Investment in Securities

9 Months Ended

Sep. 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:

	September 30, 2020
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	285,667	$	19,249	$	22	$	304,894
U.S. government agencies		59,294		977		—		60,271
Total	$	344,961	$	20,226	$	22	$	365,165

	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 September 30, 2020 are as follows:

	September 30, 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
U.S. government agencies	$	1,793	$	22	$	—	$	—	$	1,793	$	22
Total	$	1,793		22		—		—		1,793		22

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
U.S. government agencies	$	3,801	$	12	$	17,593	$	157	$	21,394	$	169
Total	$	3,801	$	12	$	17,593	$	157	$	21,394	$	169

There were 2 securities, or 1% of the total (none greater than 12 months) in an unrealized loss position as of September 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.

	September 30, 2020
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	49,435	$	49,876
Due after 1 year through 5 years		93,433		98,084
Due after 5 years through 10 years		172,368		186,537
Due after 10 years		29,725		30,668
Total	$	344,961	$	365,165

Proceeds from sales of investment securities classified as available-for-sale were $0 for each of the three month periods ended September 30, 2020 and 2019, and were $19,629,000 and $4,648,000 for the nine months ended September 30, 2020 and 2019, respectively. There were no gross realized gains for the three months ended September 30, 2020 or 2019. Gross realized gains were $1,069,000 and $19,000 for the nine months ended September 30, 2020 and 2019, respectively. There were no securities pledged to secure public deposits and for other purposes at September 30, 2019.