AFS Securities

6 Months Ended

Jun. 30, 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:


	June 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	231,012	$	—	$	15,679	$	215,333
States and political subdivisions	86,789		464		4,202		83,051
Auction rate money market preferred	3,200		—		192		3,008
Mortgage-backed securities	32,120		—		2,579		29,541
Collateralized mortgage obligations	178,424		—		10,715		167,709
Corporate	8,150		—		1,146		7,004
Total	$	539,695	$	464	$	34,513	$	505,646


	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 June 30, 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	$	19,922	$	211,090	$	—	$	—	$	—	$	231,012
States and political subdivisions	15,613		24,254		18,442		28,480		—		86,789
Auction rate money market preferred	—		—		—		—		3,200		3,200
Mortgage-backed securities	—		—		—		—		32,120		32,120
Collateralized mortgage obligations	—		—		—		—		178,424		178,424
Corporate	—		—		8,150		—		—		8,150
Total amortized cost	$	35,535	$	235,344	$	26,592	$	28,480	$	213,744	$	539,695
Fair value	$	35,351	$	219,602	$	24,268	$	26,167	$	200,258	$	505,646

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 June 30				Six Months Ended June 30
	2024		2023		2024		2023
Proceeds from sales of AFS securities	$	—	$	13,944	$	—	$	18,089
Realized gains (losses)	—		66		—		67
Applicable income tax expense (benefit)	—		14		—		14

The information in the following tables pertains to AFS securities with gross unrealized losses at June 30, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous loss position.


	June 30, 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	$	—	$	—	$	15,679	$	215,333	$	15,679
States and political subdivisions	379		26,922		3,823		40,571		4,202
Auction rate money market preferred	—		—		192		3,008		192
Mortgage-backed securities	—		—		2,579		29,541		2,579
Collateralized mortgage obligations	—		—		10,715		167,709		10,715
Corporate	—		—		1,146		7,004		1,146
Total	$	379	$	26,922	$	34,134	$	463,166	$	34,513
Number of securities in an unrealized loss position:			210				198		408


	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 June 30, 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 intend 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.