INVESTMENTS

6 Months Ended

Jun. 30, 2018

Note 3 – Investments

Investments available-for-sale

The amortized cost and estimated fair values of investments available-for-sale at the dates indicated are presented in the following table:

			June 30, 2018								December 31, 2017
					Gross		Gross		Estimated				Gross		Gross		Estimated
			Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
(In thousands)			Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. government agencies			$	212,837	$	-	$	(6,389)	$	206,448	$	109,349	$	-	$	(2,781)	$	106,568
State and municipal				321,028		3,408		(1,930)		322,506		306,109		6,313		(169)		312,253
Mortgage-backed				414,829		698		(11,765)		403,762		302,664		1,585		(4,209)		300,040
Corporate debt				9,100		138		-		9,238		9,100		332		-		9,432
Trust preferred				310		-		-		310		931		71		-		1,002
	Total debt securities			958,104		4,244		(20,084)		942,264		728,153		8,301		(7,159)		729,295
Marketable equity securities				568		-		-		568		212		-		-		212
		Total investments available-for-sale	$	958,672	$	4,244	$	(20,084)	$	942,832	$	728,365	$	8,301	$	(7,159)	$	729,507

Any unrealized losses in the U.S. government agencies, state and municipal, mortgage-backed or corporate debt investment securities at June 30, 2018 are not the result of credit related events but due to changes in interest rates. These declines in fair market value are considered temporary in nature and are expected to recover over time as these securities approach maturity.

The mortgage-backed securities portfolio at June 30, 2018 is composed entirely of either the most senior tranches of GNMA, FNMA or FHLMC collateralized mortgage obligations ($146.9 million), or GNMA, FNMA or FHLMC mortgage-backed securities ($256.9 million). The Company does not intend to sell these securities and has sufficient liquidity to hold these securities for an adequate period of time to allow for any anticipated recovery in fair value.

During the first quarter of 2018, the Company sold the pooled trust preferred security for an insignificant gain. This security had incurred credit related other-than-temporary impairment which was recognized in periods prior to 2017.

Gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in an unrealized loss position at the dates indicated are presented in the following table:

		June 30, 2018
						Continuous Unrealized
						Losses Existing for:
		Number								Total
		of				Less than		More than		Unrealized
(Dollars in thousands)		Securities		Fair Value		12 months		12 months		Losses
U.S. government agencies			57	$	206,448	$	2,893	$	3,496	$	6,389
State and municipal			117		112,777		1,889		41		1,930
Mortgage-backed			143		377,136		4,956		6,809		11,765
	Total		317	$	696,361	$	9,738	$	10,346	$	20,084

		December 31, 2017
						Continuous Unrealized
						Losses Existing for:
		Number								Total
		of				Less than		More than		Unrealized
(Dollars in thousands)		Securities		Fair Value		12 months		12 months		Losses
U.S. government agencies			13	$	106,568	$	545	$	2,236	$	2,781
State and municipal			20		18,228		107		62		169
Mortgage-backed			46		221,621		402		3,807		4,209
	Total		79	$	346,417	$	1,054	$	6,105	$	7,159

The amortized cost and estimated fair values of debt securities available-for-sale by contractual maturity at the dates indicated are provided in the following table. The Company has allocated mortgage-backed securities into the four maturity groupings reflected in the following table using the expected average life of the individual securities based on statistics provided by independent third party industry sources. Expected maturities will differ from contractual maturities as borrowers may have the right to prepay obligations with or without prepayment penalties.

		June 30, 2018				December 31, 2017
				Estimated				Estimated
		Amortized		Fair		Amortized		Fair
(In thousands)		Cost		Value		Cost		Value
Due in one year or less		$	54,125	$	54,522	$	12,789	$	12,889
Due after one year through five years			244,147		245,061		180,109		184,264
Due after five years through ten years			288,396		281,183		228,484		227,688
Due after ten years			371,436		361,498		306,771		304,454
	Total debt securities available for sale	$	958,104	$	942,264	$	728,153	$	729,295

At June 30, 2018 and December 31, 2017, investments available-for-sale with a book value of $632.2 million and $431.7 million, respectively, were pledged as collateral for certain government deposits and for other purposes as required or permitted by law. The outstanding balance of no single issuer, except for U.S. Agencies securities, exceeded ten percent of stockholders' equity at June 30, 2018 and December 31, 2017.

Equity securities

Other equity securities at the dates indicated are presented in the following table:

(In thousands)		June 30, 2018		December 31, 2017
Federal Reserve Bank stock		$	22,438	$	8,398
Federal Home Loan Bank of Atlanta stock			52,004		37,120
	Total equity securities	$	74,442	$	45,518