Securities

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

The amortized cost, unrealized gross gains and losses recognized in accumulated other comprehensive income (loss), and fair value of Securities Available-for-Sale were as follows:


Securities Available-for-Sale:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
2024
U.S. Treasury	$	110,813	$	51	$	—	$	110,864
Obligations of State and Political Subdivisions	587,963		21		(124,815)		463,169
MBS/CMO	817,553		341		(115,715)		702,179
US Gov’t Sponsored Entities & Agencies	279,711		—		(38,636)		241,075
Total	$	1,796,040	$	413	$	(279,166)	$	1,517,287

2023
U.S. Treasury	$	—	$	—	$	—	$	—
Obligations of State and Political Subdivisions	889,940		1,309		(122,374)		768,875
MBS/CMO	761,025		28		(116,013)		645,040
US Gov’t Sponsored Entities & Agencies	220,295		—		(37,378)		182,917
Total	$	1,871,260	$	1,337	$	(275,765)	$	1,596,832

All mortgage-backed securities in the above table (identified above and throughout this Note 3 as “MBS/CMO”) are residential and multi-family mortgage-backed securities and guaranteed by government sponsored entities. The US Gov’t Sponsored Entities & Agencies in the above table have underlying collateral of equipment, machinery and commercial real estate.

The amortized cost and fair value of securities at December 31, 2024 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Mortgage-backed securities are not due at a single maturity date and are shown separately.


	Amortized Cost		Fair Value
Securities Available-for-Sale:
Due in one year or less	$	111,835	$	111,885
Due after one year through five years	8,987		8,932
Due after five years through ten years	45,329		39,900
Due after ten years	532,625		413,316
MBS/CMO	817,553		702,179
US Gov’t Sponsored Entities & Agencies	279,711		241,075
Total	$	1,796,040	$	1,517,287

During 2024, the Company undertook a partial securities portfolio restructuring transaction whereby available-for-sale securities totaling $375,321 in book value were sold. The approximate loss on these securities totaled $34,893, $27,189 after tax, or $0.92 per share, and was included in earnings for the second quarter of 2024. The proceeds from the securities sold were reinvested in the securities portfolio by the end of the third quarter of 2024.


	2024		2023		2022
Proceeds from the Sales of Securities are summarized below:	Available- for-Sale		Available- for-Sale		Available- for-Sale

Proceeds from Sales	$	404,103	$	114,259	$	145,237
Gross Gains on Sales	614		346		750
Gross Losses on Sales	35,402		306		188

Income Taxes on Net Gains (Losses)	(7,305)		8		118

The carrying value of securities pledged to secure repurchase agreements, public and trust deposits, and for other purposes as required by law was $1,065,880 and $366,576 as of December 31, 2024 and 2023, respectively.

At year-end 2024 and 2023, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount great than 10% of shareholders’ equity.

Below is a summary of securities with unrealized losses as December 31, 2024 and 2023, presented by length of time the securities have been in a continuous unrealized loss position:


	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
December 31, 2024

Obligations of State and Political Subdivisions	$	13,249	$	(231)	$	445,264	$	(124,584)	$	458,513	$	(124,815)
MBS/CMO	176,333		(2,461)		480,235		(113,254)		656,568		(115,715)
US Gov’t Sponsored Entities & Agencies	96,132		(2,989)		144,943		(35,647)		241,075		(38,636)
Total	$	285,714	$	(5,681)	$	1,070,442	$	(273,485)	$	1,356,156	$	(279,166)


	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
December 31, 2023
Obligations of State and Political Subdivisions	$	13,469	$	(175)	$	668,223	$	(122,199)	$	681,692	$	(122,374)
MBS/CMO	135		(1)		643,172		(116,012)		643,307		(116,013)
US Gov’t Sponsored Entities & Agencies	—		—		182,917		(37,378)		182,917		(37,378)
Total	$	13,604	$	(176)	$	1,494,312	$	(275,589)	$	1,507,916	$	(275,765)

Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for-sale debt securities in an unrealized loss position, the Company assesses whether we intend to sell, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is reduced to fair value through income. For available-for sale debt securities that do not meet the criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. Unrealized losses at December 31, 2024 and December 31, 2023 are considered temporary and the result of fair value adjustments caused by market interest rate fluctuations. No allowance for credit losses for available-for-sale debt securities was needed at December 31, 2024 or 2023.

Although management has the ability to sell these securities if the need arises, their designation as available-for-sale should not necessarily be interpreted as an indication that management anticipates such sales.

Accrued interest receivable on available-for-sale debt securities totaled $8,110 at December 31, 2024 and $9,620 at December 31, 2023. Accrued interest receivable is excluded from the estimate of credit losses.

The Company’s equity securities are listed as Other Investments on the Consolidated Balance Sheets and consist of one non-controlling investment in a single banking organization at December 31, 2024 and 2023. The original investment totaled $1,350 and other-than-temporary impairment was previously recorded totaling $997. The Company’s equity securities are considered not to have readily determinable fair value and are carried at cost and evaluated for impairment. There was no additional impairment recognized through earnings during 2024 or 2023.