Securities

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

The amortized cost, unrealized gross gains and losses recognized in accumulated other comprehensive income (loss), and fair value of Securities Available-for-Sale were as follows:


Securities Available-for-Sale:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
2022
U.S. Treasury	$	64,097	$	22	$	—	$	64,119
Obligations of State and Political Subdivisions	939,193		673		(162,014)		777,852
MBS/CMO	846,519		—		(131,838)		714,681
US Gov’t Sponsored Entities & Agencies	245,017		—		(40,000)		205,017
Total	$	2,094,826	$	695	$	(333,852)	$	1,761,669

2021
Obligations of State and Political Subdivisions	$	896,048	$	31,138	$	(1,480)	$	925,706
MBS/CMO	797,693		4,738		(10,481)		791,950
US Gov’t Sponsored Entities & Agencies	175,457		192		(3,688)		171,961
Total	$	1,869,198	$	36,068	$	(15,649)	$	1,889,617

All mortgage-backed securities in the above table (identified above and throughout this Note 2 as “MBS/CMO”) are residential and multi-family mortgage-backed securities and guaranteed by government sponsored entities. The US Gov’t Sponsored Entities & Agencies in the above table have underlying collateral of equipment, machinery and commercial real estate.

The amortized cost and fair value of securities at December 31, 2022 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Mortgage-backed securities are not due at a single maturity date and are shown separately.


	Amortized Cost		Fair Value
Securities Available-for-Sale:
Due in one year or less	$	67,363	$	67,383
Due after one year through five years	15,449		15,496
Due after five years through ten years	55,747		53,536
Due after ten years	864,731		705,556
MBS/CMO	846,519		714,681
US Gov’t Sponsored Entities & Agencies	245,017		205,017
Total	$	2,094,826	$	1,761,669


	2022		2021		2020
Proceeds from the Sales of Securities are summarized below:	Available- for-Sale		Available- for-Sale		Available- for-Sale

Proceeds from Sales	$	145,237	$	111,124	$	125,106
Gross Gains on Sales	562		2,247		4,081

Income Taxes on Gross Gains	118		472		857

The carrying value of securities pledged to secure repurchase agreements, public and trust deposits, and for other purposes as required by law was $354,123 and $222,896 as of December 31, 2022 and 2021, respectively.

Below is a summary of securities with unrealized losses as December 31, 2022 and 2021, presented by length of time the securities have been in a continuous unrealized loss position:


	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
December 31, 2022

Obligations of State and Political Subdivisions	$	579,267	$	(117,423)	$	122,992	$	(44,591)	$	702,259	$	(162,014)
MBS/CMO	240,344		(20,920)		474,327		(110,918)		714,671		(131,838)
US Gov’t Sponsored Entities & Agencies	198,702		(38,818)		6,314		(1,182)		205,016		(40,000)
Total	$	1,018,313	$	(177,161)	$	603,633	$	(156,691)	$	1,621,946	$	(333,852)


	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
December 31, 2021
Obligations of State and Political Subdivisions	$	165,210	$	(1,386)	$	1,500	$	(94)	$	166,710	$	(1,480)
MBS/CMO	467,888		(9,100)		36,827		(1,381)		504,715		(10,481)
US Gov’t Sponsored Entities & Agencies	126,103		(3,480)		7,288		(208)		133,391		(3,688)
Total	$	759,201	$	(13,966)	$	45,615	$	(1,683)	$	804,816	$	(15,649)

Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for-sale debt securities in an unrealized loss position, the Company assesses whether we intend to sell, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for sale debt securities that do not meet the criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. The increase in unrealized losses from December 31, 2021 to December 31, 2022 in the obligations of state and political subdivisions, MBS/CMO and US government sponsored entities and agencies was primarily the result of fair value adjustments caused by the rise in market interest rates. No allowance for credit losses for available-for-sale debt securities was needed at December 31, 2022 or 2021.

Accrued interest receivable on available-for-sale debt securities totaled $10,637 at December 31, 2022 and $8,990 at December 31, 2021. Accrued interest receivable is excluded from the estimate of credit losses.

The Company’s equity securities are listed as Other Investments on the Consolidated Balance Sheets and consist of one non-controlling investment in a single banking organization at December 31, 2022 and 2021. The original investment totaled $1,350 and other-than-temporary impairment was previously recorded totaling $997. The Company’s equity securities are

considered not to have readily determinable fair value and are carried at cost and evaluated for impairment. There was no additional impairment recognized through earnings during 2022 or 2021.