Investment Securities

3 Months Ended

Mar. 31, 2022

Investments Debt And Equity Securities [Abstract]

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, 2022 and December 31, 2021 were as follows (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2022
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	264,466	$	37	$	(16,527	)	$	247,976
Obligations of states and political subdivisions		386,489		2,713		(30,523	)		358,679
Mortgage-backed securities: GSE residential		820,448		245		(59,166	)		761,527
Other securities		99,812		274		(1,318	)		98,768
Total available-for-sale	$	1,571,215	$	3,269	$	(107,534	)	$	1,466,950
Held-to-maturity:
Other investments	$	2,998	$	—	$	—		$	2,998
Total held-to-maturity	$	2,998	$	—	$	—		$	2,998
December 31, 2021
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	208,598	$	80	$	(4,863	)	$	203,815
Obligations of states and political subdivisions		383,991		12,123		(657	)		395,457
Mortgage-backed securities: GSE residential		799,456		4,292		(12,710	)		791,038
Other securities		30,546		671		(105	)		31,112
Total available-for-sale	$	1,422,591	$	17,166	$	(18,335	)	$	1,421,422
Held-to-maturity:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	5,001	$	5	$	—		$	5,006
Other investments		2,029		—		—			2,029
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	7,030	$	5	$	—		$	7,035

The Company also had $369,000 and $397,000 of equity securities, at fair value, as of March 31, 2022 and December 31, 2021, respectively. The Company's held-to-maturity securities are government agency-backed securities for which the risk of loss is minimal. As such, as of March 31, 2022, 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, 2022 and 2021 (in thousands):

	Three months March 31,
	2022		2021
Gross gains	$	—	$	4
Gross losses		—		—

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, 2022 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	$	155,050		$	82,575		$	10,351		$	—		$	247,976
Obligations of state and political subdivisions		20,894			94,654			241,873			1,258			358,679
Mortgage-backed securities: GSE residential		9,460			139,057			611,067			1,943			761,527
Other securities		22,747			74,575			1,446			—			98,768
Total available-for-sale investments	$	208,151		$	390,861		$	864,737		$	3,201		$	1,466,950
Weighted average yield		1.47	%		2.34	%		1.76	%		2.93	%		1.87	%
Full tax-equivalent yield		1.59	%		2.58	%		1.94	%		3.43	%		2.06	%
Held to maturity:
Other investments	$	—		$	—		$	—		$	2,998		$	2,998
Total held-to-maturity	$	—		$	—		$	—		$	2,998		$	2,998
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, 2022.

Investment securities carried at approximately $665 million and $590 million at March 31, 2022 and December 31, 2021, 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, 2022 and December 31, 2021 (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, 2022
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	124,219	$	(5,410	)	$	116,577	$	(11,117	)	$	240,796	$	(16,527	)
Obligations of states and political subdivisions		231,248		(29,282	)		6,399		(1,241	)		237,647		(30,523	)
Mortgage-backed securities: GSE residential		546,117		(37,044	)		193,648		(22,122	)		739,765		(59,166	)
Other securities		80,465		(1,260	)		2,515		(58	)		82,980		(1,318	)
Total	$	982,049	$	(72,996	)	$	319,139	$	(34,538	)	$	1,301,188	$	(107,534	)
December 31, 2021
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	48,316	$	(1,927	)	$	139,846	$	(2,936	)	$	188,162	$	(4,863	)
Obligations of states and political subdivisions		61,535		(657	)		—		—			61,535		(657	)
Mortgage-backed securities: GSE residential		562,699		(11,019	)		46,504		(1,691	)		609,203		(12,710	)
Other securities		7,976		(105	)		—		—			7,976		(105	)
Total	$	680,526	$	(13,708	)	$	186,350	$	(4,627	)	$	866,876	$	(18,335	)

U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies. At March 31, 2022 there were fourteen available-for-sale securities with a fair value of $116,577,000 and unrealized losses of $11,117,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2021, there were six available-for-sale securities with a fair value of $139,846,000 and unrealized losses of $2,936,000 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, 2022, there were five obligations of states and political subdivisions with a fair value of $6,399,000 and unrealized losses of $1,241,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2021there were no obligations of states and political subdivisions in a continuous unrealized loss position for twelve months or more.

Mortgage-backed Securities: GSE Residential. At March 31, 2022, there were forty two mortgage-backed securities with a fair value of $193,648,000 and unrealized losses of $22,122,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2021 there were fifteen mortgage-backed securities with a fair value of $46,504,000 and unrealized losses of $1,691,000 in a continuous unrealized loss position for twelve months or more.

Other securities. At March 31, 2022, there were three other securities with a fair value of $2,515,000 and unrealized losses of $58,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2021, there were no other securities in a continuous unrealized loss position for twelve months or more.

The Company does not believe any unrealized losses as of March 31, 2022 represents other than temporary impairment ("OTTI"). However, given the uncertainty of the financial markets, the Company may be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any additional OTTI will depend on the decline in the underlying cash flows of the securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced, and the resulting loss recognized in the period the other-than-temporary impairment is identified.