Securities

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Amortized cost and fair value of securities at September 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

September 30, 2023
U.S. Government and agencies	$	228,045	$	—	$	31,270	$	196,775
Mortgage-backed securities	264,621		—		40,896		223,725

Corporate bonds	18,116		—		3,057		15,059
	$	510,782	$	—	$	75,223	$	435,559

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

September 30, 2023
Mortgage-backed securities	$	2,660	$	—	$	181	$	2,479
State and municipal	61,956		—		10,592		51,364
	$	64,616	$	—	$	10,773	$	53,843
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 September 30, 2023 and December 31, 2022, are as follows:


In thousands	Fair Value at January 1, 2023		Purchases		Sales/reclassification		Gains/(Losses)		Gains/(Losses) on sales of securities		Fair Value at September 30, 2023
September 30, 2023
CRA Mutual Fund	$	915	$	—	$	—	$	(27)	$	—	$	888
Canapi Ventures SBIC Fund	206		—		206		—		—		—
Stock in other banks	598		—		592		5		(11)		—
	$	1,719	$	—	$	798	$	(22)	$	(11)	$	888


In thousands	Fair Value at January 1, 2022		Purchases		Sales		Gains/(Losses)		Gains/(Losses) on sales of securities		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		(177)		13		598
	$	2,609	$	206	$	811	$	(298)	$	13	$	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 September 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

September 30, 2023
U.S. Government and agencies	$	—	$	—	$	196,775	$	31,270	$	196,775	$	31,270
Mortgage-backed securities	4,155		298		219,570		40,598		223,725		40,896

Corporate bonds	1,745		255		13,314		2,802		15,059		3,057
	$	5,900	$	553	$	429,659	$	74,670	$	435,559	$	75,223

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

September 30, 2023
Mortgage-backed securities	$	—	$	—	$	2,479	$	181	$	2,479	$	181
State and municipal	—		—		51,364		10,592		51,364		10,592
	$	—	$	—	$	53,843	$	10,773	$	53,843	$	10,773

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 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 September 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 buys and sells securities from its available for sale portfolio due to general balance sheet and interest rate risk management.

Amortized cost and fair value at September 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	$	9,165	$	8,791	$	—	$	—
Over 1 year through 5 years	157,062		139,342		1,117		1,003
Over 5 years through 10 years	77,934		62,247		18,994		16,498
Over 10 years	2,000		1,454		41,845		33,863
Mortgage-backed securities	264,621		223,725		2,660		2,479
	$	510,782	$	435,559	$	64,616	$	53,843

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


	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	2023		2022		2023		2022
Proceeds	$	—	$	—	$	79,215	$	—
Gross gains	—		—		243		—
Gross losses	—		—		982		—

At September 30, 2023, and December 31, 2022, securities with a carrying value of $276.5 million and $342.2 million, respectively, were pledged as collateral as required by law on public and trust deposits, repurchase agreements, and for other purposes.