INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2020

INVESTMENT SECURITIES

INVESTMENT SECURITIES

NOTE C:  INVESTMENT SECURITIES

The amortized cost and estimated fair value of investment securities as of December 31 are as follows:

	2020								2019
			Gross		Gross						Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated		Amortized		Unrealized		Unrealized		Estimated
(000's omitted)	Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	$	2,423,236	$	94,741	$	16,595	$	2,501,382	$	2,030,060	$	21,674	$	7,975	$	2,043,759
Obligations of state and political subdivisions		451,028		24,632		0		475,660		497,852		14,382		26		512,208
Government agency mortgage-backed securities		506,540		16,280		182		522,638		428,491		5,478		1,107		432,862
Corporate debt securities		4,499		137		1		4,635		2,527		1		0		2,528
Government agency collateralized mortgage obligations		42,476		1,111		10		43,577		52,621		482		32		53,071
Total available-for-sale portfolio	$	3,427,779	$	136,901	$	16,788	$	3,547,892	$	3,011,551	$	42,017	$	9,140	$	3,044,428
Equity and other Securities:
Equity securities, at fair value	$	251	$	194	$	0	$	445	$	251	$	200	$	0	$	451
Federal Home Loan Bank common stock		7,468		0		0		7,468		7,246		0		0		7,246
Federal Reserve Bank common stock		33,916		0		0		33,916		30,922		0		0		30,922
Other equity securities, at adjusted cost		4,876		750		0		5,626		4,546		750		0		5,296
Total equity and other securities	$	46,511	$	944	$	0	$	47,455	$	42,965	$	950	$	0	$	43,915

A summary of investment securities that have been in a continuous unrealized loss position for less than or greater than twelve months is as follows:

As of December 31, 2020

	Less than 12 Months					12 Months or Longer					Total
				Gross					Gross					Gross
				Unrealized					Unrealized					Unrealized
(000's omitted)	#	Fair Value		Losses		#	Fair Value		Losses		#	Fair Value		Losses
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	13	$	831,015	$	16,595	0	$	0	$	0	13	$	831,015	$	16,595
Obligations of state and political subdivisions	1		358		0	0		0		0	1		358		0
Government agency mortgage-backed securities	89		75,992		182	2		14		0	91		76,006		182
Corporate debt securities	1		1,001		1	0		0		0	1		1,001		1
Government agency collateralized mortgage obligations	13		5,246		10	1		0		0	14		5,246		10
Total available-for-sale investment portfolio	117	$	913,612	$	16,788	3	$	14	$	0	120	$	913,626	$	16,788

As of December 31, 2019

	Less than 12 Months					12 Months or Longer					Total
				Gross					Gross					Gross
				Unrealized					Unrealized					Unrealized
(000's omitted)	#	Fair Value		Losses		#	Fair Value		Losses		#	Fair Value		Losses
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	12	$	592,678	$	7,970	5	$	25,998	$	5	17	$	618,676	$	7,975
Obligations of state and political subdivisions	21		22,716		26	0		0		0	21		22,716		26
Government agency mortgage-backed securities	50		89,237		341	52		52,975		766	102		142,212		1,107
Government agency collateralized mortgage obligations	5		5,971		14	5		4,405		18	10		10,376		32
Total available-for-sale investment portfolio	88	$	710,602	$	8,351	62	$	83,378	$	789	150	$	793,980	$	9,140

The unrealized losses reported pertaining to securities issued by the U.S. government and its sponsored entities, include treasuries, agencies, and mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, which are currently rated AAA by Moody’s Investor Services, AA+ by Standard & Poor’s and are guaranteed by the U.S. government. The majority of the obligations of state and political subdivisions and corporations carry a credit rating of A or better. Additionally, a majority of the obligations of state and political subdivisions carry a secondary level of credit enhancement. The Company holds one corporate debt security in an unrealized loss position which is currently rated A- or better and the issuer of the security shows a low risk of default. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell these securities prior to recovery of the amortized cost. Timely principal and interest payments continue to be made on the securities. The unrealized losses in the portfolios are primarily attributable to changes in interest rates. As such, management does not believe any individual unrealized loss as of December 31, 2020 represents credit losses and no unrealized losses have been recognized in the provision for credit losses. Accordingly, there is no allowance for credit losses on the Company’s available-for-sale portfolio as of December 31, 2020. As of December 31, 2019, management did not believe any individual unrealized loss represents other-than-temporary impairment.

The amortized cost and estimated fair value of debt securities at December 31, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Available-for-Sale
	Amortized
(000's omitted)	Cost		Fair Value
Due in one year or less	$	215,400	$	217,938
Due after one through five years		732,939		768,761
Due after five years through ten years		460,678		496,977
Due after ten years		1,469,746		1,498,001
Subtotal		2,878,763		2,981,677
Government agency mortgage-backed securities		506,540		522,638
Government agency collateralized mortgage obligations		42,476		43,577
Total	$	3,427,779	$	3,547,892

Investment securities with a carrying value of $2.03 billion and $1.47 billion at December 31, 2020 and 2019, respectively, were pledged to collateralize certain deposits and borrowings. Securities pledged to collateralize certain deposits and borrowings included $473.4 million and $502.8 million of U.S. Treasury securities that were pledged as collateral for securities sold under agreement to repurchase at December 31, 2020, and 2019, respectively. All securities sold under agreement to repurchase as of December 31, 2020 and 2019 have an overnight and continuous maturity.

During 2019, the Company sold $590.2 million of U.S. Treasury and agency securities, recognizing $5.0 million of gross realized gains and $0.1 million of gross realized losses. There were no sales of investment securities in 2020 and 2018.