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INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 2021
INVESTMENT SECURITIES [Abstract]  
INVESTMENT SECURITIES
3. 
INVESTMENT SECURITIES

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at September 30, 2021 are summarized as follows:
(in thousands)
  
Amortized
cost
    
Unrealized
gains
    
Unrealized
losses
    
Estimated
fair value
  
 
                        
Investment securities available-for-sale:
                        
U.S. Treasury Securities
  
$
78,243
    
$
554
    
$
(187
)
  
$
78,610
  
Securities of U.S. government agencies and corporations
    
101,162
      
461
      
(965
)
    
100,658
  
Obligations of states and political subdivisions
    
38,681
      
1,375
      
(360
)
    
39,696
  
Collateralized mortgage obligations
    
139,255
      
1,198
      
(650
)
    
139,803
  
Mortgage-backed securities
    
256,910
      
2,839
      
(1,406
)
    
258,343
  
                                 
Total debt securities
  
$
614,251
    
$
6,427
    
$
(3,568
)
  
$
617,110
  

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2020 are summarized as follows:
(in thousands)
  
Amortized
cost
    
Unrealized
gains
    
Unrealized
losses
    
Estimated
fair value
  
 
                        
Investment securities available-for-sale:
                        
U.S. Treasury Securities
  
$
37,910
    
$
982
    
$
(1
)
  
$
38,891
  
Securities of U.S. government agencies and corporations
    
105,506
      
1,317
      
(265
)
    
106,558
  
Obligations of states and political subdivisions
    
31,013
      
1,878
      
(9
)
    
32,882
  
Collateralized mortgage obligations
    
71,531
      
1,937
      
(8
)
    
73,460
  
Mortgage-backed securities
    
179,021
      
4,359
      
(91
)
    
183,289
  
                                 
Total debt securities
  
$
424,981
    
$
10,473
    
$
(374
)
  
$
435,080
  

The Company had $7,470,000 and $15,487,000 in proceeds from sales, calls and maturities of available-for-sale securities for the three-month periods ended September 30, 2021 and 2020, respectively.  The Company had $37,107,000 and $47,531,000 in proceeds from sales, calls and maturities of available-for-sale securities for the nine-month periods ended September 30, 2021 and 2020, respectively.  Gross realized gains on sales/calls of available-for-sale securities were $0 and $254,000 for the three-month periods ended September 30, 2021 and 2020, respectively.  Gross realized losses on sales of available-for-sale securities were $20,000 and $0 for the three-month periods ended September 30, 2021 and 2020, respectively.  Gross realized gains on sales/calls of available-for-sale securities were $322,000 and $342,000 for the nine-month periods ended September 30, 2021 and 2020, respectively.  Gross realized losses on sales of available-for-sale securities were $543,000 and $46,000 for the nine-month periods ended September 30, 2021 and 2020, respectively.
The amortized cost and estimated market value of debt and other securities at September 30, 2021, by contractual maturity, are shown in the following table:
(in thousands)
  
Amortized
cost
    
Estimated
fair value
  
 
            
Maturity in years:
            
Due in one year or less
  
$
15,608
    
$
15,763
  
Due after one year through five years
    
126,175
      
126,715
  
Due after five years through ten years
    
52,282
      
52,037
  
Due after ten years
    
24,021
      
24,449
  
Subtotal
    
218,086
      
218,964
  
MBS & CMO
    
396,165
      
398,146
  
Total
  
$
614,251
    
$
617,110
  

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  In addition, factors such as prepayments and interest rates may affect the yield on the carrying value of mortgage-related securities.
An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of September 30, 2021, follows:
(in thousands)
  
Less than 12 months
    
12 months or more
    
Total
  
   
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
 
                                    
U.S. Treasury Securities
  
$
51,178
    
$
(187
)
  
$
—
    
$
—
    
$
51,178
    
$
(187
)
Securities of U.S. government agencies and corporations
    
68,390
      
(924
)
    
3,459
      
(41
)
    
71,849
      
(965
)
Obligations of states and political subdivisions
    
13,830
      
(268
)
    
909
      
(92
)
    
14,739
      
(360
)
Collateralized Mortgage obligations
    
85,401
      
(650
)
    
—
      
—
      
85,401
      
(650
)
Mortgage-backed securities
    
152,432
      
(1,406
)
    
—
      
—
      
152,432
      
(1,406
)
                                                 
Total
  
$
371,231
    
$
(3,435
)
  
$
4,368
    
$
(133
)
  
$
375,599
    
$
(3,568
)

No decline in value was considered “other-than-temporary” during the first nine months of 2021.  One hundred fifty-two securities, all considered investment grade, which had an aggregate fair value of $371,231,000 and a total unrealized loss of $3,435,000 have been in an unrealized loss position for less than twelve months as of September 30, 2021.  Three securities, all considered investment grade, which had an aggregate fair value of $4,368,000 and a total unrealized loss of $133,000 have been in an unrealized loss position for more than twelve months as of September 30, 2021. The unrealized losses on the Company's investment securities were caused by market conditions for these types of investments, particularly changes in risk-free interest rates.  The Company does not intend to sell the securities and has concluded it is not more likely than not that the Company will be required to sell these securities prior to recovery of their anticipated cost basis. Therefore, the Company does not consider these investments to be other than temporarily impaired as of September 30, 2021.
The fair value of investment securities could decline in the future if the general economy deteriorates, inflation increases, credit ratings decline, the issuer's financial condition deteriorates, or the liquidity for securities declines. As a result, other than temporary impairments may occur in the future.  The coronavirus pandemic and the impact of governmental health measures in response thereto may increase the likelihood of such other than temporary impairments.
An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2020, follows:
 (in thousands)
  
Less than 12 months
    
12 months or more
    
Total
  
   
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
 
                                    
U.S. Treasury Securities
  
$
4,276
    
$
(1
)
  
$
—
    
$
—
    
$
4,276
    
$
(1
)
Securities of U.S. government agencies and corporations
    
58,164
      
(265
)
    
—
      
—
      
58,164
      
(265
)
Obligations of states and political subdivisions
    
1,603
      
(9
)
    
—
      
—
      
1,603
      
(9
)
Collateralized Mortgage obligations
    
1,697
      
(8
)
    
—
      
—
      
1,697
      
(8
)
Mortgage-backed securities
    
30,208
      
(91
)
    
—
      
—
      
30,208
      
(91
)
                                                 
Total
  
$
95,948
    
$
(374
)
  
$
—
    
$
—
    
$
95,948
    
$
(374
)

Investment securities carried at $41,004,000 and $41,916,000 at September 30, 2021 and December 31, 2020, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.