INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2019

NOTE C: INVESTMENT SECURITIES

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

	2019								2018
(000's omitted)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	$	2,030,060	$	21,674	$	7,975	$	2,043,759	$	2,036,474	$	2,190	$	14,911	$	2,023,753
Obligations of state and political subdivisions		497,852		14,382		26		512,208		453,640		6,563		1,049		459,154
Government agency mortgage-backed securities		428,491		5,478		1,107		432,862		390,234		1,526		9,283		382,477
Corporate debt securities		2,527		1		0		2,528		2,588		0		42		2,546
Government agency collateralized mortgage obligations		52,621		482		32		53,071		69,342		60		1,283		68,119
Total available-for-sale portfolio	$	3,011,551	$	42,017	$	9,140	$	3,044,428	$	2,952,278	$	10,339	$	26,568	$	2,936,049

Equity and other Securities:
Equity securities, at fair value	$	251	$	200	$	0	$	451	$	251	$	200	$	19	$	432
Federal Home Loan Bank common stock		7,246		0		0		7,246		8,768		0		0		8,768
Federal Reserve Bank common stock		30,922		0		0		30,922		30,690		0		0		30,690
Other equity securities, at adjusted cost		4,546		750		0		5,296		4,969		750		0		5,719
Total equity and other securities	$	42,965	$	950	$	0	$	43,915	$	44,678	$	950	$	19	$	45,609

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, 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		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

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 December 31, 2019 represents OTTI.

The amortized cost and estimated fair value of debt securities at December 31, 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	$	677,169	$	680,805
Due after one through five years		905,531		925,987
Due after five years through ten years		453,320		456,833
Due after ten years		494,419		494,870
Subtotal		2,530,439		2,558,495
Government agency mortgage-backed securities		428,491		432,862
Government agency collateralized mortgage obligations		52,621		53,071
Total	$	3,011,551	$	3,044,428

Investment securities with a carrying value of $1.471 billion and $1.447 billion at December 31, 2019 and 2018, respectively, were pledged to collateralize certain deposits and borrowings. Securities pledged to collateralize certain deposits and borrowings included $502.8 million and $492.4 million of U.S. Treasury securities that were pledged as collateral for securities sold under agreement to repurchase at December 31, 2019, and 2018, respectively. All securities sold under agreement to repurchase as of December 31, 2019 and 2018 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. The proceeds from these sales were reinvested primarily in U.S. Treasury and agency securities at higher net yields as of December 31, 2019.