Investment Securities (Tables)

9 Months Ended

Sep. 30, 2019

Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-Sale

The amortized cost, fair values, and unrealized gains and losses of the debt securities available-for-sale are as follows

(in thousands):

	Amortized		Gross Unrealized				Fair
September 30, 2019	Cost		Gains		Losses		Value
US Treasury Notes	$	129,724	$	270	$	5	$	129,989
US Government Agency SBA		11,844		15		115		11,744
Mortgage Backed Securities⁽¹⁾		343,295		4,425		163		347,557
Other		3,640		-		-		3,640
Total	$	488,503	$	4,710	$	283	$	492,930

	Amortized		Gross Unrealized				Fair
December 31, 2018	Cost		Gains		Losses		Value
Government Agency & Government-Sponsored Entities	$	3,033	$	6	$	-	$	3,039
US Treasury Notes		164,672		-		158		164,514
US Government Agency SBA		15,601		6		160		15,447
Mortgage Backed Securities⁽¹⁾		310,982		1,196		5,133		307,045
Other		5,351		-		-		5,351
Total	$	499,639	$	1,208	$	5,451	$	495,396

	Amortized		Gross Unrealized				Fair
September 30, 2018	Cost		Gains		Losses		Value
Government Agency & Government-Sponsored Entities	$	3,045	$	7	$	-	$	3,052
US Treasury Notes		164,671		-		463		164,208
US Government Agency SBA		17,144		6		177		16,973
Mortgage Backed Securities⁽¹⁾		279,757		265		8,955		271,067
Other		3,011		-		-		3,011
Total	$	467,628	$	278	$	9,595	$	458,311

⁽¹⁾All Mortgage Backed Securities consist of securities collateralized by residential real estate and were issued by an agency or government sponsored entity of the U.S. government.

Book Values, Estimated Fair Values and Unrealized Gains and Losses of Investments Classified as Held-to-Maturity

The book values, estimated fair values and unrealized gains and losses of debt securities classified as held-to-maturity are as follows (in thousands):

	Book		Gross Unrealized				Fair
September 30, 2019	Value		Gains		Losses		Value
Obligations of States and Political Subdivisions	$	60,354	$	946	$	7	$	61,293
Total	$	60,354	$	946	$	7	$	61,293

	Book		Gross Unrealized				Fair
December 31, 2018	Value		Gains		Losses		Value
Obligations of States and Political Subdivisions	$	53,566	$	211	$	39	$	53,738
Total	$	53,566	$	211	$	39	$	53,738

	Book		Gross Unrealized				Fair
September 30, 2018	Value		Gains		Losses		Value
Obligations of States and Political Subdivisions	$	51,459	$	97	$	174	$	51,382
Total	$	51,459	$	97	$	174	$	51,382

Amortized Cost and Estimated Fair Values of Investment Securities by Contractual Maturity

The amortized cost and estimated fair values of investment securities at September 30, 2019 by contractual maturity are shown in the following table (in thousands):

	Available-for-Sale				Held-to-Maturity
September 30, 2019	Amortized Cost		Fair Value		Book Value		Fair Value
Within one year	$	118,646	$	118,641	$	2,151	$	2,152
After one year through five years		15,118		15,387		4,696		4,702
After five years through ten years		1,126		1,126		25,426		26,174
After ten years		10,318		10,219		28,081		28,265
		145,208		145,373		60,354		61,293
Investment securities not due at a single maturity date:
Mortgage-backed securities		343,295		347,557		-		-

Total	$	488,503	$	492,930	$	60,354	$	61,293

Investments with Gross Unrealized Losses and Their Market Value Aggregated by Investment Category and Length of Time that Individual Securities Have Been in a Continuous Unrealized Loss Position

The following tables show those investments with gross unrealized losses and their market value (in thousands) aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at the dates indicated. (in thousands)

	Less Than 12 Months				12 Months or More				Total
September 30, 2019	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss

Securities Available-for-Sale
US Treasury Notes	$	114,995	$	5	$	-	$	-	$	114,995	$	5
US Government Agency SBA		2,046		3		5,779		112		7,825		115
Mortgage Backed Securities		107,628		146		876		17		108,504		163
Total	$	224,669	$	154	$	6,655	$	129	$	231,324	$	283

Securities Held-to-Maturity
Obligations of States and Political Subdivisions	$	212	$	7	$	-	$	-	$	212	$	7
Total	$	212	$	7	$	-	$	-	$	212	$	7

	Less Than 12 Months				12 Months or More				Total
December 31, 2018	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss

Securities Available-for-Sale
US Treasury Notes	$	124,985	$	7	$	39,529	$	151	$	164,514	$	158
US Government Agency SBA		3,250		28		8,618		132		11,868		160
Mortgage Backed Securities		52,289		528		207,271		4,605		259,560		5,133
Total	$	180,524	$	563	$	255,418	$	4,888	$	435,942	$	5,451

Securities Held-to-Maturity
Obligations of States and Political Subdivisions	$	6,052	$	23	$	849	$	16	$	6,901	$	39
Total	$	6,052	$	23	$	849	$	16	$	6,901	$	39

	Less Than 12 Months				12 Months or More				Total
September 30, 2018	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss

Securities Available-for-Sale
US Treasury Notes	$	84,315	$	290	$	24,902	$	173	$	109,217	$	463
US Government Agency SBA		4,965		62		8,467		115		13,432		177
Mortgage Backed Securities		182,243		5,772		78,272		3,183		260,515		8,955
Total	$	271,523	$	6,124	$	111,641	$	3,471	$	383,164	$	9,595

Securities Held-to-Maturity
Obligations of States and Political Subdivisions	$	15,309	$	174	$	-	$	-	$	15,309	$	174
Total	$	15,309	$	174	$	-	$	-	$	15,309	$	174

Proceeds from Sales and Calls of Securities

Proceeds from sales and calls of securities for the periods shown were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Proceeds	$	2,780	$	-	$	4,090	$	31,370
Gains		1		-		1		8
Losses		-		-		-		1,338