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Note 3 - Debt Securities

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3. Debt Securities

The amortized cost of securities available-for-sale and their approximate fair values are summarized below (in thousands):

						Gross				Gross
		Amortized				Unrealized				Unrealized				Estimated
		Cost				Gains				Losses				Fair Value
2023:
U.S. government treasuries		$	213,646			$	29			$	(13,587	)		$	200,088
U.S. government agencies			99,455				2				(6,842	)			92,615
U.S. government mortgage-backed securities			115,988				-				(14,124	)			101,864
State and political subdivisions			292,475				93				(22,677	)			269,891
Corporate bonds			77,139				11				(5,219	)			71,931
Total		$	798,703			$	135			$	(62,449	)		$	736,389

						Gross				Gross
		Amortized				Unrealized				Unrealized				Estimated
		Cost				Gains				Losses				Fair Value
2022:
U.S. government treasuries		$	227,065			$	-			$	(19,468	)		$	207,597
U.S. government agencies			110,370				4				(9,441	)			100,933
U.S. government mortgage-backed securities			133,205				4				(16,468	)			116,741
State and political subdivisions			317,179				27				(31,203	)			286,003
Corporate bonds			82,177				7				(7,020	)			75,164
Total		$	869,996			$	42			$	(83,600	)		$	786,438

The amortized cost and fair value of debt securities available-for-sale as of December 31, 2023, are shown below by expected maturity. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands).

		Amortized				Estimated
		Cost				Fair Value

Due in one year or less		$	82,517			$	80,981
Due after one year through five years			395,006				370,101
Due after five years through ten years			196,227				175,993
Due after ten years			8,965				7,450
		$	682,715			$	634,525
U.S. government mortgage-backed securities			115,988				101,864
Total		$	798,703			$	736,389

At December 31, 2023 and 2022, securities with a carrying value of approximately $374.4 million and $256.7 million, respectively, were pledged as collateral on public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law. Securities sold under agreements to repurchase are held by the Company’s safekeeping agent.

The proceeds, gains, and losses from securities available-for-sale are summarized below (in thousands):

		2023				2022
Proceeds from sales of securities available-for-sale		$	2,069			$	10,548
Gross realized gains on securities available-for-sale			73				60
Gross realized losses on securities available-for-sale			(38	)			(23	)

No credit loss expense was recognized on securities available-for-sale for the year ended December 31, 2023 and no other-than-temporary impairments were recognized as a component of income for the year ended December 31, 2022.

Gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 and 2022, are summarized as follows (in thousands):

2023:		Less than 12 Months												12 Months or More												Total
		Estimated				Gross								Estimated				Gross								Estimated				Gross
		Fair				Unrealized				No. of				Fair				Unrealized				No. of				Fair				Unrealized
		Value				Losses				Securities				Value				Losses				Securities				Value				Losses
Securities available for sale:
U.S. government treasuries		$	-			$	-				-			$	196,432			$	(13,587	)			121			$	196,432			$	(13,587	)
U.S. government agencies			1,986				(11	)			2				90,137				(6,831	)			78				92,123				(6,842	)
U.S. government mortgage-backed securities			467				(12	)			4				101,265				(14,112	)			155				101,732				(14,124	)
State and political subdivisions			9,054				(73	)			18				251,286				(22,604	)			474				260,340				(22,677	)
Corporate bonds			3,117				(108	)			4				67,816				(5,111	)			84				70,933				(5,219	)
Total		$	14,624			$	(204	)			28			$	706,936			$	(62,245	)			912			$	721,560			$	(62,449	)

2022:		Less than 12 Months												12 Months or More												Total
		Estimated				Gross								Estimated				Gross								Estimated				Gross
		Fair				Unrealized				No. of				Fair				Unrealized				No. of				Fair				Unrealized
		Value				Losses				Securities				Value				Losses				Securities				Value				Losses
Securities available for sale:
U.S. government treasuries		$	57,882			$	(3,960	)			45			$	147,215			$	(15,508	)			89				205,097				(19,468	)
U.S. government agencies			61,821				(4,293	)			51				38,492				(5,148	)			32				100,313				(9,441	)
U.S. government mortgage-backed securities			45,440				(4,393	)			104				70,854				(12,075	)			57				116,294				(16,468	)
State and political subdivisions			181,640				(14,556	)			335				97,907				(16,647	)			203				279,547				(31,203	)
Corporate bonds			59,293				(4,281	)			71				13,382				(2,739	)			23				72,675				(7,020	)
Total		$	406,076			$	(31,483	)			606			$	367,850			$	(52,117	)			404			$	773,926			$	(83,600	)

At December 31, 2023, debt securities have unrealized losses of $62.4 million. These unrealized losses are generally due to changes in interest rates or general market conditions. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Management concluded that the unrealized losses on debt securities were not credit related. Due to potential changes in conditions, it is at least reasonably possible that changes in fair values and management’s assessments will occur in the near term and that such changes could materially affect the amounts reported in the Company’s financial statements.