U.S. government agencies		—		—		—		—		—		—
Certificates of deposit		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	—	$	—

	December 31, 2019
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
State and political subdivisions	$	—	$	—	$	—	$	—	$	—	$	—
U.S. government agencies		3,801		12		17,593		157		21,394		169
Certificates of deposit		—		—		—		—		—		—
Total	$	3,801	$	12	$	17,593	$	157	$	21,394	$	169

There were no securities in an unrealized loss position as of March 31, 2020. There were 9 securities, or 3% of the total (7 greater than 12 months), in an unrealized loss position as of December 31, 2019.

The amortized cost and fair value of investment securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.

	March 31, 2020
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	61,709	$	62,498
Due after 1 year through 5 years		80,027		82,183
Due after 5 years through 10 years		199,491		209,364
Due after 10 years		33,193		33,949
Total	$	374,420	$	387,994

Proceeds from sales of investment securities classified as available for sale were $19,629,000 and $1,101,000 for the three months ended March 31, 2020 and 2019, respectively. Gross realized gains were $1,069,000 and $11,000 for the three months ended March 31, 2020 and 2019, respectively. There were no securities pledged to secure public deposits or for other purposes at March 31, 2020.