INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2020

NOTE D: INVESTMENT SECURITIES

The amortized cost and estimated fair value of investment securities as of June 30, 2020 and December 31, 2019 are as follows:

	June 30, 2020								December 31, 2019
(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	$	2,048,199	$	124,122	$	18	$	2,172,303	$	2,030,060	$	21,674	$	7,975	$	2,043,759
Obligations of state and political subdivisions		499,961		21,764		20		521,705		497,852		14,382		26		512,208
Government agency mortgage-backed securities		519,370		15,956		248		535,078		428,491		5,478		1,107		432,862
Corporate debt securities		4,509		68		0		4,577		2,527		1		0		2,528
Government agency collateralized mortgage obligations		57,939		1,520		6		59,453		52,621		482		32		53,071
Total available-for-sale portfolio	$	3,129,978	$	163,430	$	292	$	3,293,116	$	3,011,551	$	42,017	$	9,140	$	3,044,428

Equity and other Securities:
Equity securities, at fair value	$	251	$	204	$	22	$	433	$	251	$	200	$	0	$	451
Federal Home Loan Bank common stock		7,576		0		0		7,576		7,246		0		0		7,246
Federal Reserve Bank common stock		30,922		0		0		30,922		30,922		0		0		30,922
Other equity securities, at adjusted cost		4,662		750		0		5,412		4,546		750		0		5,296
Total equity and other securities	$	43,411	$	954	$	22	$	44,343	$	42,965	$	950	$	0	$	43,915

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

As of June 30, 2020

	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		8	$	12,058	$	18		0	$	0	$	0		8	$	12,058	$	18
Obligations of state and political subdivisions		52		20,145		20		0		0		0		52		20,145		20
Government agency mortgage-backed securities		142		87,290		248		2		15		0		144		87,305		248
Government agency collateralized mortgage obligations		17		5,346		6		1		0		0		18		5,346		6
Total available-for-sale investment portfolio		219	$	124,839	$	292		3	$	15	$	0		222	$	124,854	$	292

Equity and other Securities:
Equity securities, at fair value		1	$	79	$	22		0	$	0	$	0		1	$	79	$	22
Total equity and other securities		1	$	79	$	22		0	$	0	$	0		1	$	79	$	22

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

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. 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 June 30, 2020 represents credit losses and no unrealized losses have been recognized into the provision for credit losses. Accordingly, there is no allowance for credit losses on the Company’s available-for-sale portfolio as of June 30, 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 June 30, 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
(000’s omitted)	Amortized Cost		Fair Value
Due in one year or less	$	663,860	$	670,059
Due after one through five years		925,191		971,561
Due after five years through ten years		466,983		509,723
Due after ten years		496,635		547,242
Subtotal		2,552,669		2,698,585
Government agency mortgage-backed securities		519,370		535,078
Government agency collateralized mortgage obligations		57,939		59,453
Total	$	3,129,978	$	3,293,116

As of June 30, 2020, $177.4 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 June 30, 2020 have an overnight and continuous maturity.

During the three and six months ended June 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.