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Investment Securities | 6 Months Ended
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Jun. 30, 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 a security 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 June 30, 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 | ​ | Six Months Ended
(Dollars in thousands) | ​ | June 30, 2023 | ​ | June 30, 2023
Provision for credit losses - HTM Debt Securities | ​ | $ | — | ​ | $ | 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 first quarter of 2023, an ACL of $163 thousand was recorded based on the results of our evaluation at March 31, 2023. Based on the Company’s current period re-evaluation, no provision for credit losses was recorded for the three months ended June 30, 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: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
June 30, 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Government agencies | ​ | $ | 21,465 | ​ | $ | 5 | ​ | $ | 3,408 | ​ | $ | 18,062
Mortgage-backed | ​ |  | 66,367 | ​ |  | — | ​ |  | 8,188 | ​ |  | 58,179
Other debt securities | ​ | ​ | 2,014 | ​ | ​ | — | ​ | ​ | 186 | ​ | ​ | 1,828
Total | ​ | $ | 89,846 | ​ | $ | 5 | ​ | $ | 11,782 | ​ | $ | 78,069
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
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 and six months ended June 30, 2023 and 2022. ​ ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | Gross |  | Gross |  | Estimated | ​ | Allowance
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair | ​ | for credit
(Dollars in thousands) | ​ | Cost | ​ | Gains | ​ | Losses | ​ | Value | ​ | losses
Held-to-maturity securities: |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​
June 30, 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Government agencies | ​ | $ | 144,882 | ​ | $ | — | ​ | $ | 13,035 | ​ | $ | 131,847 | ​ | $ | —
Mortgage-backed | ​ | ​ | 379,779 | ​ | ​ | — | ​ | ​ | 49,407 | ​ | ​ | 330,372 | ​ | ​ | —
States and political subdivisions | ​ |  | 1,472 | ​ |  | 39 | ​ |  | 30 | ​ |  | 1,481 | ​ |  | —
Other debt securities | ​ |  | 11,000 | ​ |  | — | ​ |  | 1,404 | ​ |  | 9,596 | ​ |  | 163
Total | ​ | $ | 537,133 | ​ | $ | 39 | ​ | $ | 63,876 | ​ | $ | 473,296 | ​ | $ | 163
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
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 $1.2 million at June 30, 2023 and $1.2 million at December 31, 2022 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $(3) thousand for the six months ended June 30, 2023 and $(108) thousand for the six months ended June 30, 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 June 30, 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 subordinated debt of other financial institutions. ​ The following table shows the amortized cost of held-to-maturity securities based on their lowest publicly available credit rating as of June 30, 2023. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | June 30, 2023
​ | ​ | ​ | Investment Grade
(Dollars in thousands) | ​ | ​ | Aaa | ​ | ​ | Aa1 | ​ | ​ | A3 | ​ | ​ | Baa1 | ​ | ​ | Baa2 | ​ | ​ | Baa3 | ​ | ​ | NR | ​ | ​ | Total
U.S. Government agencies | ​ | $ | 137,359 | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 7,523 | ​ | $ | 144,882
Mortgage-backed | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 379,779 | ​ | ​ | 379,779
States and political subdivisions | ​ | ​ | — | ​ | ​ | 1,472 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,472
Other debt securities | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 4,000 | ​ | ​ | 4,000 | ​ | ​ | 500 | ​ | ​ | 500 | ​ | ​ | 2,000 | ​ | ​ | 11,000
Total Held-to Maturity Securities | ​ | $ | 137,359 | ​ | $ | 1,472 | ​ | $ | 4,000 | ​ | $ | 4,000 | ​ | $ | 500 | ​ | $ | 500 | ​ | $ | 389,302 | ​ | $ | 537,133
​ ​ 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 June 30, 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
June 30, 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Available-for-sale securities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. Government agencies | ​ | $ | 952 | ​ | $ | 5 | ​ | $ | 16,705 | ​ | $ | 3,403 | ​ | $ | 17,657 | ​ | $ | 3,408
Mortgage-backed | ​ |  | 1,128 | ​ |  | 29 | ​ |  | 57,051 | ​ |  | 8,159 | ​ |  | 58,179 | ​ |  | 8,188
Other debt securities | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,828 | ​ | ​ | 186 | ​ | ​ | 1,828 | ​ | ​ | 186
Total | ​ | $ | 2,080 | ​ | $ | 34 | ​ | $ | 75,584 | ​ | $ | 11,748 | ​ | $ | 77,664 | ​ | $ | 11,782
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 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 | ​ | $ | 3,621 | ​ | $ | 17,750 | ​ | $ | 3,625
Mortgage-backed | ​ |  | 29,125 | ​ |  | 2,409 | ​ |  | 34,167 | ​ |  | 6,257 | ​ |  | 63,292 | ​ |  | 8,666
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 sixteen available-for-sale debt securities with a fair value below the amortized cost basis, with unrealized losses totaling $11.8 million as of June 30, 2023. The Company concluded that a credit loss does not exist in its available-for-sale securities portfolio as of June 30, 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 June 30, 2023. The Company has securities which have been pledged as collateral for obligations to federal, state, and local government agencies, and other purpose as required or permitted by law, or sold under agreements to repurchase. At June 30, 2023 the amortized cost of pledged available-for-sale securities was $65.5 million and $166.2 million of pledged held to maturity securities. The comparable amounts for December 31, 2022 were $83.3 million and $19.2 million, respectively. ​ The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at June 30, 2023. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Available for sale | ​ | Held to maturity
​ |  | Amortized |  | ​ | ​ |  | Amortized |  | ​ | ​
(Dollars in thousands) | ​ | Cost | ​ | Fair Value | ​ | Cost | ​ | Fair Value
Due in one year or less | ​ | $ | 30 | ​ | $ | 30 | ​ | $ | 1,019 | ​ | $ | 1,009
Due after one year through five years | ​ |  | 8,771 | ​ |  | 8,345 | ​ |  | 123,636 | ​ |  | 114,964
Due after five years through ten years | ​ |  | 36,753 | ​ |  | 32,325 | ​ |  | 58,643 | ​ |  | 52,809
Due after ten years | ​ |  | 44,292 | ​ |  | 37,369 | ​ |  | 353,835 | ​ |  | 304,514
Total | ​ | $ | 89,846 | ​ | $ | 78,069 | ​ | $ | 537,133 | ​ | $ | 473,296
​ The maturity dates for debt securities are determined using contractual maturity dates.

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