AFS Securities

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

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


	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	231,723	$	—	$	24,932	$	206,791
States and political subdivisions	121,414		111		7,525		114,000
Auction rate money market preferred	3,200		—		721		2,479
Mortgage-backed securities	45,087		—		4,045		41,042
Collateralized mortgage obligations	223,181		—		13,461		209,720
Corporate	8,150		—		949		7,201
Total	$	632,755	$	111	$	51,633	$	581,233


	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 September 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	$	—	$	231,723	$	—	$	—	$	—	$	231,723
States and political subdivisions	15,459		45,580		21,500		38,875		—		121,414
Auction rate money market preferred	—		—		—		—		3,200		3,200
Mortgage-backed securities	—		—		—		—		45,087		45,087
Collateralized mortgage obligations	—		—		—		—		223,181		223,181
Corporate	—		—		8,150		—		—		8,150
Total amortized cost	$	15,459	$	277,303	$	29,650	$	38,875	$	271,468	$	632,755
Fair value	$	15,394	$	251,517	$	27,523	$	33,558	$	253,241	$	581,233

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. $170,400 of the collateralized mortgage portfolio consist of agency commercial mortgage-backed securities with defined maturity dates of less than ten years.

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


	September 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	$	6,996	$	62,985	$	17,936	$	143,806	$	24,932
States and political subdivisions	4,192		57,140		3,333		42,925		7,525
Auction rate money market preferred	—		—		721		2,479		721
Mortgage-backed securities	4,045		41,042		—		—		4,045
Collateralized mortgage obligations	13,461		209,720		—		—		13,461
Corporate	232		1,768		717		5,433		949
Total	$	28,926	$	372,655	$	22,707	$	194,643	$	51,633
Number of securities in an unrealized loss position:			249				305		554


	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 September 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 September 30, 2022 or December 31, 2021, with the exception of one municipal bond previously identified in 2016 which had no activity during the period.