Investment Securities

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale at December 31, 2021 and 2020 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 falls into the Level 2 category. The table below presents the balances of securities available-for-sale

measured at fair value on a recurring basis. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of debt and equity securities are summarized as follows:


	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


	December 31, 2020
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	287,059	$	18,915	$	—	$	305,974
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	50,988		764		—		51,752

Total	$	338,047	$	19,679	$	—	$	357,726

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


	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 101 securities, or 28%, in an unrealized loss position as of December 31, 2021 compared to zero securities in an unrealized loss position as of December 31, 2020. None of these securities were in an unrealized loss position for greater than 12 months at December 31, 2021. The amortized cost and fair value of debt and equity 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.


	December 31, 2021
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	23,959	$	24,211
Due after 1 year through 5 years	117,319		122,329
Due after 5 years through 10 years	224,344		231,142
Due after 10 years	298,649		295,771
Total	$	664,271	$	673,453

The premium related to the purchase of state and political subdivisions was $6,361,000 and $6,013,000 at December 31, 2021 and 2020, respectively.

There were no securities pledged to secure public deposits or for other purposes at December 31, 2021.

Proceeds from sales of investment securities classified as available-for-sale were $63,774,000 in 2021, $21,943,000 in 2020, and $4,648,000 in 2019. Gross realized gains on the sales in 2021, 2020, and 2019 were $55,000, $1,075,000, and $19,000, respectively. There were $4,000 of gross realized losses on sales in 2021 and no gross realized losses in 2020 or 2019.

The Company did not recognize credit losses on any available for sale debt securities in 2021 or 2020.