
(Dollars in thousands)	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		ACL
December 31, 2022
Held-to-Maturity:
Debt securities:
States and political subdivisions	$	41,840	$	—	$	(4,727)	$	37,113	$	—
Mortgage-backed securities:
Residential - U.S. Government-sponsored entities ("GSEs")	623,043		—		(63,376)		559,667		—


Total held-to-maturity investment securities	$	664,883	$	—	$	(68,103)	$	596,780	$	—

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		ACL
Available-for-Sale:
Debt securities:
States and political subdivisions	$	172,427	$	6	$	(36,681)	$	135,752	$	—
Corporate securities	36,206		—		(5,995)		30,211		—
U.S. Treasury obligations and direct obligations of U.S Government agencies	28,032		—		(2,317)		25,715		—
Mortgage-backed securities:
Residential - U.S. Government-sponsored entities ("GSEs")	498,989		—		(75,186)		423,803		—
Residential - Non-government sponsored entities ("Non-GSEs")	9,829		—		(1,167)		8,662		—
Commercial - U.S. GSEs and agencies	54,346		—		(8,202)		46,144		—
Commercial - Non-GSEs	1,541		—		(34)		1,507		—

Total available-for-sale investment securities	$	801,370	$	6	$	(129,582)	$	671,794	$	—













(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		ACL
Available-for-Sale:
Debt securities:
States and political subdivisions	$	235,521	$	3,156	$	(1,849)	$	236,828	$	—
Corporate securities	41,687		24		(1,065)		40,646		—
U.S. Treasury obligations and direct obligations of U.S Government agencies	35,833		69		(568)		35,334		—
Mortgage-backed securities:
Residential - U.S. GSEs	1,213,910		4,899		(19,993)		1,198,816		—
Residential - Non-GSEs	11,942		335		(64)		12,213		—
Commercial - U.S. GSEs and agencies	66,287		756		(1,194)		65,849		—
Commercial - Non-GSEs	41,328		685		—		42,013		—

Total available-for-sale investment securities	$	1,646,508	$	9,924	$	(24,733)	$	1,631,699	$	—

In March 2022, the Company transferred 41 investment securities that were classified as AFS to HTM. The investment securities had an amortized cost basis of $361.8 million and a fair market value of $329.5 million. On the date of transfer, these securities had a total net unrealized loss of $32.3 million. There was no impact to net income as a result of the reclassification.

In May 2022, the Company transferred 40 investment securities that were classified as AFS to HTM. The investment securities had an amortized cost basis of $400.9 million and a fair market value of $343.7 million. On the date of transfer, these securities had a total net unrealized loss of $57.2 million. There was no impact to net income as a result of the reclassification.

These transfers were executed to mitigate the potential future impact to capital through accumulated other comprehensive loss in consideration of a rising interest rate environment and the impact of rising rates on the market value of the investment securities. The Company believes that it maintains sufficient liquidity for future business needs and it has the positive intent and ability to hold these securities to maturity.

The amortized cost and estimated fair value of our investment securities at December 31, 2022 by contractual maturity are shown below. Actual maturities may differ from contractual maturities as issuers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	December 31, 2022
(Dollars in thousands)	Amortized Cost		Fair Value		Weighted Average Yield (1)
Held-to-Maturity:
Due in one year or less	$	—	$	—	—	%
Due after one year through five years	—		—		—
Due after five years through ten years	—		—		—
Due after ten years	41,840		37,113		2.26
Mortgage-backed securities:
Residential - U.S. Government-sponsored entities ("GSEs")	623,043		559,667		1.93

Total held-to-maturity investment securities	$	664,883	$	596,780	1.95	%

Available-for-Sale:
Due in one year or less	$	5,774	$	5,751	2.91	%
Due after one year through five years	15,816		15,458		3.75
Due after five years through ten years	79,803		70,558		2.60
Due after ten years	135,272		99,911		2.43
Mortgage-backed securities
Residential - U.S. GSEs	498,989		423,803		2.03
Residential - Non-GSEs	9,829		8,662		3.33
Commercial - U.S. GSEs and agencies	54,346		46,144		2.35
Commercial - Non-GSEs	1,541		1,507		4.10

Total available-for-sale investment securities	$	801,370	$	671,794	2.24	%



Total investment securities	$	1,466,253	$	1,268,574	2.10	%

In 2021, proceeds from the sale of available-for-sale investment securities were $279.5 million and resulted in a net realized gain of $0.2 million. Gross realized gains and losses on the sale of available-for-sale investment securities totaled $3.4 million and $3.2 million, respectively. In 2021, proceeds from the sale of equity investment securities were $1.7 million.

In 2020, proceeds from the sale of available-for-sale investment securities were $180.1 million and resulted in a net realized loss of $0.2 million. Gross realized losses and gains on the sale of available-for-sale investment securities totaled $0.9 million and $0.7 million, respectively.

There were a total of 83 HTM securities in an unrecognized loss position at December 31, 2022. There were no HTM securities in an unrecognized loss position at December 31, 2021. There were a total of 243 and 153 AFS securities in an unrealized loss position at December 31, 2022 and 2021, respectively.

The following table summarizes HTM and AFS securities which were in an unrealized or unrecognized loss position at December 31, 2022 and 2021, aggregated by major security type and length of time in a continuous unrealized or unrecognized loss position:


	Less Than 12 Months				12 Months or Longer				Total
Description of Securities	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
	(Dollars in thousands)
December 31, 2022
Held-to-Maturity:
Debt securities:
States and political subdivisions	$	37,113	$	(4,727)	$	—	$	—	$	37,113	$	(4,727)



Mortgage-backed securities:
Residential - U.S. Government-sponsored entities ("GSEs")	559,667		(63,376)		—		—		559,667		(63,376)



Total temporarily impaired HTM investment securities	$	596,780	$	(68,103)	$	—	$	—	$	596,780	$	(68,103)


	Less Than 12 Months				12 Months or Longer				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
December 31, 2022
Available-for-Sale:
Debt securities:
States and political subdivisions	$	52,244	$	(4,807)	$	78,389	$	(31,874)	$	130,633	$	(36,681)
Corporate securities	—		—		30,211		(5,995)		30,211		(5,995)
U.S. Treasury obligations and direct obligations of U.S Government agencies	9,651		(245)		15,541		(2,072)		25,192		(2,317)

Mortgage-backed securities:
Residential - U.S. GSEs	149,624		(13,990)		274,179		(61,196)		423,803		(75,186)
Residential - Non-GSEs	2,890		(334)		5,772		(833)		8,662		(1,167)
Commercial - U.S. GSEs and agencies	25,034		(1,724)		21,110		(6,478)		46,144		(8,202)
Commercial - Non-GSEs	1,506		(34)		—		—		1,506		(34)
Total temporarily impaired AFS investment securities	$	240,949	$	(21,134)	$	425,202	$	(108,448)	$	666,151	$	(129,582)


	Less Than 12 Months				12 Months or Longer				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
December 31, 2021
Available-for-Sale:
Debt securities:
States and political subdivisions	$	79,360	$	(1,252)	$	10,864	$	(597)	$	90,224	$	(1,849)
Corporate securities	8,633		(235)		21,960		(830)		30,593		(1,065)
U.S. Treasury obligations and direct obligations of U.S Government agencies	16,103		(415)		10,891		(153)		26,994		(568)

Mortgage-backed securities:
Residential - U.S. GSEs	926,570		(15,883)		114,747		(4,110)		1,041,317		(19,993)
Residential - Non-GSEs	—		—		938		(64)		938		(64)
Commercial - U.S. GSEs and agencies	6,313		(205)		16,281		(989)		22,594		(1,194)

Total temporarily impaired AFS investment securities	$	1,036,979	$	(17,990)	$	175,681	$	(6,743)	$	1,212,660	$	(24,733)

Investment securities in an unrealized loss position are evaluated on at least a quarterly basis, and include evaluating the changes in the investment securities' ratings issued by rating agencies and changes in the financial condition of the issuer. For mortgage-related securities, delinquency and loss information with respect to the underlying collateral, changes in levels of subordination for the Company's particular position within the repayment structure, and remaining credit enhancement as compared to projected credit losses of the security are also evaluated.

The Company has evaluated its AFS investment securities that are in an unrealized loss position and has determined that the unrealized losses on the Company's investment securities are unrelated to credit quality and are primarily attributable to changes in interest rates and volatility in the financial markets since purchase. All of the investment securities in an unrealized loss position continue to be rated investment grade by one or more major rating agencies. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, the Company has not recorded an ACL and does not consider these securities to be other-than-temporarily impaired as of December 31, 2022, which would result in unrealized losses on these securities being recognized into income.

The Company received these shares in 2008 as part of Visa's initial public offering ("IPO"). These shares were transferable only under limited circumstances until they can be converted into shares of the publicly traded Class A common stock. This conversion will not occur until the resolution of certain litigation, which is indemnified by Visa members. Since its IPO, Visa has funded a litigation reserve to settle these litigation claims. At its discretion, Visa may continue to increase the litigation reserve based upon a change in the conversion ratio of each member bank’s restricted Class B common stock to unrestricted Class A common stock.

Due to the existing transfer restriction and the uncertainty of the outcome of the Visa litigation, the Company determined that the Visa Class B common stock did not have a readily determinable fair value and chose to carry the shares on the Company's consolidated balance sheets at zero cost basis. As a result, the entire net proceeds of $8.5 million were recognized as a pre-tax gain and included in net gain on sales of investment securities in the Company's consolidated statements of income.