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Investment Securities

3 Months Ended

Mar. 31, 2023

(2) Investment Securities

Investment securities available for sale at March 31, 2023 and December 31, 2022 are as follows:

(Dollars in thousands)
	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S Treasuries	$	10,957		-		949		10,008
U.S. Government sponsored enterprises		11,925		-		621		11,304
Mortgage-backed securities		296,024		836		23,040		273,820
State and political subdivisions		130,125		-		26,109		104,016
Total	$	449,031		836		50,719		399,148

(Dollars in thousands)
	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S Treasuries	$	10,951		-		1,137		9,814
U.S. Government sponsored enterprises		12,245		-		706		11,539
Mortgage-backed securities		299,222		445		25,829		273,838
State and political subdivisions		184,768		91		34,656		150,203
Total	$	507,186		536		62,328		445,394

The current fair value and associated unrealized losses on investments in securities with unrealized losses at March 31, 2023 and December 31, 2022 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	March 31, 2023
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	-		-		10,008		949		10,008		949
U.S. Government sponsored enterprises		2,926		66		8,378		555		11,304		621
Mortgage-backed securities		78,542		5,043		161,848		17,997		240,390		23,040
State and political subdivisions		4,142		279		99,874		25,829		104,016		26,109
Total	$	85,610		5,388		280,108		45,330		365,718		50,719

(Dollars in thousands)
	December 31, 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	$	2,878		104		6,936		1,033		9,814		1,137
U.S. Government sponsored enterprises		2,904		87		8,635		619		11,539		706
Mortgage-backed securities		128,241		8,740		120,464		17,089		248,705		25,829
State and political subdivisions		65,880		7,766		76,291		26,890		142,171		34,656
Total	$	199,903		16,697		212,326		45,631		412,229		62,328

At March 31, 2023, unrealized losses in the investment securities portfolio relating to debt securities totaled $50.7 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the March 31, 2023 tables above, all three of the U.S. Treasury securities, all 108 of the securities issued by state and political subdivisions , all seven of the securities issued by U.S. Government sponsored enterprises and 119 of the 132 mortgage-backed securities contained unrealized losses. These unrealized losses are not related to credit impairment 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. The Company does not have an allowance for credit losses on available for sale securities at March 31, 2023. At December 31, 2022, unrealized losses in the investment securities portfolio relating to debt securities totaled $62.3 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the December 31, 2022 tables above, all three of the U.S. Treasury securities, 149 of the 158 securities issued by state and political subdivisions, all seven of the securities issued by U.S. Government sponsored enterprises and 123 of the 133 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.

The amortized cost and estimated fair value of investment securities available for sale at March 31, 2023, presented by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.

March 31, 2023
(Dollars in thousands)
	Amortized Cost		Fair Value
Due within one year	$	2,985		2,905
Due from one to five years		13,811		12,663
Due from five to ten years		45,941		39,331
Due after ten years		90,270		70,429
Mortgage-backed securities		296,024		273,820
Total	$	449,031		399,148

During the three months ended March 31, 2023, proceeds from sales of securities available for sale were $53.5 million and resulted in gross losses of $2.7 million and gross gains of $177,000. No securities available for sale were sold during the three months ended March 31, 2022.

Securities with a fair value of approximately $99.6 million and $96.0 million at March 31, 2023 and December 31, 2022, respectively, were pledged to secure public deposits and for other purposes as required by law.