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Securities

9 Months Ended

Sep. 30, 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) September 30, 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			$	323,507					$	293					$	(34,938)					$	288,862					$	—					$	288,862
Corporate bonds			86,288						286						(6,306)						80,268						—						80,268
U.S. treasury and government agency securities			48,710						5						(3,328)						45,387						—						45,387
Commercial mortgage-backed securities			108,079						30						(7,937)						100,172						—						100,172
Residential mortgage-backed securities			523,289						6						(48,126)						475,169						—						475,169
Commercial collateralized mortgage obligations			51,401						174						(3,065)						48,510						—						48,510
Residential collateralized mortgage obligations			139,580						—						(16,983)						122,597						—						122,597
Total			$	1,280,854					$	794					$	(120,683)					$	1,160,965					$	—					$	1,160,965
Held to maturity:
State and municipal securities			$	11,148					$	—					$	(447)					$	10,701					$	(52)					$	11,096
Securities carried at fair value through income:
State and municipal securities(1)			$	6,515					$	—					$	—					$	6,533					$	—					$	6,533
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 September 30, 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) September 30, 2024			Fair Value						Unrealized Loss						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss
Available for sale:
State and municipal securities			$	28,402					$	(81)					$	251,522					$	(34,857)					$	279,924					$	(34,938)
Corporate bonds			9,826						(685)						63,546						(5,621)						73,372						(6,306)
U.S. treasury and government agency securities			6,986						(11)						34,674						(3,317)						41,660						(3,328)
Commercial mortgage-backed securities			3,034						(37)						95,638						(7,900)						98,672						(7,937)
Residential mortgage-backed securities			6,249						(47)						467,910						(48,079)						474,159						(48,126)
Commercial collateralized mortgage obligations			4,497						(2)						35,168						(3,063)						39,665						(3,065)
Residential collateralized mortgage obligations			—						—						122,597						(16,983)						122,597						(16,983)
Total			$	58,994					$	(863)					$	1,071,055					$	(119,820)					$	1,130,049					$	(120,683)
Held to maturity:
State and municipal securities			$	—					$	—					$	10,701					$	(447)					$	10,701					$	(447)
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 September 30, 2024, the Company had 568 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 September 30, 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 tables present the activity in the allowance for credit losses for held-to-maturity securities.

(Dollars in thousands)			Municipal Securities
Allowance for credit losses:			For the Three Months Ended September 30, 2024 & 2023
Balance at June 30, 2024			$	57
Provision recovery for credit loss for held to maturity securities			(5)
Balance at September 30, 2024			$	52
Balance at June 30, 2023			$	935
Provision recovery for credit loss for held to maturity securities			(45)
Balance at September 30, 2023			$	890

(Dollars in thousands)			Municipal Securities
Allowance for credit losses:			For the Nine Months Ended September 30, 2024 & 2023
Balance at January 1, 2024			$	63
Provision recovery for credit loss for held to maturity securities			(11)
Balance at September 30, 2024			$	52
Balance at January 1, 2023			$	899
Provision recovery for credit loss for held to maturity securities			(9)
Balance at September 30, 2023			$	890

Accrued interest of $5.2 million and $6.4 million was not included in the calculation of the allowance or the amortized cost basis of the securities at September 30, 2024 or 2023, respectively. There were no past due or nonaccrual available for sale or held to maturity securities at September 30, 2024 or December 31, 2023.

Proceeds from sales and calls, and related gross gains and losses of securities available for sale, are shown below.

			Nine Months Ended September 30,
(Dollars in thousands)			2024						2023
Proceeds from sales/calls			$	54,984					$	214,302
Gross realized gains			357						596
Gross realized losses			(539)						(7,625)

The following table presents the amortized cost and fair value of securities available for sale and held to maturity at September 30, 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
September 30, 2024			Amortized Cost						Fair Value						Amortized Cost						Fair Value
Due in one year or less			$	—					$	—					$	12,449					$	12,419
Due after one year through five years			—						—						84,650						79,921
Due after five years through ten years			11,148						10,701						207,242						189,784
Due after ten years			—						—						154,164						132,393
Commercial mortgage-backed securities			—						—						108,079						100,172
Residential mortgage-backed securities			—						—						523,289						475,169
Commercial collateralized mortgage obligations			—						—						51,401						48,510
Residential collateralized mortgage obligations			—						—						139,580						122,597
Total			$	11,148					$	10,701					$	1,280,854					$	1,160,965

The following table presents carrying amounts of securities pledged as collateral for deposits and repurchase agreements at the periods presented.

(Dollars in thousands)			September 30, 2024						December 31, 2023
Carrying value of securities pledged to secure public deposits			$	370,090					$	421,273
Carrying value of securities pledged to repurchase agreements			4,894						5,477

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The entire disclosure for investments in certain debt and equity securities.

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