Investment Securities (Tables)

6 Months Ended

Jun. 30, 2023

Investments [Abstract]

Amortized Cost and Fair Value of Investment Securities

The amortized cost and fair value of investment securities are summarized below (in thousands):

	Amortized			Unrealized		Unrealized		Fair
	Cost			Gains		Losses		Value
June 30, 2023
Securities available for sale:
U.S. Government agency and government sponsored enterprises	$	24,535		$	—	$	3,274	$	21,261
Mortgage-backed securities:
Federal National Mortgage Association		524,797			—		73,148		451,649
Federal Home Loan Mortgage Corporation		390,348			—		65,655		324,693
Government National Mortgage Association		110,319			—		21,179		89,140
Collateralized mortgage obligations:
Federal National Mortgage Association		11,502			—		2,544		8,958
Federal Home Loan Mortgage Corporation		20,673			—		4,584		16,089
Privately issued		—			332		—		332
Total mortgage-backed securities		1,057,639			332		167,110		890,861
Total available for sale securities	$	1,082,174		$	332	$	170,384	$	912,122
Securities held to maturity:
U.S. Government agency and government sponsored enterprises	$	16,438		$	—	$	824	$	15,614
State and political subdivisions		76,066			25		6,396		69,695
Mortgage-backed securities:
Federal National Mortgage Association		5,990			—		556		5,434
Federal Home Loan Mortgage Corporation		7,727			—		1,365		6,362
Government National Mortgage Association		21,173			—		1,988		19,185
Collateralized mortgage obligations:
Federal National Mortgage Association		12,796			—		1,111		11,685
Federal Home Loan Mortgage Corporation		15,836			—		1,307		14,529
Government National Mortgage Association		3,871			—		349		3,522
Total mortgage-backed securities		67,393			—		6,676		60,717
Total held to maturity securities		159,897		$	25	$	13,896	$	146,026
Allowance for credit losses – securities		(4	)
Total held to maturity securities, net	$	159,893
December 31, 2022
Securities available for sale:
U.S. Government agencies and government sponsored enterprises	$	24,535		$	—	$	3,420	$	21,115
Mortgage-backed securities:
Federal National Mortgage Association		545,797			—		76,193		469,604
Federal Home Loan Mortgage Corporation		410,829			—		68,608		342,221
Government National Mortgage Association		112,202			1		18,037		94,166
Collateralized mortgage obligations:
Federal National Mortgage Association		12,175			—		2,603		9,572
Federal Home Loan Mortgage Corporation		21,519			—		4,163		17,356
Privately issued		—			337		—		337
Total mortgage-backed securities		1,102,522			338		169,604		933,256
Total available for sale securities	$	1,127,057		$	338	$	173,024	$	954,371

(4.) INVESTMENT SECURITIES (Continued)

	Amortized			Unrealized		Unrealized		Fair
	Cost			Gains		Losses		Value
December 31, 2022 (continued)
Securities held to maturity:
U.S. Government agencies and government sponsored enterprises	$	16,363		$	—	$	848	$	15,515
State and political subdivisions		97,583			24		7,172		90,435
Mortgage-backed securities:
Federal National Mortgage Association		8,332			—		582		7,750
Federal Home Loan Mortgage Corporation		7,959			—		1,396		6,563
Government National Mortgage Association		22,541			—		2,116		20,425
Collateralized mortgage obligations:
Federal National Mortgage Association		14,268			—		1,119		13,149
Federal Home Loan Mortgage Corporation		17,712			—		1,253		16,459
Government National Mortgage Association		4,222			—		330		3,892
Total mortgage-backed securities		75,034			—		6,796		68,238
Total held to maturity securities		188,980		$	24	$	14,816	$	174,188
Allowance for credit losses – securities		(5	)
Total held to maturity securities, net	$	188,975

Sales of Securities Available for Sale

Sales of securities available for sale were as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Proceeds from sales	$	—	$	6,252	$	—	$	6,252
Gross realized gains		—		—		—		—
Gross realized losses		—		15		—		15

Scheduled Maturities of Securities Available for Sale and Securities Held to Maturity

The scheduled maturities of securities available for sale and securities held to maturity at June 30, 2023 are shown below (in thousands). Actual expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.

	Amortized		Fair
	Cost		Value
Debt securities available for sale:
Due in one year or less	$	2,767	$	2,688
Due from one to five years		92,004		84,185
Due after five years through ten years		134,942		118,659
Due after ten years		852,461		706,590
Total available for sale securities	$	1,082,174	$	912,122
Debt securities held to maturity:
Due in one year or less	$	25,668	$	25,401
Due from one to five years		39,346		37,977
Due after five years through ten years		30,793		27,351
Due after ten years		64,090		55,297
Total held to maturity securities	$	159,897	$	146,026

Investments Gross Unrealized Losses and Fair Value

Unrealized losses on investment securities for which an allowance for credit losses has not been recorded and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands):

	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
June 30, 2023
Securities available for sale:
U.S. Government agencies and government    sponsored enterprises	$	—	$	—	$	21,261	$	3,274	$	21,261	$	3,274
Mortgage-backed securities:
Federal National Mortgage Association		183		4		451,466		73,144		451,649		73,148
Federal Home Loan Mortgage Corporation		8,376		654		316,317		65,001		324,693		65,655
Government National Mortgage Association		85		3		89,055		21,176		89,140		21,179
Collateralized mortgage obligations:
Federal National Mortgage Association		—		—		8,958		2,544		8,958		2,544
Federal Home Loan Mortgage Corporation		—		—		16,089		4,584		16,089		4,584
Total mortgage-backed securities		8,644		661		881,885		166,449		890,529		167,110
Total available for sale securities		8,644		661		903,146		169,723		911,790		170,384
Total AFS debt securities with unrealized losses	$	8,644	$	661	$	903,146	$	169,723	$	911,790	$	170,384
December 31, 2022
Securities available for sale:
U.S. Government agencies and government    sponsored enterprises	$	—	$	—	$	21,115	$	3,420	$	21,115	$	3,420
Mortgage-backed securities:
Federal National Mortgage Association		154,006		14,708		315,598		61,485		469,604		76,193
Federal Home Loan Mortgage Corporation		28,493		2,199		313,728		66,409		342,221		68,608
Government National Mortgage Association		10,301		921		83,841		17,116		94,142		18,037
Collateralized mortgage obligations:
Federal National Mortgage Association		1,000		94		8,572		2,509		9,572		2,603
Federal Home Loan Mortgage Corporation		—		—		17,356		4,163		17,356		4,163
Total mortgage-backed securities		193,800		17,922		739,095		151,682		932,895		169,604
Total available for sale securities		193,800		17,922		760,210		155,102		954,010		173,024
Total AFS debt securities with unrealized losses	$	193,800	$	17,922	$	760,210	$	155,102	$	954,010	$	173,024