Securities

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Amortized cost and fair value of securities at June 30, 2023, and December 31, 2022, were as follows:


In thousands	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

SECURITIES AVAILABLE FOR SALE

June 30, 2023
U.S. Government and agencies	$	228,489	$	—	$	29,659	$	198,830
Mortgage-backed securities	271,698		—		33,408		238,290
State and municipal	—		—		—		—
Corporate bonds	18,120		—		2,988		15,132
	$	518,307	$	—	$	66,055	$	452,252

December 31, 2022
U.S. Government and agencies	$	241,467	$	—	$	30,468	$	210,999
Mortgage-backed securities	327,535		342		32,159		295,718
State and municipal	15,235		196		196		15,235
Corporate bonds	33,404		15		1,817		31,602
	$	617,641	$	553	$	64,640	$	553,554

	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
SECURITIES HELD TO MATURITY

June 30, 2023
Mortgage-backed securities	$	2,864	$	—	$	186	$	2,678
State and municipal	62,062		—		6,607		55,455
	$	64,926	$	—	$	6,793	$	58,133
December 31, 2022

Mortgage-backed securities	$	3,279	$	—	$	194	$	3,085
State and municipal	61,698		—		6,705		54,993
	$	64,977	$	—	$	6,899	$	58,078

Fair value of equity securities with readily determinable fair values at June 30, 2023 and December 31, 2022, are as follows:


In thousands	Fair Value at January 1, 2023		Purchases		Sales/reclassification		Gains		Losses on sales of securities		Fair Value at June 30, 2023
June 30, 2023
CRA Mutual Fund	$	915	$	—	$	—	$	—	$	—	$	915
Canapi Ventures SBIC Fund	206		—		206		—		—		—
Stock in other banks	598		—		592		5		11		—
	$	1,719	$	—	$	798	$	5	$	11	$	915


In thousands	Fair Value at January 1, 2022		Purchases		Sales		Gains		Losses		Fair Value at December 31, 2022
December 31, 2022
CRA Mutual Fund	$	1,036	$	—	$	—	$	—	$	121	$	915
Canapi Ventures SBIC Fund	—		206		—		—		—		206
Stock in other banks	1,573		—		811		13		177		598
	$	2,609	$	206	$	811	$	13	$	298	$	1,719

The following table shows the Corporation’s investments’ gross unrealized and unrecognized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2023, and December 31, 2022:


	Less than 12 Months				12 Months or More				Total
In thousands	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

SECURITIES AVAILABLE FOR SALE

June 30, 2023
U.S. Government and agencies	$	—	$	—	$	198,830	$	29,659	$	198,830	$	29,659
Mortgage-backed securities	14,612		891		223,678		32,517		238,290		33,408
State and municipal	—		—		—		—		—		—
Corporate bonds	2,377		373		12,755		2,615		15,132		2,988
	$	16,989	$	1,264	$	435,263	$	64,791	$	452,252	$	66,055

December 31, 2022
U.S. Government and agencies	$	25,426	$	1,461	$	185,573	$	29,007	$	210,999	$	30,468
Mortgage-backed securities	221,249		19,362		63,145		12,797		284,394		32,159
State and municipal	6,229		196		—		—		6,229		196
Corporate bonds	24,337		1,217		5,250		600		29,587		1,817
	$	277,241	$	22,236	$	253,968	$	42,404	$	531,209	$	64,640

	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
SECURITIES HELD TO MATURITY

June 30, 2023
Mortgage-backed securities	$	—	$	—	$	2,678	$	186	$	2,678	$	186
State and municipal	285		—		55,170		6,607		55,455		6,607
	$	285	$	—	$	57,848	$	6,793	$	58,133	$	6,793

December 31, 2022

Mortgage-backed securities	$	3,085	$	194	$	—	$	—	$	3,085	$	194
State and municipal	38,086		3,875		16,907		2,830		54,993		6,705
	$	41,171	$	4,069	$	16,907	$	2,830	$	58,078	$	6,899

All mortgage-backed security investments are government sponsored enterprise (GSE) pass-through instruments issued by the Federal National Mortgage Association (FNMA), Government National Mortgage Association (GNMA)

or Federal Home Loan Mortgage Corporation (FHLMC), which guarantee the timely payment of principal on these investments.

The Corporation adopted ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2023 and did not record an allowance for credit losses on its investment securities during the quarter ended June 30, 2023. The Corporation regularly reviews debt securities for expected credit loss using both qualitative and quantitative criteria, as necessary, based on the composition of the portfolio at period end. Management sells securities from its available for sale portfolio in an effort to manage and allocate the portfolio.

Amortized cost and fair value at June 30, 2023, by contractual maturity, where applicable, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay with or without penalties. Securities not due at a single maturity date are shown separately.


	Available for Sale				Held to Maturity
In thousands	Amortized Cost		Fair Value		Amortized Cost		Fair Value
1 year or less	$	—	$	—	$	285	$	285
Over 1 year through 5 years	161,885		144,664		380		359
Over 5 years through 10 years	80,151		65,766		17,005		15,738
Over 10 years	4,573		3,532		44,392		39,073
Mortgage-backed securities	271,698		238,290		2,864		2,678
	$	518,307	$	452,252	$	64,926	$	58,133

The proceeds from sales of securities and the associated gains and losses are listed below:


	Three Months Ended June 30,				Six Months Ended June 30,
In thousands	2023		2022		2023		2022
Proceeds	$	32,235	$	—	$	79,215	$	—
Gross gains	15		—		243		—
Gross losses	561		—		982		—

At June 30, 2023, and December 31, 2022, securities with a carrying value of $247,854,000 and $342,180,000, respectively, were pledged as collateral as required by law on public and trust deposits, repurchase agreements, and for other purposes.