Securities

9 Months Ended

Sep. 30, 2023

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, 2023 and December 31, 2022 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, 2023
U.S. Treasury and U.S. government sponsored entities	$	145,395	$	0	$	(24,084	)	$	121,311
State and political subdivisions		645,407		134		(147,405	)		498,136
Corporate bonds		18,439		5		(693	)		17,751
Mortgage-backed securities		636,646		0		(141,605	)		495,041
Collateralized mortgage obligations		81,567		261		(6,276	)		75,552
Small Business Administration		3,314		0		(369	)		2,945
Totals	$	1,530,768	$	400	$	(320,432	)	$	1,210,736


			Gross		Gross
	Amortized		Unrealized		Unrealized
(In Thousands of Dollars)	Cost		Gains		Losses			Fair Value
December 31, 2022
U.S. Treasury and U.S. government sponsored entities	$	149,712	$	0	$	(21,616	)	$	128,096
State and political subdivisions		651,705		266		(121,891	)		530,080
Corporate bonds		4,181		0		(302	)		3,879
Mortgage-backed securities - residential		672,784		12		(117,654	)		555,142
Collateralized mortgage obligations		52,291		0		(4,937	)		47,354
Small Business Administration		3,839		0		(365	)		3,474
Totals	$	1,534,512	$	278	$	(266,765	)	$	1,268,025

Proceeds from the sale of available for sale securities for the three month and nine month periods ended September 30, 2023 were $15.4 million and $85.3 million, respectively. Gross losses of $619 thousand were realized on these sales for the three month period ended September 30, 2023 and gross gains of $441 thousand and gross losses of $939 thousand were realized on these sales for the nine month period ended September 30, 2023. In addition, net realized losses on equity securities of $5 thousand and net realized gains of $8 thousand were recognized in the income statement during the three and nine month periods ended September 30, 2023, respectively.

Proceeds from the sale of available for sale securities were $1.0 million and $2.6 million for both 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 both 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.

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, 2023
(In Thousands of Dollars)	Amortized Cost		Fair Value
Maturity
Within one year	$	399	$	392
One to five years		28,868		26,075
Five to ten years		185,929		158,979
Beyond ten years		594,045		451,752
Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities		721,527		573,538
Total	$	1,530,768	$	1,210,736

The following table summarizes the available for sale investment securities with unrealized losses at September 30, 2023 and December 31, 2022, 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, 2023

U.S. Treasury and U.S. government sponsored entities	$	5,381	$	(174	)	$	115,930	$	(23,910	)	$	121,311	$	(24,084	)
State and political subdivisions		94,185		(7,325	)		396,362		(140,080	)		490,547		(147,405	)
Corporate bonds		11,962		(429	)		3,804		(264	)		15,766		(693	)
Mortgage-backed securities		5,170		(179	)		489,871		(141,426	)		495,041		(141,605	)
Collateralized mortgage obligations		23,580		(802	)		44,524		(5,474	)		68,104		(6,276	)
Small Business Administration		0		0			2,945		(369	)		2,945		(369	)
Total temporarily impaired	$	140,278	$	(8,909	)	$	1,053,436	$	(311,523	)	$	1,193,714	$	(320,432	)


	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, 2022

U.S. Treasury and U.S. government sponsored entities	$	52,311	$	(5,835	)	$	75,685	$	(15,781	)	$	127,996	$	(21,616	)
State and political subdivisions		306,709		(56,650	)		191,584		(65,241	)		498,293		(121,891	)
Corporate bonds		2,893		(122	)		986		(180	)		3,879		(302	)
Mortgage-backed securities - residential		101,476		(13,545	)		453,233		(104,109	)		554,709		(117,654	)
Collateralized mortgage obligations		42,140		(4,137	)		5,214		(800	)		47,354		(4,937	)
Small Business Administration		1,295		(122	)		2,179		(243	)		3,474		(365	)
Total temporarily impaired	$	506,824	$	(80,411	)	$	728,881	$	(186,354	)	$	1,235,705	$	(266,765	)

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, 2023, the Company’s security portfolio consisted of 980 securities, 951 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. In addition, management has the ability and the intent to hold the securities for a period of time sufficient to allow for any recovery in fair value. As of September 30, 2023 the Company has not recorded an allowance for credit losses on AFS securities.