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Investment Securities | 9 Months Ended
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Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The amortized cost and estimated fair value of securities available-for-sale and held-to-maturity along with gross unrealized gains and losses are summarized as follows:
(dollars in thousands) |  |  |  |  |  |  |
September 30, 2022 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities Available for Sale: |  |  |  |  |  |  |
U.S. treasury securities | $ | 1,642 |  |  | $ | — |  |  | $ | (12) |  |  | $ | 1,630 |
U.S. agency | 5,405 |  |  | — |  |  | (487) |  |  | 4,918 |
Asset backed securities | 26,919 |  |  | — |  |  | (747) |  |  | 26,172 |
State, county & municipal securities | 126,472 |  |  | — |  |  | (23,182) |  |  | 103,290 |
Corporate debt securities | 54,782 |  |  | — |  |  | (4,117) |  |  | 50,665 |
Mortgage-backed securities | 282,269 |  |  | 15 |  |  | (29,243) |  |  | 253,041 |
Total | $ | 497,489 |  |  | $ | 15 |  |  | $ | (57,788) |  |  | $ | 439,716 |
September 30, 2022 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities Held to Maturity: |  |  |  |  |  |  |
U.S. treasury securities | $ | 91,189 |  |  | $ | — |  |  | $ | (4,460) |  |  | $ | 86,729 |
U.S. agency | 16,440 |  |  | — |  |  | (1,853) |  |  | 14,587 |
State, county & municipal securities | 135,994 |  |  | — |  |  | (21,030) |  |  | 114,964 |
Mortgage-backed securities | 224,683 |  |  | — |  |  | (29,945) |  |  | 194,738 |
Total | $ | 468,306 |  |  | $ | — |  |  | $ | (57,288) |  |  | $ | 411,018 |
December 31, 2021 |  |  |  |  |  |  |
Securities Available for Sale: |  |  |  |  |  |  |
U.S. treasury securities | $ | 88,638 |  |  | $ | — |  |  | $ | (1,087) |  |  | $ | 87,551 |
U.S. agency | 17,916 |  |  | 5 |  |  | (140) |  |  | 17,781 |
State, county & municipal securities | 252,632 |  |  | 877 |  |  | (3,356) |  |  | 250,153 |
Corporate debt securities | 48,153 |  |  | 520 |  |  | (265) |  |  | 48,408 |
Mortgage-backed securities | 539,172 |  |  | 2,160 |  |  | (7,061) |  |  | 534,271 |
Total | $ | 946,511 |  |  | $ | 3,562 |  |  | $ | (11,909) |  |  | $ | 938,164 |
The Company transferred certain agency-issued securities from the available-for-sale to held-to-maturity portfolio on January 1, 2022 and September 1, 2022, having a combined book value of approximately $511.0 million and a combined market value of approximately $477.0 million. As of the date of each transfer, the related pre-tax net unrecognized losses of approximately $34.0 million within the accumulated other comprehensive loss balance are being amortized over the remaining term of the securities using the effective interest method. This transfer was completed after careful consideration of the Company’s intent and ability to hold these securities to maturity. Factors used in assessing the ability to hold these securities to maturity were future liquidity needs and sources of funding. The amortized cost and fair value of investment securities as of September 30, 2022, by contractual maturity, are shown hereafter. Expected maturities may differ from contractual maturities for certain investments because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.
| Available for Sale |  | Held to Maturity
(dollars in thousands) | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Due in one year or less | $ | 1,020 |  |  | $ | 1,011 |  |  | $ | — |  |  | $ | — |
Due after one year through five years | 13,612 |  |  | 12,701 |  |  | 62,300 |  |  | 59,996 |
Due after five years through ten years | 88,747 |  |  | 77,200 |  |  | 87,245 |  |  | 77,143 |
Due after ten years | 111,841 |  |  | 95,763 |  |  | 94,078 |  |  | 79,141 |
| $ | 215,220 |  |  | $ | 186,675 |  |  | $ | 243,623 |  |  | $ | 216,280 |
Mortgage-backed securities | 282,269 |  |  | 253,041 |  |  | 224,683 |  |  | 194,738 |
| $ | 497,489 |  |  | $ | 439,716 |  |  | $ | 468,306 |  |  | $ | 411,018 |
Proceeds from the sale of investment securities totaled $44.1 million and $47.2 million, and $0 and $17.6 million for the three and nine months ended September 30, 2022 and 2021, respectively. The sale of investment securities for the three months ended September 30, 2022 and 2021 resulted in no gross realized gains for each period and losses of $96,000 and $0, respectively. The sale of investment securities for the nine months ended September 30, 2022 and 2021 resulted in gross realized gains of $24,000 and $209,000 and losses of $96,000 and $72,000, respectively. Investment securities having a carrying value of approximately $350.1 million and $247.4 million were pledged to secure public deposits and for other purposes as of September 30, 2022 and December 31, 2021, respectively. Information pertaining to available-for-sale securities with gross unrealized losses at September 30, 2022 and December 31, 2021 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows:
| Less Than 12 Months |  | 12 Months or Greater |  | Total
(dollars in thousands) | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities | $ | 841 |  |  | $ | (7) |  |  | $ | 789 |  |  | $ | (5) |  |  | $ | 1,630 |  |  | $ | (12) |
U.S. agency | 4,918 |  |  | (487) |  |  | — |  |  | — |  |  | 4,918 |  |  | (487) |
Asset backed securities | 14,785 |  |  | (262) |  |  | 11,387 |  |  | (485) |  |  | 26,172 |  |  | (747) |
State, county & municipal securities | 50,600 |  |  | (9,562) |  |  | 52,690 |  |  | (13,620) |  |  | 103,290 |  |  | (23,182) |
Corporate debt securities | 26,326 |  |  | (2,538) |  |  | 15,086 |  |  | (1,579) |  |  | 41,412 |  |  | (4,117) |
Mortgage-backed securities | 155,170 |  |  | (13,980) |  |  | 82,264 |  |  | (15,263) |  |  | 237,434 |  |  | (29,243) |
| $ | 252,640 |  |  | $ | (26,836) |  |  | $ | 162,216 |  |  | $ | (30,952) |  |  | $ | 414,856 |  |  | $ | (57,788) |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities | $ | 87,302 |  |  | $ | (1,087) |  |  | $ | — |  |  | $ | — |  |  | $ | 87,302 |  |  | $ | (1,087) |
U.S. agency | 10,969 |  |  | (140) |  |  | — |  |  | — |  |  | 10,969 |  |  | (140) |
State, county & municipal securities | 180,551 |  |  | (3,131) |  |  | 5,970 |  |  | (225) |  |  | 186,521 |  |  | (3,356) |
Corporate debt securities | 31,977 |  |  | (265) |  |  | — |  |  | — |  |  | 31,977 |  |  | (265) |
Mortgage-backed securities | 377,413 |  |  | (6,421) |  |  | 21,129 |  |  | (640) |  |  | 398,542 |  |  | (7,061) |
| $ | 688,212 |  |  | $ | (11,044) |  |  | $ | 27,099 |  |  | $ | (865) |  |  | $ | 715,311 |  |  | $ | (11,909) |
Information pertaining to held-to-maturity securities with gross unrealized losses at September 30, 2022 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows:
| Less Than 12 Months |  | 12 Months or Greater |  | Total
(dollars in thousands) | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 77,682 |  |  | $ | (4,058) |  |  | $ | 9,047 |  |  | $ | (402,000) |  |  | $ | 86,729 |  |  | $ | (4,460) |
U.S. agency | 6,235 |  |  | (489) |  |  | 8,352 |  |  | (1,364) |  |  | 14,587 |  |  | (1,853) |
State, county & municipal securities | 47,941 |  |  | (7,526) |  |  | 67,023 |  |  | (13,504) |  |  | 114,964 |  |  | (21,030) |
Mortgage-backed securities | 31,436 |  |  | (3,299) |  |  | 163,302 |  |  | (26,646) |  |  | 194,738 |  |  | (29,945) |
| $ | 163,294 |  |  | $ | (15,372) |  |  | $ | 247,724 |  |  | $ | (41,916) |  |  | $ | 411,018 |  |  | $ | (57,288) |
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At September 30, 2022, there were 272 available-for-sale securities and 161 held-to-maturity securities that had unrealized losses. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other than temporary.

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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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