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INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 2023
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 September 30, 2023 are summarized as follows:

(in thousands)
  
Amortized
 cost
    
Unrealized
 gains
    
Unrealized
 losses
    
Estimated fair
value
  
 
                        
Investment securities available-for-sale:
                        
U.S. Treasury securities
  
$
101,564
    
$
1
    
$
(4,587
)
  
$
96,978
  
Securities of U.S. government agencies and corporations
    
123,822
      
—
      
(8,858
)
    
114,964
  
Obligations of states and political subdivisions
    
51,386
      
1
      
(6,903
)
    
44,484
  
Collateralized mortgage obligations
    
112,079
      
1
      
(20,780
)
    
91,300
  
Mortgage-backed securities
    
248,052
      
1
      
(28,370
)
    
219,683
  
                                 
Total debt securities
  
$
636,903
    
$
4
    
$
(69,498
)
  
$
567,409
  

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 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
  
$
119,644
    
$
13
    
$
(5,842
)
  
$
113,815
  
Securities of U.S. government agencies and corporations
    
128,697
      
20
      
(9,806
)
    
118,911
  
Obligations of states and political subdivisions
    
58,955
      
13
      
(5,642
)
    
53,326
  
Collateralized mortgage obligations
    
114,983
      
—
      
(19,633
)
    
95,350
  
Mortgage-backed securities
    
261,505
      
56
      
(24,871
)
    
236,690
  
                                 
Total debt securities
  
$
683,784
    
$
102
    
$
(65,794
)
  
$
618,092
  

The Company had no proceeds from sales of available-for-sale securities for the three-month periods ended September 30, 2023 and 2022, respectively. The Company had $16,987,000 and $6,349,000 in proceeds from sales of available-for-sale securities for the nine-month periods ended September 30, 2023 and 2022, respectively.  There were no gross realized gains on sales of available-for-sale securities for the three-month periods ended September 30, 2023 and 2022. Gross realized gains on sales of available-for-sale securities were $96,000 and $0 for the nine-month periods ended September 30, 2023 and 2022, respectively. There were no gross realized losses on sales of available-for-sale securities for the three-month periods ended September 30, 2023 and 2022. Gross realized losses on sales of available-for-sale securities were $160,000 and $152,000 for the nine-month periods ended September 30, 2023 and 2022, respectively.

The amortized cost and estimated fair value of debt and other securities at September 30, 2023, 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
  
$
89,660
    
$
87,943
  
Due after one year through five years
    
135,601
      
125,056
  
Due after five years through ten years
    
24,901
      
21,549
  
Due after ten years
    
26,610
      
21,878
  
Subtotal
    
276,772
      
256,426
  
Mortgage-backed securities & Collateralized mortgage obligations    
360,131
      
310,983
  
Total
  
$
636,903
    
$
567,409
  

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 September 30, 2023, follows:
(in thousands)
 
Less than 12 months
    
12 months or more
    
Total
  

 
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
 
                                    
U.S. Treasury securities
  
$
10,775
    
$
(53
)
  
$
83,726
    
$
(4,534
)
  
$
94,501
    
$
(4,587
)
Securities of U.S. government agencies and corporations
    
17,526
      
(183
)
    
97,438
      
(8,675
)
    
114,964
      
(8,858
)
Obligations of states and political subdivisions
    
9,900
      
(430
)
    
34,011
      
(6,473
)
    
43,911
      
(6,903
)
Collateralized mortgage obligations
    
11,689
      
(244
)
    
77,729
      
(20,536
)
    
89,418
      
(20,780
)
Mortgage-backed securities
    
31,322
      
(1,081
)
    
185,973
      
(27,289
)
    
217,295
      
(28,370
)
                                                 
Total
  
$
81,212
    
$
(1,991
)
  
$
478,877
    
$
(67,507
)
  
$
560,089
    
$
(69,498
)

Sixty-eight securities, all considered investment grade, which had an aggregate fair value of $81,212,000 and a total unrealized loss of $1,991,000, have been in an unrealized loss position for less than twelve months as of September 30, 2023. Four hundred and ninety-six securities, all considered investment grade, which had an aggregate fair value of $478,877,000 and a total unrealized loss of $67,507,000, have been in an unrealized loss position for more than twelve months as of September 30, 2023.  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 decline in fair value is attributable to changes in interest rates and not credit quality, and the Company does not intend to sell the securities.  The Company 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, as of September 30, 2023, the Company has not recorded an allowance for credit losses on these securities and the unrecognized or unrealized losses on these securities have not been recognized into income.
The fair value of investment securities could decline in the future if the general economy deteriorates, inflation and interest rate increases, credit ratings decline, the issuer’s financial condition deteriorates, or the liquidity for securities declines. As a result, an allowance for credit loss may occur in the future.
An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2022, follows:
(in thousands)
 
Less than 12 months
    
12 months or more
    
Total
  

 
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
 
                                    
U.S. Treasury Securities
  
$
54,574
    
$
(1,680
)
  
$
56,872
    
$
(4,162
)
  
$
111,446
    
$
(5,842
)
Securities of U.S. government agencies and corporations
    
45,261
      
(1,341
)
    
69,635
      
(8,465
)
    
114,896
      
(9,806
)
Obligations of states and political subdivisions
    
40,479
      
(3,022
)
    
10,049
      
(2,620
)
    
50,528
      
(5,642
)
Collateralized Mortgage obligations
    
36,040
      
(2,586
)
    
59,310
      
(17,047
)
    
95,350
      
(19,633
)
Mortgage-backed securities
    
99,250
      
(6,131
)
    
131,951
      
(18,740
)
    
231,201
      
(24,871
)
                                                 
Total
  
$
275,604
    
$
(14,760
)
  
$
327,817
    
$
(51,034
)
  
$
603,421
    
$
(65,794
)

Investment securities carried at $45,366,000 and $44,319,000 at September 30, 2023 and December 31, 2022, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.