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INVESTMENT SECURITIES
 6 Months Ended
Jun. 30, 2022
INVESTMENT SECURITIES [Abstract]  
INVESTMENT SECURITIES
3. 
INVESTMENT SECURITIES

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at June 30, 2022 are summarized as follows:
(in thousands)
  
Amortized
cost
    
Unrealized
gains
    
Unrealized
losses
    
Estimated
fair value
  
 
                        
Investment securities available-for-sale:
                        
U.S. Treasury securities
  
$
117,097
    
$
7
    
$
(4,171
)
  
$
112,933
  
Securities of U.S. government agencies and corporations
    
113,506
      
1
      
(7,170
)
    
106,337
  
Obligations of states and political subdivisions
    
53,053
      
89
      
(4,807
)
    
48,335
  
Collateralized mortgage obligations
    
122,389
      
1
      
(13,585
)
    
108,805
  
Mortgage-backed securities
    
278,548
      
11
      
(17,204
)
    
261,355
  
                                 
Total debt securities
  
$
684,593
    
$
109
    
$
(46,937
)
  
$
637,765
  

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2021 are summarized as follows:
(in thousands)
  
Amortized
cost
    
Unrealized
gains
    
Unrealized
losses
    
Estimated
fair value
  
 
                        
Investment securities available-for-sale:
                        
U.S. Treasury securities
  
$
86,534
    
$
388
    
$
(711
)
  
$
86,211
  
Securities of U.S. government agencies and corporations
    
104,106
      
330
      
(1,826
)
    
102,610
  
Obligations of states and political subdivisions
    
44,842
      
1,444
      
(301
)
    
45,985
  
Collateralized mortgage obligations
    
137,872
      
665
      
(2,885
)
    
135,652
  
Mortgage-backed securities
    
262,738
      
1,971
      
(2,954
)
    
261,755
  
                                 
Total debt securities
  
$
636,092
    
$
4,798
    
$
(8,677
)
  
$
632,213
  

The Company had $6,349,000 and $15,804,000 in proceeds from sales  of available-for-sale securities for the three-month periods ended June 30, 2022 and 2021, respectively.  The Company had $6,349,000 and $19,447,000 in proceeds from sales of available-for-sale securities for the six-month periods ended June 30, 2022 and 2021, respectively.  Gross realized gains on sales of available-for-sale securities were $0 and $297,000 for the three-month periods ended June 30, 2022 and 2021, respectively.  Gross realized losses on sales of available-for-sale securities were $152,000 and $488,000 for the three-month periods ended June 30, 2022 and 2021, respectively.  Gross realized gains on sales of available-for-sale securities were $0 and $322,000 for the six-month periods ended June 30, 2022 and 2021, respectively.  Gross realized losses on sales of available-for-sale securities were $152,000 and $523,000 for the six-month periods ended June 30, 2022 and 2021, respectively.
The amortized cost and estimated market value of debt and other securities at June 30, 2022, by contractual maturity, are shown in the following table:
(in thousands)
  
Amortized
cost
    
Estimated
fair value
  
 
            
Maturity in years:
            
Due in one year or less
  
$
25,795
    
$
25,664
  
Due after one year through five years
    
181,126
      
172,968
  
Due after five years through ten years
    
48,069
      
44,164
  
Due after ten years
    
28,666
      
24,809
  
Subtotal
    
283,656
      
267,605
  
Mortgage-backed securities & Collateralized mortgage obligations    
400,937
      
370,160
  
Total
  
$
684,593
    
$
637,765
  

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  In addition, factors such as prepayments and interest rates may affect the yield on the carrying value of mortgage-related securities.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of June 30, 2022, follows:

 
Less than 12 months
    
12 months or more
    
Total
  
(in thousands)  
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
 
                                    
U.S. Treasury securities
  
$
96,676
    
$
(3,562
)
  
$
11,766
    
$
(609
)
  
$
108,442
    
$
(4,171
)
Securities of U.S. government agencies and corporations
    
56,053
      
(1,766
)
    
49,282
      
(5,404
)
    
105,335
      
(7,170
)
Obligations of states and political subdivisions
    
37,968
      
(4,188
)
    
2,687
      
(619
)
    
40,655
      
(4,807
)
Collateralized mortgage obligations
    
92,906
      
(11,268
)
    
15,085
      
(2,317
)
    
107,991
      
(13,585
)
Mortgage-backed securities
    
155,111
      
(7,850
)
    
94,453
      
(9,354
)
    
249,564
      
(17,204
)
                                                 
Total
  
$
438,714
    
$
(28,634
)
  
$
173,273
    
$
(18,303
)
  
$
611,987
    
$
(46,937
)

No decline in value related to investment securities was considered “other-than-temporary” during the first six months of 2022.  Four hundred nineteen securities, all considered investment grade, which had an aggregate fair value of $438,714,000 and a total unrealized loss of $28,634,000 have been in an unrealized loss position for less than twelve months as of June 30, 2022.  Eighty-seven securities, all considered investment grade, which had an aggregate fair value of $173,273,000 and a total unrealized loss of $18,303,000 have been in an unrealized loss position for more than twelve months as of June 30, 2022.  The unrealized losses on the Company's investment securities were caused by market conditions for these types of investments, particularly changes in risk-free interest rates.The Company does not intend to sell the securities and has concluded it is not more likely than not that the Company will be required to sell these securities prior to recovery of their anticipated cost basis. Therefore, the Company does not consider these investments to be other than temporarily impaired as of June 30, 2022.
The fair value of investment securities could decline in the future if the general economy deteriorates, inflation increases, credit ratings decline, the issuer's financial condition deteriorates, or the liquidity for securities declines. As a result, other than temporary impairments may occur in the future.  The coronavirus pandemic and the impact of governmental health measures in response thereto may increase the likelihood of such other than temporary impairments.
An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2021, follows:

 
Less than 12 months
    
12 months or more
    
Total
  
(in thousands)  
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
 
                                    
U.S. Treasury Securities
  
$
63,254
    
$
(673
)
  
$
2,066
    
$
(38
)
  
$
65,320
    
$
(711
)
Securities of U.S. government agencies and corporations
    
48,288
      
(942
)
    
30,158
      
(884
)
    
78,446
      
(1,826
)
Obligations of states and political subdivisions
    
11,680
      
(233
)
    
934
      
(68
)
    
12,614
      
(301
)
Collateralized Mortgage obligations
    
90,299
      
(2,850
)
    
1,298
      
(35
)
    
91,597
      
(2,885
)
Mortgage-backed securities
    
175,943
      
(2,816
)
    
6,997
      
(138
)
    
182,940
      
(2,954
)
                                                 
Total
  
$
389,464
    
$
(7,514
)
  
$
41,453
    
$
(1,163
)
  
$
430,917
    
$
(8,677
)

Investment securities carried at $38,866,000 and $39,695,000 at June 30, 2022 and December 31, 2021, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.