Investment Securities

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Note 2 – Investment Securities

Amortized cost and fair values of investment securities available-for-sale at December 31, 2022 are summarized as follows:


(Dollars in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
United States government agency securities	$	51,436	$	15	$	(6,637)	$	44,814
United States sponsored mortgage-backed securities	68,267		—		(11,696)		56,571
United States treasury securities	130,689		48		(9,828)		120,909
Municipal securities	157,842		2,412		(21,618)		138,636
Corporate debt securities	10,570		10		(20)		10,560
Other debt securities	7,500		—		—		7,500
Total debt securities	426,304		2,485		(49,799)		378,990
Other securities	824		—		—		824
Total investment securities available-for-sale	$	427,128	$	2,485	$	(49,799)	$	379,814

Amortized cost and fair values of investment securities available-for-sale at December 31, 2021 are summarized as follows:


(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 summarizes amortized cost and fair values of debt securities by maturity:


	December 31, 2022
	Available for sale
(Dollars in thousands)	Amortized Cost		Fair Value
Within one year	$	5,034	$	5,033
After one year, but within five years	140,570		130,614
After five years, but within ten years	41,366		37,368
After ten years	239,334		205,975
Total	$	426,304	$	378,990

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

Investment securities with a carrying value of $91.3 million and $244.6 million at December 31, 2022 and 2021, respectively, were pledged to secure public funds, repurchase agreements and potential borrowings at the Federal Reserve discount window.

Our investment portfolio includes securities that are in an unrealized loss position as of December 31, 2022, the details of which are included in the following table. Although these securities, if sold at December 31, 2022 would result in a pretax loss of $49.8 million, we have no intent to sell the applicable securities at such fair values, and maintain 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 values 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 December 31, 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 temporary decline in fair value.

The following table discloses the length of time that investments have remained in an unrealized loss position at December 31, 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 (32)	$	21,287	$	(1,937)	$	19,423	$	(4,700)
United States sponsored mortgage-backed securities (51)	6,953		(852)		49,618		(10,844)
United States treasury securities (29)	11,936		(130)		102,092		(9,698)
Municipal securities (173)	65,930		(7,507)		41,184		(14,111)
Corporate debt securities (3)	2,380		(20)		—		—

	$	108,486	$	(10,446)	$	212,317	$	(39,353)

The following table discloses the length of time that investments have remained in an unrealized loss position at 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)
Corporate debt securities (9)	—		—		—		—
	$	203,065	$	(3,437)	$	36,616	$	(1,202)

The following table summarizes the investment sales and related gains and losses in 2022, 2021 and 2020:


(Dollars in thousands)	2022		2021		2020
Proceeds from sales of available-for-sale securities	$	60,635	$	146,011	$	54,023
Gains, gross	717		3,944		948
Losses, gross	(67)		(69)		(34)


Proceeds from sales of equity securities	$	1,356	$	543	$	4,622
Gains, gross	158		5		3,501
Losses, gross	(214)		—		—

Unrealized holding gains (losses) on equity securities	$	(1,543)	$	3,776	$	374