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Securities | 3 Months Ended
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Mar. 31, 2023
Investments Debt And Equity Securities [Abstract] |
Securities | NOTE 3 SECURITIES Mortgage-backed securities, as shown in the following tables, are all government sponsored enterprises. The amortized cost and fair value of securities, with gross unrealized gains and losses at March 31, 2023 and December 31, 2022, are as follows:
|  | (In Thousands) |
|  | March 31, 2023 |
|  | Amortized |  |  | Gross Unrealized |  |  | Gross Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available-for-Sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | $ | 95,215 |  |  | $ | - |  |  | $ | (7,703 | ) |  | $ | 87,512 |
U.S. Government agencies |  |  | 144,105 |  |  |  | - |  |  |  | (13,997 | ) |  |  | 130,108 |
Mortgage-backed securities |  |  | 98,348 |  |  |  | - |  |  |  | (12,028 | ) |  |  | 86,320 |
State and local governments |  |  | 74,783 |  |  |  | 120 |  |  |  | (5,868 | ) |  |  | 69,035 |
Total available-for-sale securities |  | $ | 412,451 |  |  | $ | 120 |  |  | $ | (39,596 | ) |  | $ | 372,975 |
|  | (In Thousands) |
|  | December 31, 2022 |
|  | Amortized |  |  | Gross Unrealized |  |  | Gross Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available-for-Sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | $ | 104,507 |  |  | $ | - |  |  | $ | (9,829 | ) |  | $ | 94,678 |
U.S. Government agencies |  |  | 156,817 |  |  |  | - |  |  |  | (17,050 | ) |  |  | 139,767 |
Mortgage-backed securities |  |  | 101,068 |  |  |  | - |  |  |  | (14,141 | ) |  |  | 86,927 |
State and local governments |  |  | 76,794 |  |  |  | 69 |  |  |  | (7,446 | ) |  |  | 69,417 |
Total available-for-sale securities |  | $ | 439,186 |  |  | $ | 69 |  |  | $ | (48,466 | ) |  | $ | 390,789 |
Investment securities will at times depreciate to an unrealized loss position. The Company utilizes the following criteria to assess whether impairment is other than temporary. No one item by itself will necessarily signal that a security should be recognized as an other than temporary impairment. 1. The fair value of the security has significantly declined from book value. 2. A downgrade has occurred that lowered the credit rating to below investment grade (below Baa3 by Moody and BBB – by Standard and Poors.) 3. Dividends have been reduced or eliminated or scheduled interest payments have not been made. 4. The underwater security has longer than 10 years to maturity and the loss position had existed for more than 3 years. 5. Management does not possess both the intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. If the impairment is judged to be other than temporary, the present value of the cash flows expected to be collected is compared to the amortized cost basis. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Adjustments to the allowance are recorded in the consolidated income statement as a component of the provision for credit losses. The table below is presented by category of security and length of time in a continuous loss position. The Company currently does not hold any securities with other than temporary impairment and thus did not recognize an allowance for credit losses. Information pertaining to securities with gross unrealized losses at March 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows:
|  | (In Thousands) |
|  | March 31, 2023 |
|  | Less Than Twelve Months |  |  | Twelve Months & Over |  |  | Total |
|  | Gross Unrealized |  |  | Fair |  |  | Gross Unrealized |  |  | Fair |  |  | Gross Unrealized |  |  | Fair |
|  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |
U.S. Treasury |  | $ | (19 | ) |  | $ | 727 |  |  | $ | (7,684 | ) |  | $ | 86,785 |  |  | $ | (7,703 | ) |  | $ | 87,512 |
U.S. Government agencies |  |  | (48 | ) |  |  | 1,952 |  |  |  | (13,949 | ) |  |  | 128,156 |  |  |  | (13,997 | ) |  |  | 130,108 |
Mortgage-backed securities |  |  | (28 | ) |  |  | 3,099 |  |  |  | (12,000 | ) |  |  | 83,221 |  |  |  | (12,028 | ) |  |  | 86,320 |
State and local governments |  |  | (248 | ) |  |  | 10,000 |  |  |  | (5,620 | ) |  |  | 53,332 |  |  |  | (5,868 | ) |  |  | 63,332 |
Total available-for-sale securities |  | $ | (343 | ) |  | $ | 15,778 |  |  | $ | (39,253 | ) |  | $ | 351,494 |  |  | $ | (39,596 | ) |  | $ | 367,272 |
|  | (In Thousands) |
|  | December 31, 2022 |
|  | Less Than Twelve Months |  |  | Twelve Months & Over |  |  | Total |
|  | Gross Unrealized |  |  | Fair |  |  | Gross Unrealized |  |  | Fair |  |  | Gross Unrealized |  |  | Fair |
|  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |
U.S. Treasury |  | $ | (207 | ) |  | $ | 9,121 |  |  | $ | (9,622 | ) |  | $ | 85,557 |  |  | $ | (9,829 | ) |  | $ | 94,678 |
U.S. Government agencies |  |  | (1,081 | ) |  |  | 24,560 |  |  |  | (15,969 | ) |  |  | 114,906 |  |  |  | (17,050 | ) |  |  | 139,466 |
Mortgage-backed securities |  |  | (2,454 | ) |  |  | 26,905 |  |  |  | (11,687 | ) |  |  | 60,022 |  |  |  | (14,141 | ) |  |  | 86,927 |
State and local governments |  |  | (3,223 | ) |  |  | 38,771 |  |  |  | (4,223 | ) |  |  | 25,610 |  |  |  | (7,446 | ) |  |  | 64,381 |
Total available-for-sale securities |  | $ | (6,965 | ) |  | $ | 99,357 |  |  | $ | (41,501 | ) |  | $ | 286,095 |  |  | $ | (48,466 | ) |  | $ | 385,452 |
Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality, values have only been impacted by changes in interest rates since the securities were purchased, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date. Below are the gross realized gains and losses for the three months ended March 31, 2023 and March 31, 2022.
|  | Three Months |
|  | (In Thousands) |
|  | 2023 |  |  | 2022 |
Gross realized gains |  | $ | 12 |  |  | $ | - |
Gross realized losses |  |  | (903 | ) |  |  | - |
Net realized losses |  | $ | (891 | ) |  | $ | - |
Tax benefit related to net realized losses |  | $ | (187 | ) |  | $ | - |
The net realized losses on sales and related tax benefit is a reclassification out of accumulated other comprehensive income (loss). The net realized losses are included in net loss on sale of available-for-sale securities and the related tax benefit is included in income taxes in the condensed consolidated statements of income and comprehensive income (loss). The amortized cost and fair value of debt securities at March 31, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | (In Thousands) |
|  | Amortized |  |  |  |
|  | Cost |  |  | Fair Value |
One year or less |  | $ | 18,764 |  |  | $ | 18,352 |
After one year through five years |  |  | 211,418 |  |  |  | 193,248 |
After five years through ten years |  |  | 79,611 |  |  |  | 70,746 |
After ten years |  |  | 4,310 |  |  |  | 4,309 |
Total |  | $ | 314,103 |  |  | $ | 286,655 |
Mortgage-backed securities |  |  | 98,348 |  |  |  | 86,320 |
Total |  | $ | 412,451 |  |  | $ | 372,975 |
Investments with a carrying value of $164.0 million and $134.8 million at March 31, 2023 and December 31, 2022, respectively, were pledged to secure public deposits and securities sold under repurchase agreements. Other securities include Federal Home Loan Bank of Cincinnati and Indianapolis stock in the amount of $9.8 million as of March 31, 2023 and $8.1 million as of December 31, 2022. Other securities also includes Ohio Equity Fund for Housing Limited Partnership funding of $1.7 million out of a total of $4.0 million committed as of both March 31, 2023 and December 31, 2022.

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- 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
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