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Investments Securities

12 Months Ended

Dec. 31, 2023

Investments [Abstract]

Investments

4. Investment Securities

The following table shows a comparison of amortized cost and fair values of investment securities at December 31, 2023 and 2022:



(in thousands)		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Allowance for Credit Losses			Estimated Fair Value
December 31, 2023
Available for Sale:
U.S. government agencies		$	7,000		$	—		$	966		$	—		$	6,034
Residential mortgage-backed agencies			24,781			—			4,218			—			20,563
Commercial mortgage-backed agencies			36,258			—			7,841			—			28,417
Collateralized mortgage obligations			19,725			—			3,369			—			16,356
Obligations of states and political subdivisions			10,486			15			189			—			10,312
Corporate Bonds			1,000			—			222			—			778
Collateralized debt obligations			18,671			—			3,962			—			14,709
Total available for sale		$	117,921		$	15		$	20,767		$	—		$	97,169

(in thousands)		Amortized Cost			Gross Unrecognized Gains			Gross Unrecognized Losses			Estimated Fair Value			Allowance for Credit Losses
December 31, 2023
Held to Maturity:
U.S. treasuries		$	37,462		$	—		$	243		$	37,219		$	—
U.S. government agencies			68,014			—			10,985			57,029			—
Residential mortgage-backed agencies			29,588			42			2,913			26,717			—
Commercial mortgage-backed agencies			21,413			—			5,361			16,052			—
Collateralized mortgage obligations			53,261			—			9,973			43,288			—
Obligations of states and political subdivisions			4,604			177			671			4,110			45
Total held to maturity		$	214,342		$	219		$	30,146		$	184,415		$	45



(in thousands)		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Estimated Fair Value
December 31, 2022
Available for Sale:
U.S. government agencies		$	11,044		$	—		$	1,582		$	9,462
Residential mortgage-backed agencies			45,052			—			7,651			37,401
Commercial mortgage-backed agencies			37,393			—			6,661			30,732
Collateralized mortgage obligations			25,828			—			4,784			21,044
Obligations of states and political subdivisions			10,848			4			360			10,492
Corporate Bonds			1,000			—			113			887
Collateralized debt obligations			18,664			—			2,793			15,871
Total available for sale		$	149,829		$	4		$	23,944		$	125,889

(in thousands)		Amortized Cost			Gross Unrecognized Gains			Gross Unrecognized Losses			Estimated Fair Value
December 31, 2022
Held to Maturity:
U.S. treasuries		$	37,204		$	—		$	1,593		$	35,611
U.S. government agencies			67,734			—			13,261			54,473
Residential mortgage-backed agencies			28,624			1			3,503			25,122
Commercial mortgage-backed agencies			22,389			—			4,568			17,821
Collateralized mortgage obligations			57,085			—			10,001			47,084
Obligations of states and political subdivisions			22,623			946			600			22,969
Total held to maturity		$	235,659		$	947		$	33,526		$	203,080

Proceeds from sales and calls of available-for-sale securities and the realized gains and losses for the years ended December 31, 2023 and 2022 are as follows:



(in thousands)		2023			2022
Proceeds		$	20,249		$	1,023
Gross realized gains			—			3
Gross realized losses			4,214			—

The following table shows the Corporation’s securities with gross unrealized and unrecognized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized position, at December 31, 2023 and 2022:


		Less than 12 months								12 months or more
(in thousands)		Fair Value			Unrealized Losses			Number of Investments		Fair Value			Unrealized Losses			Number of Investments
December 31, 2023
Available for Sale:
U.S. government agencies		$	—		$	—		—		$	6,034		$	966		2
Residential mortgage-backed agencies			—			—		—			20,563			4,218		3
Commercial mortgage-backed agencies			—			—		—			28,417			7,841		8
Collateralized mortgage obligations			—			—		—			16,356			3,369		9
Obligations of states and political subdivisions			1,445			20		2			6,668			169		3
Corporate Bonds			—			—		—			778			222		1
Collateralized debt obligations			—			—		—			14,709			3,962		9
Total available for sale		$	1,445		$	20		2		$	93,525		$	20,747		35

		Less than 12 months								12 months or more
(in thousands)		Fair Value			Unrecognized Losses			Number of Investments		Fair Value			Unrecognized Losses			Number of Investments
December 31, 2023
Held to Maturity:
U.S. treasuries		$	—		$	—		—		$	37,219		$	243		4
U.S. government agencies			—			—		—			57,029			10,985		9
Residential mortgage-backed agencies			—			—		—			22,613			2,913		35
Commercial mortgage-backed agencies			—			—		—			16,052			5,361		2
Collateralized mortgage obligations			—			—		—			43,288			9,973		8
Obligations of states and political subdivisions			—			—		—			2,205			671		1
Total held to maturity		$	—		$	—		—		$	178,406		$	30,146		59


		Less than 12 months								12 months or more
(in thousands)		Fair Value			Unrealized Losses			Number of Investments		Fair Value			Unrealized Losses			Number of Investments
December 31, 2022
Available for Sale:
U.S. government agencies		$	4,598		$	402		1		$	4,865		$	1,180		2
Residential mortgage-backed agencies			—			—		—			37,401			7,651		5
Commercial mortgage-backed agencies			4,044			455		3			26,688			6,206		6
Collateralized mortgage obligations			1,600			210		5			19,444			4,574		5
Obligations of states and political subdivisions			8,906			360		7			—			—		—
Corporate Bonds			887			113		1
Collateralized debt obligations			—			—		—			15,871			2,793		9
Total available for sale		$	20,035		$	1,540		17		$	104,269		$	22,404		27

		Less than 12 months								12 months or more
(in thousands)		Fair Value			Unrecognized Losses			Number of Investments		Fair Value			Unrecognized Losses			Number of Investments
December 31, 2022
Held to Maturity:
U.S. treasuries		$	—		$	—		—		$	35,611		$	1,593		4
U.S. government agencies			38,883			9,617		7			15,591			3,644		2
Residential mortgage-backed agencies			16,893			1,425		29			8,138			2,078		7
Commercial mortgage-backed agencies			17,821			4,568		3			—			—		—
Collateralized mortgage obligations			47,083			10,001		8			—			—		—
Obligations of states and political subdivisions			2,269			600		1			—			—		—
Total held to maturity		$	122,949		$	26,211		48		$	59,340		$	7,315		13

As of December 31, 2023, the Corporation recorded ACL of approximately $45,000 related to one bond in the HTM security portfolio. There was no ACL related to its AFS or HTM security portfolio at December 31, 2022.

The amortized cost and estimated fair value of securities by contractual maturity at December 31, 2023 are shown in the following table. Actual maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.



(in thousands)		Amortized Cost			Fair Value
Contractual Maturity
Available for sale:
Due in one year or less		$	2,670		$	2,640
Due after one year through five years			5,250			4,952
Due after five years through ten years			2,410			2,168
Due after ten years			26,827			22,073
			37,157			31,833
Residential mortgage-backed agencies			24,781			20,563
Commercial mortgage-backed agencies			36,258			28,417
Collateralized mortgage obligations			19,725			16,356
Total available for sale		$	117,921		$	97,169
Held to Maturity:
Due in one year or less		$	37,462		$	37,219
Due after one year through five years			12,500			11,706
Due after five years through ten years			40,456			34,495
Due after ten years			19,662			14,938
			110,080			98,358
Residential mortgage-backed agencies			29,588			26,717
Commercial mortgage-backed agencies			21,413			16,052
Collateralized mortgage obligations			53,261			43,288
Total held to maturity		$	214,342		$	184,415

At December 31, 2023 and 2022, AFS investment securities with a fair value of $50.5 million and $49.7 million, respectively, and HTM investment securities with a book value of $141.8 million and $165.9 million were pledged as permitted or required to secure public deposits, for securities sold under agreements to repurchase as required or permitted by law and as collateral for borrowing capacity.