| Securities |
Securities (In Thousands, Except Number of Securities)
The amortized cost and fair value of securities available for sale were as follows as of the dates presented in the tables below.
There was no allowance for credit losses allocated to any of the Company’s available for sale securities as of March 31, 2023 or December 31, 2022. | | | | | | | | | | | | | | | | | | | | | | | | | | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | | | Fair
Value | | March 31, 2023 | | | | | | | | | | | | | | | | | | | | | Obligations of other U.S. Government agencies and corporations | $ | 170,000 | | | $ | — | | | $ | (4,110) | | | | | $ | 165,890 | | | Obligations of states and political subdivisions | 149,646 | | | 377 | | | (6,866) | | | | | 143,157 | | | Residential mortgage backed securities: | | | | | | | | | | | Government agency mortgage backed securities | 487,834 | | | 77 | | | (45,812) | | | | | 442,099 | | | Government agency collateralized mortgage obligations | 589,560 | | | — | | | (95,044) | | | | | 494,516 | | | Commercial mortgage backed securities: | | | | | | | | | | | Government agency mortgage backed securities | 11,128 | | | — | | | (900) | | | | | 10,228 | | | Government agency collateralized mortgage obligations | 207,032 | | | — | | | (24,236) | | | | | 182,796 | | | | | | | | | | | | | Other debt securities | 73,051 | | | 15 | | | (3,845) | | | | | 69,221 | | | | | | | | | | | | | $ | 1,688,251 | | | $ | 469 | | | $ | (180,813) | | | | | $ | 1,507,907 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | | | | | Fair
Value | | December 31, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | Obligations of other U.S. Government agencies and corporations | $ | 170,000 | | | $ | — | | | $ | (5,340) | | | | | | | $ | 164,660 | | | Obligations of states and political subdivisions | 154,066 | | | 204 | | | (9,368) | | | | | | | 144,902 | | | Residential mortgage backed securities: | | | | | | | | | | | | | Government agency mortgage backed securities | 508,415 | | | 37 | | | (52,036) | | | | | | | 456,416 | | | Government agency collateralized mortgage obligations | 605,033 | | | — | | | (103,864) | | | | | | | 501,169 | | | Commercial mortgage backed securities: | | | | | | | | | | | | | Government agency mortgage backed securities | 11,166 | | | — | | | (1,053) | | | | | | | 10,113 | | | Government agency collateralized mortgage obligations | 211,435 | | | — | | | (25,589) | | | | | | | 185,846 | | | | | | | | | | | | | | | Other debt securities | 74,885 | | | — | | | (4,049) | | | | | | | 70,836 | | | | | | | | | | | | | | | $ | 1,735,000 | | | $ | 241 | | | $ | (201,299) | | | | | | | $ | 1,533,942 | |
The amortized cost and fair value of securities held to maturity were as follows as of the dates presented: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | | | | | Fair
Value | | March 31, 2023 | | | | | | | | | | | | | Obligations of states and political subdivisions | $ | 290,983 | | | $ | 91 | | | $ | (38,774) | | | | | | | $ | 252,300 | | | Residential mortgage backed securities | | | | | | | | | | | | | Government agency mortgage backed securities | 470,833 | | | — | | | (19,656) | | | | | | | 451,177 | | | Government agency collateralized mortgage obligations | 415,243 | | | — | | | (25,330) | | | | | | | 389,913 | | | Commercial mortgage backed securities: | | | | | | | | | | | | | Government agency mortgage backed securities | 17,001 | | | — | | | (2,931) | | | | | | | 14,070 | | | Government agency collateralized mortgage obligations | 45,144 | | | — | | | (6,321) | | | | | | | 38,823 | | | Other debt securities | 61,068 | | | — | | | (3,272) | | | | | | | 57,796 | | | $ | 1,300,272 | | | $ | 91 | | | $ | (96,284) | | | | | | | $ | 1,204,079 | | | Allowance for credit losses - held to maturity securities | (32) | | | | | | | | | | | | | Held to maturity securities, net of allowance for credit losses | $ | 1,300,240 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | | | | | Fair
Value | | December 31, 2022 | | | | | | | | | | | | | Obligations of states and political subdivisions | $ | 291,886 | | | $ | 17 | | | $ | (48,325) | | | | | | | $ | 243,578 | | | Residential mortgage backed securities | | | | | | | | | | | | | Government agency mortgage backed securities | 483,560 | | | — | | | (24,432) | | | | | | | 459,128 | | | Government agency collateralized mortgage obligations | 423,315 | | | — | | | (30,706) | | | | | | | 392,609 | | | Commercial mortgage backed securities: | | | | | | | | | | | | | Government agency mortgage backed securities | 17,006 | | | — | | | (3,261) | | | | | | | 13,745 | | | Government agency collateralized mortgage obligations | 45,430 | | | — | | | (6,559) | | | | | | | 38,871 | | | Other debt securities | 62,875 | | | — | | | (4,266) | | | | | | | 58,609 | | | $ | 1,324,072 | | | $ | 17 | | | $ | (117,549) | | | | | | | $ | 1,206,540 | | | Allowance for credit losses - held to maturity securities | (32) | | | | | | | | | | | | | Held to maturity securities, net of allowance for credit losses | $ | 1,324,040 | | | | | | | | | | | |
There were no securities sold during the three months ended March 31, 2023 or 2022. At March 31, 2023 and December 31, 2022, securities with a carrying value of $879,751 and $824,417, respectively, were pledged to secure government, public and trust deposits. Securities with a carrying value of $15,549 and $18,184 were pledged as collateral for short-term borrowings and derivative instruments at March 31, 2023 and December 31, 2022, respectively. The amortized cost and fair value of securities at March 31, 2023 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties. | | | | | | | | | | | | | | | | | | | | | | | | | | Held to Maturity | | Available for Sale | | | Amortized
Cost | | Fair
Value | | Amortized
Cost | | Fair
Value | | Due within one year | $ | 150 | | | $ | 150 | | | $ | 10,205 | | | $ | 10,201 | | | Due after one year through five years | 3,323 | | | 3,174 | | | 231,194 | | | 226,806 | | | Due after five years through ten years | 63,319 | | | 56,205 | | | 90,554 | | | 85,065 | | | Due after ten years | 224,191 | | | 192,771 | | | 51,463 | | | 47,748 | | | Residential mortgage backed securities: | | | | | | | | | Government agency mortgage backed securities | 470,833 | | | 451,177 | | | 487,834 | | | 442,099 | | | Government agency collateralized mortgage obligations | 415,243 | | | 389,913 | | | 589,560 | | | 494,516 | | | Commercial mortgage backed securities: | | | | | | | | | Government agency mortgage backed securities | 17,001 | | | 14,070 | | | 11,128 | | | 10,228 | | | Government agency collateralized mortgage obligations | 45,144 | | | 38,823 | | | 207,032 | | | 182,796 | | | Other debt securities | 61,068 | | | 57,796 | | | 9,281 | | | 8,448 | | | | | | | | | | | $ | 1,300,272 | | | $ | 1,204,079 | | | $ | 1,688,251 | | | $ | 1,507,907 | |
The following tables present the age of gross unrealized losses and fair value by investment category for which an allowance for credit losses has not been recorded as of the dates presented: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | | | # | | Fair
Value | | Unrealized
Losses | | # | | Fair
Value | | Unrealized
Losses | | # | | Fair
Value | | Unrealized
Losses | | Available for Sale: | | | | | | | | | | | | | | | | | | | March 31, 2023 | | | | | | | | | | | | | | | | | | | Obligations of other U.S. Government agencies and corporations | 5 | | $ | 165,890 | | | $ | (4,110) | | | — | | $ | — | | | $ | — | | | 5 | | $ | 165,890 | | | $ | (4,110) | | | Obligations of states and political subdivisions | 39 | | 38,653 | | | (248) | | | 41 | | 81,072 | | | (6,618) | | | 80 | | 119,725 | | | (6,866) | | | Residential mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | 63 | | 128,869 | | | (4,799) | | | 62 | | 309,322 | | | (41,013) | | | 125 | | 438,191 | | | (45,812) | | | Government agency collateralized mortgage obligations | 4 | | 30,958 | | | (728) | | | 48 | | 463,558 | | | (94,316) | | | 52 | | 494,516 | | | (95,044) | | | Commercial mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | 1 | | 395 | | | (1) | | | 3 | | 9,833 | | | (899) | | | 4 | | 10,228 | | | (900) | | | Government agency collateralized mortgage obligations | 7 | | 33,579 | | | (836) | | | 28 | | 149,217 | | | (23,400) | | | 35 | | 182,796 | | | (24,236) | | | | | | | | | | | | | | | | | | | | | Other debt securities | 15 | | 35,768 | | | (1,177) | | | 9 | | 23,608 | | | (2,668) | | | 24 | | 59,376 | | | (3,845) | | | Total | 134 | | $ | 434,112 | | | $ | (11,899) | | | 191 | | $ | 1,036,610 | | | $ | (168,914) | | | 325 | | $ | 1,470,722 | | | $ | (180,813) | | | December 31, 2022 | | | | | | | | | | | | | | | | | | | Obligations of other U.S. Government agencies and corporations | 5 | | $ | 164,660 | | | $ | (5,340) | | | — | | $ | — | | | $ | — | | | 5 | | $ | 164,660 | | | $ | (5,340) | | | Obligations of states and political subdivisions | 84 | | $ | 96,939 | | | $ | (4,869) | | | 11 | | $ | 33,038 | | | $ | (4,499) | | | 95 | | $ | 129,977 | | | $ | (9,368) | | | Residential mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | 97 | | 214,516 | | | (15,115) | | | 29 | | 237,970 | | | (36,921) | | | 126 | | 452,486 | | | (52,036) | | | Government agency collateralized mortgage obligations | 16 | | 109,753 | | | (8,552) | | | 36 | | 391,416 | | | (95,312) | | | 52 | | 501,169 | | | (103,864) | | | Commercial mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | 4 | | 10,114 | | | (1,053) | | | — | | — | | | — | | | 4 | | 10,114 | | | (1,053) | | | Government agency collateralized mortgage obligations | 16 | | 67,026 | | | (3,828) | | | 21 | | 118,821 | | | (21,760) | | | 37 | | 185,847 | | | (25,588) | | | | | | | | | | | | | | | | | | | | | Other debt securities | 25 | | 63,423 | | | (3,167) | | | 1 | | 7,412 | | | (883) | | | 26 | | 70,835 | | | (4,050) | | | | | | | | | | | | | | | | | | | | | Total | 247 | | $ | 726,431 | | | $ | (41,924) | | | 98 | | $ | 788,657 | | | $ | (159,375) | | | 345 | | $ | 1,515,088 | | | $ | (201,299) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | | | # | | Fair
Value | | Unrealized
Losses | | # | | Fair
Value | | Unrealized
Losses | | # | | Fair
Value | | Unrealized
Losses | | Held to Maturity: | | | | | | | | | | | | | | | | | | | March 31, 2023 | | | | | | | | | | | | | | | | | | | Obligations of states and political subdivisions | 1 | | $ | 440 | | | $ | — | | | 127 | | $ | 247,694 | | | $ | (38,774) | | | 128 | | $ | 248,134 | | | $ | (38,774) | | | Residential mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | 2 | | 42,422 | | | (751) | | | 68 | | 408,755 | | | (18,905) | | | 70 | | 451,177 | | | (19,656) | | | Government agency collateralized mortgage obligations | 2 | | 51,648 | | | (1,622) | | | 16 | | 338,265 | | | (23,708) | | | 18 | | 389,913 | | | (25,330) | | | Commercial mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | — | | — | | | — | | | 1 | | 14,069 | | | (2,931) | | | 1 | | 14,069 | | | (2,931) | | | Government agency collateralized mortgage obligations | 2 | | 7,656 | | | (623) | | | 7 | | 31,167 | | | (5,698) | | | 9 | | 38,823 | | | (6,321) | | | Other debt securities | 1 | | 23,156 | | | (625) | | | 9 | | 34,639 | | | (2,647) | | | 10 | | 57,795 | | | (3,272) | | | Total | 8 | | $ | 125,322 | | | $ | (3,621) | | | 228 | | $ | 1,074,589 | | | $ | (92,663) | | | 236 | | $ | 1,199,911 | | | $ | (96,284) | | | December 31, 2022 | | | | | | | | | | | | | | | | | | | Obligations of states and political subdivisions | 105 | | $ | 191,442 | | | $ | (35,871) | | | 24 | | $ | 49,697 | | | $ | (12,454) | | | 129 | | $ | 241,139 | | | $ | (48,325) | | | Residential mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | 8 | | 94,258 | | | (4,186) | | | 62 | | 364,870 | | | (20,246) | | | 70 | | 459,128 | | | (24,432) | | | Government agency collateralized mortgage obligations | 4 | | 98,912 | | | (5,479) | | | 14 | | 293,698 | | | (25,227) | | | 18 | | 392,610 | | | (30,706) | | | Commercial mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | 1 | | 13,745 | | | (3,261) | | | — | | — | | | — | | | 1 | | 13,745 | | | (3,261) | | | Government agency collateralized mortgage obligations | 2 | | 7,651 | | | (626) | | | 7 | | 31,220 | | | (5,933) | | | 9 | | 38,871 | | | (6,559) | | | Other debt securities | 2 | | 42,567 | | | (2,013) | | | 8 | | 16,042 | | | (2,253) | | | 10 | | 58,609 | | | (4,266) | | | Total | 122 | | $ | 448,575 | | | $ | (51,436) | | | 115 | | $ | 755,527 | | | $ | (66,113) | | | 237 | | $ | 1,204,102 | | | $ | (117,549) | |
The Company evaluates its investment portfolio for impairment related to credit losses on a quarterly basis. Impairment is assessed at the individual security level. The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. If the Company intends to sell the investment security or if the Company does not expect to recover the entire amortized cost basis of the security before the Company is required to sell the security or before the security’s maturity, the security is impaired and written down to fair value with all losses recognized in earnings.
The Company does not currently intend to sell any securities in an unrealized loss position, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be at maturity. Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period longer than twelve months, the Company is collecting principal and interest payments from the respective issuers as scheduled. Based upon its review of securities with unrealized losses as of March 31, 2023, the Company determined that all such losses resulted from factors not deemed credit related. As such, the Company did not record any impairment for the first three months of 2023.
The allowance for credit losses on held to maturity securities was $32 at March 31, 2023 and December 31, 2022. The Company monitors the credit quality of debt securities held to maturity using bond investment grades assigned by third party ratings agencies. Updated investment grades are obtained as they become available from agencies. As of March 31, 2023, 99.99% of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies.
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