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Investment Securities (Tables)

9 Months Ended

Sep. 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:


	September 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	$	5,448	$	534	$	—	$	5,982	$	6,492	$	738	$	—	$	7,230
Mortgage-Backed Securities – Commercial	390,566		4,588		(1,447)		393,707		182,823		8,357		—		191,180
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	682,677		9,296		(6,547)		685,426		481,109		14,924		—		496,033

Other Government-Sponsored Enterprises	1,000		—		(9)		991		100,996		2		—		100,998
Obligations of States and Political Subdivisions	9,586		105		(81)		9,610		11,154		243		—		11,397
Corporate Securities	28,107		1,173		(40)		29,240		22,941		1,444		—		24,385



Total Securities Available for Sale	$	1,117,384	$	15,696	$	(8,124)	$	1,124,956	$	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 September 30, 2021, by contractual maturity, are shown below.


	Amortized Cost		Estimated Fair Value
	(dollars in thousands)
Due within 1 year	$	5,000	$	5,027
Due after 1 but within 5 years	13,872		14,498
Due after 5 but within 10 years	19,821		20,316
Due after 10 years	—		—
	38,693		39,841
Mortgage-Backed Securities (a)	1,078,691		1,085,115
Total Debt Securities	$	1,117,384	$	1,124,956

(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 $396.0 million and a fair value of $399.7 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $682.7 million and a fair value of $685.4 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 nine months ended September 30:


	2021		2020
	(dollars in thousands)
Proceeds from sales	$	—	$	—
Gross gains (losses) realized:
Sales transactions:
Gross gains	$	—	$	—
Gross losses	—		—
	—		—
Maturities
Gross gains	16		47
Gross losses	—		—

	16		47
Net gains	$	16	$	47

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:


	September 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	$	2,432	$	125	$	—	$	2,557	$	2,766	$	138	$	—	$	2,904
Mortgage-Backed Securities- Commercial	96,228		590		(834)		95,984		36,799		1,441		—		38,240
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	387,399		3,832		(4,303)		386,928		277,351		5,389		(10)		282,730
Mortgage-Backed Securities – Commercial	7,927		235		—		8,162		9,737		344		—		10,081
Other Government-Sponsored Enterprises	21,825		—		(726)		21,099		—		—		—		—
Obligations of States and Political Subdivisions	31,246		461		(94)		31,613		34,391		705		—		35,096
Debt Securities Issued by Foreign Governments	1,000		—		—		1,000		800		—		—		800




Total Securities Held to Maturity	$	548,057	$	5,243	$	(5,957)	$	547,343	$	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 September 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	$	1,800	$	1,807
Due after 1 but within 5 years	5,568		5,616
Due after 5 but within 10 years	43,207		42,769
Due after 10 years	3,496		3,520
	54,071		53,712
Mortgage-Backed Securities (a)	493,986		493,631
Total Debt Securities	$	548,057	$	547,343

(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 $98.7 million and a fair value of $98.5 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $395.3 million and a fair value of $395.1 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 September 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	$	213,203	$	(2,281)	$	—	$	—	$	213,203	$	(2,281)
Obligations of U.S. Government-Sponsored Enterprises:
Mortgage-Backed Securities – Residential	640,235		(10,850)		—		—		640,235		(10,850)

Other Government-Sponsored Enterprises	22,090		(735)		—		—		22,090		(735)
Obligations of States and Political Subdivisions	13,798		(175)		—		—		13,798		(175)

Corporate Securities	5,111		(40)		—		—		5,111		(40)



Total Securities	$	894,437	$	(14,081)	$	—	$	—	$	894,437	$	(14,081)

At September 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 September 30, 2021, there are 52 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 $98.7 million and a fair value of $98.5 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $395.3 million and a fair value of $395.1 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac.