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SECURITIES AVAILABLE FOR SALE | 3 Months Ended
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Mar. 31, 2024
SECURITIES AVAILABLE FOR SALE |
SECURITIES AVAILABLE FOR SALE | ​ NOTE 2. SECURITIES AVAILABLE FOR SALE ​ The following is a summary of securities available for sale (“AFS”): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Unrealized | ​ | Unrealized | ​ | ​ | ​
(in thousands) |  | Amortized Cost |  | Gains |  | Losses |  | Fair Value
March 31, 2024 |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Debt securities: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Obligations of US Government-sponsored enterprises | ​ | $ | 1,718 | ​ | $ | — | ​ | $ | (31) | ​ | $ | 1,687
Mortgage-backed securities and collateralized mortgage obligations: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
US Government-sponsored enterprises | ​ | ​ | 218,631 | ​ | ​ | 4 | ​ | ​ | (32,811) | ​ | ​ | 185,824
US Government agency | ​ |  | 87,527 | ​ |  | 79 | ​ |  | (11,424) | ​ |  | 76,182
Private label | ​ |  | 60,520 | ​ |  | 18 | ​ |  | (1,506) | ​ |  | 59,032
Obligations of states and political subdivisions thereof | ​ |  | 118,605 | ​ |  | 5,425 | ​ |  | (15,924) | ​ |  | 108,106
Corporate bonds | ​ |  | 105,550 | ​ |  | 1 | ​ |  | (8,779) | ​ |  | 96,772
Total securities available for sale | ​ | $ | 592,551 | ​ | $ | 5,527 | ​ | $ | (70,475) | ​ | $ | 527,603
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Unrealized | ​ | Unrealized | ​ | ​ | ​
(in thousands) |  | Amortized Cost |  | Gains |  | Losses |  | Fair Value
December 31, 2023 | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Debt securities: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Obligations of US Government-sponsored enterprises | ​ | $ | 2,021 | ​ | $ | — | ​ | $ | (29) | ​ | $ | 1,992
Mortgage-backed securities and collateralized mortgage obligations: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
US Government-sponsored enterprises | ​ | ​ | 223,602 | ​ | ​ | 12 | ​ | ​ | (30,332) | ​ | ​ | 193,282
US Government agency | ​ |  | 85,005 | ​ |  | 145 | ​ |  | (10,937) | ​ |  | 74,213
Private label | ​ |  | 60,888 | ​ |  | 18 | ​ |  | (1,855) | ​ |  | 59,051
Obligations of states and political subdivisions thereof | ​ |  | 119,857 | ​ |  | 4,515 | ​ |  | (14,204) | ​ |  | 110,168
Corporate bonds | ​ |  | 105,552 | ​ |  | 19 | ​ |  | (9,703) | ​ |  | 95,868
Total securities available for sale | ​ | $ | 596,925 | ​ | $ | 4,709 | ​ | $ | (67,060) | ​ | $ | 534,574
​ Credit Quality Information We monitor the credit quality of available for sale debt securities through credit ratings from various rating agencies and substantial price changes. In an effort to make informed decisions, we utilize credit ratings that express opinions about the credit quality of a security. Securities are triggered for further review in the quarter if the security has significant fluctuations in ratings, significant pricing changes, or drops below investment-grade, or significant pricing changes. For securities without credit ratings, we utilize other financial information indicating the financial health of the underlying municipality, agency, or organization associated with the underlying security. ​ As of March 31, 2024 and December 31, 2023, we carried no allowance on available for sale debt securities in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments. ​ The amortized cost and estimated fair value of available for sale securities segregated by contractual maturity at March 31, 2024 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities and collateralized mortgage obligations are shown in total, as their maturities are highly variable. ​ ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Available for sale
(in thousands) |  | Amortized Cost |  | Fair Value
Within 1 year |  | $ | 4,024 | ​ | $ | 4,024
Over 1 year to 5 years | ​ |  | 52,916 | ​ |  | 49,626
Over 5 years to 10 years | ​ |  | 42,276 | ​ |  | 43,158
Over 10 years | ​ |  | 126,657 | ​ |  | 109,757
Total bonds and obligations | ​ |  | 225,873 | ​ |  | 206,565
Mortgage-backed securities and collateralized mortgage obligations | ​ |  | 366,678 | ​ |  | 321,038
Total securities available for sale | ​ | $ | 592,551 | ​ | $ | 527,603
​ ​ ​ The following table presents the realized gains and losses from the sale of AFS securities for the periods presented: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended
​ | ​ | March 31,
(in thousands) |  | 2024 |  | 2023
Gross gains on sales of available for sale securities | ​ | $ | — | ​ | $ | 34
Gross losses on sales of available for sale securities | ​ |  | — | ​ |  | —
Net gains on sale of available for sale securities | ​ | $ | — | ​ | $ | 34
​ Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less Than Twelve Months | ​ | Over Twelve Months | ​ | Total
​ | ​ | Gross |  | ​ | ​ |  | Gross |  | ​ | ​ |  | Gross |  | ​ | ​
​ | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair
(in thousands) |  | Losses |  | Value |  | Losses |  | Value |  | Losses |  | Value
March 31, 2024 |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Debt securities: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Obligations of US Government-sponsored enterprises | ​ | $ | 1 | ​ | $ | 865 | ​ | $ | 30 | ​ | $ | 823 | ​ | $ | 31 | ​ | $ | 1,688
Mortgage-backed securities and collateralized mortgage obligations: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
US Government-sponsored enterprises | ​ | ​ | 50 | ​ | ​ | 3,071 | ​ | ​ | 32,761 | ​ | ​ | 182,199 | ​ | ​ | 32,811 | ​ | ​ | 185,270
US Government agency | ​ |  | 62 | ​ |  | 6,901 | ​ |  | 11,362 | ​ |  | 66,391 | ​ |  | 11,424 | ​ |  | 73,292
Private label | ​ |  | 1 | ​ |  | 23 | ​ |  | 1,505 | ​ |  | 57,494 | ​ |  | 1,506 | ​ |  | 57,517
Obligations of states and political subdivisions thereof | ​ |  | 26 | ​ |  | 4,922 | ​ |  | 15,898 | ​ |  | 100,867 | ​ |  | 15,924 | ​ |  | 105,789
Corporate bonds | ​ |  | 70 | ​ |  | 6,952 | ​ |  | 8,709 | ​ |  | 88,789 | ​ |  | 8,779 | ​ |  | 95,741
Total securities available for sale | ​ | $ | 210 | ​ | $ | 22,734 | ​ | $ | 70,265 | ​ | $ | 496,563 | ​ | $ | 70,475 | ​ | $ | 519,297
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Less Than Twelve Months | ​ | Over Twelve Months | ​ | Total
​ |  | Gross |  | ​ | ​ |  | Gross |  | ​ | ​ |  | Gross |  | ​ | ​
​ | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair
(in thousands) | ​ | Losses | ​ | Value | ​ | Losses | ​ | Value | ​ | Losses | ​ | Value
December 31, 2023 |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Debt securities: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Obligations of US Government-sponsored enterprises | ​ | $ | 1 | ​ | $ | 1,084 | ​ | $ | 28 | ​ | $ | 907 | ​ | $ | 29 | ​ | $ | 1,991
Mortgage-backed securities and collateralized mortgage obligations: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
US Government-sponsored enterprises | ​ | ​ | 10 | ​ | ​ | 3,439 | ​ | ​ | 30,322 | ​ | ​ | 188,611 | ​ | ​ | 30,332 | ​ | ​ | 192,050
US Government agency | ​ |  | 2 | ​ |  | 120 | ​ |  | 10,935 | ​ |  | 68,891 | ​ |  | 10,937 | ​ |  | 69,011
Private label | ​ |  | — | ​ |  | 26 | ​ |  | 1,855 | ​ |  | 59,007 | ​ |  | 1,855 | ​ |  | 59,033
Obligations of states and political subdivisions thereof | ​ |  | 26 | ​ |  | 3,099 | ​ |  | 14,178 | ​ |  | 101,036 | ​ |  | 14,204 | ​ |  | 104,135
Corporate bonds | ​ |  | 156 | ​ |  | 4,913 | ​ |  | 9,547 | ​ |  | 84,950 | ​ |  | 9,703 | ​ |  | 89,863
Total securities available for sale | ​ | $ | 195 | ​ | $ | 12,681 | ​ | $ | 66,865 | ​ | $ | 503,402 | ​ | $ | 67,060 | ​ | $ | 516,083
​ We expect to recover the amortized cost basis on all securities in our AFS portfolio. Furthermore, we do not intend to sell nor do we anticipate that we will be required to sell any securities in an unrealized loss position as of March 31, 2024, prior to this recovery. Our ability and intent to hold these securities until recovery is supported by our capital and liquidity positions as well as historically low portfolio turnover. ​ The following summarizes, by investment security type, the impact of securities in an unrealized loss position at March 31, 2024: ​ Obligations of US Government-sponsored enterprises ​ 8 out of the total 8 securities in our portfolio of AFS obligations of US Government-sponsored enterprises were in unrealized loss positions. Aggregate unrealized losses represented 1.77% of the amortized cost of securities in unrealized loss positions. The US Small Business Administration guarantees the contractual cash flows of all of our obligations of US Government-sponsored enterprises. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. ​ US Government-sponsored enterprises ​ 466 out of the total 493 securities in our portfolio of AFS US Government-sponsored enterprises were in unrealized loss positions. Aggregate unrealized losses represented 15.05% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association and Federal Home Loan Mortgage Corporation guarantee the contractual cash flows of all of our US Government-sponsored enterprises. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. ​ US Government agency ​ 139 out of the total 154 securities in our portfolio of AFS US Government agency securities were in unrealized loss positions. Aggregate unrealized losses represented 13.49% of the amortized cost of securities in unrealized loss positions. The Government National Mortgage Association guarantees the contractual cash flows of all of our US Government agency securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. ​ Private label ​ 25 of the total 28 securities in our portfolio of AFS private label mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 2.55% of the amortized cost of securities in unrealized loss positions. We expect to receive all of the future contractual cash flows related to the amortized cost on these securities. ​ Obligations of states and political subdivisions thereof ​ 61 of the total 69 securities in our portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 13.69% of the amortized cost of securities in unrealized loss positions. We continually monitor the municipal bond sector of the market carefully and periodically evaluate the appropriate level of exposure to the market. At this time, we believe (i) the bonds in this portfolio carry minimal risk of default and (ii) we are appropriately compensated for the risk. There were no material underlying credit downgrades during the quarter. ​ Corporate bonds ​ 33 out of the total 35 securities in our portfolio of AFS corporate bonds were in an unrealized loss position. The aggregate unrealized loss represents 8.40% of the amortized cost of bonds in unrealized loss positions. We review the financial strength of all of these bonds, and we have concluded that the amortized cost remains supported by the expected future cash flows of these securities. The most recent review includes all bond issuers and their current credit ratings, financial performance and capitalization.

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