XML 25 R14.htm IDEA: XBRL DOCUMENT

Note 6 - Debt Securities

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

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

6.	Debt Securities

The amortized cost of securities available-for-sale and their approximate fair values as of March 31, 2024 and December 31, 2023 are summarized below (in thousands):

2024:						Gross				Gross
		Amortized				Unrealized				Unrealized				Estimated
		Cost				Gains				Losses				Fair Value

U.S. government treasuries		$	213,801			$	8			$	(13,481	)		$	200,328
U.S. government agencies			99,124				2				(6,861	)			92,265
U.S. government mortgage-backed securities			112,244				1				(14,086	)			98,159
State and political subdivisions			285,410				55				(22,610	)			262,855
Corporate bonds			75,102				5				(5,509	)			69,598
		$	785,681			$	71			$	(62,547	)		$	723,205

2023:						Gross				Gross
		Amortized				Unrealized				Unrealized				Estimated
		Cost				Gains				Losses				Fair Value

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
		$	798,703			$	135			$	(62,449	)		$	736,389

The amortized cost and fair value of debt securities available-for-sale as of March 31, 2024, are shown below by expected maturity. Expected maturity 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		$	93,493			$	91,733
Due after one year through five years			387,739				361,233
Due after five years through ten years			183,240				163,988
Due after ten years			8,965				8,092
		$	673,437			$	625,046
U.S. government mortgage-backed securities			112,244				98,159
Total		$	785,681			$	723,205

The Company's investment portfolio had an expected duration of 3.42 years as of March 31, 2024.

Securities with a carrying value of $388.7 million and $374.4 million at March 31, 2024 and December 31, 2023, respectively, were pledged on public deposits, securities sold under agreements to repurchase, other borrowings and for other purposes as required or permitted by law.

The proceeds and gains on securities available-for-sale for the three months ended March 31, 2024 and 2023 are summarized below (in thousands):

		Three Months Ended
		March 31,
		2024				2023
Proceeds from sales of securities available-for-sale		$	2,049			$	-
Gross realized gains on securities available-for-sale			-				-
Gross realized losses on securities available-for-sale			(165	)			-

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 March 31, 2024 and December 31, 2023 are summarized as follows (in thousands):

		Less than 12 Months												12 Months or More												Total
2024:		Estimated Fair Value				Unrealized Losses				No. of Securities				Estimated Fair Value				Unrealized Losses				No. of Securities				Estimated Fair Value				Unrealized Losses

Securities available-for-sale:
U.S. government treasuries		$	4,491			$	(19	)			2			$	193,044			$	(13,462	)			118			$	197,535			$	(13,481	)
U.S. government agencies			1,913				(18	)			2				85,896				(6,843	)			75				87,809				(6,861	)
U.S. government mortgage-backed securities			124				(1	)			1				97,580				(14,085	)			155				97,704				(14,086	)
State and political subdivisions			9,083				(125	)			20				247,740				(22,485	)			473				256,823				(22,610	)
Corporate bonds			3,115				(110	)			4				65,492				(5,399	)			81				68,607				(5,509	)
		$	18,726			$	(273	)			29			$	689,752			$	(62,274	)			902			$	708,478			$	(62,547	)

		Less than 12 Months												12 Months or More												Total
2023:		Estimated Fair Value				Unrealized Losses				No. of Securities				Estimated Fair Value				Unrealized Losses				No. of Securities				Estimated Fair Value				Unrealized 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	)
		$	14,624			$	(204	)			28			$	706,936			$	(62,245	)			912			$	721,560			$	(62,449	)

Gross unrealized losses on debt securities totaled $62.5 million as of March 31, 2024. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, state or political subdivision, or corporations. Management then determines whether downgrades by bond rating agencies have occurred, and reviews industry analysts’ reports. The Company’s procedures for evaluating investments in states, municipalities and political subdivisions include but are not limited to reviewing the offering statement and the most current available financial information, comparing yields to yields of bonds of similar credit quality, confirming capacity to repay, assessing operating and financial performance, evaluating the stability of tax revenues, considering debt profiles and local demographics, and for revenue bonds, assessing the source and strength of revenue structures for municipal authorities. These procedures, as applicable, are utilized for all municipal purchases and are utilized in whole or in part for monitoring the portfolio of municipal holdings. The Company does not utilize third party credit rating agencies as a primary component of determining if the municipal issuer has an adequate capacity to meet the financial commitments under the security for the projected life of the investment, and, therefore, does not compare internal assessments to those of the credit rating agencies. Credit rating downgrades are utilized as an additional indicator of credit weakness and as a reference point for historical default rates. As of March 31, 2024 and December 31, 2023, the Company determined that no individual securities in an unrealized loss position represented credit losses that would require an allowance for credit losses. The Company concluded that the unrealized losses were primarily attributable to increases in market interest rates since these securities were purchased and other market conditions. Accrued interest receivable on AFS debt securities totaled $4.0 million and $3.5 million as of March 31, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses.