TOMPKINS FINANCIAL CORP [TMP] Filings

10-Q 1 tmp-20230930.htm 10-Q tmp-20230930

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to ______

Commission File Number 1-12709

Tompkins Financial Corporation

(Exact name of registrant as specified in its charter)


New York						16-1482357
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

P.O. Box 460, Ithaca, NY

(Address of principal executive offices)

14851

(Zip Code)

Registrant’s telephone number, including area code: (888) 503-5753

Former name, former address, and former fiscal year, if changed since last report: NA

Indicate the number of shares of the Registrant’s Common Stock outstanding as of the latest practicable date:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.10 par value	TMP	NYSE American, LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-Accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes ☐ No ☒.

Indicate the number of shares of the Registrant's Common Stock outstanding as of the latest practicable date: 14,350,177 shares as of October 27, 2023.

TOMPKINS FINANCIAL CORPORATION

FORM 10-Q

INDEX


PART I -FINANCIAL INFORMATION
			PAGE
	Item 1 –	Financial Statements Consolidated Statements of Condition as of September 30, 2023 (Unaudited) and December 31, 2022 (Audited)	1
		Consolidated Statements of Income for the three and nine months ended September 30, 2023 and 2022 (Unaudited)	2
		Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2023 and 2022 (Unaudited)	3
		Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 (Unaudited)	4
		Consolidated Statements of Changes in Shareholders’ Equity for the three and nine months ended September 30, 2023 and 2022 (Unaudited)	6
		Notes to Unaudited Consolidated Financial Statements	8
	Item 2 -	Management’s Discussion and Analysis of Financial Condition and Results of Operations	48
	Item 3 -	Quantitative and Qualitative Disclosures About Market Risk	71
	Item 4 -	Controls and Procedures	72
PART II - OTHER INFORMATION
	Item 1 –	Legal Proceedings	72
	Item 1A – Risk Factors		72
	Item 2 –	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	73
	Item 3 -	Defaults Upon Senior Securities	73
	Item 4 -	Mine Safety Disclosures	73
	Item 5 -	Other Information	73
	Item 6 -	Exhibits	74
SIGNATURES			75

Item 1. Financial Statements

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION


(In thousands, except share and per share data)	As of		As of
ASSETS	9/30/2023		12/31/2022
	(unaudited)		(audited)
Cash and noninterest bearing balances due from banks	$	75,370	$	18,572
Interest bearing balances due from banks	64,846		59,265
Cash and Cash Equivalents	140,216		77,837

Available-for-sale debt securities, at fair value (amortized cost of $1,583,075 at September 30, 2023 and $1,831,791 at December 31, 2022)	1,388,510		1,594,967
Held-to-maturity securities, at amortized cost (fair value of $252,978 at September 30, 2023 and $261,692 December 31, 2022)	312,385		312,344
Equity securities, at fair value (amortized cost $741 at September 30, 2023 and $777 at December 31, 2022)	741		777
Total loans and leases, net of unearned income and deferred costs and fees	5,434,860		5,268,911
Less: Allowance for credit losses	49,336		45,934
Net Loans and Leases	5,385,524		5,222,977

Federal Home Loan Bank and other stock	19,985		17,720
Bank premises and equipment, net	80,685		82,140
Corporate owned life insurance	86,708		85,556
Goodwill	92,602		92,602
Other intangible assets, net	2,421		2,708
Accrued interest and other assets	181,385		181,058
Total Assets	$	7,691,162	$	7,670,686
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market	3,779,991		3,820,739
Time	880,412		631,411
Noninterest bearing	1,963,033		2,150,145
Total Deposits	6,623,436		6,602,295

Federal funds purchased and securities sold under agreements to repurchase	56,120		56,278
Other borrowings	296,800		291,300

Other liabilities	102,450		103,423
Total Liabilities	$	7,078,806	$	7,053,296
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $0.10 per share: Authorized 25,000,000 shares; Issued: 14,386,087 at September 30, 2023; and 14,555,741 at December 31, 2022	1,439		1,456
Additional paid-in capital	296,721		302,763
Retained earnings	495,123		526,727
Accumulated other comprehensive loss	(176,029)		(208,689)
Treasury stock, at cost – 128,096 shares at September 30, 2023, and 128,749 shares at December 31, 2022	(6,403)		(6,279)
Total Tompkins Financial Corporation Shareholders’ Equity	610,851		615,978

Noncontrolling interests	1,505		1,412
Total Equity	$	612,356	$	617,390
Total Liabilities and Equity	$	7,691,162	$	7,670,686

See notes to unaudited consolidated financial statements.

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended				Nine Months Ended
(In thousands, except per share data) (Unaudited)	9/30/2023		9/30/2022		9/30/2023		9/30/2022
INTEREST AND DIVIDEND INCOME
Loans	$	67,030	$	55,041	$	191,399	$	158,677
Due from banks	125		85		447		190
Available-for-sale debt securities	6,599		7,157		19,960		20,990
Held-to-maturity securities	1,221		1,221		3,654		3,551
Federal Home Loan Bank and other stock	490		166		1,113		391
Total Interest and Dividend Income	75,465		63,670		216,573		183,799
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more	3,158		563		7,472		1,389
Other deposits	16,348		3,631		39,861		6,898
Federal funds purchased and securities sold under agreements to repurchase	15		14		44		45

Other borrowings	4,931		1,351		12,041		2,480
Total Interest Expense	24,452		5,559		59,418		10,812
Net Interest Income	51,013		58,111		157,155		172,987
Less: Provision for credit loss expense	1,150		1,056		2,578		1,392
Net Interest Income After Credit for Credit Loss Expense	49,863		57,055		154,577		171,595
NONINTEREST INCOME
Insurance commissions and fees	11,397		10,825		29,578		28,571
Wealth management fees	4,342		4,337		13,529		13,850
Service charges on deposit accounts	1,754		1,917		5,140		5,452
Card services income	2,860		2,731		8,629		8,233
Other income	990		977		4,534		3,694
Net loss on securities transactions	(62,967)		(95)		(70,019)		(179)
Total Noninterest Income	(41,624)		20,692		(8,609)		59,621
NONINTEREST EXPENSE
Salaries and wages	23,811		25,344		73,660		73,012
Other employee benefits	7,319		6,489		20,707		18,627
Net occupancy expense of premises	3,108		3,258		9,734		9,930
Furniture and fixture expense	2,079		2,056		6,238		6,051
Amortization of intangible assets	83		218		250		655
Other operating expense	13,466		12,237		41,403		37,286
Total Noninterest Expenses	49,866		49,602		151,992		145,561
(Loss)/Income Before Income Tax (Benefit)/Expense	(41,627)		28,145		(6,024)		85,655
Income Tax (Benefit)/Expense	(8,304)		6,774		(619)		20,079
Net (Loss)/Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation	(33,323)		21,371		(5,405)		65,576
Less: Net Income Attributable to Noncontrolling Interests	31		31		93		94
Net (Loss)/Income Attributable to Tompkins Financial Corporation	$	(33,354)	$	21,340	$	(5,498)	$	65,482
Basic (Loss) Earnings Per Share	$	(2.35)	$	1.49	$	(0.39)	$	4.55
Diluted (Loss) Earnings Per Share	$	(2.35)	$	1.48	$	(0.39)	$	4.53

See notes to unaudited consolidated financial statements.

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Three Months Ended
(In thousands) (Unaudited)	9/30/2023		9/30/2022
Net (loss) income attributable to noncontrolling interests and Tompkins Financial Corporation	$	(33,323)	$	21,371
Other comprehensive (loss) income, net of tax:

Available-for-sale debt securities:
Change in net unrealized loss during the period	(28,273)		(64,873)
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	47,513		37

Employee benefit plans:
Amortization of net retirement plan actuarial loss	211		427
Amortization of net retirement plan prior service cost	40		41

Other comprehensive income (loss)	19,491		(64,368)

Subtotal comprehensive income (loss) attributable to noncontrolling interests and Tompkins Financial Corporation	(13,832)		(42,997)
Less: Net income (loss) attributable to noncontrolling interests	(31)		(31)
Total comprehensive income (loss) attributable to Tompkins Financial Corporation	$	(13,863)	$	(43,028)


	Nine Months Ended
(In thousands) (Unaudited)	9/30/2023		9/30/2022
Net (loss) income attributable to noncontrolling interests and Tompkins Financial Corporation	$	(5,405)	$	65,576
Other comprehensive income, net of tax:

Available-for-sale debt securities:
Change in net unrealized loss during the period	(20,932)		(188,727)
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	52,838		37

Employee benefit plans:


Amortization of net retirement plan actuarial loss	632		1,280
Amortization of net retirement plan prior service cost	122		123

Other comprehensive income (loss)	32,660		(187,287)

Subtotal comprehensive income (loss) attributable to noncontrolling interests and Tompkins Financial Corporation	27,255		(121,711)
Less: Net income (loss) attributable to noncontrolling interests	(93)		(94)
Total comprehensive income (loss) attributable to Tompkins Financial Corporation	$	27,162	$	(121,805)

See notes to unaudited consolidated financial statements.

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS


	Nine Months Ended
(In thousands) (Unaudited)	9/30/2023		9/30/2022
OPERATING ACTIVITIES
Net (loss) income attributable to Tompkins Financial Corporation	$	(5,498)	$	65,482

Provision for credit loss expense	2,578		1,392
Depreciation and amortization of premises, equipment, and software	8,208		7,977
Amortization of intangible assets	250		655
Earnings from corporate owned life insurance	(1,167)		(357)
Net amortization on securities	2,692		4,512
Amortization/accretion related to purchase accounting	(508)		(712)
Net loss on securities transactions	70,019		179

Net gain on sale of loans originated for sale	(86)		(140)
Proceeds from sale of loans originated for sale	3,276		7,468
Loans originated for sale	(3,345)		(7,123)
Net gain on sale of bank premises and equipment	(79)		(92)

Net excess tax benefit from stock based compensation	(10)		42
Stock-based compensation expense	2,945		3,062
(Increase) decrease in accrued interest receivable	(1,670)		514
Increase (decrease) in accrued interest payable	972		(20)



Other, net	(8,505)		(516)
Net Cash Provided by Operating Activities	70,072		82,323
INVESTING ACTIVITIES
Proceeds from maturities, calls and principal paydowns of available-for-sale debt securities	111,097		179,305
Proceeds from sales of available-for-sale debt securities	440,488		24,621

Purchases of available-for-sale debt securities	(375,585)		(154,798)
Purchases of held-to-maturity securities	0		(28,320)
Net increase in loans	(168,400)		(132,051)
Proceeds from sale/redemptions of Federal Home Loan Bank stock	90,702		57,152
Purchases of Federal Home Loan Bank and other stock	(92,967)		(55,312)
Proceeds from sale of bank premises and equipment	123		188
Purchases of bank premises, equipment and software	(5,308)		(6,188)

Redemption of corporate owned life insurance	20		0

Other, net	463		(142)
Net Cash Provided by (Used in) Investing Activities	633		(115,545)
FINANCING ACTIVITIES
Net (decrease) increase in demand, money market, and savings deposits	(227,860)		185,353
Net increase (decrease) in time deposits	249,361		(39,691)
Net decrease in Federal funds purchased and securities sold under agreements to repurchase	(158)		(11,447)
Increase in other borrowings	145,100		235,600
Repayment of other borrowings	(139,600)		(258,600)


Cash dividends	(26,041)		(24,874)

Repurchase of common stock	(8,703)		(15,430)

Shares issued for employee stock ownership plan	0		2,951
Net shares issued related to restricted stock awards	(307)		(80)
Net proceeds from exercise of stock options	(118)		(55)
Net Cash (Used in) Provided by Financing Activities	(8,326)		73,727
Net Increase in Cash and Cash Equivalents	62,379		40,505
Cash and cash equivalents at beginning of period	77,837		63,107
Total Cash and Cash Equivalents at End of Period	$	140,216	$	103,612

See notes to unaudited consolidated financial statements.

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS


	Nine Months Ended
(In thousands) (Unaudited)	9/30/2023		9/30/2022
Supplemental Information:
Cash paid during the year for - Interest	$	58,806	$	11,203
Cash paid during the year for - Taxes	9,907		17,540
Transfer of loans to other real estate owned	0		315


Right-of-use assets obtained in exchange for new lease liabilities	428		2,488

See notes to unaudited consolidated financial statements.

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)


(In thousands except share and per share data) (Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Treasury Stock		Non- controlling Interests		Total
Balances at July 1, 2022	$	1,454	$	303,335	$	502,770	$	(178,869)	$	(5,847)	$	1,475	$	624,318
Net income attributable to noncontrolling interests and Tompkins Financial Corporation					21,340						31		21,371
Other comprehensive loss							(64,368)						(64,368)
Total Comprehensive Loss													(42,997)
Cash dividends ($0.57 per share)					(8,240)								(8,240)
Net exercise of stock options (257 shares)			(13)										(13)
Common stock repurchased and returned to unissued status (18,182 shares)	(2)		(1,300)										(1,302)

Stock-based compensation expense			1,089										1,089

Directors deferred compensation plan (2,914 shares)			216						(216)				0
Restricted stock activity (2,922 shares)			(51)										(51)

Adjustment to goodwill			155										155

Balances at September 30, 2022	$	1,452	$	303,431	$	515,870	$	(243,237)	$	(6,063)	$	1,506	$	572,959

Balances at July 1, 2023	$	1,444	$	298,133	$	537,095	$	(195,520)	$	(6,185)	$	1,474	$	636,441
Net (loss) income attributable to noncontrolling interests and Tompkins Financial Corporation					(33,354)						31		(33,323)
Other comprehensive income							19,491						19,491
Total Comprehensive Loss													(13,832)
Cash dividends ($0.60 per share)					(8,618)								(8,618)

Common stock repurchased and returned to unissued status (41,781 shares)	(4)		(2,321)										(2,325)

Stock-based compensation expense			790										790

Directors deferred compensation plan (3,831 shares)			218						(218)				0
Restricted stock activity (13,545 shares)	(1)		(99)										(100)



Balances at September 30, 2023	$	1,439	$	296,721	$	495,123	$	(176,029)	$	(6,403)	$	1,505	$	612,356


(In thousands except share and per share data)(Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Treasury Stock		Non- controlling Interests		Total
Balances at January 1, 2022	$	1,470	$	312,538	$	475,262	$	(55,950)	$	(5,791)	$	1,412	$	728,941

Net income attributable to noncontrolling interests and Tompkins Financial Corporation					65,482						94		65,576
Other comprehensive loss							(187,287)						(187,287)
Total Comprehensive Loss													(121,711)
Cash dividends ($1.71 per share)					(24,874)								(24,874)
Net exercise of stock options (887 shares)			(55)										(55)
Common stock repurchased and returned to unissued status (197,979 shares)	(20)		(15,410)										(15,430)

Stock-based compensation expense			3,062										3,062
Shares issued for employee stock ownership plan (37,454 shares)	4		2,947										2,951
Directors deferred compensation plan (1,235 shares)			272						(272)				0
Restricted stock activity (17,606 shares)	(2)		(78)										(80)
Adjustment to goodwill			155										155

Balances at September 30, 2022	$	1,452	$	303,431	$	515,870	$	(243,237)	$	(6,063)	$	1,506	$	572,959

Balances at January 1, 2023	$	1,456	$	302,763	$	526,727	$	(208,689)	$	(6,279)	$	1,412	$	617,390

Net (loss) income attributable to noncontrolling interests and Tompkins Financial Corporation					(5,498)						93		(5,405)
Other comprehensive income							32,660						32,660
Total Comprehensive Income													27,255
Cash dividends ($1.80 per share)					(26,041)								(26,041)
Net exercise of stock options (1,824 shares)			(118)										(118)
Common stock repurchased and returned to unissued status (150,000 shares)	(15)		(8,688)										(8,703)

Stock-based compensation expense			2,945										2,945

Directors deferred compensation plan ((653) shares)			124						(124)				0
Restricted stock activity (21,478 shares)	(2)		(305)										(307)
Adjustment due to the adoption of ASU 2022-02					(65)								(65)

Balances at September 30, 2023	$	1,439	$	296,721	$	495,123	$	(176,029)	$	(6,403)	$	1,505	$	612,356

See notes to unaudited consolidated financial statements

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Business

Tompkins Financial Corporation ("Tompkins" or the "Company") is headquartered in Ithaca, New York and is registered as a Financial Holding Company with the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended. The Company is a locally oriented, community-based financial services organization that offers a full array of products and services, including commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance services. At September 30, 2023, the Company had one wholly-owned banking subsidiary, Tompkins Community Bank. Tompkins Community Bank provides a full array of trust and wealth management services under the Tompkins Financial Advisors brand, including investment management, trust and estate, financial and tax planning as well as life, disability and long-term care insurance services. The Company also has a wholly-owned insurance agency subsidiary, Tompkins Insurance Agencies, Inc. ("Tompkins Insurance"). The Company’s principal offices are located at 118 E. Seneca Street, Ithaca, New York, 14850, and its telephone number is (888) 503-5753. The Company’s common stock is traded on the NYSE American under the symbol "TMP."

As a registered financial holding company, the Company is regulated under the Bank Holding Company Act of 1956 ("BHC Act"), as amended and is subject to examination and comprehensive regulation by the Federal Reserve Board ("FRB"). The Company is also subject to the jurisdiction of the Securities and Exchange Commission ("SEC") and is subject to disclosure and regulatory requirements under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The Company is subject to the rules of the NYSE American for listed companies.

Tompkins Community Bank is subject to examination and comprehensive regulation by various regulatory authorities, including the Federal Deposit Insurance Corporation ("FDIC") and the New York State Department of Financial Services ("NYSDFS"). Each of these agencies issues regulations and requires the filing of reports describing the activities and financial condition of the entities under its jurisdiction. Likewise, such agencies conduct examinations on a recurring basis to evaluate the safety and soundness of the institutions, and to test compliance with various regulatory requirements, including: consumer protection, privacy, fair lending, the Community Reinvestment Act, the Bank Secrecy Act, sales of non-deposit investments, electronic data processing, and trust department activities. These agencies also examine and regulate the trust business of Tompkins Community Bank.

Tompkins Insurance is subject to examination and regulation by the NYSDFS and the Pennsylvania Insurance Department.

2. Basis of Presentation

The unaudited consolidated financial statements included in this quarterly report do not include all of the information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the SEC. In the application of certain accounting policies, management is required to make assumptions regarding the effect of matters that are inherently uncertain. These estimates and assumptions affect the reported amounts of certain assets, liabilities, revenues, and expenses in the unaudited consolidated financial statements. Different amounts could be reported under different conditions, or if different assumptions were used in the application of these accounting policies. The accounting policies that management considers critical in this respect are the determination of the allowance for credit losses and the review of its securities portfolio for other than temporary impairment.

In management’s opinion, the unaudited consolidated financial statements reflect all adjustments of a normal recurring nature. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year ended December 31, 2023. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Cash and cash equivalents in the consolidated statements of cash flow include cash and noninterest bearing balances due from banks, interest-bearing balances due from banks, and money market funds. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risk on cash and cash equivalents.

The Company has evaluated subsequent events for potential recognition and/or disclosure, and determined that no further disclosures were required.

The consolidated financial information included herein combines the results of operations, the assets, liabilities, and shareholders’ equity of the Company and its subsidiaries. Amounts in the prior periods’ unaudited consolidated financial statements are reclassified when necessary to conform to the current periods’ presentation. All significant intercompany balances and transactions are eliminated in consolidation.

3. Securities

Available-for-Sale Debt Securities

The following tables summarize available-for-sale debt securities held by the Company at September 30, 2023 and December 31, 2022:


	Available-for-Sale Debt Securities
September 30, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)

U.S. Treasuries	$	114,220	$	0	$	6,926	$	107,294
Obligations of U.S. Government sponsored entities	491,968		10		32,037		459,941
Obligations of U.S. states and political subdivisions	90,154		2		12,919		77,237
Mortgage-backed securities – residential, issued by
U.S. Government agencies	52,263		0		6,864		45,399
U.S. Government sponsored entities	831,970		0		135,661		696,309

U.S. corporate debt securities	2,500		0		170		2,330
Total available-for-sale debt securities	$	1,583,075	$	12	$	194,577	$	1,388,510


	Available-for-Sale Debt Securities
December 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	190,170	$	0	$	22,919	$	167,251
Obligations of U.S. Government sponsored entities	681,192		0		80,025		601,167
Obligations of U.S. states and political subdivisions	93,599		8		8,326		85,281
Mortgage-backed securities – residential, issued by
U.S. Government agencies	58,727		12		6,071		52,668
U.S. Government sponsored entities	805,603		0		119,381		686,222

U.S. corporate debt securities	2,500		0		122		2,378
Total available-for-sale debt securities	$	1,831,791	$	20	$	236,844	$	1,594,967

Held-to-Maturity Debt Securities

The following tables summarize held-to-maturity debt securities held by the Company at September 30, 2023 and December 31, 2022:


	Held-to-Maturity Securities
September 30, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	86,318	$	0	$	14,767	$	71,551
Obligations of U.S. Government sponsored entities	226,067		0		44,640		181,427

Total held-to-maturity debt securities	$	312,385	$	0	$	59,407	$	252,978


	Held-to-Maturity Securities
December 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	86,478	$	0	$	12,937	$	73,541
Obligations of U.S. Government sponsored entities	225,866		0		37,715		188,151

Total held-to-maturity debt securities	$	312,344	$	0	$	50,652	$	261,692

The Company may from time to time sell debt securities from its available-for-sale portfolio. Realized gains on sales of available-for-sale debt securities were $0 for both the three and nine months ended September 30, 2023 and September 30, 2022. Realized losses on sales of available-for-sale debt securities were $62.9 million and $70.0 million for the three and nine months ended September 30, 2023, respectively, and $49,000 for both the three and nine months ended September 30, 2022. During the three and nine months ended September 30, 2023, the Company sold $429.6 million and $510.5 million, respectively, of available-for-sale debt securities at a loss of $62.9 million and $70.0 million, respectively. Sales of available-for-sale debt securities were the result of general investment portfolio, interest rate risk and balance sheet management. The securities sold in the third quarter of 2023 had an average yield of 0.93% and were largely reinvested into securities with an estimated yield of approximately 5.12%. The weighted average life of the securities purchased and sold was approximately 4.3 years. Proceeds from the sale of available-for-sale debt securities were $366.7 million and $440.5 million for the three and nine months ended September 30, 2023, respectively, and $24.6 million for the three and nine months ended September 30, 2022. The Company's investment portfolio includes callable securities that may be called prior to maturity. There were no realized gains or losses on called available-for-sale debt securities for both the three and nine months ended September 30, 2023 and September 30, 2022. The Company also recognized net losses of $36,700 and $35,700 for the three and nine months ended September 30, 2023, compared to net losses of $46,900 and $130,600 for the three and nine months ended September 30, 2022, respectively, on equity securities, reflecting the change in fair value.

The following table summarizes available-for-sale debt securities that had unrealized losses at September 30, 2023, and December 31, 2022:


September 30, 2023	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	43,560	$	23	$	63,734	$	6,903	$	107,294	$	6,926
Obligations of U.S. Government sponsored entities	197,508		1,492		232,541		30,545		430,049		32,037
Obligations of U.S. states and political subdivisions	11,449		592		65,436		12,327		76,885		12,919

Mortgage-backed securities – residential, issued by
U.S. Government agencies	1,436		48		43,963		6,816		45,399		6,864
U.S. Government sponsored entities	97,751		1,671		598,559		133,990		696,310		135,661
U.S. corporate debt securities	0		0		2,330		170		2,330		170
Total available-for-sale debt securities	$	351,704	$	3,826	$	1,006,563	$	190,751	$	1,358,267	$	194,577


December 31, 2022	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	28,602	$	2,132	$	138,649	$	20,787	$	167,251	$	22,919
Obligations of U.S. Government sponsored entities	143,794		7,508		457,373		72,517		601,167		80,025
Obligations of U.S. states and political subdivisions	46,638		2,385		33,435		5,941		80,073		8,326

Mortgage-backed securities – residential, issued by
U.S. Government agencies	22,945		1,258		29,356		4,813		52,301		6,071
U.S. Government sponsored entities	186,690		16,869		499,532		102,512		686,222		119,381
U.S. corpora