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Investment Securities (Tables)

6 Months Ended

Jun. 30, 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:


	June 30, 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	$	5,772	$	555	$	—	$	6,327	$	6,492	$	738	$	—	$	7,230
Mortgage-Backed Securities – Commercial	326,712		4,296		(540)		330,468		182,823		8,357		—		191,180
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	712,715		10,398		(4,486)		718,627		481,109		14,924		—		496,033

Other Government-Sponsored Enterprises	1,000		—		(10)		990		100,996		2		—		100,998
Obligations of States and Political Subdivisions	9,609		131		(59)		9,681		11,154		243		—		11,397
Corporate Securities	23,126		1,350		(39)		24,437		22,941		1,444		—		24,385



Total Securities Available for Sale	$	1,078,934	$	16,730	$	(5,134)	$	1,090,530	$	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 June 30, 2021, by contractual maturity, are shown below.


	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	5,000	$	5,058
Due after 1 but within 5 years	12,871		13,610
Due after 5 but within 10 years	15,864		16,440
Due after 10 years	—		—
	33,735		35,108
Mortgage-Backed Securities (a)	1,045,199		1,055,422
Total Debt Securities	$	1,078,934	$	1,090,530

(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 $332.5 million and a fair value of $336.8 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $712.7 million and a fair value of $718.6 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 and maturities related to securities held to maturity and securities available for sale were as follows for the six months ended June 30:


	2021		2020
	(dollars in thousands)
Proceeds from sales	$	—	$	—
Gross gains (losses) realized:
Sales transactions:
Gross gains	$	—	$	—
Gross losses	—		—
	—		—
Maturities
Gross gains	16		27
Gross losses	—		—

	16		27
Net gains and impairment	$	16	$	27

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:


	June 30, 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	$	2,652	$	128	$	—	$	2,780	$	2,766	$	138	$	—	$	2,904
Mortgage-Backed Securities- Commercial	102,982		818		(728)		103,072		36,799		1,441		—		38,240
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	384,392		3,712		(2,645)		385,459		277,351		5,389		(10)		282,730
Mortgage-Backed Securities – Commercial	8,527		275		—		8,802		9,737		344		—		10,081
Other Government-Sponsored Enterprises	21,747		—		(452)		21,295		—		—		—		—
Obligations of States and Political Subdivisions	32,925		566		(79)		33,412		34,391		705		—		35,096
Debt Securities Issued by Foreign Governments	1,000		—		—		1,000		800		—		—		800




Total Securities Held to Maturity	$	554,225	$	5,499	$	(3,904)	$	555,820	$	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 June 30, 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	$	3,465	$	3,481
Due after 1 but within 5 years	4,772		4,826
Due after 5 but within 10 years	43,634		43,558
Due after 10 years	3,801		3,842
	55,672		55,707
Mortgage-Backed Securities (a)	498,553		500,113
Total Debt Securities	$	554,225	$	555,820

(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 $105.6 million and a fair value of $105.9 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $392.9 million and a fair value of $394.3 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 June 30, 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	$	191,215	$	(1,268)	$	—	$	—	$	191,215	$	(1,268)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	520,020		(7,131)		—		—		520,020		(7,131)

Other Government-Sponsored Enterprises	22,285		(462)		—		—		22,285		(462)
Obligations of States and Political Subdivisions	7,237		(138)		—		—		7,237		(138)

Corporate Securities	5,136		(39)		—		—		5,136		(39)



Total Securities	$	745,893	$	(9,038)	$	—	$	—	$	745,893	$	(9,038)

At June 30, 2021, fixed income securities issued by the U.S. Government and U.S. Government-sponsored enterprises comprised 98% of total unrealized losses due to changes in market interest rates. At June 30, 2021, there are 44 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 $105.6 million and a fair value of $105.9 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $392.9 million and a fair value of $394.3 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac.