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INVESTMENT SECURITIES
 3 Months Ended
Mar. 31, 2022
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 March 31, 2022 are summarized as follows:
(in thousands)
  
Amortized
cost
    
Unrealized
gains
    
Unrealized
losses
    
Estimated
fair value
  
 
                        
Investment securities available-for-sale:
                        
U.S. Treasury securities
  
$
108,594
    
$
126
    
$
(3,189
)
  
$
105,531
  
Securities of U.S. government agencies and corporations
    
110,716
      
39
      
(5,453
)
    
105,302
  
Obligations of states and political subdivisions
    
45,636
      
285
      
(2,800
)
    
43,121
  
Collateralized mortgage obligations
    
129,553
      
22
      
(8,999
)
    
120,576
  
Mortgage-backed securities
    
282,552
      
111
      
(12,038
)
    
270,625
  
Total debt securities
  
$
677,051
    
$
583
    
$
(32,479
)
  
$
645,155
  

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 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
  
$
86,534
    
$
388
    
$
(711
)
  
$
86,211
  
Securities of U.S. government agencies and corporations
    
104,106
      
330
      
(1,826
)
    
102,610
  
Obligations of states and political subdivisions
    
44,842
      
1,444
      
(301
)
    
45,985
  
Collateralized mortgage obligations
    
137,872
      
665
      
(2,885
)
    
135,652
  
Mortgage-backed securities
    
262,738
      
1,971
      
(2,954
)
    
261,755
  
Total debt securities
  
$
636,092
    
$
4,798
    
$
(8,677
)
  
$
632,213
  

The Company had $— and $3,643,000 proceeds from sales of available-for-sale securities for the three months ended March 31, 2022 and March 31, 2021, respectively.  Gross realized gains on sales/calls of available-for-sale securities were $0 and $25,000 for the three months ended March 31, 2022 and March 31, 2021, respectively.  Gross realized losses on sales of available-for-sale securities were $0 and $35,000 for the three months ended March 31, 2022 and March 31, 2021, respectively.
The amortized cost and estimated fair value of debt and other securities at March 31, 2022, 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
  
$
22,255
    
$
22,316
  
Due after one year through five years
    
171,580
      
165,608
  
Due after five years through ten years
    
44,081
      
41,114
  
Due after ten years
    
27,030
      
24,916
  
Subtotal
    
264,946
      
253,954
  
MBS & CMO
    
412,105
      
391,201
  
Total
  
$
677,051
    
$
645,155
  

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 March 31, 2022, follows:

 
Less than 12 months
    
12 months or more
    
Total
  
(in thousands)  
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
 
                                    
U.S. Treasury securities
  
$
78,054
    
$
(2,725
)
  
$
9,957
    
$
(464
)
  
$
88,011
    
$
(3,189
)
Securities of U.S. government agencies and corporations
    
39,241
      
(1,180
)
    
50,456
      
(4,273
)
    
89,697
      
(5,453
)
Obligations of states and political subdivisions
    
28,790
      
(2,339
)
    
2,848
      
(461
)
    
31,638
      
(2,800
)
Collateralized mortgage obligations
    
110,237
      
(8,208
)
    
7,892
      
(791
)
    
118,129
      
(8,999
)
Mortgage-backed securities
    
172,065
      
(7,113
)
    
66,549
      
(4,925
)
    
238,614
      
(12,038
)
Total
  
$
428,387
    
$
(21,565
)
  
$
137,702
    
$
(10,914
)
  
$
566,089
    
$
(32,479
)

No decline in value was considered “other-than-temporary” during the first three months of 2022.  Three hundred forty-seven securities, all considered investment grade, which had an aggregate fair value of $428,387,000 and a total unrealized loss of $21,565,000, have been in an unrealized loss position for less than twelve months as of March 31, 2022.  Sixty-seven securities, all considered investment grade, have been in an unrealized loss position for more than twelve months as of March 31, 2022.  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 decline in fair value is attributable to changes in interest rates and not credit quality and the Company does not intend to sell the securities.  The Company 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 March 31, 2022.
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, 2021, follows:

 
Less than 12 months
    
12 months or more
    
Total
  
(in thousands)  
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
 
                                    
U.S. Treasury Securities
  
$
63,254
    
$
(673
)
  
$
2,066
    
$
(38
)
  
$
65,320
    
$
(711
)
Securities of U.S. government agencies and corporations
    
48,288
      
(942
)
    
30,158
      
(884
)
    
78,446
      
(1,826
)
Obligations of states and political subdivisions
    
11,680
      
(233
)
    
934
      
(68
)
    
12,614
      
(301
)
Collateralized Mortgage obligations
    
90,299
      
(2,850
)
    
1,298
      
(35
)
    
91,597
      
(2,885
)
Mortgage-backed securities
    
175,943
      
(2,816
)
    
6,997
      
(138
)
    
182,940
      
(2,954
)
Total
  
$
389,464
    
$
(7,514
)
  
$
41,453
    
$
(1,163
)
  
$
430,917
    
$
(8,677
)

Investment securities carried at $37,677,000 and $39,695,000 at March 31, 2022 and December 31, 2021, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.