INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2019

NOTE D: INVESTMENT SECURITIES

The amortized cost and estimated fair value of investment securities as of September 30, 2019 and December 31, 2018 are as follows:

	September 30, 2019								December 31, 2018
(000's omitted)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	$	1,482,739	$	24,122	$	214	$	1,506,647	$	2,036,474	$	2,190	$	14,911	$	2,023,753
Obligations of state and political subdivisions		442,942		15,159		11		458,090		453,640		6,563		1,049		459,154
Government agency mortgage-backed securities		406,329		6,330		843		411,816		390,234		1,526		9,283		382,477
Corporate debt securities		2,542		0		2		2,540		2,588		0		42		2,546
Government agency collateralized mortgage obligations		57,452		592		35		58,009		69,342		60		1,283		68,119
Total available-for-sale portfolio	$	2,392,004	$	46,203	$	1,105	$	2,437,102	$	2,952,278	$	10,339	$	26,568	$	2,936,049

Equity and other Securities:
Equity securities, at fair value	$	251	$	210	$	0	$	461	$	251	$	200	$	19	$	432
Federal Home Loan Bank common stock		6,912		0		0		6,912		8,768		0		0		8,768
Federal Reserve Bank common stock		31,992		0		0		31,992		30,690		0		0		30,690
Other equity securities, at adjusted cost		4,525		750		0		5,275		4,969		750		0		5,719
Total equity and other securities	$	43,680	$	960	$	0	$	44,640	$	44,678	$	950	$	19	$	45,609

A summary of investment securities that have been in a continuous unrealized loss position is as follows:

As of September 30, 2019

	Less than 12 Months						12 Months or Longer						Total
(000's omitted)		#	Fair Value		Gross Unrealized Losses			#	Fair Value		Gross Unrealized Losses			#	Fair Value		Gross Unrealized Losses

Available-for-Sale Portfolio:
U.S. Treasury and agency securities		6	$	77,332	$	58		12	$	107,840	$	156		18	$	185,172	$	214
Obligations of state and political subdivisions		73		7,125		11		0		0		0		73		7,125		11
Government agency mortgage-backed securities		24		34,660		95		55		58,473		748		79		93,133		843
Corporate debt securities		0		0		0		1		2,540		2		1		2,540		2
Government agency collateralized mortgage obligations		5		6,662		9		7		5,357		26		12		12,019		35
Total available-for-sale investment portfolio		108	$	125,779	$	173		75	$	174,210	$	932		183	$	299,989	$	1,105

As of December 31, 2018

	Less than 12 Months						12 Months or Longer						Total
(000's omitted)		#	Fair Value		Gross Unrealized Losses			#	Fair Value		Gross Unrealized Losses			#	Fair Value		Gross Unrealized Losses

Available-for-Sale Portfolio:
U.S. Treasury and agency securities		7	$	473,082	$	682		64	$	1,213,276	$	14,229		71	$	1,686,358	$	14,911
Obligations of state and political subdivisions		118		55,671		216		97		51,753		833		215		107,424		1,049
Government agency mortgage-backed securities		43		47,708		258		181		253,931		9,025		224		301,639		9,283
Corporate debt securities		0		0		0		1		2,546		42		1		2,546		42
Government agency collateralized mortgage obligations		1		66		0		41		63,112		1,283		42		63,178		1,283
Total available-for-sale investment portfolio		169	$	576,527	$	1,156		384	$	1,584,618	$	25,412		553	$	2,161,145	$	26,568

Equity and other Securities:
Equity securities, at fair value		1	$	82	$	19		0	$	0	$	0		1	$	82	$	19
Total equity and other securities		1	$	82	$	19		0	$	0	$	0		1	$	82	$	19

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 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. 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 September 30, 2019 represents other-than-temporary impairment.

The amortized cost and estimated fair value of debt securities at September 30, 2019, 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
(000's omitted)	Amortized Cost		Fair Value
Due in one year or less	$	71,512	$	71,510
Due after one through five years		1,512,018		1,538,064
Due after five years through ten years		54,176		58,251
Due after ten years		290,517		299,452
Subtotal		1,928,223		1,967,277
Government agency mortgage-backed securities		406,329		411,816
Government agency collateralized mortgage obligations		57,452		58,009
Total	$	2,392,004	$	2,437,102

As of September 30, 2019, $245.6 million of U.S. Treasury securities were pledged as collateral for securities sold under agreement to repurchase. All securities sold under agreement to repurchase as of September 30, 2019 have an overnight and continuous maturity.

During the nine-month period ending September 30, 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. The proceeds from these sales were primarily held in interest-earning cash and cash equivalents at higher net yields as of September 30, 2019.