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Investment Securities | 9 Months Ended
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Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The amortized cost and fair value of debt securities classified as available-for-sale at September 30, 2023 and December 31, 2022 were as follows:
|  |  | Gross Unrealized |  |
(in thousands) | Total Amortized Cost |  | Gains |  | Losses |  | Fair Value
September 30, 2023 |  |  |  |  |  |  |
U.S. Treasury | $ | 4,908 |  |  | $ | — |  |  | $ | (40) |  |  | $ | 4,868 |
U.S. government and federal agency obligations | 446 |  | — |  | (26) |  | 420
U.S. government-sponsored enterprises | 27,499 |  | — |  | (2,637) |  | 24,862
Obligations of states and political subdivisions | 131,697 |  | — |  | (32,762) |  | 98,935
Mortgage-backed securities | 112,116 |  | 2 |  | (19,375) |  | 92,743
Other debt securities (a) | 11,825 |  | — |  | (1,291) |  | 10,534
Bank issued trust preferred securities (a) | 1,486 |  | — |  | (332) |  | 1,154
Total available-for-sale securities | $ | 289,977 |  |  | $ | 2 |  |  | $ | (56,463) |  |  | $ | 233,516 |
December 31, 2022 |  |  |  |  |  |  |
U.S. Treasury | $ | 2,198 |  |  | $ | — |  |  | $ | (46) |  |  | $ | 2,152 |
U.S. government and federal agency obligations | 591 |  | — |  | (32) |  | 559
U.S. government-sponsored enterprises | 26,499 |  | — |  | (2,722) |  | 23,777
Obligations of states and political subdivisions | 134,994 |  | — |  | (25,554) |  | 109,440
Mortgage-backed securities | 119,556 |  | 7 |  | (16,864) |  | 102,699
Other debt securities (a) | 11,825 |  | — |  | (882) |  | 10,943
Bank issued trust preferred securities (a) | 1,486 |  | — |  | (309) |  | 1,177
Total available-for-sale securities | $ | 297,149 |  |  | $ | 7 |  |  | $ | (46,409) |  |  | $ | 250,747 |
(a) Certain hybrid instruments possessing characteristics typically associated with debt obligations. The Company’s investment securities are classified as available for sale. Agency bonds and notes, loan certificates guaranteed by the Small Business Administration, residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations include securities issued by the Government National Mortgage Association, a U.S. government agency, and the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the FHLB, which are U.S. government-sponsored enterprises. Debt securities with carrying values aggregating approximately $117.4 million and $111.6 million at September 30, 2023 and December 31, 2022, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law. The amortized cost and fair value of debt securities classified as available-for-sale at September 30, 2023, by contractual maturity are shown below. Accrued interest on investments totaled $1.3 million and $1.5 million at September 30, 2023 and December 31, 2022, respectively, and is included in the accrued interest receivable on the Company's consolidated balance sheets. The total amount of accrued interest is excluded from the amortized cost basis of investments presented below. Further, the Company has elected not to measure an allowance for credit losses for accrued interest receivable. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.
(in thousands) | Amortized Cost |  | Fair Value
Due in one year or less | $ | 9,120 |  |  | $ | 9,064 |
Due after one year through five years | 23,853 |  | 21,728
Due after five years through ten years | 28,982 |  | 24,924
Due after ten years | 115,906 |  | 85,057
Total | $ | 177,861 |  |  | $ | 140,773 |
Mortgage-backed securities | 112,116 |  | 92,743
Total available-for-sale securities | $ | 289,977 |  |  | $ | 233,516 |
Other Investment Securities Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in FHLB stock, and Midwest Independent BankersBank (MIB) stock, that do not have readily determinable fair values, are required for membership in those organizations.
(in thousands) | September 30, 2023 |  | December 31, 2022
Other securities: |  |  |
FHLB stock | $ | 6,790 |  | $ | 6,156
MIB stock | 151 |  | 151
Equity securities with readily determinable fair values | 64 |  | 46
Total other investment securities | $ | 7,005 |  | $ | 6,353
Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2023 and December 31, 2022 were as follows:
| Less than 12 months |  | 12 months or more |  |  |  |
(in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Total Fair Value |  | Total Unrealized Losses
September 30, 2023 |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 3,568 |  |  | $ | (10) |  |  | $ | 1,300 |  |  | $ | (30) |  |  | $ | 4,868 |  |  | $ | (40) |
U.S. government and federal agency obligations | — |  |  | — |  |  | 420 |  |  | (26) |  |  | 420 |  |  | (26) |
U.S. government-sponsored enterprises | 985 |  |  | (15) |  |  | 23,877 |  |  | (2,622) |  |  | 24,862 |  |  | (2,637) |
Obligations of states and political subdivisions | 3,326 |  |  | (380) |  |  | 95,609 |  |  | (32,382) |  |  | 98,935 |  |  | (32,762) |
Mortgage-backed securities | 5,760 |  |  | (296) |  |  | 86,648 |  |  | (19,079) |  |  | 92,408 |  |  | (19,375) |
Other debt securities | — |  |  | — |  |  | 10,534 |  |  | (1,291) |  |  | 10,534 |  |  | (1,291) |
Bank issued trust preferred securities | — |  |  | — |  |  | 1,154 |  |  | (332) |  |  | 1,154 |  |  | (332) |
Total | $ | 13,639 |  |  | $ | (701) |  |  | $ | 219,542 |  |  | $ | (55,762) |  |  | $ | 233,181 |  |  | $ | (56,463) |
(in thousands) |  |  |  |  |  |  |  |  |  |  |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 1,908 |  |  | $ | (41) |  |  | $ | 244 |  |  | $ | (5) |  |  | $ | 2,152 |  |  | $ | (46) |
U.S. government and federal agency obligations | 559 |  | (32) |  | — |  | — |  | 559 |  | (32)
U.S. government-sponsored enterprises | 7,066 |  |  | (933) |  |  | 16,711 |  |  | (1,789) |  |  | 23,777 |  |  | (2,722) |
Obligations of states and political subdivisions | 79,396 |  |  | (15,421) |  |  | 29,370 |  |  | (10,133) |  |  | 108,766 |  |  | (25,554) |
Mortgage-backed securities | 33,334 |  |  | (3,124) |  |  | 68,911 |  |  | (13,740) |  |  | 102,245 |  |  | (16,864) |
Other debt securities | 7,557 |  |  | (443) |  |  | 3,386 |  |  | (439) |  |  | 10,943 |  |  | (882) |
Bank issued trust preferred securities | — |  |  | — |  |  | 1,177 |  |  | (309) |  |  | 1,177 |  |  | (309) |
Total | $ | 129,820 |  |  | $ | (19,994) |  |  | $ | 119,799 |  |  | $ | (26,415) |  |  | $ | 249,619 |  |  | $ | (46,409) |
The total available-for-sale portfolio consisted of approximately 435 securities at September 30, 2023. The portfolio included 434 securities having an aggregate fair value of $233.2 million that were in a loss position at September 30, 2023. Securities identified as temporarily impaired that had been in a loss position for 12 months or longer totaled $219.5 million at fair value at September 30, 2023. The $56.5 million aggregate unrealized loss included in accumulated other comprehensive loss at September 30, 2023 was caused by interest rate fluctuations. The total available-for-sale portfolio consisted of approximately 439 securities at December 31, 2022. The portfolio included 436 securities having an aggregate fair value of $249.6 million that were in a loss position at December 31, 2022. Securities identified as temporarily impaired that had been in a loss position for 12 months or longer totaled $119.8 million at fair value at December 31, 2022. The $46.4 million aggregate unrealized loss included in accumulated other comprehensive loss at December 31, 2022 was caused by interest rate fluctuations. Because the decline in fair value is attributable to changes in interest rates and not credit quality, these investments were not considered other-than-temporarily impaired at September 30, 2023 and December 31, 2022, respectively. In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date, or if market yields for such investments decline. In addition, the Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities. The following table presents the gross realized gains and losses from sales and calls of available-for-sale securities, as well as gains and losses on equity securities from fair value adjustments, which were recognized in earnings:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2023 |  | 2022 |  | 2023 |  | 2022
Gross realized gains | $ | — |  | $ | — |  | $ | — |  | $ | —
Gross realized losses | — |  | — |  | — |  | — |
Other-than-temporary impairment recognized | — |  | — |  | — |  | —
Other investment securities: |  |  |  |  |  |  |
Fair value adjustments, net | 3 |  | 1 |  |  | 18 |  | (12)
Investment securities gains (losses), net | $ | 3 |  | $ | 1 |  | $ | 18 |  | $ | (12)

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- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 321 -Publisher FASB -URI https://asc.fasb.org//321/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 325 -Publisher FASB -URI https://asc.fasb.org//325/tableOfContent + Details
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