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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2021

Analysis of Amortized Cost and Estimated Fair Value of Securities Available for Sale

Below is an analysis of the amortized cost and estimated fair values of securities available for sale at:


	March 31, 2021								December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	6,067	$	623	$	—	$	6,690	$	6,492	$	738	$	—	$	7,230
Mortgage-Backed Securities – Commercial	268,890		4,597		(586)		272,901		182,823		8,357		—		191,180
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	724,611		11,082		(7,025)		728,668		481,109		14,924		—		496,033

Other Government-Sponsored Enterprises	1,000		—		(25)		975		100,996		2		—		100,998
Obligations of States and Political Subdivisions	9,647		132		(214)		9,565		11,154		243		—		11,397
Corporate Securities	23,146		1,388		(75)		24,459		22,941		1,444		—		24,385



Total Securities Available for Sale	$	1,033,361	$	17,822	$	(7,925)	$	1,043,258	$	805,515	$	25,708	$	—	$	831,223

Amortized Cost and Estimated Fair Value of Debt Securities Available for Sale

The amortized cost and estimated fair value of debt securities available for sale at March 31, 2021, by contractual maturity, are shown below.


	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	5,000	$	5,086
Due after 1 but within 5 years	12,870		13,670
Due after 5 but within 10 years	15,923		16,243
Due after 10 years	—		—
	33,793		34,999
Mortgage-Backed Securities (a)	999,568		1,008,259
Total Debt Securities	$	1,033,361	$	1,043,258

(a)Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Mortgage-Backed Securities include an amortized cost of $275.0 million and a fair value of $279.6 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $724.6 million and a fair value of $728.7 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac

^[1]

Proceeds from Sale, Gross Gains (Losses) Realized on Sales, Maturities and Other-Than-Temporary Impairment Charges Related to Securities Available for Sale

Proceeds from sales, gross gains (losses) realized on sales, maturities and other-than-temporary impairment charges related to securities available for sale were as follows for the three months ended March 31:


	2021		2020
	(dollars in thousands)
Proceeds from sales	$	—	$	—
Gross gains (losses) realized:
Sales transactions:
Gross gains	$	—	$	—
Gross losses	—		—
	—		—
Maturities
Gross gains	6		19
Gross losses	—		—

	6		19
Net gains and impairment	$	6	$	19

Debt Securities, Held-to-maturity [Table Text Block]

Below is an analysis of the amortized cost and fair values of debt securities held to maturity at:


	March 31, 2021								December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(dollars in thousands)
Obligations of U.S. Government Agencies:
Mortgage-Backed Securities – Residential	$	2,679	$	123	$	—	$	2,802	$	2,766	$	138	$	—	$	2,904
Mortgage-Backed Securities- Commercial	58,484		992		(512)		58,964		36,799		1,441		—		38,240
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	279,970		4,134		(3,763)		280,341		277,351		5,389		(10)		282,730
Mortgage-Backed Securities – Commercial	9,121		316		—		9,437		9,737		344		—		10,081

Obligations of States and Political Subdivisions	35,109		484		(264)		35,329		34,391		705		—		35,096
Debt Securities Issued by Foreign Governments	800		—		—		800		800		—		—		800




Total Securities Held to Maturity	$	407,833	$	6,049	$	(5,764)	$	408,118	$	361,844	$	8,017	$	(10)	$	369,851

Schedule of Held-to-Maturity Securities by Maturity [Table Text Block]

The amortized cost and estimated fair value of debt securities held to maturity at March 31, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or prepayment penalties.


	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	2,887	$	2,904
Due after 1 but within 5 years	5,117		5,179
Due after 5 but within 10 years	45,774		44,717
Due after 10 years	3,801		3,774
	57,579		56,574
Mortgage-Backed Securities (a)	350,254		351,544
Total Debt Securities	$	407,833	$	408,118

(a)Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Mortgage-Backed Securities include an amortized cost of $61.2 million and a fair value of $61.8 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $289.1 million and a fair value of $289.8 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac.

Schedule of Temporary Impairment Losses, Investments

The following table presents the gross unrealized losses and estimated fair values at March 31, 2021 for both available for sale and held to maturity securities by investment category and time frame for which securities have been in a continuous unrealized loss position:


	Less Than 12 Months				12 Months or More				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)
Obligations of U.S. Government Agencies:

Mortgage-Backed Securities – Commercial	$	91,266	$	(1,098)	$	—	$	—	$	91,266	$	(1,098)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	481,498		(10,788)		—		—		481,498		(10,788)

Other Government-Sponsored Enterprises	21,421		(1,250)		—		—		21,421		(1,250)
Obligations of States and Political Subdivisions	16,919		(478)		—		—		16,919		(478)

Corporate Securities	5,125		(75)		—		—		5,125		(75)



Total Securities	$	616,229	$	(13,689)	$	—	$	—	$	616,229	$	(13,689)

At March 31, 2021, fixed income securities issued by U.S. Government-sponsored enterprises comprised 88% of total unrealized losses due to changes in market interest rates. At March 31, 2021, there are 49 debt securities in an unrealized loss position.

The following table presents the gross unrealized losses and estimated fair values at December 31, 2020 by investment category and time frame for which securities have been in a continuous unrealized loss position:


	Less Than 12 Months				12 Months or More				Total
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(dollars in thousands)



Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	$	3,755	$	(10)	$	—	$	—	$	3,755	$	(10)





Total Securities	$	3,755	$	(10)	$	—	$	—	$	3,755	$	(10)

[1]

Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Mortgage-Backed Securities include an amortized cost of $61.2 million and a fair value of $61.8 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $289.1 million and a fair value of $289.8 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac.