Investment Securities

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale at December 31, 2023 and 2022 are measured at fair value using Level 2 valuations. The market evaluation utilizes several sources which include “observable inputs” rather than “significant unobservable inputs” and therefore falls into the Level 2 category. The table below presents the balances of securities available-for-sale

measured at fair value on a recurring basis. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of debt and equity securities are summarized as follows:


	December 31, 2023
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	235,297	$	4	$	(16,266)	$	219,035
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	188,307		—		(30,508)		157,799
Corporate bonds	111,109		—		(8,769)		102,340
Treasury securities	109,836		—		(1,115)		108,721
Asset backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises	40,368		—		(1,146)		39,222
Total	$	684,917	$	4	$	(57,804)	$	627,117


	December 31, 2022
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	317,376	$	54	$	(22,304)	$	295,126
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	205,175		—		(31,236)		173,939
Corporate bonds	96,348		—		(11,251)		85,097
Treasury Securities	158,935		—		(3,652)		155,283
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	47,213		—		(2,190)		45,023
Total	$	825,047	$	54	$	(70,633)	$	754,468

The fair values of securities with unrealized losses are as follows:


	December 31, 2023
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
State and political subdivisions	$	63,198	$	220	$	152,854	$	16,046	$	216,052	$	16,266
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	—		—		157,799		30,508		157,799		30,508
Corporate bonds	19,545		455		82,795		8,314		102,340		8,769
Treasury securities	—		—		108,721		1,115		108,721		1,115
Asset backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises	—		—		39,222		1,146		39,222		1,146
Total	$	82,743	$	675	$	541,391	$	57,129	$	624,134	$	57,804


	December 31, 2022
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
State and political subdivisions	$	214,919	$	8,958	$	47,474	$	13,346	$	262,393	$	22,304
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	53,732		6,135		118,017		25,101		171,749		31,236
Corporate bonds	32,517		3,629		47,580		7,622		80,097		11,251
Treasury securities	155,283		3,652		—		—		155,283		3,652
Asset backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises	—		—		47,213		2,190		47,213		2,190
Total	$	456,451	$	22,374	$	260,284	$	48,259	$	716,735	$	70,633

There were 275 securities, or 98.9%, in an unrealized loss position as of December 31, 2023 compared to 311 securities, or 91.7%, in an unrealized loss position as of December 31, 2022. The unrealized losses at December 31, 2023 were primarily attributable to changes in market interest rates after the securities were purchased. The Company does not currently intend to sell, and based on current conditions, the Company does not believe it will be required to sell these available-for-sale securities before the recovery of the amortized cost basis, which may be the maturity dates of the securities. Therefore, the unrealized losses are recorded in accumulated other comprehensive loss. Of these securities, 210, or 75.5%, were in an unrealized loss position for greater than 12 months at December 31, 2023. At December 31, 2023 and December 31, 2022, the Company had not recorded an allowance for credit losses on securities.

The amortized cost and fair value of debt and equity securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.


	December 31, 2023
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	130,388	$	129,213
Due after 1 year through 5 years	136,710		134,663
Due after 5 years through 10 years	202,069		178,754
Due after 10 years	215,750		184,487
Total	$	684,917	$	627,117

There were no securities pledged to secure public deposits or for other purposes at December 31, 2023.

Proceeds from sales of investment securities classified as available-for-sale were $111.6 million in 2023, $3.8 million in 2022, and $63.8 million in 2021. Gross realized gains on the sales in 2023, 2022, and 2021 were $187,000, $15,000, and $55,000, respectively. Gross realized losses on the sales in 2023, 2022, and 2021 were $360,000, $0 and $4,000, respectively.