CHFC 2018 Annual Report

Investment Securities The following table summarizes the maturities and yields of the carrying value of debt securities by investment category, and fair value by investment category, at December 31, 2018 and 2017: Maturity as of December 31, 2018 (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) Carried at fair value: Government and government- sponsored enterprises $ 35,502 3.44% $ 115,562 3.32% $ 147,939 3.37% $ 52,697 3.41% $ 351,700 3.37% $ 351,700 State and political subdivisions 19,539 1.98 43,746 2.34 139,586 2.54 313,415 3.17 516,286 2.88 516,286 Residential mortgage- backed securities 33,262 2.96 94,271 2.94 55,617 2.90 30,278 2.98 213,428 2.94 213,428 Collateralized mortgage obligations 256,044 2.90 758,278 2.96 387,959 3.08 199,017 3.03 1,601,298 2.99 1,601,298 Corporate bonds 37,348 2.23 37,998 3.18 217,717 3.99 — — 293,063 3.66 293,063 Trust preferred securities — — — — 44,572 4.53 1,485 2.06 46,057 4.45 46,057 Total debt securities carried at fair value 381,695 2.84 1,049,855 2.98 993,390 3.30 596,892 3.13 3,021,832 3.10 3,021,832 Held-to-Maturity: State and political subdivisions 58,875 3.22 228,229 3.35 163,565 3.41 172,930 3.28 623,599 3.33 618,232 Trust preferred securities — — — — — — 500 5.75 500 5.75 440 Total investment securities held-to- maturity 58,875 3.22 228,229 3.35 163,565 3.41 173,430 3.28 624,099 3.34 618,672 Total investment securities $ 440,570 2.89% $1,278,084 3.05% $1,156,955 3.32% $ 770,322 3.16% $3,645,931 3.14% $ 3,640,504 (1) Residential mortgage-backed securities, collateralized mortgage obligations and certain government and government-sponsored enterprise securities 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 enterprises, 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 21% federal income tax rate and are based on carrying value. Yields disclosed are actual yields based on carrying value at December 31, 2018. Approximately 24% of investment securities at December 31, 2018 were variable-rate financial instruments. 50