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Investment Securities
6 Months Ended
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
 
The amortized cost, gross unrealized gains and losses, and fair values of our investment securities portfolio at June 30, 2020 and December 31, 2019 are as follows:
 
 
June 30, 2020
 
 
 
 
Gross
 
Gross
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
(In Thousands)
 
Cost
 
Gains
 
Losses
 
Value
Available for sale (AFS):
 
 

 
 

 
 

 
 

Mortgage-backed securities
 
$
2,316

 
$
51

 
$

 
$
2,367

State and political securities
 
92,209

 
5,104

 
(49
)
 
97,264

Other debt securities
 
64,535

 
951

 
(748
)
 
64,738

Total debt securities
 
$
159,060

 
$
6,106

 
$
(797
)
 
$
164,369

 
 
 
 
 
 
 
 
 
Investment equity securities:
 
 
 
 
 
 
 
 
Other equity securities
 
$
1,300

 
$
11

 
$
(20
)
 
$
1,291

 
 
 
 
 
 
 
 
 
Trading:
 
 
 
 
 
 
 
 
Other equity securities
 
$
50

 
$

 
$
(13
)
 
$
37

 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
Gross
 
Gross
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
(In Thousands)
 
Cost
 
Gains
 
Losses
 
Value
Available for sale (AFS):
 
 

 
 

 
 

 
 

Mortgage-backed securities
 
$
4,956

 
$
56

 
$
(46
)
 
$
4,966

State and political securities
 
79,064

 
3,299

 
(77
)
 
82,286

Other debt securities
 
61,492

 
401

 
(526
)
 
61,367

Total debt securities
 
$
145,512

 
$
3,756

 
$
(649
)
 
$
148,619

 
 
 
 
 
 
 
 
 
Investment equity securities:
 
 
 
 
 
 
 
 
Other equity securities
 
$
1,300

 
$

 
$
(39
)
 
$
1,261

 
 
 
 
 
 
 
 


Trading:
 
 
 
 
 
 
 
 
Other equity securities
 
$
50

 
$
3

 
$
(2
)
 
$
51

 
 
 
 
 
 
 
 
 


The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual debt securities have been in a continuous unrealized loss position, at June 30, 2020 and December 31, 2019.
 
 
June 30, 2020
 
 
Less than Twelve Months
 
Twelve Months or Greater
 
Total
 
 
 
 
Gross
 
 
 
Gross
 
 
 
Gross
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
(In Thousands)
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
Available for sale (AFS):
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$

 
$

 
$

 
$

 
$

 
$

State and political securities
 
4,190

 
(30
)
 
240

 
(19
)
 
4,430

 
(49
)
Other debt securities
 
12,809

 
(287
)
 
7,049

 
(461
)
 
19,858

 
(748
)
Total debt securities
 
$
16,999

 
$
(317
)
 
$
7,289

 
$
(480
)
 
$
24,288

 
$
(797
)
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
December 31, 2019
 
 
Less than Twelve Months
 
Twelve Months or Greater
 
Total
 
 
 
 
Gross
 
 
 
Gross
 
 
 
Gross
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
(In Thousands)
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
Available for sale (AFS):
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$

 
$

 
$
2,115

 
$
(46
)
 
$
2,115

 
$
(46
)
State and political securities
 
7,958

 
(40
)
 
224

 
(37
)
 
8,182

 
(77
)
Other debt securities
 
13,373

 
(216
)
 
14,258

 
(310
)
 
27,631

 
(526
)
Total debt securities
 
$
21,331

 
$
(256
)
 
$
16,597

 
$
(393
)
 
$
37,928

 
$
(649
)
 
 
 
 
 
 
 
 
 
 
 
 
 

 
At June 30, 2020, there were a total of 15 securities in a continuous unrealized loss position for less than twelve months and 7 individual securities that were in a continuous unrealized loss position for twelve months or greater.

The Company reviews its position quarterly and has determined that, at June 30, 2020, the declines outlined in the above table represent temporary declines and the Company does not intend to sell and does not believe it will be required to sell these securities before recovery of their cost basis, which may be at maturity.  The Company has concluded that the unrealized losses disclosed above are not other than temporary but are the result of interest rate changes, sector credit ratings changes, or company-specific ratings changes that are not expected to result in the non-collection of principal and interest during the period.

The amortized cost and fair value of debt securities at June 30, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
(In Thousands)
 
Amortized Cost
 
Fair Value
Due in one year or less
 
$
6,714

 
$
6,769

Due after one year to five years
 
65,192

 
65,796

Due after five years to ten years
 
67,627

 
72,018

Due after ten years
 
19,527

 
19,786

Total
 
$
159,060

 
$
164,369



Total gross proceeds from sales of debt securities available for sale for the three and six months ended June 30, 2020 were $2,389,000 and $5,163,000 respectively, compared to 2019 totals of $1,146,000 and 8,132,000.

The following table represents gross realized gains and losses from the sales of debt securities available for sale:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In Thousands)
 
2020
 
2019
 
2020
 
2019
Available for sale (AFS):
 
 
 
 
 
 
 
 
Gross realized gains:
 
 

 
 

 
 

 
 

Mortgage-backed securities
 
$
83

 
$

 
$
83

 
$

State and political securities
 
103

 

 
104

 
15

Other debt securities
 

 

 
20

 
4

Total gross realized gains
 
$
186

 
$

 
$
207

 
$
19

 
 
 
 
 
 
 
 
 
Gross realized losses:
 
 

 
 

 
 

 
 

State and political securities
 
$

 
$
1

 
$

 
$
3

Other debt securities
 

 
1

 

 
5

Total gross realized losses
 
$

 
$
2

 
$

 
$
8

 
 
 
 
 
 
 
 
 


There were no impairment charges included in gross realized losses for the three and six months ended June 30, 2020 and 2019, respectively.

Investment securities with a carrying value of approximately $111,168,381 and $74,163,000 at June 30, 2020 and December 31, 2019, respectively, were pledged to secure certain deposits, repurchase agreements, and for other purposes as required by law.

At June 30, 2020 and December 31, 2019, we had $1,291,000 and $1,261,000, respectively, in equity securities recorded at fair value. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and six months ended June 30, 2020 and 2019:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In Thousands)
 
2020
 
2019
 
2020
 
2019
Net gains recognized in equity securities during the period
 
$
10

 
$
22

 
$
30

 
$
65

Less: Net gains realized on the sale of equity securities during the period
 

 

 

 

Unrealized gains recognized in equity securities held at reporting date
 
$
10

 
$
22

 
$
30

 
$
65

 
 
 
 
 
 
 
 
 

Net gains and losses on trading account securities are as follows for the three and six months ended June 30, 2020 and 2019:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In Thousands)
 
2020
 
2019
 
2020
 
2019
Net gains on sale transactions
 
$

 
$
3

 
$

 
$
8

Net mark-to-market (losses) gains
 

 

 
(14
)
 
5

Net (loss) gain on trading account securities
 
$

 
$
3

 
$
(14
)
 
$
13