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Securities
 6 Months Ended
Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Securities

Securities:

The following table summarizes the amortized cost and fair value of the available for sale investment securities portfolio at June 30, 2022 and December 31, 2021 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss):

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

 

 

(In Thousands of Dollars)

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and U.S. government sponsored entities

$

112,703

 

 

$

0

 

 

$

(13,530

)

 

$

99,173

 

State and political subdivisions

 

687,506

 

 

 

958

 

 

 

(100,107

)

 

 

588,357

 

Corporate bonds

 

4,392

 

 

 

1

 

 

 

(186

)

 

 

4,207

 

Mortgage-backed securities - residential

 

703,946

 

 

 

25

 

 

 

(90,663

)

 

 

613,308

 

Collateralized mortgage obligations - residential

 

54,653

 

 

 

11

 

 

 

(2,388

)

 

 

52,276

 

Small Business Administration

 

4,627

 

 

 

0

 

 

 

(266

)

 

 

4,361

 

Totals

$

1,567,827

 

 

$

995

 

 

$

(207,140

)

 

$

1,361,682

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

 

 

(In Thousands of Dollars)

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and U.S. government sponsored entities

$

93,137

 

 

$

32

 

 

$

(2,338

)

 

$

90,831

 

State and political subdivisions

 

636,724

 

 

 

23,296

 

 

 

(1,205

)

 

 

658,815

 

Corporate bonds

 

4,009

 

 

 

50

 

 

 

(29

)

 

 

4,030

 

Mortgage-backed securities - residential

 

663,405

 

 

 

1,875

 

 

 

(10,094

)

 

 

655,186

 

Collateralized mortgage obligations - residential

 

13,303

 

 

 

153

 

 

 

(71

)

 

 

13,385

 

Small Business Administration

 

5,381

 

 

 

49

 

 

 

0

 

 

 

5,430

 

Totals

$

1,415,959

 

 

$

25,455

 

 

$

(13,737

)

 

$

1,427,677

 

 

 

Proceeds from the sale of portfolio securities were $1.7 million for both the three and six month periods ended June 30, 2022. Gross losses of $31 thousand were realized on these sales for both the three and six month periods ended June 30, 2022. Realized losses on equity securities of $29 thousand and $40 thousand were recognized in the income statement during the three and six month periods as of June 30, 2022, respectively.

 

Proceeds from the sale of portfolio securities were $800 thousand and $27.0 million during the three and six month periods ended June 30, 2021, respectively. Gross gains of $499 thousand and $905 thousand along with gross losses of $491 thousand and $521 thousand were realized on these sales during the three and six month periods ended June 30, 2021, respectively. Realized gains on equity securities of $24 thousand and $136 thousand were recognized in the income statement during the three and six month periods as of June 30, 2021, respectively.

The amortized cost and fair value of the debt securities portfolio are shown in the table below by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

 

 

 

June 30, 2022

 

(In Thousands of Dollars)

 

Amortized Cost

 

 

Fair Value

 

Maturity

 

 

 

 

 

 

Within one year

 

$

752

 

 

$

750

 

One to five years

 

 

15,558

 

 

 

15,606

 

Five to ten years

 

 

154,732

 

 

 

139,750

 

Beyond ten years

 

 

633,559

 

 

 

535,631

 

Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities

 

 

763,226

 

 

 

669,945

 

Total

 

$

1,567,827

 

 

$

1,361,682

 

 

 

The following table summarizes the available for sale investment securities with unrealized losses at June 30, 2022 and December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position.

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

(In Thousands of Dollars)

 

Value

 

 

Loss

 

 

Value

 

 

Loss

 

 

Value

 

 

Loss

 

June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and U.S. government sponsored entities

 

$

71,491

 

 

$

(9,691

)

 

$

27,682

 

 

$

(3,839

)

 

$

99,173

 

 

$

(13,530

)

State and political subdivisions

 

 

507,354

 

 

 

(95,392

)

 

 

14,938

 

 

 

(4,715

)

 

 

522,292

 

 

 

(100,107

)

Corporate bonds

 

 

3,269

 

 

 

(86

)

 

 

638

 

 

 

(100

)

 

 

3,907

 

 

 

(186

)

Mortgage-backed securities - residential

 

 

497,183

 

 

 

(70,416

)

 

 

114,385

 

 

 

(20,247

)

 

 

611,568

 

 

 

(90,663

)

Collateralized mortgage obligations - residential

 

 

50,712

 

 

 

(2,388

)

 

 

0

 

 

 

0

 

 

 

50,712

 

 

 

(2,388

)

Small Business Administration

 

 

4,361

 

 

 

(266

)

 

 

0

 

 

 

0

 

 

 

4,361

 

 

 

(266

)

Total temporarily impaired

 

$

1,134,370

 

 

$

(178,239

)

 

$

157,643

 

 

$

(28,901

)

 

$

1,292,013

 

 

$

(207,140

)

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

(In Thousands of Dollars)

 

Value

 

 

Loss

 

 

Value

 

 

Loss

 

 

Value

 

 

Loss

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and U.S. government sponsored entities

 

$

81,236

 

 

$

(1,960

)

 

$

8,271

 

 

$

(378

)

 

$

89,507

 

 

$

(2,338

)

State and political subdivisions

 

 

103,651

 

 

 

(1,020

)

 

 

10,020

 

 

 

(185

)

 

 

113,671

 

 

 

(1,205

)

Corporate bonds

 

 

418

 

 

 

(2

)

 

 

715

 

 

 

(27

)

 

 

1,133

 

 

 

(29

)

Mortgage-backed securities - residential

 

 

525,792

 

 

 

(7,872

)

 

 

55,569

 

 

 

(2,222

)

 

 

581,361

 

 

 

(10,094

)

Collateralized mortgage obligations - residential

 

 

7,270

 

 

 

(71

)

 

 

0

 

 

 

0

 

 

 

7,270

 

 

 

(71

)

Total temporarily impaired

 

$

718,367

 

 

$

(10,925

)

 

$

74,575

 

 

$

(2,812

)

 

$

792,942

 

 

$

(13,737

)

 

Allowance for Credit Losses

The Company adopted ASU 2016-13 on January 1, 2021, which made improvements to the accounting for credit losses on securities available for sale. During the evaluation process, management considers the extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value.

 

If the Company determines that a credit loss exists, the credit portion of the allowance will be measured using a discounted cash flow analysis using the effective interest rate as of the security’s purchase date. As of June 30, 2022, the Company’s security portfolio consisted of 889 securities, 795 of which were in an unrealized loss position. The majority of the unrealized losses on the Company’s securities are related to its holdings of mortgage-backed securities and state and political subdivisions. The Company does not consider its available for sale ("AFS") securities with unrealized losses to be attributable to credit-related factors, as the unrealized losses have occurred as a result of changes in noncredit related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. As of June 30, 2022 the Company has not recorded an allowance for credit losses on AFS securities.