Investment Securities

3 Months Ended

Mar. 31, 2023

Investments Debt And Equity Securities [Abstract]

Investment Securities

Note 3 -- Investment Securities

The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at March 31, 2023 and December 31, 2022 were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2023
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	253,228	$	5	$	(29,688	)	$	223,545
Obligations of states and political subdivisions		339,808		158		(54,969	)		284,997
Mortgage-backed securities: GSE residential		730,036		3		(105,767	)		624,272
Other securities		83,851		24		(3,991	)		79,884
Total available-for-sale	$	1,406,923	$	190	$	(194,415	)	$	1,212,698
Held-to-maturity:
Other investments	$	2,979	$	—	$	—		$	2,979
Total held-to-maturity	$	2,979	$	—	$	—		$	2,979
December 31, 2022
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	252,934	$	—	$	(32,407	)	$	220,527
Obligations of states and political subdivisions		347,409		134		(59,845	)		287,698
Mortgage-backed securities: GSE residential		744,636		3		(116,759	)		627,880
Other securities		87,393		6		(4,519	)		82,880
Total available-for-sale	$	1,432,372	$	143	$	(213,530	)	$	1,218,985
Held-to-maturity:
Other investments	$	2,954	$	—	$	—		$	2,954
Total held-to-maturity	$	2,954	$	—	$	—		$	2,954

The Company also had $362,000 and $311,000 of equity securities, at fair value, as of March 31, 2023 and December 31, 2022, respectively. The Company's held-to-maturity securities are annuities for which the risk of loss is minimal. As such, as of March 31, 2023, the Company did not record an allowance for credit losses on its held-to-maturity securities.

Realized gains and losses resulting from sales of securities were as follows during the three months ended March 31, 2023 and 2022 (in thousands):

	Three months March 31,
	2023			2022
Gross gains	$	6		$	—
Gross losses		(52	)		—

The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, and held-to-maturity presented at amortized cost, at March 31, 2023 and the weighted average yield for each range of maturities (dollars in thousands):

	One year or less			After 1 through 5 years			After 5 through 10 years			After ten years			Total
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	172,917		$	40,859		$	9,769		$	—		$	223,545
Obligations of state and political subdivisions		18,652			74,899			190,220			1,226			284,997
Mortgage-backed securities: GSE residential		2,544			7,981			25,211			588,536			624,272
Other securities		19,266			59,821			797			—			79,884
Total available-for-sale investments	$	213,379		$	183,560		$	225,997		$	589,762		$	1,212,698
Weighted average yield		1.56	%		2.67	%		2.00	%		1.70	%		1.87	%
Full tax-equivalent yield		1.59	%		2.67	%		1.94	%		1.71	%		1.87	%
Held to maturity:
Other investments	$	—		$	—		$	—		$	2,979		$	2,979
Total held-to-maturity	$	—		$	—		$	—		$	2,979		$	2,979
Weighted average yield		—	%		—	%		—	%		—	%		—	%
Full tax-equivalent yield		—	%		—	%		—	%		—	%		—	%

The weighted average yields are calculated based on the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax-equivalent yields have been calculated using a 21% tax rate. With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at March 31, 2023.

Investment securities carried at approximately $709 million and $770 million at March 31, 2023 and December 31, 2022, respectively, were pledged to secure public deposits and repurchase agreements and for other purposes as permitted or required by law.

The following table presents the aging of gross unrealized losses and fair value by investment category as of March 31, 2023 and December 31, 2022 (in thousands):

	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
March 31, 2023
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,757	$	(19	)	$	220,714	$	(29,669	)	$	222,471	$	(29,688	)
Obligations of states and political subdivisions		45,880		(1,204	)		212,715		(53,765	)		258,595		(54,969	)
Mortgage-backed securities: GSE residential		12,887		(589	)		610,896		(105,178	)		623,783		(105,767	)
Other securities		13,483		(537	)		54,878		(3,454	)		68,361		(3,991	)
Total	$	74,007	$	(2,349	)	$	1,099,203	$	(192,066	)	$	1,173,210	$	(194,415	)
December 31, 2022
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	57,007	$	(3,493	)	$	163,520	$	(28,914	)	$	220,527	$	(32,407	)
Obligations of states and political subdivisions		220,102		(43,221	)		45,419		(16,624	)		265,521		(59,845	)
Mortgage-backed securities: GSE residential		165,966		(19,859	)		461,446		(96,900	)		627,412		(116,759	)
Other securities		64,676		(3,675	)		6,698		(844	)		71,374		(4,519	)
Total	$	507,751	$	(70,248	)	$	677,083	$	(143,282	)	$	1,184,834	$	(213,530	)

U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies. At March 31, 2023 there were forty-five available-for-sale securities with a fair value of $220.7 million and unrealized losses of $29.7 million in a continuous unrealized loss position for twelve months or more. At December 31, 2022, there were sixteen available-for-sale securities with a fair value of $163.5 million and unrealized losses of $28.9 million in a continuous unrealized loss position for twelve months or more. There were no held-to-maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies in a continuous unrealized loss position for twelve months or more.

Obligations of states and political subdivisions. At March 31, 2023, there were two hundred and two obligations of states and political subdivisions with a fair value of $212.7 million and unrealized losses of $53.8 million in a continuous unrealized loss position for twelve months or more. At December 31, 2022 there were thirty-six obligations of states and political subdivisions with a fair value of $45.4 million and unrealized losses of $16.6 million in a continuous unrealized loss position for twelve months or more.

Mortgage-backed Securities: GSE Residential. At March 31, 2023, there were two hundred nineteen mortgage-backed securities with a fair value of $$610.9 million and unrealized losses of $105.2 million in a continuous unrealized loss position for twelve months or more. At December 31, 2022, there were ninety-one mortgage-backed securities with a fair value of $461.4 million and unrealized losses of $96.9 million in a continuous unrealized loss position for twelve months or more.

Other securities. At March 31, 2023, there were fourty other securities with a fair value of $54.9 million and unrealized losses of $3.5 million in a continuous unrealized loss position for twelve months or more. At December 31, 2022, there were five other securities with a fair value of $6.7 million and unrealized losses of $0.8 million in a continuous unrealized loss position for twelve months or more.