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INVESTMENT SECURITIES | 12 Months Ended
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Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | Note 3—INVESTMENT SECURITIES The amortized cost and estimated fair values of investment securities are summarized below: AVAILABLE-FOR-SALE:
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury securities |  | $ | 60,552 |  |  | $ | — |  |  | $ | (4,569 | ) |  | $ | 55,983 |
Government Sponsored Enterprises |  |  | 2,500 |  |  |  | — |  |  |  | (426 | ) |  |  | 2,074 |
Mortgage-backed securities |  |  | 263,704 |  |  |  | 10 |  |  |  | (19,114 | ) |  |  | 244,600 |
Small Business Administration pools |  |  | 21,657 |  |  |  | 60 |  |  |  | (630 | ) |  |  | 21,087 |
State and local government |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Corporate and other securities |  |  | 8,772 |  |  |  | 12 |  |  |  | (666 | ) |  |  | 8,118 |
Total |  | $ | 357,185 |  |  | $ | 82 |  |  | $ | (25,405 | ) |  | $ | 331,862 |
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury securities |  | $ | 15,736 |  |  | $ | — |  |  | $ | 300 |  |  | $ | 15,436 |
Government Sponsored Enterprises |  |  | 2,499 |  |  |  | 2 |  |  |  | — |  |  |  | 2,501 |
Mortgage-backed securities |  |  | 398,125 |  |  |  | 3,596 |  |  |  | 3,992 |  |  |  | 397,729 |
Small Business Administration pools |  |  | 30,835 |  |  |  | 505 |  |  |  | 67 |  |  |  | 31,273 |
State and local government |  |  | 105,469 |  |  |  | 4,918 |  |  |  | 539 |  |  |  | 109,848 |
Corporate and other securities |  |  | 8,024 |  |  |  | 157 |  |  |  | 129 |  |  |  | 8,052 |
Total |  | $ | 560,688 |  |  | $ | 9,178 |  |  | $ | 5,027 |  |  | $ | 564,839 |
HELD-TO-MATURITY:
(Dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury securities |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Government Sponsored Enterprises |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-backed securities |  |  | 121,772 |  |  |  | — |  |  |  | (8,656 | ) |  |  | 113,116 |
Small Business Administration pools |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
State and local government |  |  | 106,929 |  |  |  | — |  |  |  | (6,432 | ) |  |  | 100,497 |
Corporate and other securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 228,701 |  |  | $ | — |  |  | $ | (15,088 | ) |  | $ | 213,613 |
There were no investment securities listed as held-to-maturity as of December 31, 2021. On June 1, 2022, we reclassified $224.5 million in investments to held-to-maturity (HTM) from available-for-sale (AFS). These securities were transferred at fair value at the time of the transfer, which became the new cost basis for the securities held to maturity. The pretax unrealized net holding loss on the available for sale securities on the date of transfer totaled approximately $16.7 million, and continued to be reported as a component of accumulated other comprehensive loss. This net unrealized loss is being amortized to interest income over the remaining life of the securities as a yield adjustment. There were no gains or losses recognized as a result of this transfer. The remaining pretax unrealized net holding loss on these investments was $15.7 million ($12.4 million net of tax) at December 31, 2022. During the years ended December 31, 2022 and December 31, 2021, the Company did not receive any proceeds from the sale of investment securities available-for-sale. For the years ended December 31, 2022 and December 31, 2021, there were no gross realized gains or losses from the sale of investment securities available-for-sale. The tax (benefit) provision applicable to the net realized gain (loss) was approximately $0, $0, and $21 thousand for 2022, 2021 and 2020, respectively. The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at December 31, 2022 and December 31, 2021. Schedule of gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position.
(Dollars in thousands) |  | Less than 12 months |  |  | 12 months or more |  |  | Total |
December 31, 2022 |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
Available-for-sale securities: |  | Value |  |  | Loss |  |  | Value |  |  | Loss |  |  | Value |  |  | Loss |
US Treasury Securities |  | $ | 28,827 |  |  | $ | 1,032 |  |  | $ | 27,156 |  |  | $ | 3,537 |  |  | $ | 55,983 |  |  | $ | 4,569 |
Government Sponsored Enterprise |  |  | — |  |  |  | — |  |  |  | 2,074 |  |  |  | 426 |  |  |  | 2,074 |  |  |  | 426 |
Mortgage-backed securities |  |  | 81,961 |  |  |  | 4,435 |  |  |  | 159,227 |  |  |  | 14,679 |  |  |  | 241,188 |  |  |  | 19,114 |
Small Business Administration pools |  |  | 16,066 |  |  |  | 453 |  |  |  | 2,592 |  |  |  | 177 |  |  |  | 18,658 |  |  |  | 630 |
State and local government |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Corporate and other securities |  |  | 2,128 |  |  |  | 146 |  |  |  | 3,230 |  |  |  | 520 |  |  |  | 5,358 |  |  |  | 666 |
Total |  | $ | 128,982 |  |  | $ | 6,067 |  |  | $ | 194,279 |  |  | $ | 19,338 |  |  | $ | 323,261 |  |  | $ | 25,405 |
(Dollars in thousands) |  | Less than 12 months |  |  | 12 months or more |  |  | Total |
December 31, 2021 |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
Available-for-sale securities: |  | Value |  |  | Loss |  |  | Value |  |  | Loss |  |  | Value |  |  | Loss |
US Treasury Securities |  | $ | 14,479 |  |  | $ | 264 |  |  | $ | 958 |  |  | $ | 36 |  |  | $ | 15,437 |  |  | $ | 300 |
Mortgage-backed securities |  |  | 200,238 |  |  |  | 3,156 |  |  |  | 48,570 |  |  |  | 836 |  |  |  | 248,808 |  |  |  | 3,992 |
Small Business Administration pools |  |  | 7,232 |  |  |  | 67 |  |  |  | — |  |  |  | — |  |  |  | 7,232 |  |  |  | 67 |
State and local government |  |  | 21,261 |  |  |  | 539 |  |  |  | — |  |  |  | — |  |  |  | 21,261 |  |  |  | 539 |
Corporate and other securities |  |  | 3,621 |  |  |  | 129 |  |  |  | — |  |  |  | — |  |  |  | 3,621 |  |  |  | 129 |
Total |  | $ | 246,831 |  |  | $ | 4,155 |  |  | $ | 49,528 |  |  | $ | 872 |  |  | $ | 296,359 |  |  | $ | 5,027 |
Schedule of gross unrealized losses and fair values, aggregated by investment category and length of time that individual held-to-maturity have been in a continuous loss position.
(Dollars in thousands) |  | Less than 12 months |  |  | 12 months or more |  |  | Total |
December 31, 2022 |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
Held-to-maturity securities: |  | Value |  |  | Loss |  |  | Value |  |  | Loss |  |  | Value |  |  | Loss |
US Treasury Securities |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Government Sponsored Enterprise |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-backed securities |  |  | 98,971 |  |  |  | 7,249 |  |  |  | 14,145 |  |  |  | 1,407 |  |  |  | 113,116 |  |  |  | 8,656 |
Small Business Administration pools |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
State and local government |  |  | 92,140 |  |  |  | 5,518 |  |  |  | 8,357 |  |  |  | 914 |  |  |  | 100,497 |  |  |  | 6,432 |
Corporate and other securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  | $ | 191,111 |  |  | $ | 12,767 |  |  | $ | 22,502 |  |  | $ | 2,321 |  |  | $ | 213,613 |  |  | $ | 15,088 |
The amortized cost and fair value of investment securities at December 31, 2022, by expected maturity, follow. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. Mortgage-backed securities are included in the year corresponding with the remaining expected life. Schedule of Amortized Cost and Fair Value of Investment Securities AVAILABLE-FOR-SALE:
(Dollars in thousands) |  | Available-for-sale |
|  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 1,215 |  |  | $ | 1,214 |
Due after one year through five years |  |  | 111,088 |  |  |  | 106,385 |
Due after five years through ten years |  |  | 221,565 |  |  |  | 203,959 |
Due after ten years |  |  | 23,317 |  |  |  | 20,304 |
|  | $ | 357,185 |  |  | $ | 331,862 |
HELD-TO-MATURITY:
(Dollars in thousands) |  | Held-to-maturity |
|  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 6,464 |  |  | $ | 6,440 |
Due after one year through five years |  |  | 39,184 |  |  |  | 37,568 |
Due after five years through ten years |  |  | 143,211 |  |  |  | 133,554 |
Due after ten years |  |  | 39,842 |  |  |  | 36,051 |
|  | $ | 228,701 |  |  | $ | 213,613 |
Securities with an amortized cost of $290.1 million and fair value of $270.4 million at December 31, 2022 were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase. Securities with an amortized cost of $128.5 million and fair value of $130.4 million at December 31, 2021 were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase. Other-Than-Temporary-Impairment: Of the securities in an unrealized loss position at December 31, 2022, 90 securities were in a continuous loss position for twelve months or more. The Company believes, based on industry analyst reports, credit ratings and/or government guarantees, that the deterioration in value is attributable to changes in market interest rates and is not in the credit quality of the issuer and therefore, these losses are not considered other-than-temporary. The Company evaluates securities available-for-sale for other-than-temporary impairment on a quarterly basis. As a result of this evaluation, at December 31, 2022, the Company has determined that the declines summarized in the tables above are not 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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