Investment in Securities

6 Months Ended

Jun. 30, 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:

	June 30, 2020
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	287,151	$	18,615	$	—	$	305,766
U.S. government agencies		72,589		1,366		—		73,955
Certificates of deposit		250		—		—		250
Total	$	359,990	$	19,981	$	—	$	379,971

	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 at December 31, 2019 are as follows:

	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 June 30, 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.

	June 30, 2020
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	54,652	$	55,208
Due after 1 year through 5 years		85,421		89,213
Due after 5 years through 10 years		188,475		202,974
Due after 10 years		31,442		32,576
Total	$	359,990	$	379,971

Proceeds from sales of investment securities classified as available-for-sale were $0 and $3,547,000 for the three months ended June 30, 2020 and 2019, respectively, and were $19,629,000 and $4,648,000 for the six months ended June 30, 2020 and 2019, respectively. There were no realized gains for the 3 months ended June 30, 2020 while there were gross realized gains of $8,000 for the three months ended June 30, 2019. Gross realized gains were $1,069,000 and $19,000 for the six months ended June 30, 2020 and 2019, respectively. There were no securities pledged to secure public deposits and for other purposes at June 30, 2020.