Investment Securities

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Note 2 – Investment Securities

The following tables present amortized cost and fair values of investment securities available-for-sale as of the periods shown:


	September 30, 2022
(Dollars in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
United States government agency securities	$	52,276	$	20	$	(6,148)	$	46,148
United States sponsored mortgage-backed securities	69,708		—		(11,879)		57,829
United States treasury securities	121,479		—		(10,447)		111,032
Municipal securities	156,765		2,860		(23,867)		135,758
Corporate debt securities	7,654		—		(14)		7,640
Other debt securities	7,500		—		—		7,500
Total debt securities	415,382		2,880		(52,355)		365,907
Other securities	835		—		—		835
Total investment securities available-for-sale	$	416,217	$	2,880	$	(52,355)	$	366,742


	December 31, 2021
(Dollars in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
United States government agency securities	$	41,105	$	228	$	(896)	$	40,437
United States sponsored mortgage-backed securities	77,519		222		(1,633)		76,108
United States treasury securities	112,133		—		(1,744)		110,389
Municipal securities	171,044		4,334		(366)		175,012
Corporate debt securities	11,093		49		—		11,142
Other debt securities	7,500		—		—		7,500
Total debt securities	420,394		4,833		(4,639)		420,588
Other securities	878		—		—		878
Total investment securities available-for-sale	$	421,272	$	4,833	$	(4,639)	$	421,466

The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period shown:


	September 30, 2022
(Dollars in thousands)	Amortized Cost		Fair Value
Within one year	$	—	$	—
After one year, but within five years	133,910		123,295
After five years, but within ten years	40,660		36,742
After ten years	240,812		205,870
Total	$	415,382	$	365,907

The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may be repaid sooner than scheduled.

Investment securities with a carrying value of $27.5 million and $244.6 million at September 30, 2022 and December 31, 2021, respectively, were pledged to secure public funds, repurchase agreements.

Our investment portfolio includes securities that are in an unrealized loss position as of September 30, 2022, the details of which are included in the following table. Although these securities would result in a pretax loss of $52.4 million if sold at September

30, 2022, we currently have no intention of selling the applicable securities at such fair values, and believe that we have the ability to hold these securities until all principal has been recovered. It is more likely than not that we will not, for liquidity purposes, sell any securities at a loss. Declines in the fair value of these securities can be traced to general market conditions, which reflect the prospect for the economy as a whole. When determining other-than-temporary impairment on securities, we consider such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, our ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency and whether or not the financial condition of the security issuer has severely deteriorated. As of September 30, 2022, we consider all securities with unrealized loss positions to be temporarily impaired. As a result, we do not believe we will sustain any material realized losses as a result of the current decline in fair value.

The following tables disclose the length of time that investments have remained in an unrealized loss position at September 30, 2022 and December 31, 2021:


	September 30, 2022
(Dollars in thousands)	Less than 12 months				12 months or more
Description and number of positions	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
United States government agency securities (31)	$	22,001	$	(1,818)	$	19,638	$	(4,330)
United States sponsored mortgage-backed securities (51)	15,078		(2,437)		42,750		(9,442)
United States treasury securities (28)	9,507		(95)		101,525		(10,352)
Municipal securities (214)	86,671		(18,089)		23,978		(5,778)
Corporate debt securities (3)	2,386		(14)		—		—

Total	$	135,643	$	(22,453)	$	187,891	$	(29,902)


	December 31, 2021
(Dollars in thousands)	Less than 12 months				12 months or more
Description and number of positions	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
United States government agency securities (21)	$	5,101	$	(77)	$	21,770	$	(819)
United States sponsored mortgage-backed securities (30)	55,354		(1,346)		7,845		(287)
United States treasury securities (24)	110,389		(1,744)		—		—
Municipal securities (53)	32,221		(270)		7,001		(96)

Total	$	203,065	$	(3,437)	$	36,616	$	(1,202)

The following table summarizes investment sales, related gains and losses and unrealized holding gains for the periods shown:


	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2022		2021		2022		2021
Proceeds from sales of available-for-sale securities	$	—	$	28,049	$	60,635	$	103,365
Gains, gross	—		547		717		3,411
Losses, gross	—		18		67		31

Proceeds from sales of equity securities	$	161	$	—	$	1,261	$	61
Gain, gross	58		—		158		5
Losses, gross	214		—		214		—

Unrealized holding gains (losses) on equity securities	(61)		536		(146)		1,750