Securities |
(3) Securities
The amortized cost and fair market value of available-for-sale securities and the related gross unrealized gains and losses recognized were as follows:
September 30, 2022 |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
U.S. Treasury securities and obligations of U.S.
government agencies |
|
$ |
66,199 |
|
|
$ |
22 |
|
|
$ |
(5,677 |
) |
|
$ |
60,544 |
|
Obligations of states and political subdivisions |
|
|
344,225 |
|
|
|
163 |
|
|
|
(46,581 |
) |
|
|
297,807 |
|
Mortgage-backed securities in government sponsored
entities |
|
|
272,950 |
|
|
|
17 |
|
|
|
(29,272 |
) |
|
|
243,695 |
|
Total debt securities |
|
$ |
683,374 |
|
|
$ |
202 |
|
|
$ |
(81,530 |
) |
|
$ |
602,046 |
|
December 31, 2021 |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
U.S. Treasury securities and obligations of U.S.
government agencies |
|
$ |
48,390 |
|
|
$ |
30 |
|
|
$ |
(530 |
) |
|
$ |
47,890 |
|
Obligations of states and political subdivisions |
|
|
281,247 |
|
|
|
17,696 |
|
|
|
(107 |
) |
|
|
298,836 |
|
Mortgage-backed securities in government sponsored
entities |
|
|
211,660 |
|
|
|
2,938 |
|
|
|
(1,450 |
) |
|
|
213,148 |
|
Total debt securities |
|
$ |
541,297 |
|
|
$ |
20,664 |
|
|
$ |
(2,087 |
) |
|
$ |
559,874 |
|
The amortized cost and fair value of securities at September 30, 2022, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.
Available for sale |
|
Amortized
Cost |
|
|
Fair
Value |
|
Due in one year or less |
|
$ |
1,500 |
|
|
$ |
1,490 |
|
Due after one year through five years |
|
|
47,323 |
|
|
|
43,934 |
|
Due after five years through ten years |
|
|
72,996 |
|
|
|
66,744 |
|
Due after ten years |
|
|
288,605 |
|
|
|
246,184 |
|
Mortgage-backed securities |
|
|
272,950 |
|
|
|
243,694 |
|
Total securities available-for-sale |
|
$ |
683,374 |
|
|
$ |
602,046 |
|
Proceeds from sales of securities available-for-sale, gross realized gains and gross realized losses were as follows:
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Sale proceeds |
|
$ |
57,322 |
|
|
$ |
— |
|
|
$ |
57,322 |
|
|
$ |
1,785 |
|
Gross realized gains |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,785 |
|
Gross realized losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gains (losses) from securities called or settled by the issuer |
|
|
4 |
|
|
|
4 |
|
|
|
10 |
|
|
|
2 |
|
Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $176,667 and $168,345 as of September 30, 2022 and December 31, 2021, respectively.
The following tables show gross unrealized losses and fair value, aggregated by investment category, and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2022 and December 31, 2021:
September 30, 2022 |
|
12 Months or less |
|
|
More than 12 months |
|
|
Total |
|
Description of Securities |
|
Fair
Value |
|
|
Unrealized
Loss |
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
U.S. Treasury securities and obligations of
U.S. government agencies |
|
$ |
20,930 |
|
|
$ |
(880 |
) |
|
$ |
39,122 |
|
|
$ |
(4,797 |
) |
|
$ |
60,052 |
|
|
$ |
(5,677 |
) |
Obligations of states and political subdivisions |
|
|
266,106 |
|
|
|
(43,065 |
) |
|
|
8,192 |
|
|
|
(3,516 |
) |
|
|
274,298 |
|
|
|
(46,581 |
) |
Mortgage-backed securities in gov’t sponsored
entities |
|
|
159,647 |
|
|
|
(12,221 |
) |
|
|
79,790 |
|
|
|
(17,051 |
) |
|
|
239,437 |
|
|
|
(29,272 |
) |
Total temporarily impaired |
|
$ |
446,683 |
|
|
$ |
(56,166 |
) |
|
$ |
127,104 |
|
|
$ |
(25,364 |
) |
|
$ |
573,787 |
|
|
$ |
(81,530 |
) |
December 31, 2021 |
|
12 Months or less |
|
|
More than 12 months |
|
|
Total |
|
Description of Securities |
|
Fair
Value |
|
|
Unrealized
Loss |
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
U.S. Treasury securities and obligations of
U.S. government agencies |
|
$ |
41,432 |
|
|
$ |
(473 |
) |
|
$ |
2,014 |
|
|
$ |
(57 |
) |
|
$ |
43,446 |
|
|
$ |
(530 |
) |
Obligations of states and political subdivisions |
|
|
25,797 |
|
|
|
(107 |
) |
|
|
— |
|
|
|
— |
|
|
|
25,797 |
|
|
|
(107 |
) |
Mortgage-backed securities in gov’t sponsored
entities |
|
|
141,327 |
|
|
|
(1,343 |
) |
|
|
3,123 |
|
|
|
(107 |
) |
|
|
144,450 |
|
|
|
(1,450 |
) |
Total temporarily impaired |
|
$ |
208,556 |
|
|
$ |
(1,923 |
) |
|
$ |
5,137 |
|
|
$ |
(164 |
) |
|
$ |
213,693 |
|
|
$ |
(2,087 |
) |
At September 30, 2022, there were a total of 532 securities in the portfolio with unrealized losses mainly due to higher current market rates when compared to the time of purchase. Unrealized losses on securities have not been recognized into income because the issuers’ securities are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to currently higher market rates when compared to the time of purchase. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.
The following table presents the net gains and losses on equity investments recognized in earnings for the three- and nine-months ended September 30, 2022 and 2021, and the portion of unrealized gains and losses for the period that relates to equity investments held at September 30, 2022 and 2021:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net gains (losses) recognized on equity
securities during the period |
|
$ |
(133 |
) |
|
$ |
50 |
|
|
$ |
(44 |
) |
|
$ |
191 |
|
Less: Net losses realized on the sale of
equity securities during the period |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Unrealized gains (losses) recognized on
equity securities held at reporting date |
|
$ |
(133 |
) |
|
$ |
50 |
|
|
$ |
(44 |
) |
|
$ |
191 |
|
|