XML 23 R13.htm IDEA: XBRL DOCUMENT v3.23.2
Securities
 6 Months Ended
Jun. 30, 2023
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, 2023 and December 31, 2022 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, 2023

 

 

 

 

 

 

 

 

 

 

 

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

$

155,169

 

 

$

99

 

 

$

(20,103

)

 

$

135,165

 

State and political subdivisions

 

648,030

 

 

 

951

 

 

 

(105,919

)

 

 

543,062

 

Corporate bonds

 

18,329

 

 

 

25

 

 

 

(722

)

 

 

17,632

 

Mortgage-backed securities

 

653,898

 

 

 

9

 

 

 

(112,783

)

 

 

541,124

 

Collateralized mortgage obligations

 

82,965

 

 

 

117

 

 

 

(6,286

)

 

 

76,796

 

Small Business Administration

 

3,459

 

 

 

0

 

 

 

(360

)

 

 

3,099

 

Totals

$

1,561,850

 

 

$

1,201

 

 

$

(246,173

)

 

$

1,316,878

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

 

 

(In Thousands of Dollars)

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

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

$

149,712

 

 

$

0

 

 

$

(21,616

)

 

$

128,096

 

State and political subdivisions

 

651,705

 

 

 

266

 

 

 

(121,891

)

 

 

530,080

 

Corporate bonds

 

4,181

 

 

 

0

 

 

 

(302

)

 

 

3,879

 

Mortgage-backed securities - residential

 

672,784

 

 

 

12

 

 

 

(117,654

)

 

 

555,142

 

Collateralized mortgage obligations

 

52,291

 

 

 

0

 

 

 

(4,937

)

 

 

47,354

 

Small Business Administration

 

3,839

 

 

 

0

 

 

 

(365

)

 

 

3,474

 

Totals

$

1,534,512

 

 

$

278

 

 

$

(266,765

)

 

$

1,268,025

 

 

 

There were no sales of available for sale securities in the three month period ended June 30, 2023. Proceeds from the sale of available for sale securities were $69.9 million for the six month period ended June 30, 2023. Gross gains of $441 thousand and gross losses of $321 thousand were realized on these sales for the six month period ended June 30, 2023. In addition, realized gains on equity securities of $13 thousand and $14 thousand were recognized in the income statement during the three and six month periods as of June 30, 2023, respectively.

 

Proceeds from the sale of available for sale 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.

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, 2023

 

(In Thousands of Dollars)

 

Amortized Cost

 

 

Fair Value

 

Maturity

 

 

 

 

 

 

Within one year

 

$

716

 

 

$

706

 

One to five years

 

 

39,851

 

 

 

37,153

 

Five to ten years

 

 

180,584

 

 

 

159,597

 

Beyond ten years

 

 

600,377

 

 

 

498,403

 

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

 

 

740,322

 

 

 

621,019

 

Total

 

$

1,561,850

 

 

$

1,316,878

 

 

 

The following table summarizes the available for sale investment securities with unrealized losses at June 30, 2023 and December 31, 2022, 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, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

14,652

 

 

$

(692

)

 

$

115,535

 

 

$

(19,411

)

 

$

130,187

 

 

$

(20,103

)

State and political subdivisions

 

 

73,802

 

 

 

(2,835

)

 

 

432,373

 

 

 

(103,084

)

 

 

506,175

 

 

 

(105,919

)

Corporate bonds

 

 

11,011

 

 

 

(411

)

 

 

3,561

 

 

 

(311

)

 

 

14,572

 

 

 

(722

)

Mortgage-backed securities

 

 

4,678

 

 

 

(44

)

 

 

535,644

 

 

 

(112,739

)

 

 

540,322

 

 

 

(112,783

)

Collateralized mortgage obligations

 

 

28,977

 

 

 

(930

)

 

 

40,852

 

 

 

(5,356

)

 

 

69,829

 

 

 

(6,286

)

Small Business Administration

 

 

0

 

 

 

0

 

 

 

3,099

 

 

 

(360

)

 

 

3,099

 

 

 

(360

)

Total temporarily impaired

 

$

133,120

 

 

$

(4,912

)

 

$

1,131,064

 

 

$

(241,261

)

 

$

1,264,184

 

 

$

(246,173

)

 

 

 

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, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

52,311

 

 

$

(5,835

)

 

$

75,685

 

 

$

(15,781

)

 

$

127,996

 

 

$

(21,616

)

State and political subdivisions

 

 

306,709

 

 

 

(56,650

)

 

 

191,584

 

 

 

(65,241

)

 

 

498,293

 

 

 

(121,891

)

Corporate bonds

 

 

2,893

 

 

 

(122

)

 

 

986

 

 

 

(180

)

 

 

3,879

 

 

 

(302

)

Mortgage-backed securities - residential

 

 

101,476

 

 

 

(13,545

)

 

 

453,233

 

 

 

(104,109

)

 

 

554,709

 

 

 

(117,654

)

Collateralized mortgage obligations

 

 

42,140

 

 

 

(4,137

)

 

 

5,214

 

 

 

(800

)

 

 

47,354

 

 

 

(4,937

)

Small Business Administration

 

 

1,295

 

 

 

(122

)

 

 

2,179

 

 

 

(243

)

 

 

3,474

 

 

 

(365

)

Total temporarily impaired

 

$

506,824

 

 

$

(80,411

)

 

$

728,881

 

 

$

(186,354

)

 

$

1,235,705

 

 

$

(266,765

)

 

Allowance for Credit Losses

Management evaluates securities available for sale for credit losses. 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, 2023, the Company’s security portfolio consisted of 988 securities, 899 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. In addition, management has the ability and the intent to hold the securities for a period of time sufficient to allow for any recovery in fair value. As of June 30, 2023 the Company has not recorded an allowance for credit losses on AFS securities.