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v3.22.4

Investments | 12 Months Ended
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Dec. 31, 2022
Investments [Abstract] |
Investments | Note 4. Investments Available for Sale (AFS) Securities The following table summarizes the amortized cost and fair value of securities available-for-sale at December 31, 2022 and 2021 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2022 and 2021 is as follows:
(Dollars in thousands) |  |  |  |  | Gross |  | Gross |  |  |
|  | Amortized |  | unrealized |  | unrealized |  | Fair
December 31, 2022 |  | cost |  | gains |  | losses |  | value
U.S. Treasury |  | $ | 101,980 |  | $ | — |  | $ | (11,723) |  | $ | 90,257
Municipal |  |  | 186,007 |  |  | 14 |  |  | (30,566) |  |  | 155,455
Corporate |  |  | 26,316 |  |  | — |  |  | (2,077) |  |  | 24,239
Agency mortgage & asset-backed |  |  | 163,274 |  |  | 19 |  |  | (12,358) |  |  | 150,935
Non-Agency mortgage & asset-backed |  |  | 70,756 |  |  | 1 |  |  | (4,807) |  |  | 65,950
Total |  | $ | 548,333 |  | $ | 34 |  | $ | (61,531) |  | $ | 486,836
(Dollars in thousands) |  |  |  |  | Gross |  | Gross |  |  |
|  | Amortized |  | unrealized |  | unrealized |  | Fair
December 31, 2021 |  | cost |  | gains |  | losses |  | value
U.S. Treasury |  | $ | 84,896 |  | $ | 88 |  | $ | (698) |  | $ | 84,286
Municipal |  |  | 206,501 |  |  | 7,148 |  |  | (1,422) |  |  | 212,227
Corporate |  |  | 24,794 |  |  | 333 |  |  | (188) |  |  | 24,939
Agency mortgage & asset-backed |  |  | 178,614 |  |  | 1,157 |  |  | (2,086) |  |  | 177,685
Non-Agency mortgage & asset-backed |  |  | 30,912 |  |  | 34 |  |  | (272) |  |  | 30,674
Total |  | $ | 525,717 |  | $ | 8,760 |  | $ | (4,666) |  | $ | 529,811
At December 31, 2022 and 2021, the fair value of investment securities pledged to secure public funds and trust deposits totaled $208.9 million and $160.3 million, respectively. The Bank has no investment in a single issuer that exceeds 10% of shareholders equity except U.S. Treasuries. The amortized cost and estimated fair value of debt securities at December 31, 2022, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities. Mortgage-backed and asset-backed securities without defined maturity dates are reported on a separate line.
(Dollars in thousands) |  |  |  |  | Amortized ‎cost |  | Fair ‎value
Due in one year or less |  |  |  |  | $ | 12,815 |  | $ | 12,782
Due after one year through five years |  |  |  |  |  | 13,242 |  |  | 12,666
Due after five years through ten years |  |  |  |  |  | 151,852 |  |  | 131,416
Due after ten years |  |  |  |  |  | 136,394 |  |  | 113,087
|  |  |  |  |  | 314,303 |  |  | 269,951
Mortgage-backed and asset-backed securities |  |  |  |  |  | 234,030 |  |  | 216,885
Total |  |  |  |  | $ | 548,333 |  | $ | 486,836
The composition of the net realized securities (losses) gains for the years ended December 31 is as follows:
(Dollars in thousands) |  | 2022 |  | 2021
Proceeds |  | $ | 19,629 |  | $ | 36,666
Gross gains realized |  |  | 61 |  |  | 626
Gross losses realized |  |  | (152) |  |  | (499)
Net (losses)/gains realized |  | $ | (91) |  | $ | 127
Tax provision on net (losses)/gains realized |  | $ | 19 |  | $ | (27)
Impairment: The following table reflects the temporary impairment in the investment portfolio, aggregated by investment category, length of time that individual securities have been in a continuous unrealized loss position and the number of securities in each category as of December 31, 2022 and 2021. For securities with an unrealized loss, Management applies a systematic methodology in order to perform an assessment of the potential for other-than-temporary impairment. In the case of debt securities, investments considered for other-than-temporary impairment: (1) had a specified maturity or repricing date, (2) were generally expected to be redeemed at par, and (3) were expected to achieve a recovery in market value within a reasonable period of time. In addition, the Bank considers whether it intends to sell these securities or whether it will be forced to sell these securities before the earlier of amortized cost recovery or maturity. The impairment identified on debt securities and subject to assessment at December 31, 2022, was deemed to be temporary and required no further adjustments to the financial statements, unless otherwise noted.
| December 31, 2022
| Less than 12 months |  | 12 months or more |  | Total
| Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |
(Dollars in thousands) | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count
U.S. Treasury | $ | 17,598 |  | $ | (183) |  | 3 |  | $ | 72,659 |  | $ | (11,540) |  | 28 |  | $ | 90,257 |  | $ | (11,723) |  | 31
Municipal |  | 73,644 |  |  | (9,586) |  | 90 |  |  | 80,503 |  |  | (20,981) |  | 104 |  |  | 154,147 |  |  | (30,566) |  | 194
Corporate |  | 12,221 |  |  | (851) |  | 25 |  |  | 10,368 |  |  | (1,226) |  | 21 |  |  | 22,589 |  |  | (2,077) |  | 46
Agency mortgage & asset-backed |  | 55,393 |  |  | (2,747) |  | 139 |  |  | 88,953 |  |  | (9,611) |  | 113 |  |  | 144,346 |  |  | (12,358) |  | 252
Non-Agency mortgage & asset-backed |  | 49,301 |  |  | (3,092) |  | 52 |  |  | 14,207 |  |  | (1,715) |  | 16 |  |  | 63,508 |  |  | (4,807) |  | 68
Total temporarily impaired | $ | 208,157 |  | $ | (16,459) |  | 309 |  | $ | 266,690 |  | $ | (45,072) |  | 282 |  | $ | 474,847 |  | $ | (61,531) |  | 591
| December 31, 2021
| Less than 12 months |  | 12 months or more |  | Total
| Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |
(Dollars in thousands) | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count
U.S. Treasury | $ | 76,383 |  | $ | (698) |  | 21 |  | $ | — |  | $ | — |  | — |  | $ | 76,383 |  | $ | (698) |  | 21
Municipal |  | 38,997 |  |  | (910) |  | 44 |  |  | 15,404 |  |  | (512) |  | 16 |  |  | 54,401 |  |  | (1,422) |  | 60
Corporate |  | 8,954 |  |  | (132) |  | 17 |  |  | 1,694 |  |  | (56) |  | 3 |  |  | 10,648 |  |  | (188) |  | 20
Agency mortgage & asset-backed |  | 96,923 |  |  | (1,669) |  | 94 |  |  | 15,991 |  |  | (417) |  | 18 |  |  | 112,914 |  |  | (2,086) |  | 112
Non-Agency mortgage & asset-backed |  | 15,215 |  |  | (215) |  | 11 |  |  | 1,964 |  |  | (57) |  | 3 |  |  | 17,179 |  |  | (272) |  | 14
Total temporarily impaired | $ | 236,472 |  | $ | (3,624) |  | 187 |  | $ | 35,053 |  | $ | (1,042) |  | 40 |  | $ | 271,525 |  | $ | (4,666) |  | 227
The following table represents the cumulative credit losses on debt securities recognized in earnings as of December 31, 2022 and December 31, 2021:
(Dollars in thousands) |  | Twelve Months Ended
|  | 2022 |  | 2021
Balance of cumulative credit-related OTTI at January 1 |  | $ | 257 |  | $ | 257
Decreases for previously recognized credit losses on securities that paid off or sold |  |  | (257) |  |  | —
Balance of credit-related OTTI at December 31 |  | $ | — |  | $ | 257
Equity Securities at fair value The Corporation owns one equity investment with a readily determinable fair value. At December 31, 2022 and 2021, this investment was reported at a fair value of $411 thousand and $481 thousand, respectively, with changes in value reported through income.

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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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