AFS Securities

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

The amortized cost and fair value of AFS securities, with gross unrealized gains and losses, are as follows at:


	June 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	231,824	$	—	$	17,350	$	214,474
States and political subdivisions	122,838		671		3,860		119,649
Auction rate money market preferred	3,200		—		703		2,497
Mortgage-backed securities	47,483		2		1,689		45,796
Collateralized mortgage obligations	172,802		9		5,239		167,572
Corporate	8,150		—		548		7,602
Total	$	586,297	$	682	$	29,389	$	557,590


	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	212,379	$	—	$	2,676	$	209,703
States and political subdivisions	116,836		4,457		88		121,205
Auction rate money market preferred	3,200		42		—		3,242
Mortgage-backed securities	54,710		1,438		—		56,148
Collateralized mortgage obligations	90,435		1,876		10		92,301
Corporate	8,150		19		167		8,002
Total	$	485,710	$	7,832	$	2,941	$	490,601

The amortized cost and fair value of AFS securities by contractual maturity at June 30, 2022 are as follows:


	Maturing								Securities with Variable Monthly Payments or Noncontractual Maturities
	Due in One Year or Less		After One Year But Within Five Years		After Five Years But Within Ten Years		After Ten Years				Total
U.S. Treasury	$	—	$	231,824	$	—	$	—	$	—	$	231,824
States and political subdivisions	16,183		46,692		21,595		38,368		—		122,838
Auction rate money market preferred	—		—		—		—		3,200		3,200
Mortgage-backed securities	—		—		—		—		47,483		47,483
Collateralized mortgage obligations	—		—		—		—		172,802		172,802
Corporate	—		—		8,150		—		—		8,150
Total amortized cost	$	16,183	$	278,516	$	29,745	$	38,368	$	223,485	$	586,297
Fair value	$	16,227	$	261,358	$	28,757	$	35,383	$	215,865	$	557,590

Expected maturities for government sponsored enterprises and states and political subdivisions may differ from contractual maturities because issuers may have the right to call or prepay obligations.

As the auction rate money market preferred investments have continual call dates, they are not reported by a specific maturity group. Because of their variable monthly payments, mortgage-backed securities and collateralized mortgage obligations are not reported by a specific maturity group.

The following information pertains to AFS securities with gross unrealized losses at June 30, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous loss position.


	June 30, 2022
	Less Than Twelve Months				Twelve Months or More
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
U.S. Treasury	$	17,350	$	214,474	$	—	$	—	$	17,350
States and political subdivisions	3,081		39,328		779		14,657		3,860
Auction rate money market preferred	—		—		703		2,497		703
Mortgage-backed securities	1,689		45,646		—		—		1,689
Collateralized mortgage obligations	5,239		159,005		—		—		5,239
Corporate	487		5,963		61		1,639		548
Total	$	27,846	$	464,416	$	1,543	$	18,793	$	29,389
Number of securities in an unrealized loss position:			144				80		224


	December 31, 2021
	Less Than Twelve Months				Twelve Months or More
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
U.S. Treasury	$	2,676	$	209,703	$	—	$	—	$	2,676
States and political subdivisions	88		9,674		—		—		88
Collateralized mortgage obligations	10		11,165		—		—		10
Corporate	167		6,283		—		—		167
Total	$	2,941	$	236,825	$	—	$	—	$	2,941
Number of securities in an unrealized loss position:			40				—		40

The unrealized loss on our AFS securities portfolio resulted from the recent increases in short-term and intermediate-term benchmark interest rates.

As of June 30, 2022 and December 31, 2021, we conducted an analysis to determine whether any AFS securities currently in an unrealized loss position should be identified as other-than-temporarily impaired. Such analyses considered, among other factors, the following criteria:

•Has the value of the investment declined more than what is deemed to be reasonable based on a risk and maturity adjusted discount rate?

•Is the investment credit rating below investment grade?

•Is it probable the issuer will be unable to pay the amount when due?

•Is it more likely than not that we will have to sell the security before recovery of its cost basis?

•Has the duration of the investment been extended?

Based on our analysis, which included the criteria outlined above and the fact that we have asserted that we do not have to sell any AFS securities in an unrealized loss position, we do not believe that the values of any AFS securities are other-than-temporarily impaired as of June 30, 2022 or December 31, 2021, with the exception of one municipal bond previously identified in 2016 which had no activity during the period.