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INVESTMENT SECURITIES
 3 Months Ended
Mar. 31, 2024
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, 2024 are summarized as follows:


  
Amortized
cost
    
Unrealized
gains
    
Unrealized
losses
    
Estimated fair
value
      ACL  
Investment securities available-for-sale:
                              
U.S. Treasury securities
  
$
84,676
    
$
60
    
$
(2,850
)
  
$
81,886
     $ —  
Securities of U.S. government agencies and corporations
    
115,840
      
48
      
(6,177
)
    
109,711
       —  
Obligations of states and political subdivisions
    
55,599
      
149
      
(3,860
)
    
51,888
       —  
Collateralized mortgage obligations
    
105,134
      
—
      
(17,681
)
    
87,453
       —  
Mortgage-backed securities
    
247,223
      
95
      
(19,815
)
    
227,503
       —  
Total debt securities
  
$
608,472
    
$
352
    
$
(50,383
)
  
$
558,441
     $
 —  

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2023 are summarized as follows:

 
Amortized
cost
    
Unrealized
gains
    
Unrealized
losses
    
Estimated fair
value
      ACL  
Investment securities available-for-sale:
                              
U.S. Treasury securities
  
$
90,063
    
$
134
    
$
(3,015
)
  
$
87,182
     $ —  
Securities of U.S. government agencies and corporations
    
121,305
      
105
      
(6,331
)
    
115,079
       —  
Obligations of states and political subdivisions
    
55,021
      
237
      
(3,581
)
    
51,677
       —  
Collateralized mortgage obligations
    
107,658
      
15
      
(16,726
)
    
90,947
       —  
Mortgage-backed securities
    
246,267
      
242
      
(19,037
)
    
227,472
       —  
Total debt securities
  
$
620,314
    
$
733
    
$
(48,690
)
  
$
572,357
     $
 —  

The Company had $971,000 and $7,201,000 proceeds from sales of available-for-sale securities for the three months ended March 31, 2024 and March 31, 2023, respectively.  Gross realized gains on sales/calls of available-for-sale securities were $0 and $58,000 for the three months ended March 31, 2024 and March 31, 2023, respectively.  Gross realized losses on sales of available-for-sale securities were $42,000 and $56,000 for the three months ended March 31, 2024 and March 31, 2023, respectively.

The amortized cost and estimated fair value of debt and other securities at March 31, 2024, 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
  
$
71,862
    
$
70,762
  
Due after one year through five years
    
126,902
      
119,731
  
Due after five years through ten years
    
29,358
      
27,406
  
Due after ten years
    
27,993
      
25,586
  
Subtotal
    
256,115
      
243,485
  
MBS & CMO
    
352,357
      
314,956
  
Total
  
$
608,472
    
$
558,441
  

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, 2024, 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
  
$
2,401
    
$
(15
)
  
$
68,912
    
$
(2,835
)
  
$
71,313
    
$
(2,850
)
Securities of U.S. government agencies and corporations
    
9,804
      
(43
)
    
92,229
      
(6,134
)
    
102,033
      
(6,177
)
Obligations of states and political subdivisions
    
11,059
      
(100
)
    
31,341
      
(3,760
)
    
42,400
      
(3,860
)
Collateralized mortgage obligations
    
3,651
      
(21
)
    
82,409
      
(17,660
)
    
86,060
      
(17,681
)
Mortgage-backed securities
    
24,555
      
(244
)
    
184,678
      
(19,571
)
    
209,233
      
(19,815
)
                                                 
Total
  
$
51,470
    
$
(423
)
  
$
459,569
    
$
(49,960
)
  
$
511,039
    
$
(50,383
)

Forty-five securities, all considered investment grade, which had an aggregate fair value of $51,470,000 and a total unrealized loss of $423,000 have been in an unrealized loss position for less than twelve months as of March 31, 2024. Four hundred and sixty securities, all considered investment grade, which had an aggregate fair value of $459,569,000 and a total unrealized loss of $49,960,000, have been in an unrealized loss position for more than twelve months as of March 31, 2024.  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, as of March 31, 2024, the Company has not recorded an allowance for credit losses on these securities and the unrecognized or unrealized losses on these securities have not been recognized into income.
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, an allowance for credit loss may occur in the future.
An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2023, 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
  
$
—
    
$
—
 
$
77,203
    
$
(3,015
)
  
$
77,203
    
$
(3,015
)
Securities of U.S. government agencies and corporations
    
3,424
      
(7
)
    
97,057
      
(6,324
)
    
100,481
      
(6,331
)
Obligations of states and political subdivisions
    
4,981
      
(31
)
    
32,578
      
(3,550
)
    
37,559
      
(3,581
)
Collateralized Mortgage obligations
    
6,597
      
(26
)
    
80,995
      
(16,700
)
    
87,592
      
(16,726
)
Mortgage-backed securities
    
17,023
      
(124
)
    
182,626
      
(18,913
)
    
199,649
      
(19,037
)
                                                 
Total
  
$
32,025
    
$
(188
)
  
$
470,459
    
$
(48,502
)
  
$
502,484
    
$
(48,690
)

Investment securities carried at $42,153,000 and $43,884,000 at March 31, 2024 and December 31, 2023, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.