INVESTMENTS

3 Months Ended

Mar. 31, 2019

Note 2 – 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:

			March 31, 2019								December 31, 2018
					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. treasuries and government agencies			$	314,928	$	546	$	(1,886)	$	313,588	$	300,338	$	370	$	(4,030)	$	296,678
State and municipal				261,126		3,491		(37)		264,580		280,725		2,080		(781)		282,024
Mortgage-backed and asset-backed				340,657		1,037		(3,597)		338,097		355,267		653		(7,405)		348,515
Corporate debt				9,100		287		-		9,387		9,100		140		-		9,240
Trust preferred				310		-		-		310		310		-		-		310
	Total debt securities			926,121		5,361		(5,520)		925,962		945,740		3,243		(12,216)		936,767
Marketable equity securities				568		-		-		568		568		-		-		568
		Total investments available-for-sale	$	926,689	$	5,361	$	(5,520)	$	926,530	$	946,308	$	3,243	$	(12,216)	$	937,335

Any unrealized losses in the U.S. treasuries and government agencies, state and municipal, mortgage-backed and asset-backed investment securities at March 31, 2019 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 March 31, 2019 is composed entirely of either the most senior tranches of GNMA, FNMA or FHLMC collateralized mortgage obligations ($117.6 million), GNMA, FNMA or FHLMC mortgage-backed securities ($170.4 million) and SBA asset-backed securities ($50.1 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.

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:

		March 31, 2019
						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. treasuries and government agencies			27	$	186,675	$	204	$	1,682	$	1,886
State and municipal			9		8,724		-		37		37
Mortgage-backed and asset-backed			78		254,545		23		3,574		3,597
	Total		114	$	449,944	$	227	$	5,293	$	5,520

		December 31, 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. treasuries and government agencies			33	$	194,135	$	452	$	3,578	$	4,030
State and municipal			80		78,232		569		212		781
Mortgage-backed and asset-backed			110		308,254		1,592		5,813		7,405
	Total		223	$	580,621	$	2,613	$	9,603	$	12,216

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.

		March 31, 2019				December 31, 2018
				Estimated				Estimated
		Amortized		Fair		Amortized		Fair
(In thousands)		Cost		Value		Cost		Value
Due in one year or less		$	57,794	$	58,089	$	63,482	$	63,747
Due after one year through five years			283,422		284,235		277,297		276,830
Due after five years through ten years			190,435		191,473		212,825		210,386
Due after ten years			394,470		392,165		392,136		385,804
	Total debt securities available for sale	$	926,121	$	925,962	$	945,740	$	936,767

At March 31, 2019 and December 31, 2018, investments available-for-sale with a book value of $446.3 million and $477.3 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 March 31, 2019 and December 31, 2018.

Equity securities

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

(In thousands)		March 31, 2019		December 31, 2018
Federal Reserve Bank stock		$	22,496	$	22,456
Federal Home Loan Bank of Atlanta stock			38,273		50,933
	Total equity securities	$	60,769	$	73,389