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Available for Sale Securities

3 Months Ended

Mar. 31, 2022

Note 3 – AVAILABLE FOR SALE Securities

The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at March 31, 2022 and December 31, 2021 were as follows:

($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2022
U.S. Treasury and
Government agencies	$	8,746	$	13	$	(351	)	$	8,408
Mortgage-backed securities		243,092		14		(16,170	)		226,936
State and political subdivisions		13,563		184		(577	)		13,170
Other corporate securities		17,200		-		(403	)		16,797

Totals	$	282,601	$	211	$	(17,501	)	$	265,311

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2021
U.S. Treasury and
Government agencies	$	8,986	$	135	$	(16	)	$	9,105
Mortgage-backed securities		231,057		614		(3,537	)		228,134
State and political subdivisions		12,352		536		(9	)		12,879
Other corporate securities		13,200		2		(61	)		13,141

Totals	$	265,595	$	1,287	$	(3,623	)	$	263,259

The amortized cost and fair value of securities available for sale at March 31, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
($ in thousands)	Cost		Value

Within one year	$	749	$	747
Due after one year through five years		3,299		3,266
Due after five years through ten years		25,188		24,606
Due after ten years		10,273		9,756
		39,509		38,375
Mortgage-backed securities		243,092		226,936

Totals	$	282,601	$	265,311

The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $65.4 million at March 31, 2022 and $54.2 million at December 31, 2021. The fair value of securities delivered for repurchase agreements was $25.3 million at March 31, 2022 and $23.6 million at December 31, 2021.

There were no realized gains or losses from sales of available-for-sale securities for the three months ended March 31, 2022 or March 31, 2021.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments was $252.6 million at March 31, 2022, and $214.2 million at December 31, 2021, which consisted of 124 securities, or approximately 95 percent, and 64 securities, or approximately 81 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

Securities with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2022 and December 31, 2021, are as follows:

($ in thousands)	Less than 12 Months					12 Months or Longer					Total
March 31, 2022	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

U.S. Treasury and
Government agencies	$	6,787	$	(350	)	$	249	$	(1	)	$	7,036	$	(351	)
Mortgage-backed securities		147,270		(8,870	)		77,798		(7,300	)		225,068		(16,170	)
State and political subdivisions		7,556		(577	)		-		-			7,556		(577	)
Other corporate securities		12,947		(403	)		-		-			12,947		(403	)

Totals	$	174,560	$	(10,200	)	$	78,047	$	(7,301	)	$	252,607	$	(17,501	)

	Less than 12 Months					12 Months or Longer					Total
December 31, 2021	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

U.S. Treasury and
Government agencies	$	3,397	$	(16	)	$	-	$	-		$	3,397	$	(16	)
Mortgage-backed securities		183,727		(2,856	)		18,566		(681	)		202,293		(3,537	)
State and political subdivisions		1,673		(9	)		-		-			1,673		(9	)
Other corporate securities		6,889		(61	)		-		-			6,889		(61	)

Totals	$	195,686	$	(2,942	)	$	18,566	$	(681	)	$	214,252	$	(3,623	)

The total unrealized loss in the securities portfolio was $17.5 million as of March 31, 2022 compared to a $3.6 million unrealized loss at December 31, 2021. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent of the Company to not sell the investment and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost. Management has determined there is no other-than-temporary-impairment on its securities as of March 31, 2022.