Investment Securities

9 Months Ended

Sep. 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 September 30, 2024 and December 31, 2023 were as follows (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
September 30, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	212,259	$	1	$	(18,091	)	$	194,169
Obligations of states and political subdivisions		326,751		255		(46,562	)		280,444
Mortgage-backed securities: GSE residential		668,554		1,564		(93,269	)		576,849
Other securities		67,097		—		(3,007	)		64,090
Total available-for-sale	$	1,274,661	$	1,820	$	(160,929	)	$	1,115,552
Held-to-maturity:
Other investments	$	2,298	$	—	$	—		$	2,298
Total held-to-maturity	$	2,298	$	—	$	—		$	2,298
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 $4.4 million and $4.1 million of equity securities, at fair value, as of September 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 September 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 nine months ended September 30, 2024 and 2023 (in thousands):


	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023
Gross gains	$	11		$	3,823		$	46		$	3,829
Gross losses		(288	)		(434	)		(479	)		(492	)

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 September 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	$	181,606		$	12,563		$	—		$	—		$	194,169
Obligations of state and political subdivisions		24,154			115,365			139,325			1,600			280,444
Mortgage-backed securities: GSE residential		3,068			4,677			34,374			534,730			576,849
Other securities		46,927			16,383			780			—			64,090
Total available-for-sale investments	$	255,755		$	148,988		$	174,479		$	536,330		$	1,115,552
Weighted average yield		2.04	%		2.38	%		2.26	%		1.81	%		2.01	%
Full tax-equivalent yield		2.11	%		2.88	%		2.70	%		1.83	%		2.17	%
Held to maturity:
Other investments	$	—		$	—		$	—		$	2,298		$	2,298
Total held-to-maturity	$	—		$	—		$	—		$	2,298		$	2,298
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 September 30, 2024.

Investment securities carried at approximately $834.1 million and $831.0 million at September 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 September 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
September 30, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	300	$	—		$	193,524	$	(18,091	)	$	193,824	$	(18,091	)
Obligations of states and political subdivisions		13,802		(833	)		251,107		(45,729	)		264,909		(46,562	)
Mortgage-backed securities: GSE residential		—		—			547,233		(93,269	)		547,233		(93,269	)
Other securities		—		—			58,340		(3,007	)		58,340		(3,007	)
Total	$	14,102	$	(833	)	$	1,050,204	$	(160,096	)	$	1,064,306	$	(160,929	)
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 September 30, 2024 there were twenty-eight available-for-sale securities with a fair value of $193.5 million and unrealized losses of $18.1 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 September 30, 2024, there were two hundred forty-seven obligations of states and political subdivisions with a fair value of $251.1 million and unrealized losses of $45.7 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 September 30, 2024, there were two hundred forty-two mortgage-backed securities with a fair value of $547.2 million and unrealized losses of $93.3 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 September 30, 2024, there were forty other securities with a fair value of $58.3 million and unrealized losses of $3.0 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.