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v3.23.1

SECURITIES | 3 Months Ended
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Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | SECURITIES Amortized cost and estimated fair value of securities available for sale are as follows (in thousands):
|  | March 31, 2023
|  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Allowance for credit losses |  | Estimated Fair Value
U.S. Treasury notes and bonds |  | $ | 61,619 |  |  | $ | — |  |  | $ | 5,291 |  |  | $ | — |  |  | $ | 56,328 |
Mortgage-backed securities, residential |  | 508,906 |  |  | — |  |  | 76,252 |  |  | — |  |  | 432,654 |
Obligations of states and political subdivisions |  | 39,795 |  |  | 19 |  |  | 400 |  |  | — |  |  | 39,414 |
Corporate bonds and notes |  | 25,750 |  |  | — |  |  | 5,120 |  |  | — |  |  | 20,630 |
SBA loan pools |  | 78,769 |  |  | 130 |  |  | 1,870 |  |  | — |  |  | 77,029 |
Total |  | $ | 714,839 |  |  | $ | 149 |  |  | $ | 88,933 |  |  | $ | — |  |  | $ | 626,055 |
|  | December 31, 2022
|  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Estimated Fair Value
U.S. Treasury notes and bonds |  | $ | 61,800 |  |  | $ | — |  |  | $ | 6,225 |  |  | $ | 55,574 |
Mortgage-backed securities, residential |  | 518,838 |  |  | — |  |  | 83,707 |  |  | 435,131 |
Obligations of states and political subdivisions |  | 39,828 |  |  | 2 |  |  | 938 |  |  | 38,892 |
Corporate bonds and notes |  | 25,750 |  |  | — |  |  | 3,780 |  |  | 21,970 |
SBA loan pools |  | 82,982 |  |  | 155 |  |  | 2,116 |  |  | 81,022 |
Total |  | $ | 729,198 |  |  | $ | 157 |  |  | $ | 96,766 |  |  | $ | 632,589 |
Amortized cost and estimated fair value of securities held to maturity are as follows (in thousands):
|  | March 31, 2023
|  | Amortized Cost |  | Unrecognized Gains |  |  | Unrecognized Losses |  | Allowance for credit losses |  | Estimated Fair Value
Obligations of states and political subdivisions |  | $ | 952 |  |  | $ | — |  |  |  | $ | — |  |  | $ | — |  |  | $ | 952 |
Time deposits with other financial institutions |  | 980 |  |  | — |  |  |  | 27 |  |  | — |  |  | 953 |
Total |  | $ | 1,932 |  |  | $ | — |  |  |  | $ | 27 |  |  | $ | — |  |  | $ | 1,905 |
|  | December 31, 2022
|  | Amortized Cost |  | Unrecognized Gains |  | Unrecognized Losses |  | Estimated Fair Value
Obligations of states and political subdivisions |  | $ | 952 |  |  | $ | — |  |  | $ | — |  |  | $ | 952 |
Time deposits with other financial institutions |  | 1,472 |  |  | — |  |  | 22 |  |  | 1,450 |
Total |  | $ | 2,424 |  |  | $ | — |  |  | $ | 22 |  |  | $ | 2,402 |
The amortized cost and estimated fair value of debt securities are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (in thousands):
|  | March 31, 2023
|  | Available for Sale |  | Held to Maturity
|  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Within one year |  | $ | 3,141 |  |  | $ | 3,102 |  |  | $ | 1,004 |  |  | $ | 1,003 |
After one, but within five years |  | 104,669 |  |  | 98,309 |  |  | 928 |  |  | 902 |
After five, but within ten years |  | 18,883 |  |  | 14,501 |  |  | — |  |  | — |
After ten years |  | 471 |  |  | 460 |  |  | — |  |  | — |
|  | 127,164 |  |  | 116,372 |  |  | 1,932 |  |  | 1,905 |
Mortgage-backed securities, residential |  | 508,906 |  |  | 432,654 |  |  | — |  |  | — |
SBA loan pools |  | 78,769 |  |  | 77,029 |  |  | — |  |  | — |
Total |  | $ | 714,839 |  |  | $ | 626,055 |  |  | $ | 1,932 |  |  | $ | 1,905 |
There were no proceeds from sales and calls of securities resulting in gains or losses for the three month periods ended March 31, 2023 and 2022. The following tables summarize the investment securities available for sale with unrealized losses at March 31, 2023 and December 31, 2022 by aggregated major security type and length of time in a continuous unrealized loss position (in thousands):
| Less than 12 months |  | 12 months or longer |  | Total
March 31, 2023 | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. Treasury notes and bonds | $ | 1,107 |  |  | $ | 16 |  |  | $ | 55,221 |  |  | $ | 5,275 |  |  | $ | 56,328 |  |  | $ | 5,291 |
Mortgage-backed securities, residential | 7,594 |  |  | 477 |  |  | 425,060 |  |  | 75,775 |  |  | 432,654 |  |  | 76,252 |
Obligations of states and political subdivisions | 20,209 |  |  | 176 |  |  | 12,962 |  |  | 224 |  |  | 33,171 |  |  | 400 |
Corporate bonds and notes | 2,750 |  |  | 250 |  |  | 12,064 |  |  | 4,870 |  |  | 14,814 |  |  | 5,120 |
SBA loan pools | 9,279 |  |  | 20 |  |  | 56,883 |  |  | 1,850 |  |  | 66,162 |  |  | 1,870 |
Total temporarily impaired securities | $ | 40,939 |  |  | $ | 939 |  |  | $ | 562,190 |  |  | $ | 87,994 |  |  | $ | 603,129 |  |  | $ | 88,933 |
| Less than 12 months |  | 12 months or longer |  | Total
December 31, 2022 | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. Treasury notes and bonds | $ | 1,011 |  |  | $ | 30 |  |  | $ | 54,563 |  |  | $ | 6,195 |  |  | $ | 55,574 |  |  | $ | 6,225 |
Mortgage-backed securities, residential | 79,891 |  |  | 7,621 |  |  | 355,240 |  |  | 76,086 |  |  | 435,131 |  |  | 83,707 |
Obligations of states and political subdivisions | 37,847 |  |  | 938 |  |  | — |  |  | — |  |  | 38,785 |  |  | 938 |
Corporate bonds and notes | 4,515 |  |  | 485 |  |  | 7,455 |  |  | 3,295 |  |  | 11,970 |  |  | 3,780 |
SBA loan pools | 14,333 |  |  | 925 |  |  | 51,123 |  |  | 1,191 |  |  | 65,456 |  |  | 2,116 |
Total temporarily impaired securities | $ | 137,597 |  |  | $ | 9,999 |  |  | $ | 468,381 |  |  | $ | 86,767 |  |  | $ | 606,916 |  |  | $ | 96,766 |
Assessment of Available for Sale Debt Securities for Impairment Management assesses the decline in fair value of investment securities on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates both qualitative and quantitative factors to assess whether an impairment exists. The following is a discussion of the credit quality characteristics of portfolio segments carrying material unrealized losses as of March 31, 2023. Obligations of U.S. Governmental agencies and sponsored enterprises: At March 31, 2023, the majority of the Corporation’s unrealized losses in available for sale investment securities related to mortgage-backed securities, issued by government-sponsored entities and agencies. Declines in fair value are attributable to changes in interest rates and illiquidity, not credit quality. The Corporation does not have the intent, and it is not likely to be required to, sell these securities prior to their anticipated recovery. Because the Corporation considers these obligations to carry zero loss estimates, no ACL has been recorded. Corporate bonds and notes: The Corporation's corporate bonds and notes portfolio is comprised of subordinated debt issues of community and regional banks. Management considers the credit quality of these investments on an individual basis. Management reviewed the collectability of these securities, taking into consideration such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, and credit ratings when available, among other pertinent factors. All corporate bond debt securities continue to accrue interest and make payments as expected with no defaults or deferrals on the part of the issuers. Therefore, the Corporation has not recorded an ACL on its corporate bonds and notes portfolio as of March 31, 2023.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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