Investment in Securities

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Investments in Securities

Investment in Securities Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale are measured at fair value using Level 2 valuations. The market evaluation utilizes several sources which include “observable inputs” rather than “significant unobservable inputs” and therefore fall into the Level 2

category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows:

	September 30, 2021
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	345,165	$	13,880	$	821	$	358,224
U.S. government agencies	112,850		537		1,288		112,099
Corporate Bonds	70,516		281		41		70,756
Total	$	528,531	$	14,698	$	2,150	$	541,079

	December 31, 2020
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	287,059	$	18,915	$	—	$	305,974
U.S. government agencies	50,988		764		—		51,752
Total	$	338,047	$	19,679	$	—	$	357,726

The fair values of securities with unrealized losses are as follows:

	September 30, 2021
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
State and political subdivisions	$	68,399	$	821	$	—	$	—	$	68,399	$	821
U.S. government agencies	88,386		1,288		—		—		88,386		1,288
Corporate Bonds	10,940		41		—		—		10,940		41
Total	$	167,725	$	2,150	$	—	$	—	$	167,725	$	2,150

There were 66 securities, or 20% (0 greater than 12 months), in an unrealized loss position as of September 30, 2021. The unrealized losses at September 30, 2021 were primarily attributable to changes in market interest rates after the securities were purchased. There were no securities in an unrealized loss position as of December 31, 2020. At September 30, 2021 and December 31, 2020, the Company had not recorded an allowance for credit losses on securities.

The amortized cost and fair value of investment securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.

	September 30, 2021
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	25,511	$	25,760
Due after 1 year through 5 years	104,620		109,737
Due after 5 years through 10 years	210,353		219,204
Due after 10 years	188,047		186,378
Total	$	528,531	$	541,079

Proceeds from sales of investment securities classified as available-for-sale were $30,074,000 and $0 for the three months ended September 30, 2021 and 2020, respectively, and were $43,190,000 and $19,629,000 for the nine months ended September 30, 2021 and 2020, respectively. Gross realized losses were $1,000 and $0 for the three months ended September 30, 2021 and 2020, respectively. Gross realized gains were $44,000 and $1,069,000 for the nine months ended

September 30, 2021 and 2020, respectively. There were no securities pledged to secure public deposits and for other purposes at September 30, 2021.