Investment in Securities

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investment in Securities Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale are measured at fair value using Level 2 valuations. The market evaluation utilizes several sources which include “observable inputs” rather than “significant unobservable inputs” and therefore fall into the Level 2

category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows:


	September 30, 2022
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	326,506	$	18	$	28,078	$	298,446
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	210,111		—		31,978		178,133
Corporate bonds	96,405		—		12,614		83,791
U.S. treasury bonds	158,623		—		3,504		155,119
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	50,136		—		1,836		48,300
Total	$	841,781	$	18	$	78,010	$	763,789


	December 31, 2021
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	359,187	$	12,931	$	990	$	371,128
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	170,711		135		2,200		168,646
Corporate bonds	84,538		72		272		84,338
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	49,835		—		494		49,341
Total	$	664,271	$	13,138	$	3,956	$	673,453

The fair values of securities with unrealized losses are as follows:


	September 30, 2022
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
State and political subdivisions	$	246,743	$	19,158	$	30,025	$	8,920	$	276,768	$	28,078
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	119,478		18,240		58,655		13,738		178,133		31,978
Corporate bonds	72,280		11,075		6,511		1,539		78,791		12,614
U.S. treasury bonds	155,119		3,504		—		—		155,119		3,504
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	48,300		1,836		—		—		48,300		1,836
Total	$	641,920	$	53,813	$	95,191	$	24,197	$	737,111	$	78,010


	December 31, 2021
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
State and political subdivisions	$	60,083	$	990	$	—	$	—	$	60,083	$	990
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	163,652		2,200		—		—		163,652		2,200
Corporate bonds	55,120		272		—		—		55,120		272
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	49,341		494		—		—		49,341		494
Total	$	328,196	$	3,956	$	—	$	—	$	328,196	$	3,956

There were 326 securities, or 93% (44 of which for greater than 12 months), in an unrealized loss position as of September 30, 2022. The unrealized losses at September 30, 2022 were primarily attributable to changes in market interest rates after the securities were purchased. There were 101 securities, or 28% (0 of which for greater than 12 months), in an unrealized loss position as of December 31, 2021. At September 30, 2022 and December 31, 2021, the Company had not recorded an allowance for credit losses on securities.

The amortized cost and fair value of investment securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.


	September 30, 2022
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	65,238	$	64,875
Due after 1 year through 5 years	267,021		260,368
Due after 5 years through 10 years	231,748		203,575
Due after 10 years	277,774		234,971
Total	$	841,781	$	763,789

Proceeds from sales of investment securities classified as available-for-sale were $2,317,000 and $3,838,000 for the three and nine months ended September 30, 2022 and $30,074,000 and $43,190,000 for the three and nine months ended September 30, 2021, respectively. Gross realized gains were $13,000 and $15,000 for the three and nine months ended September 30, 2022. Gross realized losses were $1,000 for the three months ended September 30, 2021 while for the nine months ended September 30, 2021, there were gross realized gains of $44,000. There were no securities pledged to secure public deposits or for other purposes at September 30, 2022