Securities

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

(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 September 30, 2023 or December 31, 2022.


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2023


Obligations of states and political subdivisions	$	38,200	$	71	$	(4,732)	$	33,539
Residential mortgage backed securities:
Government agency mortgage backed securities	321,245		2		(49,799)		271,448
Government agency collateralized mortgage obligations	501,793		—		(108,896)		392,897
Commercial mortgage backed securities:
Government agency mortgage backed securities	6,036		—		(908)		5,128
Government agency collateralized mortgage obligations	165,812		—		(27,071)		138,741

Other debt securities	72,386		207		(5,238)		67,355

	$	1,105,472	$	280	$	(196,644)	$	909,108


	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
September 30, 2023
Obligations of states and political subdivisions	$	289,053	$	—	$	(57,660)	$	231,393
Residential mortgage backed securities
Government agency mortgage backed securities	440,227		—		(41,350)		398,877
Government agency collateralized mortgage obligations	395,441		—		(49,030)		346,411
Commercial mortgage backed securities:
Government agency mortgage backed securities	16,989		—		(3,800)		13,189
Government agency collateralized mortgage obligations	44,725		—		(8,235)		36,490
Other debt securities	59,192		—		(6,429)		52,763
	$	1,245,627	$	—	$	(166,504)	$	1,079,123
Allowance for credit losses - held to maturity securities	(32)
Held to maturity securities, net of allowance for credit losses	$	1,245,595


	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

Securities sold were as follows for the nine months ended September 30, 2023. There were no securities sold during the third quarter of 2023 nor the three and nine months ended September 30, 2022.



	Carrying Value		Net Proceeds		(Loss)













Nine months ended September 30, 2023
Obligations of other U.S. Government agencies and corporations	$	170,000	$	164,915	$	(5,085)
Obligations of states and political subdivisions	104,950		99,439		(5,511)
Residential mortgage backed securities:
Government agency mortgage backed securities	137,196		130,602		(6,594)
Government agency collateralized mortgage obligations	54,028		51,101		(2,927)
Commercial mortgage backed securities:
Government agency mortgage backed securities	5,048		4,825		(223)
Government agency collateralized mortgage obligations	40,197		38,099		(2,098)



	$	511,419	$	488,981	$	(22,438)

At September 30, 2023 and December 31, 2022, securities with a carrying value of $783,250 and $824,417, respectively, were pledged to secure government, public and trust deposits. Securities with a carrying value of $24,034 and $18,184 were pledged as collateral for short-term borrowings and derivative instruments at September 30, 2023 and December 31, 2022, respectively.

The amortized cost and fair value of securities at September 30, 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	$	—	$	—	$	6,482	$	6,402
Due after one year through five years	3,265		3,044		36,332		36,386
Due after five years through ten years	75,045		62,072		42,481		36,784
Due after ten years	210,743		166,277		16,688		13,887
Residential mortgage backed securities:
Government agency mortgage backed securities	440,227		398,877		321,245		271,448
Government agency collateralized mortgage obligations	395,441		346,411		501,793		392,897
Commercial mortgage backed securities:
Government agency mortgage backed securities	16,989		13,189		6,036		5,128
Government agency collateralized mortgage obligations	44,725		36,490		165,812		138,741
Other debt securities	59,192		52,763		8,603		7,435

	$	1,245,627	$	1,079,123	$	1,105,472	$	909,108

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:
September 30, 2023

Obligations of states and political subdivisions	6	5,196		(27)		16	23,814		(4,705)		22	29,010		(4,732)
Residential mortgage backed securities:
Government agency mortgage backed securities	—	—		—		53	267,412		(49,799)		53	267,412		(49,799)
Government agency collateralized mortgage obligations	—	—		—		41	392,897		(108,896)		41	392,897		(108,896)
Commercial mortgage backed securities:
Government agency mortgage backed securities	—	—		—		2	5,128		(908)		2	5,128		(908)
Government agency collateralized mortgage obligations	—	—		—		28	138,742		(27,071)		28	138,742		(27,071)

Other debt securities	1	957		(53)		20	36,456		(5,185)		21	37,413		(5,238)
Total	7	$	6,153	$	(80)	160	$	864,449	$	(196,564)	167	$	870,602	$	(196,644)
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		(3,829)		21	118,821		(21,760)		37	185,847		(25,589)

Other debt securities	25	63,423		(3,166)		1	7,412		(883)		26	70,835		(4,049)

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:
September 30, 2023
Obligations of states and political subdivisions	—	$	—	$	—	129	$	231,393	$	(57,660)	129	$	231,393	$	(57,660)
Residential mortgage backed securities:
Government agency mortgage backed securities	—	—		—		70	398,876		(41,350)		70	398,876		(41,350)
Government agency collateralized mortgage obligations	—	—		—		18	346,411		(49,030)		18	346,411		(49,030)
Commercial mortgage backed securities:
Government agency mortgage backed securities	—	—		—		1	13,189		(3,800)		1	13,189		(3,800)
Government agency collateralized mortgage obligations	—	—		—		9	36,490		(8,235)		9	36,490		(8,235)
Other debt securities	—	—		—		10	52,761		(6,429)		10	52,761		(6,429)
Total	—	$	—	$	—	237	$	1,079,120	$	(166,504)	237	$	1,079,120	$	(166,504)
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.

As of September 30, 2023, the Company does not 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 September 30, 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 nine months of 2023.

The allowance for credit losses on held to maturity securities was $32 at September 30, 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 September 30, 2023, all of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies.