Securities

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Securities:

The following table summarizes the amortized cost and fair value of the available for sale investment securities portfolio at September 30, 2022 and December 31, 2021 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss):


			Gross		Gross
	Amortized		Unrealized		Unrealized
(In Thousands of Dollars)	Cost		Gains		Losses			Fair Value
September 30, 2022
U.S. Treasury and U.S. government sponsored entities	$	149,549	$	0	$	(21,733	)	$	127,816
State and political subdivisions		686,456		100		(137,528	)		549,028
Corporate bonds		4,386		0		(303	)		4,083
Mortgage-backed securities - residential		687,352		56		(126,126	)		561,282
Collateralized mortgage obligations - residential		53,390		0		(4,178	)		49,212
Small Business Administration		4,120		0		(408	)		3,712
Totals	$	1,585,253	$	156	$	(290,276	)	$	1,295,133


			Gross		Gross
	Amortized		Unrealized		Unrealized
(In Thousands of Dollars)	Cost		Gains		Losses			Fair Value
December 31, 2021
U.S. Treasury and U.S. government sponsored entities	$	93,137	$	32	$	(2,338	)	$	90,831
State and political subdivisions		636,724		23,296		(1,205	)		658,815
Corporate bonds		4,009		50		(29	)		4,030
Mortgage-backed securities - residential		663,405		1,875		(10,094	)		655,186
Collateralized mortgage obligations - residential		13,303		153		(71	)		13,385
Small Business Administration		5,381		49		0			5,430
Totals	$	1,415,959	$	25,455	$	(13,737	)	$	1,427,677

Proceeds from the sale of portfolio securities were $1.0 million and $2.6 million, respectively, for the three and nine month periods ended September 30, 2022. Gross losses of $5 thousand and $36 thousand, respectively, were realized on these sales for the three and nine month periods ended September 30, 2022. Realized losses on equity securities of $12 thousand and $52 thousand were recognized in the income statement during the three and nine month periods as of September 30, 2022, respectively.

Proceeds from the sale of portfolio securities were $8.2 million and $35.2 million during the three and nine month periods ended September 30, 2021, respectively. Gross gains of $458 thousand and $1.4 million along with gross losses of $1 thousand and $515 thousand were realized on these sales during the three and nine month periods ended September 30, 2021, respectively. Realized gains on equity securities of $5 thousand and $141 thousand were recognized in the income statement during the three and nine month periods as of September 30, 2021, respectively.

The amortized cost and fair value of the debt securities portfolio are shown in the table below by expected maturity. Expected maturities may differ from contractual maturities if 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.


	September 30, 2022
(In Thousands of Dollars)	Amortized Cost		Fair Value
Maturity
Within one year	$	776	$	770
One to five years		30,842		29,791
Five to ten years		178,232		154,700
Beyond ten years		630,541		495,666
Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities		744,862		614,206
Total	$	1,585,253	$	1,295,133

The following table summarizes the available for sale investment securities with unrealized losses at September 30, 2022 and December 31, 2021, aggregated by major security type and length of time in a continuous unrealized loss position.


	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands of Dollars)	Value		Loss			Value		Loss			Value		Loss
September 30, 2022

U.S. Treasury and U.S. government sponsored entities	$	56,522	$	(6,430	)	$	71,294	$	(15,303	)	$	127,816	$	(21,733	)
State and political subdivisions		485,654		(121,150	)		42,427		(16,378	)		528,081		(137,528	)
Corporate bonds		3,292		(145	)		791		(158	)		4,083		(303	)
Mortgage-backed securities - residential		183,962		(32,556	)		375,623		(93,570	)		559,585		(126,126	)
Collateralized mortgage obligations - residential		45,785		(3,715	)		3,427		(463	)		49,212		(4,178	)
Small Business Administration		3,712		(408	)		0		0			3,712		(408	)
Total temporarily impaired	$	778,927	$	(164,404	)	$	493,562	$	(125,872	)	$	1,272,489	$	(290,276	)


	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands of Dollars)	Value		Loss			Value		Loss			Value		Loss
December 31, 2021

U.S. Treasury and U.S. government sponsored entities	$	81,236	$	(1,960	)	$	8,271	$	(378	)	$	89,507	$	(2,338	)
State and political subdivisions		103,651		(1,020	)		10,020		(185	)		113,671		(1,205	)
Corporate bonds		418		(2	)		715		(27	)		1,133		(29	)
Mortgage-backed securities - residential		525,792		(7,872	)		55,569		(2,222	)		581,361		(10,094	)
Collateralized mortgage obligations - residential		7,270		(71	)		0		0			7,270		(71	)
Total temporarily impaired	$	718,367	$	(10,925	)	$	74,575	$	(2,812	)	$	792,942	$	(13,737	)

Allowance for Credit Losses

Management evaluates securities available for sale for credit losses. During the evaluation process, management considers the extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value.

If the Company determines that a credit loss exists, the credit portion of the allowance will be measured using a discounted cash flow analysis using the effective interest rate as of the security’s purchase date. As of September 30, 2022, the Company’s security portfolio consisted of 886 securities, 857 of which were in an unrealized loss position. The majority of the unrealized losses on the Company’s securities are related to its holdings of mortgage-backed securities and state and political subdivisions. The Company does not consider its available for sale ("AFS") securities with unrealized losses to be attributable to credit-related factors, as the unrealized losses have occurred as a result of changes in noncredit related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. As of September 30, 2022 the Company has not recorded an allowance for credit losses on AFS securities.