CHFC 2017 Annual Report

Investment Securities The following table summarizes the maturities and yields of the carrying value of investment securities by investment category, and fair value by investment category, at December 31, 2017 and 2016: Maturity as of December 31, 2017 (1) Within One Year After One but Within Five Years After Five but Within Ten Years After Ten Years Total Carrying Value (2) Total Fair Value (Dollars in thousands) Amount Yield (3) Amount Yield (3) Amount Yield (3) Amount Yield (3) Amount Yield (3) Available-for-Sale: Government sponsored agencies $ 30,241 2.29% $ 81,106 2.39% $ 61,461 2.43% $ 30,108 2.43% $ 202,916 2.39% $ 202,916 State and political subdivisions 9,219 2.55 60,691 2.14 115,622 2.63 160,437 3.70 345,970 3.04 345,970 Residential mortgage- backed securities 21,922 2.44 66,510 2.46 38,595 2.52 23,105 2.58 150,131 2.49 150,131 Collateralized mortgage obligations 223,295 2.65 500,467 2.61 231,658 2.74 78,425 2.98 1,033,845 2.68 1,033,845 Corporate bonds 13,968 1.73 37,308 2.01 141,518 3.68 — — 192,794 3.22 192,794 Preferred stock and trust preferred securities — — — — 22,968 3.62 14,923 3.34 37,890 3.51 37,890 Total investment securities available-for- sale 298,645 2.55 746,082 2.50 611,822 2.92 306,998 3.29 1,963,546 2.77 1,963,546 Held-to-Maturity: State and political subdivisions 89,359 2.33 237,113 3.12 152,299 3.92 197,822 3.64 676,593 3.35 662,516 Trust preferred securities — — — — — — 500 4.75 500 4.75 390 Total investment securities held-to- maturity 89,359 2.33 237,113 3.12 152,299 3.92 198,322 3.64 677,093 3.35 662,906 Total investment securities $ 388,004 2.50% $ 983,195 2.65% $ 764,121 3.12% $ 505,320 3.43% $2,640,639 2.92% $ 2,626,452 (1) Residential mortgage-backed securities, collateralized mortgage obligations and certain government sponsored agencies are based on scheduled principal maturity. All other investment securities are based on final contractual maturity. (2) The aggregate book value of securities issued by any single issuer, other than the U.S. government and government sponsored agencies, did not exceed 10% of our shareholders' equity. (3) Yields are weighted by amount and time to contractual maturity, are on a taxable equivalent basis using a 35% federal income tax rate and are based on carrying value. Yields disclosed are actual yields based on carrying value at December 31, 2017. Approximately 4% of investment securities at December 31, 2017 were variable-rate financial instruments. 46