XML 20 R11.htm IDEA: XBRL DOCUMENT
v3.23.1

Investment Securities | 3 Months Ended
--- | ---
Mar. 31, 2023
Investment Securities [Abstract] |
Investment Securities | Note 4 – Investment Securities On January 1, 2023, the Company adopted ASC 326, which made changes to accounting for available for sale debt securities whereby credit losses should be presented as an allowance, rather than as a write-down when management does not intend to sell and does not believe that it is more likely than not they will be required to sell prior to maturity. In addition, ASC 326 requires an allowance for credit losses to be recorded on held to maturity debt securities measured at amortized cost. All securities information presented as of March 31, 2023 is in accordance with ASC 326. All securities information presented as of December 31, 2022 or a prior date is presented in accordance with previously applicable GAAP. For further discussion on the Corporation’s accounting policies and policy elections related to the accounting standard update refer to Note 2. ​ The following table summarizes the activity in the ACL on held-to-maturity securities: ​
​ | ​ | ​ | ​
​ |  | Three Months ended
(Dollars in thousands) | ​ | March 31, 2023
Balance, beginning of period | ​ | $ | —
Other debt securities, provision for credit losses | ​ | ​ | 163
Balance, end of period | ​ | $ | 163
​ The ACL for held-to-maturity securities was initially determined to be immaterial as of the date of adoption of ASC 326. Upon re-estimation in the current period, ACL was recorded based on the results of our calculation as of March 31, 2023. ​ The following tables provide information on the amortized cost and estimated fair values of debt securities. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | Gross |  | Gross |  | Estimated
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
(Dollars in thousands) | ​ | Cost | ​ | Gains | ​ | Losses | ​ | Value
Available-for-sale securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
March 31, 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Government agencies | ​ | $ | 21,587 | ​ | $ | 5 | ​ | $ | 3,283 | ​ | $ | 18,309
Mortgage-backed | ​ |  | 69,151 | ​ |  | 1 | ​ |  | 7,779 | ​ |  | 61,373
Other debt securities | ​ | ​ | 2,016 | ​ | ​ | — | ​ | ​ | 173 | ​ | ​ | 1,843
Total | ​ | $ | 92,754 | ​ | $ | 6 | ​ | $ | 11,235 | ​ | $ | 81,525
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2022 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Government agencies | ​ | $ | 21,798 | ​ | $ | 5 | ​ | $ | 3,625 | ​ | $ | 18,178
Mortgage-backed | ​ |  | 72,183 | ​ |  | 2 | ​ |  | 8,666 | ​ |  | 63,519
Other debt securities | ​ |  | 2,018 | ​ |  | — | ​ |  | 128 | ​ |  | 1,890
Total | ​ | $ | 95,999 | ​ | $ | 7 | ​ | $ | 12,419 | ​ | $ | 83,587
​ No available for sale securities were sold during the three months ended March 31, 2023 and 2022. ​ ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | Gross |  | Gross |  | Estimated
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair
(Dollars in thousands) | ​ | Cost | ​ | Gains | ​ | Losses | ​ | Value
Held-to-maturity securities: |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​
March 31, 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Government agencies | ​ | $ | 146,699 | ​ | $ | — | ​ | $ | 11,815 | ​ | $ | 134,884
Mortgage-backed | ​ | ​ | 389,924 | ​ | ​ | — | ​ | ​ | 45,379 | ​ | ​ | 344,545
States and political subdivisions | ​ |  | 1,473 | ​ |  | 54 | ​ |  | 13 | ​ |  | 1,514
Other debt securities | ​ |  | 11,000 | ​ |  | — | ​ |  | 827 | ​ |  | 10,173
Total | ​ | $ | 549,096 | ​ | $ | 54 | ​ | $ | 58,034 | ​ | $ | 491,116
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2022 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Government agencies | ​ | $ | 148,097 | ​ | $ | — | ​ | $ | 13,601 | ​ | $ | 134,496
Mortgage-backed | ​ | ​ | 398,884 | ​ | ​ | — | ​ | ​ | 50,464 | ​ | ​ | 348,420
States and political subdivisions | ​ |  | 1,474 | ​ |  | 35 | ​ |  | 28 | ​ |  | 1,481
Other debt securities | ​ |  | 11,000 | ​ |  | — | ​ |  | 770 | ​ |  | 10,230
Total | ​ | $ | 559,455 | ​ | $ | 35 | ​ | $ | 64,863 | ​ | $ | 494,627
​ Equity securities with an aggregate fair value of $1.3 million at March 31, 2023 and $1.2 million at December 31, 2022 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $17 thousand for the three months ended March 31, 2023 and $(70) thousand for the three months ended March 31, 2022, respectively. ​ Credit Quality Information ​ The Company monitors the credit quality of held-to-maturity securities through credit ratings provided by Standard & Poor’s Rating Services and Moody’s Investor Services. Credit ratings express opinions about the credit quality of a security, and are updated at each quarter end. Investment grade securities are rated BBB- or higher by S&P and Baa3 or higher by Moody’s and are generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade, which are labeled as speculative grade by the rating agencies, are considered to have distinctively higher credit risk than investment grade securities. There were no speculative grade held-to-maturity securities at March 31, 2023 or December 31, 2022. Held-to-maturity securities that are not rated are agency mortgage-backed securities sponsored by US government agencies, as well as direct obligations of the agencies, with the remainder being sub-debt of other banks. ​ The following table shows the amortized cost of held-to-maturity securities based on their lowest publicly available credit rating as of March 31, 2023. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | March 31, 2023
​ | ​ | ​ | Investment Grade
(Dollars in thousands) | ​ | ​ | Aaa | ​ | ​ | Aa1 | ​ | ​ | A3 | ​ | ​ | Baa1 | ​ | ​ | Baa2 | ​ | ​ | Baa3 | ​ | ​ | NR
U.S. Government agencies | ​ | $ | 137,358 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 9,341
Mortgage-backed | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 389,924
States and political subdivisions | ​ | ​ | — | ​ | ​ | 1,473 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Other debt securities | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 4,000 | ​ | ​ | 4,000 | ​ | ​ | 500 | ​ | ​ | 500 | ​ | ​ | 2,000
Total Held-to Maturity Securities | ​ | $ | 137,358 | ​ | $ | 1,473 | ​ | $ | 4,000 | ​ | $ | 4,000 | ​ | $ | 500 | ​ | $ | 500 | ​ | $ | 401,265
​ ​ The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2023 and December 31, 2022. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less than | ​ | More than | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 12 Months | ​ | 12 Months | ​ | Total
​ |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
(Dollars in thousands) | ​ | Value | ​ | Losses | ​ | Value | ​ | Losses | ​ | Value | ​ | Losses
March 31, 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Available-for-sale securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Government agencies | ​ | $ | 1,060 | ​ | $ | 6 | ​ | $ | 16,833 | ​ | $ | 3,277 | ​ | $ | 17,893 | ​ | $ | 3,283
Mortgage-backed | ​ |  | 1,754 | ​ |  | 32 | ​ |  | 59,277 | ​ |  | 7,747 | ​ |  | 61,031 | ​ |  | 7,779
Other debt securities | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,843 | ​ | ​ | 173 | ​ | ​ | 1,843 | ​ | ​ | 173
Total | ​ | $ | 2,814 | ​ | $ | 38 | ​ | $ | 77,953 | ​ | $ | 11,197 | ​ | $ | 80,767 | ​ | $ | 11,235
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less than | ​ | More than | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 12 Months | ​ | 12 Months | ​ | Total
​ |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
(Dollars in thousands) | ​ | Value | ​ | Losses | ​ | Value | ​ | Losses | ​ | Value | ​ | Losses
December 31, 2022 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Available-for-sale securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Government agencies | ​ | $ | 1,165 | ​ | $ | 4 | ​ | $ | 16,585 | ​ | $ | 3,588 | ​ | $ | 17,750 | ​ | $ | 3,592
Mortgage-backed | ​ |  | 29,125 | ​ |  | 2,409 | ​ |  | 34,167 | ​ |  | 6,290 | ​ |  | 63,292 | ​ |  | 8,699
Other debt securities | ​ | ​ | 1,890 | ​ | ​ | 128 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,890 | ​ | ​ | 128
Total | ​ | $ | 32,180 | ​ | $ | 2,541 | ​ | $ | 50,752 | ​ | $ | 9,878 | ​ | $ | 82,932 | ​ | $ | 12,419
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Held-to-maturity securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Government agencies | ​ | $ | 67,332 | ​ | $ | 2,786 | ​ | $ | 67,163 | ​ | $ | 10,815 | ​ | $ | 134,495 | ​ | $ | 13,601
Mortgage-backed | ​ | ​ | 148,771 | ​ | ​ | 9,402 | ​ | ​ | 199,649 | ​ | ​ | 41,062 | ​ | ​ | 348,420 | ​ | ​ | 50,464
States and political subdivisions | ​ | ​ | 780 | ​ | ​ | 28 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 780 | ​ | ​ | 28
Other debt securities | ​ |  | 8,091 | ​ |  | 409 | ​ |  | 2,139 | ​ |  | 361 | ​ |  | 10,230 | ​ |  | 770
Total | ​ | $ | 224,974 | ​ | $ | 12,625 | ​ | $ | 268,951 | ​ | $ | 52,238 | ​ | $ | 493,925 | ​ | $ | 64,863
​ There were one hundred fifteen available-for-sale debt securities with a fair value below the amortized cost basis, totaling $11.2 million of aggregate fair value as of March 31, 2023. The Company concluded that a credit loss does not exist in its available-for-sale securities portfolio as of March 31, 2023, and no impairment loss has been recognized based on the fact that (1) changes in fair value were caused primarily by fluctuations in interest rates, (2) securities with unrealized losses had generally high credit quality, (3) the Company intends to hold these investments in debt securities to maturity and it is more-likely-than-not the Company will not be required to sell these investments before a recovery of its investment, and (4) issuers have continued to make timely payments of principal and interest. Additionally, the Company’s mortgage-back securities are issued by either US government agencies or US government sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the US government, that investors in such mortgage-backed securities will receive timely principal and interest payments. ​ All held-to-maturity and available for sale securities were current with no securities past due or on nonaccrual as of March 31, 2023. ​ The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at March 31, 2023. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Available for sale | ​ | Held to maturity
​ |  | Amortized |  | ​ | ​ |  | Amortized |  | ​ | ​
(Dollars in thousands) | ​ | Cost | ​ | Fair Value | ​ | Cost | ​ | Fair Value
Due in one year or less | ​ | $ | 46 | ​ | $ | 46 | ​ | $ | 1,061 | ​ | $ | 1,042
Due after one year through five years | ​ |  | 7,004 | ​ |  | 6,733 | ​ |  | 118,384 | ​ |  | 111,443
Due after five years through ten years | ​ |  | 40,359 | ​ |  | 36,068 | ​ |  | 65,244 | ​ |  | 59,798
Due after ten years | ​ |  | 45,345 | ​ |  | 38,678 | ​ |  | 364,407 | ​ |  | 318,833
Total | ​ | $ | 92,754 | ​ | $ | 81,525 | ​ | $ | 549,096 | ​ | $ | 491,116
​ The maturity dates for debt securities are determined using contractual maturity dates.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration