Investment Securities

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Note 3 -- 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 June 30, 2024 and December 31, 2023 were as follows (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
June 30, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	224,831	$	—	$	(25,249	)	$	199,582
Obligations of states and political subdivisions		334,386		132		(57,452	)		277,066
Mortgage-backed securities: GSE residential		684,817		857		(114,620	)		571,054
Other securities		67,075		—		(4,127	)		62,948
Total available-for-sale	$	1,311,109	$	989	$	(201,448	)	$	1,110,650
Held-to-maturity:
Other investments	$	2,277	$	—	$	—		$	2,277
Total held-to-maturity	$	2,277	$	—	$	—		$	2,277
December 31, 2023
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	237,875	$	—	$	(26,219	)	$	211,656
Obligations of states and political subdivisions		337,835		152		(49,371	)		288,616
Mortgage-backed securities: GSE residential		714,216		1,158		(113,074	)		602,300
Other securities		73,795		—		(4,795	)		69,000
Total available-for-sale	$	1,363,721	$	1,310	$	(193,459	)	$	1,171,572
Held-to-maturity:
Other investments	$	2,286	$	—	$	—		$	2,286
Total held-to-maturity	$	2,286	$	—	$	—		$	2,286

The Company also had $4,258,000 and $4,074,000 of equity securities, at fair value, as of June 30, 2024 and December 31, 2023, respectively. The Company's held-to-maturity securities are annuities for which the risk of loss is minimal. As such, as of June 30, 2024, the Company did not record an allowance for credit losses on its held-to-maturity securities.

Realized gains and losses resulting from sales of securities were as follows during the three and six months ended June 30, 2024 and 2023 (in thousands):


	Three months ended						Six months ended
	June 30,						June 30,
	2024			2023			2024			2023
Gross gains	$	35		$	—		$	(35	)	$	6
Gross losses		(191	)		(6	)		(191	)		(58	)

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 June 30, 2024 and the weighted average yield for each range of maturities (dollars in thousands):


	One year or less			After 1 through 5 years			After 5 through 10 years			After ten years			Total
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	176,425		$	23,157		$	—		$	—		$	199,582
Obligations of state and political subdivisions		24,140			105,238			146,166			1,522			277,066
Mortgage-backed securities: GSE residential		3,257			4,817			33,330			529,650			571,054
Other securities		38,696			23,470			782			—			62,948
Total available-for-sale investments	$	242,518		$	156,682		$	180,278		$	531,172		$	1,110,650
Weighted average yield		2.01	%		2.49	%		2.26	%		1.82	%		2.03	%
Full tax-equivalent yield		2.10	%		2.94	%		2.71	%		1.84	%		2.19	%
Held to maturity:
Other investments	$	—		$	—		$	—		$	2,277		$	2,277
Total held-to-maturity	$	—		$	—		$	—		$	2,277		$	2,277
Weighted average yield		—	%		—	%		—	%		—	%		—	%
Full tax-equivalent yield		—	%		—	%		—	%		—	%		—	%

The weighted average yields are calculated based on 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 June 30, 2024.

Investment securities carried at approximately $728 million and $831 million at June 30, 2024 and December 31, 2023, 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 June 30, 2024 and December 31, 2023 (in thousands):


	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
June 30, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	3,293	$	(1	)	$	196,288	$	(25,248	)	$	199,581	$	(25,249	)
Obligations of states and political subdivisions		23,541		(1,370	)		247,125		(56,082	)		270,666		(57,452	)
Mortgage-backed securities: GSE residential		5,549		(146	)		535,856		(114,474	)		541,405		(114,620	)
Other securities		—		—			57,196		(4,127	)		57,196		(4,127	)
Total	$	32,383	$	(1,517	)	$	1,036,465	$	(199,931	)	$	1,068,848	$	(201,448	)
December 31, 2023
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	1,288	$	(4	)	$	210,069	$	(26,215	)	$	211,357	$	(26,219	)
Obligations of states and political subdivisions		22,281		(333	)		241,630		(49,038	)		263,911		(49,371	)
Mortgage-backed securities: GSE residential		5,818		(67	)		566,197		(113,007	)		572,015		(113,074	)
Other securities		5,311		(439	)		57,939		(4,356	)		63,250		(4,795	)
Total	$	34,698	$	(843	)	$	1,075,835	$	(192,616	)	$	1,110,533	$	(193,459	)

U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies. At June 30, 2024 there were thirty-two available-for-sale securities with a fair value of $196.3 million and unrealized losses of $25.2 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023, there were thirty-six available-for-sale securities with a fair value of $210.1 million and unrealized losses of $26.2 million 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.

Obligations of states and political subdivisions. At June 30, 2024, there were zero obligations of states and political subdivisions with a fair value of $247.1 million and unrealized losses of $56.1 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023 there were two hundred thirty-seven obligations of states and political subdivisions with a fair value of $241.6 million and unrealized losses of $49.0 million in a continuous unrealized loss position for twelve months or more.

Mortgage-backed Securities: GSE Residential. At June 30, 2024, there were two hundred fifty mortgage-backed securities with a fair value of $535.9 million and unrealized losses of $114.5 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023, there were two hundred sixty-three mortgage-backed securities with a fair value of $566.2 million and unrealized losses of $113.0 million in a continuous unrealized loss position for twelve months or more.

Other securities. At June 30, 2024, there were forty other securities with a fair value of $57.2 million and unrealized losses of $4.1 million in a continuous unrealized loss position for twelve months or more. At December 31, 2023, there were forty-three other securities with a fair value of $57.9 million and unrealized losses of $4.4 million in a continuous unrealized loss position for twelve months or more.