Investment in Securities

3 Months Ended

Mar. 31, 2023

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:


	March 31, 2023
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	247,798	$	52	$	17,568	$	230,282
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	201,094		—		29,554		171,540
Corporate bonds	111,290		19		9,643		101,666
Treasury securities	159,244		—		2,769		156,475
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	45,048		—		1,974		43,074
Total	$	764,474	$	71	$	61,508	$	703,037


	December 31, 2022
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	317,376	$	54	$	22,304	$	295,126
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	205,175		—		31,236		173,939
Corporate bonds	96,348		—		11,251		85,097
Treasury securities	158,935		—		3,652		155,283
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	47,213		—		2,190		45,023
Total	$	825,047	$	54	$	70,633	$	754,468

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


	March 31, 2023
	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	$	80,551	$	387	$	114,603	$	17,181	$	195,154	$	17,568
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	12,346		443		159,194		29,111		171,540		29,554
Corporate bonds	5,000		—		81,647		9,643		86,647		9,643
Treasury securities	156,474		2,769		—		—		156,474		2,769
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	—		—		43,075		1,974		43,075		1,974
Total	$	254,371	$	3,599	$	398,519	$	57,909	$	652,890	$	61,508


	December 31, 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	$	214,919	$	8,958	$	47,474	$	13,346	$	262,393	$	22,304
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	53,732		6,135		118,017		25,101		171,749		31,236
Corporate bonds	32,517		3,629		47,580		7,622		80,097		11,251
Treasury securities	155,283		3,652		—		—		155,283		3,652
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	—		—		47,213		2,190		47,213		2,190
Total	$	456,451	$	22,374	$	260,284	$	48,259	$	716,735	$	70,633

There were 250 securities, or 86.8% (176 of which for greater than 12 months), in an unrealized loss position as of March 31, 2023. The unrealized losses at March 31, 2023 were primarily attributable to changes in market interest rates

after the securities were purchased. The Company does not currently intend to sell and, based on current conditions, the Company does not believe it will be required to sell these available-for-sale securities before the recovery of the amortized cost basis, which may be the maturity dates of the securities. Therefore, the unrealized losses are recorded in accumulated other comprehensive loss. There were 311 securities, or 29.8% (101 of which for greater than 12 months), in an unrealized loss position as of December 31, 2022. At March 31, 2023 and December 31, 2022, 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.


	March 31, 2023
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	86,522	$	85,645
Due after 1 year through 5 years	221,691		218,313
Due after 5 years through 10 years	205,475		182,676
Due after 10 years	250,786		216,403
Total	$	764,474	$	703,037

Proceeds from sales of investment securities classified as available-for-sale were $61.4 million and $0 for the three months ended March 31, 2023 and 2022, respectively. Gross realized gains were $39,000 and $0 for the three months ended March 31, 2023 and 2022, respectively. There were no securities pledged to secure public deposits or for other purposes at March 31, 2023