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Investments | 6 Months Ended
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Jun. 30, 2023
Investments [Abstract] |
Investments | ‎ Note 4. Investments Available for Sale (AFS) Securities The amortized cost and estimated fair value of AFS securities as of June 30, 2023 and December 31, 2022 are as follows:
(Dollars in thousands) |  |  |  |  | Gross |  | Gross |  |  |
|  | Amortized |  | unrealized |  | unrealized |  | Fair
June 30, 2023 |  | cost |  | gains |  | losses |  | Value
U.S. Treasury |  | $ | 83,849 |  | $ | — |  | $ | (11,157) |  | $ | 72,692
Municipal |  |  | 161,978 |  |  | — |  |  | (25,622) |  |  | 136,356
Corporate |  |  | 26,326 |  |  | — |  |  | (3,496) |  |  | 22,830
Agency mortgage & asset-backed |  |  | 152,013 |  |  | 36 |  |  | (12,164) |  |  | 139,885
Non-Agency mortgage & asset-backed |  |  | 72,591 |  |  | 7 |  |  | (4,890) |  |  | 67,708
Total |  | $ | 496,757 |  | $ | 43 |  | $ | (57,329) |  | $ | 439,471
(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
At June 30, 2023 and December 31, 2022, the fair value of debt securities pledged to secure public funds and trust deposits totaled $151.7 million and $208.9 million, respectively. The Bank has no investment in a single issuer that exceeds 10% of shareholders’ equity, except for securities issued by the U.S. Treasury and U.S. government sponsored entities. The amortized cost and estimated fair value of debt securities at June 30, 2023, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities. Securities not due at a single maturity date are presented separately.
(Dollars in thousands) |  | Amortized ‎cost |  | Fair ‎value
Due in one year or less |  | $ | — |  | $ | —
Due after one year through five years |  |  | 31,288 |  |  | 27,477
Due after five years through ten years |  |  | 123,670 |  |  | 106,461
Due after ten years |  |  | 117,195 |  |  | 97,940
|  |  | 272,153 |  |  | 231,878
Mortgage & asset-backed |  |  | 224,604 |  |  | 207,593
|  | $ | 496,757 |  | $ | 439,471
The composition of the net realized gains (losses) on debt securities for the three and six months ended are as follows:
|  | For the Three Months Ended |  | For the Six Months Ended
|  | June 30, |  | June 30,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Proceeds |  | $ | 7,262 |  | $ | 82 |  | $ | 40,117 |  | $ | 82
Gross gains realized |  | $ | — |  | $ | — |  | $ | 12 |  | $ | —
Gross losses realized |  |  | (517) |  |  | (19) |  |  | (1,131) |  |  | (19)
Net (losses) gains realized |  | $ | (517) |  | $ | (19) |  | $ | (1,119) |  | $ | (19)
Tax benefit (provision) on net (losses) gains realized |  | $ | 109 |  | $ | 4 |  | $ | 235 |  | $ | 4
Impairment: The debt securities portfolio contained 570 securities with $434.0 million of temporarily impaired fair value and $57.3 million in unrealized losses at June 30, 2023. The total unrealized loss position has decreased $4.2 million since year-end 2022 due primarily to the Bank realizing $1.1 million of losses due to restructuring of the portfolio and a decrease in long-term market interest rates. AFS securities in an unrealized loss position are evaluated for credit impairment at least quarterly. For these securities, the Bank considers: (1) the extent to which the fair value is less than amortized cost; (2) adverse conditions specifically related to the security, industry or geographic area; (3) the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future; (4) failure of the issuer of the security to make scheduled interest or principal payments; and (5) any changes to the rating of the security by a rating agency. 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 Bank does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost. The impairment identified on debt securities and subject to evaluation at June 30, 2023, was determined not to be attributable to credit related factors; therefore, the Bank does not have an allowance for credit loss for these investments. During 2023, approximately $40 million of securities was sold as part of a portfolio restructuring to take advantage of higher market interest rates. The loss on these sales was $1.1 million. The following table reflects impairment in the AFS 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 June 30, 2023 and December 31, 2022:
| June 30, 2023
| 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 | $ | — |  | $ | — |  | — |  | $ | 72,692 |  | $ | (11,157) |  | 28 |  | $ | 72,692 |  | $ | (11,157) |  | 28
Municipal |  | 842 |  |  | (161) |  | 2 |  |  | 135,515 |  |  | (25,461) |  | 166 |  |  | 136,357 |  |  | (25,622) |  | 168
Corporate |  | 4,279 |  |  | (521) |  | 11 |  |  | 18,551 |  |  | (2,975) |  | 40 |  |  | 22,830 |  |  | (3,496) |  | 51
Agency mortgage & asset-backed |  | 14,773 |  |  | (474) |  | 48 |  |  | 121,344 |  |  | (11,690) |  | 205 |  |  | 136,117 |  |  | (12,164) |  | 253
Non-Agency mortgage & asset-backed |  | 26,547 |  |  | (1,307) |  | 27 |  |  | 39,473 |  |  | (3,583) |  | 43 |  |  | 66,020 |  |  | (4,890) |  | 70
Total temporarily impaired | $ | 46,441 |  | $ | (2,463) |  | 88 |  | $ | 387,575 |  | $ | (54,866) |  | 482 |  | $ | 434,016 |  | $ | (57,329) |  | 570
| 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
Equity Securities at Fair Value The Corporation owns one equity investment with a readily determinable fair value. At June 30, 2023 and December 31, 2022, this investment was reported at fair value of $380 thousand and $411 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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