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Investment Securities | 12 Months Ended
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Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
Investment securities | INVESTMENT SECURITIES The following tables summarize the amortized cost and fair value of securities available-for-sale and securities held-for-maturity at December 31, 2022 and 2021 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive (loss) income and gross unrecognized gains and losses:
| December 31, 2022
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Available-for-Sale Securities |  |  |  |  |  |  |
Debt Securities: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 9,990 |  |  | $ | — |  |  | $ | (1,283) |  |  | $ | 8,707 |
U.S. Government agencies | 107 |  |  | — |  |  | (9) |  |  | 98 |
Obligations of states and political subdivisions | 201,638 |  |  | — |  |  | (26,653) |  |  | 174,985 |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 117,292 |  |  | 4 |  |  | (7,803) |  |  | 109,493 |
Private label mortgage and asset backed securities | 411,441 |  |  | 14 |  |  | (55,913) |  |  | 355,542 |
| $ | 740,468 |  |  | $ | 18 |  |  | $ | (91,661) |  |  | $ | 648,825 |
| December 31, 2022
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Held to Maturity |  |  |  |  |  |  |
Debt Securities: |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 192,004 |  |  | $ | 67 |  |  | $ | (23,166) |  |  | $ | 168,905 |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 10,430 |  |  | — |  |  | (1,762) |  |  | 8,668 |
Private label mortgage and asset backed securities | 56,691 |  |  | — |  |  | (5,931) |  |  | 50,760 |
Corporate debt securities | 45,982 |  |  | — |  |  | (3,066) |  |  | 42,916 |
| $ | 305,107 |  |  | $ | 67 |  |  | $ | (33,925) |  |  | $ | 271,249 |
| December 31, 2021
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Available-for-Sale Securities |  |  |  |  |  |  |
Debt Securities: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 9,988 |  |  | $ | — |  |  | $ | (63) |  |  | $ | 9,925 |
U.S. Government agencies | 373 |  |  | 6 |  |  | — |  |  | 379 |
Obligations of states and political subdivisions | 512,952 |  |  | 16,703 |  |  | (3,188) |  |  | 526,467 |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 213,471 |  |  | 2,245 |  |  | (1,277) |  |  | 214,439 |
Private label mortgage and asset backed securities | 317,089 |  |  | 824 |  |  | (4,693) |  |  | 313,220 |
Corporate debt securities | 44,500 |  |  | 595 |  |  | (317) |  |  | 44,778 |
` | $ | 1,098,373 |  |  | $ | 20,373 |  |  | $ | (9,538) |  |  | $ | 1,109,208 |
Proceeds and gross realized (losses)/gains on investment securities for the years ended December 31, 2022, 2021, and 2020 are shown below (in thousands):
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Available-for-Sale Securities |  |  |  |  |  |
Proceeds from sales or calls |  | $ | 252,331 |  |  | $ | 26,222 |  |  | $ | 283,956 |
Gross realized gains from sales or calls |  | $ | 5,235 |  |  | $ | 580 |  |  | $ | 7,123 |
Gross realized losses from sales or calls |  | $ | (6,965) |  |  | $ | (79) |  |  | $ | (2,871) |
During the second quarter of 2022, the Company re-designated certain securities previously classified as available-for-sale to the held-to-maturity classification. The securities re-designated consisted of obligations of states and political subdivision securities, U.S. Government sponsored entity and agency securities collateralized by residential mortgage obligations, private label mortgage and asset backed securities, and corporate debt securities with a total carrying value of $306.7 million at April 1, 2022. At the time of re-designation, the securities included $25.3 million of pretax unrealized losses in other comprehensive income; which is being amortized over the remaining life of the securities in a manner consistent with the amortization of a premium or discount. As market interest rates or risks associated with an avail able-for-sale security’s issuer continue to change and impact the actual or perceived values of investment securities, the Company may determine that selling these securities and using proceeds to purchase securities that fit with the Company’s current risk profile is appropriate and beneficial to the Company. Losses recognized in 2022, 2021, and 2020 were incurred in order to reposition the investment securities portfolio based on the current rate environment. The securities sold at a loss were acquired when the rate environment was not as volatile. The securities sold were primarily purchased to serve a purpose in the rate environment in which the securities were purchased. The Company addressed risks in the security portfolio by selling these securities and using the proceeds to purchase securities that fall within the Company’s current risk profile. The provision for income taxes includes $(511,000), $148,000, and $1,257,000 income (benefit)/tax impact from the reclassification of unrealized net (losses)/gains on available-for-sale securities to realized net (losses)/gains on available-for-sale securities for the years ended December 31, 2022, 2021, and 2020, respectively. Investment securities with unrealized losses at December 31, 2022 and 2021 are summarized and classified according to the duration of the loss period as follows (in thousands):
| December 31, 2022
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Available-for-Sale Securities |  |  |  |  |  |  |  |  |  |  |
Debt Securities: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | — |  |  | $ | — |  |  | $ | 8,707 |  |  | $ | (1,283) |  |  | $ | 8,707 |  |  | $ | (1,283) |
U.S. Government agencies | — |  |  | — |  |  | 98 |  |  | (9) |  |  | 98 |  |  | (9) |
Obligations of states and political subdivisions | 90,808 |  |  | (12,208) |  |  | 84,177 |  |  | (14,445) |  |  | 174,985 |  |  | (26,653) |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 20,825 |  |  | (1,058) |  |  | 88,520 |  |  | (6,745) |  |  | 109,345 |  |  | (7,803) |
Private label residential mortgage and asset backed securities | 126,284 |  |  | (14,529) |  |  | 229,152 |  |  | (41,384) |  |  | 355,436 |  |  | (55,913) |
| $ | 237,917 |  |  | $ | (27,795) |  |  | $ | 410,654 |  |  | $ | (63,866) |  |  | $ | 648,571 |  |  | $ | (91,661) |
| December 31, 2022
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Held-to-Maturity Securities |  |  |  |  |  |  |  |  |  |  |
Debt Securities: |  |  |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 48,311 |  |  | $ | (5,505) |  |  | $ | 118,026 |  |  | $ | (17,661) |  |  | $ | 166,337 |  |  | $ | (23,166) |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | — |  |  | — |  |  | 8,668 |  |  | (1,762) |  |  | 8,668 |  |  | (1,762) |
Private label residential mortgage and asset backed securities | 19,393 |  |  | (1,916) |  |  | 31,367 |  |  | (4,015) |  |  | 50,760 |  |  | (5,931) |
Corporate debt securities | 23,997 |  |  | (1,561) |  |  | 18,919 |  |  | (1,505) |  |  | 42,916 |  |  | (3,066) |
| $ | 91,701 |  |  | $ | (8,982) |  |  | $ | 176,980 |  |  | $ | (24,943) |  |  | $ | 268,681 |  |  | $ | (33,925) |
| December 31, 2021
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Available-for-Sale Securities |  |  |  |  |  |  |  |  |  |  |
Debt Securities: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 9,925 |  |  | $ | (63) |  |  | $ | — |  |  | $ | — |  |  | $ | 9,925 |  |  | $ | (63) |
Obligations of states and political subdivisions | 143,336 |  |  | (2,896) |  |  | 6,336 |  |  | (292) |  |  | 149,672 |  |  | (3,188) |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 91,385 |  |  | (905) |  |  | 40,365 |  |  | (372) |  |  | 131,750 |  |  | (1,277) |
Private label residential mortgage backed securities | 230,987 |  |  | (3,661) |  |  | 28,908 |  |  | (1,032) |  |  | 259,895 |  |  | (4,693) |
Corporate debt securities | 21,183 |  |  | (317) |  |  | — |  |  | — |  |  | 21,183 |  |  | (317) |
| $ | 496,816 |  |  | $ | (7,842) |  |  | $ | 75,609 |  |  | $ | (1,696) |  |  | $ | 572,425 |  |  | $ | (9,538) |
The Company periodically evaluates each investment security for other-than-temporary impairment, relying primarily on industry analyst reports, observation of market conditions and interest rate fluctuations. The portion of the impairment that is attributable to a shortage in the present value of expected future cash flows relative to the amortized cost should be recorded as a current period charge to earnings. The discount rate in this analysis is the original yield expected at time of purchase. As of December 31, 2022, the Company performed an analysis of the investment portfolio to determine whether any of the investments held in the portfolio had an other-than-temporary impairment (OTTI). The Company evaluated all individual available-for-sale investment securities with an unrealized loss at December 31, 2022 and identified those that had an unrealized loss for at least a consecutive 12 month period, which had an unrealized loss at December 31, 2022 greater than 10% of the recorded book value on that date, or which had an unrealized loss of more than $250,000. The Company also analyzed any securities that may have been downgraded by credit rating agencies. For those bonds that met the evaluation criteria, management obtained and reviewed the most recently published national credit ratings for those bonds. There were no OTTI losses recorded during the twelve months ended December 31, 2022, 2021, or 2020. U.S. Treasury Securities - At December 31, 2022, the Company held one U.S. Treasury security which was in a loss position for more than 12 months. The unrealized losses on the Company’s investments in U.S. Treasury securities were caused by interest rate changes. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell, and it is more likely than not that it will not be required to sell those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2022. U.S. Government Agencies - At December 31, 2022, the Company held one U.S. Government agency security which was in a loss position for more than 12 months. The unrealized losses on the Company’s investments in U.S. Government agency securities were caused by interest rate changes. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell, and it is more likely than not that it will not be required to sell those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2022. Obligations of States and Political Subdivisions - At December 31, 2022, the Company held 43 obligations of states and political subdivision securities of which 25 were in a loss position for less than 12 months, and 18 have been in a loss position for more than 12 months. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and it is more likely than not that it will not be required to sell those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2022. U.S. Government Sponsored Entities and Agencies Collateralized by Residential Mortgage Obligations - At December 31, 2022, the Company held 66 U.S. Government sponsored entity and agency securities collateralized by residential mortgage obligation securities of which 40 were in a loss position for less than 12 months and 26 have been in a loss position for more than 12 months. The unrealized losses on the Company’s investments in U.S. Government sponsored entity and agencies collateralized by residential mortgage obligations were caused by interest rate changes. The contractual cash flows of those investments are guaranteed or supported by an agency or sponsored entity of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell, and it is more likely than not that it will not be required to sell those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2022. Private Label Mortgage and Asset Backed Securities - At December 31, 2022, the Company had a total of 82 Private Label Mortgage and Asset Backed Securities (PLMBS). 27 of these securities were in a loss position for less than 12 months and 55 have been in a loss position for more than 12 months at December 31, 2022. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell, and it is more likely than not that it will not be required to sell those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2022. The Company continues to monitor these securities for changes in credit ratings or other indications of credit deterioration. The amortized cost and estimated fair value of available-for-sale and held-to-maturity investment securities at December 31, 2022 and 2021 by contractual maturity are shown in the two tables below (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | December 31, 2022 |  | December 31, 2021
Available-for-Sale Securities |  | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Within one year |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
After one year through five years |  | — |  |  | — |  |  | 3,690 |  |  | 4,038 |
After five years through ten years |  | 45,918 |  |  | 38,383 |  |  | 99,615 |  |  | 101,498 |
After ten years |  | 165,710 |  |  | 145,309 |  |  | 419,635 |  |  | 430,856 |
|  | 211,628 |  |  | 183,692 |  |  | 522,940 |  |  | 536,392 |
Investment securities not due at a single maturity date: |  |  |  |  |  |  |  |
U.S. Government agencies |  | 107 |  |  | 98 |  |  | 373 |  |  | 379 |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations |  | 117,292 |  |  | 109,493 |  |  | 213,471 |  |  | 214,439 |
Private label mortgage and asset backed securities |  | 411,441 |  |  | 355,542 |  |  | 317,089 |  |  | 313,220 |
Corporate debt securities |  | — |  |  | — |  |  | 44,500 |  |  | 44,778 |
|  | $ | 740,468 |  |  | $ | 648,825 |  |  | $ | 1,098,373 |  |  | $ | 1,109,208 |
|  | December 31, 2022 |  | December 31, 2021
Held-to-Maturity Securities |  | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Within one year |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
After one year through five years |  | 132 |  |  | 129 |  |  | — |  |  | — |
After five years through ten years |  | 51,424 |  |  | 46,143 |  |  | — |  |  | — |
After ten years |  | 140,448 |  |  | 122,633 |  |  | — |  |  | — |
|  | 192,004 |  |  | 168,905 |  |  | — |  |  | — |
Investment securities not due at a single maturity date: |  |  |  |  |  |  |  |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations |  | 10,430 |  |  | 8,668 |  |  | — |  |  | — |
Private label mortgage and asset backed securities |  | 56,691 |  |  | 50,760 |  |  | — |  |  | — |
Corporate debt securities |  | 45,982 |  |  | 42,916 |  |  | — |  |  | — |
|  | $ | 305,107 |  |  | $ | 271,249 |  |  | $ | — |  |  | $ | — |
Investment securities with amortized costs totaling $214,579,000 and $252,986,000 and fair values totaling $190,814,000 and $260,325,000 were pledged as collateral for borrowing arrangements, public funds and for other purposes at December 31, 2022 and 2021, respectively.

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- Definition Disclosure of available-for-sale securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. + References No definition available. + Details
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- References No definition available. + Details
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