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SECURITIES | 12 Months Ended
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Dec. 31, 2022
SECURITIES |
SECURITIES | NOTE 3 – SECURITIES Debt Securities The amortized cost and fair values of debt securities, with gross unrealized gains and losses, are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2022 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available-for-sale: | ​ | (dollars in thousands)
U.S. Treasury | ​ | $ | 169,860 | ​ | $ | — | ​ | $ | (15,345) | ​ | $ | 154,515
U.S. government agency | ​ | ​ | 59,291 | ​ | ​ | — | ​ | ​ | (4,134) | ​ | ​ | 55,157
Municipal | ​ | ​ | 275,972 | ​ | ​ | 46 | ​ | ​ | (32,189) | ​ | ​ | 243,829
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | 213,676 | ​ | ​ | 5 | ​ | ​ | (18,240) | ​ | ​ | 195,441
Agency commercial | ​ | ​ | 150,060 | ​ | ​ | — | ​ | ​ | (17,172) | ​ | ​ | 132,888
Corporate | ​ | ​ | 65,597 | ​ | ​ | 55 | ​ | ​ | (3,958) | ​ | ​ | 61,694
Total available-for-sale | ​ | ​ | 934,456 | ​ | ​ | 106 | ​ | ​ | (91,038) | ​ | ​ | 843,524
Held-to-maturity: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. government agency | ​ | ​ | 88,424 | ​ | ​ | — | ​ | ​ | (9,728) | ​ | ​ | 78,696
Municipal | ​ | ​ | 42,167 | ​ | ​ | 195 | ​ | ​ | (314) | ​ | ​ | 42,048
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | 102,728 | ​ | ​ | — | ​ | ​ | (6,470) | ​ | ​ | 96,258
Agency commercial | ​ | ​ | 308,281 | ​ | ​ | — | ​ | ​ | (46,482) | ​ | ​ | 261,799
Total held-to-maturity | ​ | ​ | 541,600 | ​ | ​ | 195 | ​ | ​ | (62,994) | ​ | ​ | 478,801
Total debt securities | ​ | $ | 1,476,056 | ​ | $ | 301 | ​ | $ | (154,032) | ​ | $ | 1,322,325
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2021 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available-for-sale: | ​ | (dollars in thousands)
U.S. Treasury | ​ | $ | 109,002 | ​ | $ | 328 | ​ | $ | (354) | ​ | $ | 108,976
U.S. government agency | ​ | ​ | 129,269 | ​ | ​ | 1,303 | ​ | ​ | (2,467) | ​ | ​ | 128,105
Municipal | ​ | ​ | 293,837 | ​ | ​ | 6,144 | ​ | ​ | (2,904) | ​ | ​ | 297,077
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | 178,236 | ​ | ​ | 2,149 | ​ | ​ | (919) | ​ | ​ | 179,466
Agency commercial | ​ | ​ | 164,875 | ​ | ​ | 1,234 | ​ | ​ | (2,048) | ​ | ​ | 164,061
Corporate | ​ | ​ | 63,141 | ​ | ​ | 1,638 | ​ | ​ | (296) | ​ | ​ | 64,483
Total available-for-sale | ​ | ​ | 938,360 | ​ | ​ | 12,796 | ​ | ​ | (8,988) | ​ | ​ | 942,168
Held-to-maturity: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. government agency | ​ | ​ | 12,349 | ​ | ​ | 42 | ​ | ​ | (51) | ​ | ​ | 12,340
Municipal | ​ | ​ | 15,666 | ​ | ​ | 809 | ​ | ​ | — | ​ | ​ | 16,475
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | 20,555 | ​ | ​ | 196 | ​ | ​ | (102) | ​ | ​ | 20,649
Agency commercial | ​ | ​ | 287,615 | ​ | ​ | 1,749 | ​ | ​ | (2,801) | ​ | ​ | 286,563
Total held-to-maturity | ​ | ​ | 336,185 | ​ | ​ | 2,796 | ​ | ​ | (2,954) | ​ | ​ | 336,027
Total debt securities | ​ | $ | 1,274,545 | ​ | $ | 15,592 | ​ | $ | (11,942) | ​ | $ | 1,278,195
​ On March 31, 2022, June 30, 2021 and March 31, 2021, the Company transferred certain debt securities from the available-for-sale category to the held-to-maturity category in order to better reflect the revised intentions of the Company due to possible market volatility, resulting from a potential rise in interest rates. The following is a summary of the amortized cost and fair value of securities transferred to the held-to-maturity category: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2022 | ​ | June 30, 2021 | ​ | March 31, 2021
​ | ​ | Amortized | ​ | ​ | ​ | Amortized | ​ | ​ | ​ | Amortized | ​ | ​
​ |  | Cost |  | Fair Value |  | Cost |  | Fair Value |  | Cost |  | Fair Value
​ | ​ | (dollars in thousands)
U.S. government agency | ​ | $ | 78,841 | ​ | $ | 71,048 | ​ | $ | — | ​ | $ | — | ​ | $ | 7,593 | ​ | $ | 7,323
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | 8,175 | ​ | ​ | 7,651 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 8,776 | ​ | ​ | 8,536
Agency commercial | ​ | ​ | 27,834 | ​ | ​ | 25,432 | ​ | ​ | 99,271 | ​ | ​ | 99,275 | ​ | ​ | 118,792 | ​ | ​ | 113,861
Total | ​ | $ | 114,850 | ​ | $ | 104,131 | ​ | $ | 99,271 | ​ | $ | 99,275 | ​ | $ | 135,161 | ​ | $ | 129,720
​ The debt securities were transferred between categories at fair value, with the transfer date fair value becoming the new amortized cost for each security transferred. The unrealized gain (loss), net of tax, at the date of transfer remains a component of accumulated other comprehensive income (loss), but will be amortized over the remaining life of the debt securities as an adjustment of yield in a manner consistent with amortization of any premium or discount. As a result, the amortization of an unrealized gain (loss) reported in accumulated other comprehensive income (loss) will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity debt security. As of December 31, 2022 and 2021, the Company had securities with a carrying value of $332.6 million and $353.3 million, respectively, which were pledged to secure public and trust deposits, securities sold under agreements to repurchase, and for other purposes required or permitted by law. The Company has no direct exposure to the State of Illinois, but approximately 49% of the municipal portfolio consists of securities issued by municipalities located in Illinois as of December 31, 2022. Approximately 81% of such securities were general obligation issues as of December 31, 2022. The amortized cost and fair value of debt securities by contractual maturity, as of December 31, 2022, are shown below. 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. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Available-for-Sale | ​ | Held-to-Maturity
​ |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
​ | ​ | (dollars in thousands)
Due in 1 year or less | ​ | $ | 19,501 | ​ | $ | 19,127 | ​ | $ | 2,288 | ​ | $ | 2,290
Due after 1 year through 5 years | ​ | ​ | 230,286 | ​ | ​ | 216,799 | ​ | ​ | 27,813 | ​ | ​ | 26,908
Due after 5 years through 10 years | ​ | ​ | 251,203 | ​ | ​ | 217,722 | ​ | ​ | 83,181 | ​ | ​ | 76,214
Due after 10 years | ​ | ​ | 69,730 | ​ | ​ | 61,547 | ​ | ​ | 17,309 | ​ | ​ | 15,332
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | 213,676 | ​ | ​ | 195,441 | ​ | ​ | 102,728 | ​ | ​ | 96,258
Agency commercial | ​ | ​ | 150,060 | ​ | ​ | 132,888 | ​ | ​ | 308,281 | ​ | ​ | 261,799
Total | ​ | $ | 934,456 | ​ | $ | 843,524 | ​ | $ | 541,600 | ​ | $ | 478,801
​ ​ The following tables present gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Investments in a Continuous Unrealized Loss Position
​ | ​ | Less than 12 Months | ​ | 12 Months or More | ​ | Total
December 31, 2022 |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value
Available-for-sale: | ​ | (dollars in thousands)
U.S. Treasury | ​ | $ | (8,401) | ​ | $ | 92,445 | ​ | $ | (6,944) | ​ | $ | 62,070 | ​ | $ | (15,345) | ​ | $ | 154,515
U.S. government agency | ​ | ​ | (2,980) | ​ | ​ | 47,370 | ​ | ​ | (1,154) | ​ | ​ | 7,787 | ​ | ​ | (4,134) | ​ | ​ | 55,157
Municipal | ​ | ​ | (10,906) | ​ | ​ | 149,261 | ​ | ​ | (21,283) | ​ | ​ | 87,794 | ​ | ​ | (32,189) | ​ | ​ | 237,055
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | (8,332) | ​ | ​ | 127,288 | ​ | ​ | (9,908) | ​ | ​ | 65,692 | ​ | ​ | (18,240) | ​ | ​ | 192,980
Agency commercial | ​ | ​ | (4,764) | ​ | ​ | 62,672 | ​ | ​ | (12,408) | ​ | ​ | 70,216 | ​ | ​ | (17,172) | ​ | ​ | 132,888
Corporate | ​ | ​ | (2,594) | ​ | ​ | 52,190 | ​ | ​ | (1,364) | ​ | ​ | 5,600 | ​ | ​ | (3,958) | ​ | ​ | 57,790
Total available-for-sale | ​ | ​ | (37,977) | ​ | ​ | 531,226 | ​ | ​ | (53,061) | ​ | ​ | 299,159 | ​ | ​ | (91,038) | ​ | ​ | 830,385
Held-to-maturity: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. government agency | ​ | ​ | (1,754) | ​ | ​ | 15,751 | ​ | ​ | (7,974) | ​ | ​ | 62,945 | ​ | ​ | (9,728) | ​ | ​ | 78,696
Municipal | ​ | ​ | (314) | ​ | ​ | 23,433 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (314) | ​ | ​ | 23,433
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | (4,039) | ​ | ​ | 78,452 | ​ | ​ | (2,431) | ​ | ​ | 17,806 | ​ | ​ | (6,470) | ​ | ​ | 96,258
Agency commercial | ​ | ​ | (16,716) | ​ | ​ | 103,298 | ​ | ​ | (29,766) | ​ | ​ | 158,501 | ​ | ​ | (46,482) | ​ | ​ | 261,799
Total held-to-maturity | ​ | ​ | (22,823) | ​ | ​ | 220,934 | ​ | ​ | (40,171) | ​ | ​ | 239,252 | ​ | ​ | (62,994) | ​ | ​ | 460,186
Total debt securities | ​ | $ | (60,800) | ​ | $ | 752,160 | ​ | $ | (93,232) | ​ | $ | 538,411 | ​ | $ | (154,032) | ​ | $ | 1,290,571
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Investments in a Continuous Unrealized Loss Position
​ | ​ | Less than 12 Months | ​ | 12 Months or More | ​ | Total
December 31, 2021 |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value
Available-for-sale: | ​ | (dollars in thousands)
U.S. Treasury | ​ | $ | (354) | ​ | $ | 68,410 | ​ | $ | — | ​ | $ | — | ​ | $ | (354) | ​ | $ | 68,410
U.S. government agency | ​ | ​ | (2,183) | ​ | ​ | 80,219 | ​ | ​ | (284) | ​ | ​ | 5,578 | ​ | ​ | (2,467) | ​ | ​ | 85,797
Municipal | ​ | ​ | (2,018) | ​ | ​ | 89,424 | ​ | ​ | (886) | ​ | ​ | 17,327 | ​ | ​ | (2,904) | ​ | ​ | 106,751
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | (851) | ​ | ​ | 91,703 | ​ | ​ | (68) | ​ | ​ | 4,305 | ​ | ​ | (919) | ​ | ​ | 96,008
Agency commercial | ​ | ​ | (1,921) | ​ | ​ | 113,111 | ​ | ​ | (127) | ​ | ​ | 6,443 | ​ | ​ | (2,048) | ​ | ​ | 119,554
Corporate | ​ | ​ | (7) | ​ | ​ | 2,737 | ​ | ​ | (289) | ​ | ​ | 4,671 | ​ | ​ | (296) | ​ | ​ | 7,408
Total available-for-sale | ​ | ​ | (7,334) | ​ | ​ | 445,604 | ​ | ​ | (1,654) | ​ | ​ | 38,324 | ​ | ​ | (8,988) | ​ | ​ | 483,928
Held-to-maturity: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. government agency | ​ | ​ | (51) | ​ | ​ | 4,949 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (51) | ​ | ​ | 4,949
Mortgage-backed: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Agency residential | ​ | ​ | (102) | ​ | ​ | 14,932 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (102) | ​ | ​ | 14,932
Agency commercial | ​ | ​ | (2,673) | ​ | ​ | 174,428 | ​ | ​ | (128) | ​ | ​ | 2,776 | ​ | ​ | (2,801) | ​ | ​ | 177,204
Total held-to-maturity | ​ | ​ | (2,826) | ​ | ​ | 194,309 | ​ | ​ | (128) | ​ | ​ | 2,776 | ​ | ​ | (2,954) | ​ | ​ | 197,085
Total debt securities | ​ | $ | (10,160) | ​ | $ | 639,913 | ​ | $ | (1,782) | ​ | $ | 41,100 | ​ | $ | (11,942) | ​ | $ | 681,013
​ ​ As of December 31, 2022, there were 261 securities in an unrealized loss position for a period of twelve months or more, and 519 securities in an unrealized loss position for a period of less than twelve months. These unrealized losses are primarily a result of fluctuations in interest rates in the bond market. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Management believes that all declines in value of these securities are deemed to be temporary. There were no sales of debt securities during the years ended December 31, 2022, 2021, and 2020. Equity Securities Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the consolidated statements of income. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer. The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses, are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Readily | ​ | No Readily
​ | ​ | Determinable | ​ | Determinable
December 31, 2022 |  | Fair Value |  | Fair Value
​ | ​ | (dollars in thousands)
Initial cost | ​ | $ | 3,142 | ​ | $ | 2,142
Cumulative net unrealized losses | ​ | ​ | (113) | ​ | ​ | (165)
Carrying value | ​ | $ | 3,029 | ​ | $ | 1,977
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Readily | ​ | No Readily
​ | ​ | Determinable | ​ | Determinable
December 31, 2021 |  | Fair Value |  | Fair Value
​ | ​ | (dollars in thousands)
Initial cost | ​ | $ | 3,142 | ​ | $ | 2,092
Cumulative net unrealized gains (losses) | ​ | ​ | 301 | ​ | ​ | (165)
Carrying value | ​ | $ | 3,443 | ​ | $ | 1,927
​ As of December 31, 2022 and 2021, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect downward adjustments based on observable price changes of an identical investment. There have been no impairments or upward adjustments based on observable price changes to equity securities with no readily determinable fair value. ​ There were no sales of equity securities during the years ended December 31, 2022, 2021, and 2020. Unrealized gains (losses) on equity securities were as follows during the years ended December 31: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ |  | 2022 | ​ | 2021 |  | 2020
​ | ​ | (dollars in thousands)
Readily determinable fair value | ​ | ​ | (414) | ​ | ​ | 107 | ​ | ​ | 33
No readily determinable fair value | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Unrealized gains (losses) on equity securities | ​ | $ | (414) | ​ | ​ | 107 | ​ | $ | 33
​

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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