Securities

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Securities:

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2024 and December 31, 2023, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). No allowance for credit losses have been recognized for the securities portfolio at September 30, 2024 or December 31, 2023.


			Gross		Gross
	Amortized		Unrealized		Unrealized
(In Thousands of Dollars)	Cost		Gains		Losses			Fair Value
September 30, 2024
U.S. Treasury and U.S. government sponsored entities	$	132,478	$	119	$	(13,004	)	$	119,593
State and political subdivisions		611,001		4,159		(87,438	)		527,722
Corporate bonds		18,494		313		(371	)		18,436
Mortgage-backed securities		601,239		491		(88,517	)		513,213
Collateralized mortgage obligations		116,764		482		(5,485	)		111,761
Small Business Administration		2,822		0		(197	)		2,625
Totals	$	1,482,798	$	5,564	$	(195,012	)	$	1,293,350


			Gross		Gross
	Amortized		Unrealized		Unrealized
(In Thousands of Dollars)	Cost		Gains		Losses			Fair Value
December 31, 2023
U.S. Treasury and U.S. government sponsored entities	$	145,439	$	113	$	(17,597	)	$	127,955
State and political subdivisions		644,880		4,792		(93,503	)		556,169
Corporate bonds		18,554		187		(466	)		18,275
Mortgage-backed securities		624,529		1		(104,144	)		520,386
Collateralized mortgage obligations		80,227		331		(6,559	)		73,999
Small Business Administration		3,212		0		(295	)		2,917
Totals	$	1,516,841	$	5,424	$	(222,564	)	$	1,299,701

The proceeds from sales of available-for-sale securities and the associated gains and losses are as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
Proceeds	$	4,109		$	15,388		$	48,865		$	85,306
Gross gains		0			0			17			441
Gross losses		(421	)		(618	)		(2,697	)		(939	)

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, 2024
(In Thousands of Dollars)	Amortized Cost		Fair Value
Maturity
Within one year	$	3,154	$	3,188
One to five years		66,494		60,894
Five to ten years		162,857		152,018
Beyond ten years		529,468		449,651
Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities		720,825		627,599
Total	$	1,482,798	$	1,293,350

The following table summarizes the investment securities with unrealized losses for which an allowance for credit losses has not been recorded at September 30, 2024 and December 31, 2023, 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, 2024

U.S. Treasury and U.S. government sponsored entities	$	2,758	$	(252	)	$	114,823	$	(12,752	)	$	117,581	$	(13,004	)
State and political subdivisions		32,039		(2,730	)		418,686		(84,708	)		450,725		(87,438	)
Corporate bonds		2,392		(34	)		8,857		(337	)		11,249		(371	)
Mortgage-backed securities		0		0			497,592		(88,517	)		497,592		(88,517	)
Collateralized mortgage obligations		20,871		(315	)		49,258		(5,170	)		70,129		(5,485	)
Small Business Administration		0		0			2,625		(197	)		2,625		(197	)
Total	$	58,060	$	(3,331	)	$	1,091,841	$	(191,681	)	$	1,149,901	$	(195,012	)


	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, 2023

U.S. Treasury and U.S. government sponsored entities	$	399	$	(1	)	$	122,361	$	(17,596	)	$	122,760	$	(17,597	)
State and political subdivisions		15,852		(1,684	)		428,416		(91,819	)		444,268		(93,503	)
Corporate bonds		8,463		(284	)		3,881		(182	)		12,344		(466	)
Mortgage-backed securities		5,113		(76	)		515,259		(104,068	)		520,372		(104,144	)
Collateralized mortgage obligations		20,019		(980	)		43,808		(5,579	)		63,827		(6,559	)
Small Business Administration		0		0			2,917		(295	)		2,917		(295	)
Total	$	49,846	$	(3,025	)	$	1,116,642	$	(219,539	)	$	1,166,488	$	(222,564	)

As of September 30, 2024, the Company’s security portfolio consisted of 944 securities, 756 of which were in an unrealized loss position. The treasury, agency, mortgage-backed securities, collateralized mortgage obligations and small business administration securities that the Company owns are all issued by government sponsored entities and therefore contain no potential for credit loss. The Company does not consider any of its available-for-sale 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. The vast majority of the Company's state and political subdivisions holdings are of high credit quality, and are rated AA or higher. In addition, management has both the ability and intent to hold the securities for a period of time sufficient to allow for the recovery in fair value. As of September 30, 2024, the Company has not recorded an allowance for credit losses on available for sale (“AFS”) securities.

Equity Securities

The Company also holds equity securities which include $15.7 million in Small Business Investment Company (“SBIC”) partnership investments as well as $261 thousand in local and regional bank holdings and other miscellaneous equity funds at September 30, 2024. At December 31, 2023, the Company held $14.9 million in SBIC investments and $226 thousand in local and regional bank holdings and other miscellaneous equity funds. Gains on these equity funds were recognized as income in 2024 and 2023 in compliance with ASU 2016-01, which requires all equity securities to be measured at their fair value with changes in fair value being recognized through the statements of income.