Investment Securities

9 Months Ended

Sep. 30, 2023

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, 2023
(Dollars in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
United States government agency securities	$	44,360	$	8	$	(7,228)	$	37,140
United States sponsored mortgage-backed securities	73,911		—		(13,430)		60,481
United States treasury securities	106,476		—		(8,376)		98,100
Municipal securities	118,872		1,064		(21,312)		98,624
Corporate debt securities	9,073		—		(172)		8,901
Other debt securities	7,500		—		—		7,500
Total debt securities	360,192		1,072		(50,518)		310,746
Other securities	791		—		—		791
Total investment securities available-for-sale	$	360,983	$	1,072	$	(50,518)	$	311,537


	December 31, 2022
(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

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, 2023
(Dollars in thousands)	Amortized Cost		Fair Value
Within one year	$	4,794	$	4,793
After one year, but within five years	111,991		103,552
After five years, but within ten years	40,598		35,557
After ten years	202,809		166,844
Total	$	360,192	$	310,746

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 $215.6 million and $91.3 million at September 30, 2023 and December 31, 2022, 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 September 30, 2023, the details of which are included in the following table. We evaluate available-for-sale debt securities to determine whether the unrealized loss is due to credit-related factors or non-credit-related factors. When determining the allowance for credit losses 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.

Although these securities would result in a pre-tax loss of $50.5 million if sold at September 30, 2023, 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, rather than credit-related conditions. Therefore, we have no allowance for credit losses as of September 30, 2023.

The following tables show available-for-sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of September 30, 2023 and December 31, 2022, aggregated by investment category and length of time that the individual securities have been in a continuous loss position:


	September 30, 2023
(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 (25)	$	356	$	—	$	35,155	$	(7,228)
United States sponsored mortgage-backed securities (48)	2,249		(90)		48,493		(13,340)
United States treasury securities (23)	—		—		98,100		(8,376)
Municipal securities (196)	10,036		(3,828)		80,624		(17,484)
Corporate debt securities (7)	1,971		(102)		1,930		(70)

Total	$	14,612	$	(4,020)	$	264,302	$	(46,498)


	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)		—		—

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

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)	2023		2022		2023		2022
Proceeds from sales of available-for-sale securities	$	—	$	—	$	54,531	$	60,635
Gains, gross	—		—		—		717
Losses, gross	—		—		1,536		67

Proceeds from sales of equity securities	$	360	$	161	$	566	$	1,261
Gain, gross	25		58		25		158
Losses, gross	—		214		294		214

Unrealized holding gains (losses) on equity securities	219		(61)		71		(146)