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Securities | 3 Months Ended
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Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
Securities | Note 3 — Securities The following table is a summary of the amortized cost and estimated fair value, including the allowance for credit losses and gross unrealized gains and losses, of available for sale, held to maturity and securities carried at fair value through income for the dates indicated:
(Dollars in thousands) March 31, 2024 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Allowance for Credit Losses |  | Net Carrying Amount |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 320,999 |  |  | $ | 213 |  |  | $ | (43,615) |  |  | $ | 277,597 |  |  | $ | — |  |  | $ | 277,597 |  |  |
Corporate bonds | 91,251 |  |  | 166 |  |  | (8,170) |  |  | 83,247 |  |  | — |  |  | 83,247 |  |  |
U.S. treasury and government agency securities | 67,172 |  |  | 2 |  |  | (4,736) |  |  | 62,438 |  |  | — |  |  | 62,438 |  |  |
Commercial mortgage-backed securities | 104,150 |  |  | — |  |  | (11,410) |  |  | 92,740 |  |  | — |  |  | 92,740 |  |  |
Residential mortgage-backed securities | 552,647 |  |  | — |  |  | (66,024) |  |  | 486,623 |  |  | — |  |  | 486,623 |  |  |
Commercial collateralized mortgage obligations | 45,874 |  |  | — |  |  | (4,448) |  |  | 41,426 |  |  | — |  |  | 41,426 |  |  |
Residential collateralized mortgage obligations | 147,310 |  |  | — |  |  | (20,977) |  |  | 126,333 |  |  | — |  |  | 126,333 |  |  |
Asset-backed securities | 20,576 |  |  | 23 |  |  | (81) |  |  | 20,518 |  |  | — |  |  | 20,518 |  |  |
Total | $ | 1,349,979 |  |  | $ | 404 |  |  | $ | (159,461) |  |  | $ | 1,190,922 |  |  | $ | — |  |  | $ | 1,190,922 |  |  |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 11,675 |  |  | $ | — |  |  | $ | (719) |  |  | $ | 10,956 |  |  | $ | (24) |  |  | $ | 11,651 |  |  |
Securities carried at fair value through income: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities(1) | $ | 6,815 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,755 |  |  | $ | — |  |  | $ | 6,755 |  |  |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 323,356 |  |  | $ | 210 |  |  | $ | (41,440) |  |  | $ | 282,126 |  |  | $ | — |  |  | $ | 282,126 |  |  |
Corporate bonds | 92,244 |  |  | 80 |  |  | (8,689) |  |  | 83,635 |  |  | — |  |  | 83,635 |  |  |
U.S. treasury and government agency securities | 84,377 |  |  | 3 |  |  | (4,740) |  |  | 79,640 |  |  | — |  |  | 79,640 |  |  |
Commercial mortgage-backed securities | 104,459 |  |  | — |  |  | (11,063) |  |  | 93,396 |  |  | — |  |  | 93,396 |  |  |
Residential mortgage-backed securities | 569,622 |  |  | — |  |  | (63,120) |  |  | 506,502 |  |  | — |  |  | 506,502 |  |  |
Commercial collateralized mortgage obligations | 39,386 |  |  | — |  |  | (4,203) |  |  | 35,183 |  |  | — |  |  | 35,183 |  |  |
Residential collateralized mortgage obligations | 150,710 |  |  | — |  |  | (20,566) |  |  | 130,144 |  |  | — |  |  | 130,144 |  |  |
Asset-backed securities | 43,521 |  |  | 4 |  |  | (520) |  |  | 43,005 |  |  | — |  |  | 43,005 |  |  |
Total | $ | 1,407,675 |  |  | $ | 297 |  |  | $ | (154,341) |  |  | $ | 1,253,631 |  |  | $ | — |  |  | $ | 1,253,631 |  |  |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 11,678 |  |  | $ | — |  |  | $ | (830) |  |  | $ | 10,848 |  |  | $ | (63) |  |  | $ | 11,615 |  |  |
Securities carried at fair value through income: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities(1) | $ | 6,815 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,808 |  |  | $ | — |  |  | $ | 6,808 |  |  |
________________________ (1)Securities carried at fair value through income have no unrealized gains or losses at the consolidated balance sheet dates as all changes in value have been recognized in the consolidated statements of income. See Note 5 — Fair Value of Financial Instruments for more information. Securities with unrealized losses at March 31, 2024, and December 31, 2023, aggregated by investment category and those individual securities that have been in a continuous unrealized loss position for less than 12 months, and for 12 months or more, were as follows.
| Less than 12 Months |  | 12 Months or More |  | Total
(Dollars in thousands) March 31, 2024 | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
Available for sale: |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 25,235 |  |  | $ | (258) |  |  | $ | 246,037 |  |  | $ | (43,357) |  |  | $ | 271,272 |  |  | $ | (43,615) |
Corporate bonds | 800 |  |  | (200) |  |  | 73,213 |  |  | (7,970) |  |  | 74,013 |  |  | (8,170) |
U.S. treasury and government agency securities | — |  |  | — |  |  | 58,922 |  |  | (4,736) |  |  | 58,922 |  |  | (4,736) |
Commercial mortgage-backed securities | — |  |  | — |  |  | 92,740 |  |  | (11,410) |  |  | 92,740 |  |  | (11,410) |
Residential mortgage-backed securities | — |  |  | — |  |  | 486,623 |  |  | (66,024) |  |  | 486,623 |  |  | (66,024) |
Commercial collateralized mortgage obligations | 6,627 |  |  | (64) |  |  | 34,799 |  |  | (4,384) |  |  | 41,426 |  |  | (4,448) |
Residential collateralized mortgage obligations | — |  |  | — |  |  | 126,333 |  |  | (20,977) |  |  | 126,333 |  |  | (20,977) |
Asset-backed securities | 3,841 |  |  | (2) |  |  | 12,469 |  |  | (79) |  |  | 16,310 |  |  | (81) |
Total | $ | 36,503 |  |  | $ | (524) |  |  | $ | 1,131,136 |  |  | $ | (158,937) |  |  | $ | 1,167,639 |  |  | $ | (159,461) |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 4,833 |  |  | $ | (328) |  |  | $ | 6,123 |  |  | $ | (391) |  |  | $ | 10,956 |  |  | $ | (719) |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 27,106 |  |  | $ | (266) |  |  | $ | 246,442 |  |  | $ | (41,174) |  |  | $ | 273,548 |  |  | $ | (41,440) |
Corporate bonds | 4,254 |  |  | (53) |  |  | 74,566 |  |  | (8,636) |  |  | 78,820 |  |  | (8,689) |
U.S. treasury and government agency securities | — |  |  | — |  |  | 77,340 |  |  | (4,740) |  |  | 77,340 |  |  | (4,740) |
Commercial mortgage-backed securities | — |  |  | — |  |  | 93,396 |  |  | (11,063) |  |  | 93,396 |  |  | (11,063) |
Residential mortgage-backed securities | 60 |  |  | (5) |  |  | 506,442 |  |  | (63,115) |  |  | 506,502 |  |  | (63,120) |
Commercial collateralized mortgage obligations | — |  |  | — |  |  | 35,183 |  |  | (4,203) |  |  | 35,183 |  |  | (4,203) |
Residential collateralized mortgage obligations | — |  |  | — |  |  | 130,144 |  |  | (20,566) |  |  | 130,144 |  |  | (20,566) |
Asset-backed securities | 7,350 |  |  | (52) |  |  | 31,618 |  |  | (468) |  |  | 38,968 |  |  | (520) |
Total | $ | 38,770 |  |  | $ | (376) |  |  | $ | 1,195,131 |  |  | $ | (153,965) |  |  | $ | 1,233,901 |  |  | $ | (154,341) |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 4,717 |  |  | $ | (447) |  |  | $ | 6,131 |  |  | $ | (383) |  |  | $ | 10,848 |  |  | $ | (830) |
At March 31, 2024, the Company had 595 individual securities that were in an unrealized loss position. Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than the cost, and (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. Management does not currently intend to sell any securities in an unrealized loss position and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, at March 31, 2024, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions. The following table presents the activity in the allowance for credit losses for held-to-maturity securities.
(Dollars in thousands) | Municipal Securities
Allowance for credit losses: | 2024 |  |  |  |  |
Balance at January 1, 2024 | $ | 63 |  |  |  |  |  |
Provision recovery for credit loss for held to maturity securities | (39) |  |  |  |  |  |
Balance at March 31, 2024 | $ | 24 |  |  |  |  |  |
Balance at January 1, 2023 | $ | 899 |  |  |  |  |  |
Provision expense for credit loss for held to maturity securities | 82 |  |  |  |  |  |
Balance at March 31, 2023 | $ | 981 |  |  |  |  |  |
Accrued interest of $5.6 million and $7.5 million was not included in the calculation of the allowance or the amortized cost basis of the securities at March 31, 2024 or 2023, respectively. There were no past due or nonaccrual available for sale or held to maturity securities at March 31, 2024 or December 31, 2023. Proceeds from sales and calls, and related gross gains and losses of securities available for sale, are shown below.
| Three Months Ended March 31, |  |  |  |
(Dollars in thousands) | 2024 |  | 2023 |  |  |  |  |  |  |  |
Proceeds from sales/calls | $ | 21,224 |  |  | $ | 39,195 |  |  |  |  |  |  |  |  |
Gross realized gains | — |  |  | 596 |  |  |  |  |  |  |  |  |
Gross realized losses | (403) |  |  | (452) |  |  |  |  |  |  |  |  |
The following table presents the amortized cost and fair value of securities available for sale and held to maturity at March 31, 2024, grouped by contractual maturity. Mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which do not have contractual payments due at a single maturity date, are shown separately. Actual maturities for mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities will differ from contractual maturities as a result of prepayments made on the underlying loans.
(Dollars in thousands) | Held to Maturity |  | Available for Sale
March 31, 2024 | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Due in one year or less | $ | — |  |  | $ | — |  |  | $ | 48,761 |  |  | $ | 48,562 |
Due after one year through five years | — |  |  | — |  |  | 86,572 |  |  | 79,665 |
Due after five years through ten years | 5,161 |  |  | 4,833 |  |  | 177,058 |  |  | 156,673 |
Due after ten years | 6,514 |  |  | 6,123 |  |  | 167,031 |  |  | 138,382 |
Commercial mortgage-backed securities | — |  |  | — |  |  | 104,150 |  |  | 92,740 |
Residential mortgage-backed securities | — |  |  | — |  |  | 552,647 |  |  | 486,623 |
Commercial collateralized mortgage obligations | — |  |  | — |  |  | 45,874 |  |  | 41,426 |
Residential collateralized mortgage obligations | — |  |  | — |  |  | 147,310 |  |  | 126,333 |
Asset-backed securities | — |  |  | — |  |  | 20,576 |  |  | 20,518 |
Total | $ | 11,675 |  |  | $ | 10,956 |  |  | $ | 1,349,979 |  |  | $ | 1,190,922 |
The following table presents carrying amounts of securities pledged as collateral for deposits and repurchase agreements at the periods presented.
(Dollars in thousands) | March 31, 2024 |  | December 31, 2023
Carrying value of securities pledged to secure public deposits | $ | 395,574 |  |  | $ | 421,273 |
Carrying value of securities pledged to repurchase agreements | 5,210 |  |  | 5,477 |

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