Investment Securities

12 Months Ended

Dec. 31, 2021

Investments Debt And Equity Securities [Abstract]

Note 4 -- Investment Securities

The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at December 31, 2021 and 2020 were as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		(Losses)			Fair Value
December 31, 2021
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	208,598	$	80	$	(4,863	)	$	203,815
Obligations of states and political subdivisions		383,991		12,123		(657	)		395,457
Mortgage-backed securities: GSE residential		799,456		4,292		(12,710	)		791,038
Other securities		30,546		671		(105	)		31,112
Total available-for-sale	$	1,422,591	$	17,166	$	(18,335	)	$	1,421,422
Held-to-maturity:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	5,001	$	5	$	—		$	5,006
Other securities		2,029		—		—			2,029
Total held-to-maturity	$	7,030	$	5	$	—		$	7,035
December 31, 2020
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	127,067	$	790	$	(788	)	$	127,069
Obligations of states and political subdivisions		237,886		11,995		(37	)		249,844
Mortgage-backed securities: GSE residential		479,470		12,038		(160	)		491,348
Other securities		10,740		252		(13	)		10,979
Total available-for-sale	$	855,163	$	25,075	$	(998	)	$	879,240
Held-to-maturity:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	5,016	$	103	$	—		$	5,119

The Company also had $397,000 and $218,000 of equity securities, at fair value, as of December 31, 2021 and 2020, respectively. All the Company's held-to-maturity securities are government agency-backed securities for which the risk of loss is minimal. As such, as of December 31, 2021, the Company did not record an allowance for credit losses on its held-to-maturity securities.

Proceeds from sales of available-for-sale investment securities, realized gains and losses and income tax expense were as follows during the years ended December 31, 2021, 2020, and 2019 (in thousands):

	2021		2020			2019
Proceeds from sales	$	611	$	9,061		$	60,900
Gross gains		124		1,132			875
Gross losses		—		(26	)		(73	)
Income tax expense		36		321			233

The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, and held-to-maturity presented at amortized cost at December 31, 2021 and the weighted average yield for each range of maturities (dollars in thousands):

	One			After 1			After 5
	year or			through			through			After
	less			5 years			10 years			ten years			Total
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	132,009		$	60,744		$	11,062		$	—		$	203,815
Obligations of state and political subdivisions		26,159			87,639			205,518			76,141			395,457
Mortgage-backed securities: GSE residential		13,677			309,961			467,400			—			791,038
Other securities		3,522			18,167			5,956			3,467			31,112
Total available-for-sale	$	175,367		$	476,511		$	689,936		$	79,608		$	1,421,422
Weighted average yield		1.55	%		2.04	%		1.67	%		2.11	%		1.80	%
Full tax-equivalent yield		1.72	%		2.22	%		1.87	%		2.64	%		2.01	%
Held-to-maturity:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	5,001		$	—		$	—		$	—		$	5,001
Other securities		—			—			—			2,029			2,029
Total held-to-maturity	$	5,001		$	—		$	—		$	2,029		$	7,030
Weighted average yield		2.06	%		—	%		—	%		—	%		2.06	%
Full tax-equivalent yield		2.06	%		—	%		—	%		—	%		2.06	%

The weighted average yields are calculated on the basis of the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax- equivalent yields have been calculated using a 21% tax rate. With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at December 31, 2021.

Investment securities carried at approximately $590 million and $531 million at December 31, 2021 and 2020, respectively, were pledged to secure public deposits and repurchase agreements and for other purposes as permitted or required by law.

The following table presents the aging of gross unrealized losses and fair value by investment category as of December 31, 2021 and 2020 (in thousands):

	Less than 12 months					12 months or more					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
December 31, 2021
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	48,316	$	(1,927	)	$	139,846	$	(2,936	)	$	188,162	$	(4,863	)
Obligations of states and political subdivisions		61,535		(657	)		—		—			61,535		(657	)
Mortgage-backed securities: GSE residential		562,699		(11,019	)		46,504		(1,691	)		609,203		(12,710	)
Other securities		7,976		(105	)		—		—			7,976		(105	)
Total	$	680,526	$	(13,708	)	$	186,350	$	(4,627	)	$	866,876	$	(18,335	)
December 31, 2020
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	59,211	$	(788	)	$	—	$	—		$	59,211	$	(788	)
Obligations of states and political subdivisions		5,380		(37	)		—		—			5,380		(37	)
Mortgage-backed securities: GSE residential		57,609		(160	)		2,377		—			59,986		(160	)
Other securities		3,977		(13	)		—		—			3,977		(13	)
Total	$	126,177	$	(998	)	$	2,377	$	—		$	128,554	$	(998	)

U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies. At December 31, 2021, there were six available-for-sale U.S. Treasury securities and obligations of U.S. government corporations and agencies with a fair value of $139,846,000 and unrealized losses of $2,936,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2020, there were no available-for-sale securities in a continuous unrealized loss position for

twelve months or more. There were no held-to-maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies in a continuous unrealized loss position for twelve months or more at December 31, 2021 or 2020.

Obligations of states and political subdivisions. At December 31, 2021 and 2020 there were no obligations of states and political subdivisions in a continuous unrealized loss position for twelve months or more.

Mortgage-backed Securities: GSE Residential. At December 31, 2021 there were fifteen mortgage-backed securities with a fair value of $46,504,000 and unrealized losses of $1,691,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2020, there were two mortgage-backed security with a fair value of $2,377,000 and unrealized losses of $0 in a continuous unrealized loss position for twelve months or more.

Other securities. At December 31, 2021 and 2020, there were no other securities in a continuous unrealized loss position for twelve months or more.

Maturities of investment securities were as follows at December 31, 2021 (in thousands):

	Amortized		Estimated
	Cost		Fair Value
Available-for-sale:
Due in one year or less	$	165,155	$	161,689
Due after one-five years		162,158		166,550
Due after five-ten years		217,445		222,537
Due after ten years		78,377		79,608
		623,135		630,384
Mortgage-backed securities: GSE residential		799,456		791,038
Total available-for-sale		1,422,591		1,421,422
Held-to-maturity:
Due in one year or less		5,001		5,006
Due after ten years		2,029		2,029
Total held-to-maturity	$	7,030	$	7,035

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.