AFS Securities

3 Months Ended

Mar. 31, 2024

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:


	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	231,114	$	—	$	16,888	$	214,226
States and political subdivisions	93,569		805		3,904		90,470
Auction rate money market preferred	3,200		—		187		3,013
Mortgage-backed securities	33,762		—		2,718		31,044
Collateralized mortgage obligations	182,542		—		10,711		171,831
Corporate	8,150		—		1,149		7,001
Total	$	552,337	$	805	$	35,557	$	517,585


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	231,218	$	—	$	16,417	$	214,801
States and political subdivisions	94,837		1,032		2,993		92,876
Auction rate money market preferred	3,200		—		269		2,931
Mortgage-backed securities	35,321		—		2,506		32,815
Collateralized mortgage obligations	187,248		—		9,473		177,775
Corporate	8,150		—		1,200		6,950
Total	$	559,974	$	1,032	$	32,858	$	528,148

The amortized cost and fair value of AFS securities by contractual maturity at March 31, 2024 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	$	9,990	$	221,124	$	—	$	—	$	—	$	231,114
States and political subdivisions	15,105		27,636		19,913		30,915		—		93,569
Auction rate money market preferred	—		—		—		—		3,200		3,200
Mortgage-backed securities	—		—		—		—		33,762		33,762
Collateralized mortgage obligations	—		—		—		—		182,542		182,542
Corporate	—		—		8,150		—		—		8,150
Total amortized cost	$	25,095	$	248,760	$	28,063	$	30,915	$	219,504	$	552,337
Fair value	$	25,158	$	232,115	$	26,197	$	28,227	$	205,888	$	517,585

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.

A summary of the sales activity of AFS securities is as follows for the:


	Three Months Ended March 31
		2024		2023
Proceeds from sales of AFS securities		$	—	$	4,145
Realized gains (losses)		$	—	$	1
Applicable income tax expense (benefit)		$	—	$	—

The information in the following tables pertains to AFS securities with gross unrealized losses at March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous loss position.


	March 31, 2024
	Less Than Twelve Months				Twelve Months or More
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
U.S. Treasury	$	—	$	—	$	16,888	$	214,226	$	16,888
States and political subdivisions	86		14,347		3,818		41,225		3,904
Auction rate money market preferred	—		—		187		3,013		187
Mortgage-backed securities	1		3		2,717		31,041		2,718
Collateralized mortgage obligations	—		—		10,711		171,831		10,711
Corporate	—		—		1,149		7,001		1,149
Total	$	87	$	14,350	$	35,470	$	468,337	$	35,557
Number of securities in an unrealized loss position:			40				218		258


	December 31, 2023
	Less Than Twelve Months				Twelve Months or More
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
U.S. Treasury	$	—	$	—	$	16,417	$	214,801	$	16,417
States and political subdivisions	42		7,172		2,951		37,011		2,993
Auction rate money market preferred	—		—		269		2,931		269
Mortgage-backed securities	1		10		2,505		32,805		2,506
Collateralized mortgage obligations	116		4,554		9,357		173,221		9,473
Corporate	—		—		1,200		6,950		1,200
Total	$	159	$	11,736	$	32,699	$	467,719	$	32,858
Number of securities in an unrealized loss position:			22				186		208

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

As of March 31, 2024, no allowance for credit losses has been recognized on AFS securities in an unrealized loss position, as management does not believe any of the securities are impaired due to reasons of credit quality. This is based on our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our AFS securities and consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. Furthermore, management does not have the intent to sell any of the securities classified as AFS in the table above, and believes it is more likely than not that we will not have to sell any such securities before a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their respective maturity date or repricing date, or if the market yields for such investments decline.