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Investment Securities

9 Months Ended

Sep. 30, 2022

(2) Investment Securities

Investment securities available for sale at September 30, 2022 and December 31, 2021 are as follows:

(Dollars in thousands)
	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	10,946		-		1,169		9,777
U.S. Government
sponsored enterprises		12,827		-		685		12,142
Mortgage-backed securities		296,204		271		24,576		271,899
State and political subdivisions		183,924		14		33,389		150,549
Total	$	503,901		285		59,819		444,367

(Dollars in thousands)
	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S Treasuries	$	7,964		-		75		7,889
U.S. Government
sponsored enterprises		14,252		200		185		14,267
Mortgage-backed securities		218,402		1,769		3,019		217,152
State and political subdivisions		165,804		3,694		2,257		167,241
Total	$	406,422		5,663		5,536		406,549

The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2022 and December 31, 2021 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	September 30, 2022
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	2,868		109		6,909		1,060		9,777		1,169
U.S. Government
sponsored enterprises		5,098		513		7,044		172		12,142		685
Mortgage-backed securities		136,374		9,243		109,222		15,333		245,596		24,576
State and political subdivisions		90,030		14,557		57,040		18,832		147,070		33,389
Total	$	234,370		24,422		180,215		35,397		414,585		59,819

(Dollars in thousands)
	December 31, 2021
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	7,889		75		-		-		7,889		75
U.S. Government
sponsored enterprises		5,232		15		3,263		170		8,495		185
Mortgage-backed securities		131,483		2,477		19,632		542		151,115		3,019
State and political subdivisions		80,076		1,981		5,922		276		85,998		2,257
Total	$	224,680		4,548		28,817		988		253,497		5,536

At September 30, 2022, unrealized losses in the investment securities portfolio relating to debt securities totaled $59.8 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the September 30, 2022 tables above, all three U.S. Treasury securities, 152 out of 166 securities issued by state and political subdivisions and 127 out of 139 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses. These unrealized losses are considered temporary because of the acceptable financial condition and results of operations of the entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed. At December 31, 2021, unrealized losses in the investment securities portfolio relating to debt securities totaled $5.5 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the December 31, 2021 tables above, both of the U.S. Treasury securities, 70 of the 146 securities issued by state and political subdivisions contained unrealized losses and 54 of the 99 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses. These unrealized losses are considered temporary because of the acceptable financial condition and results of operations of the entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed.

The amortized cost and estimated fair value of investment securities available for sale at September 30, 2022, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

September 30, 2022
(Dollars in thousands)
	Amortized Cost		Fair Value
Due within one year	$	2,395		2,396
Due from one to five years		9,173		8,962
Due from five to ten years		59,376		51,386
Due after ten years		136,753		109,724
Mortgage-backed securities		296,204		271,899
Total	$	503,901		444,367

No securities available for sale were sold during the three and nine months ended September 30, 2022 and 2021.

Securities with a fair value of approximately $101.8 million and $98.6 million at September 30, 2022 and December 31, 2021, respectively, were pledged to secure public deposits and for other purposes as required by law.