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Available for Sale Securities

9 Months Ended

Sep. 30, 2022

Note 3 – AVAILABLE FOR SALE Securities

The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at September 30, 2022 and December 31, 2021 were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized
($ in thousands)	Cost		Gains		Losses			Fair Value
September 30, 2022
U.S. Treasury and Government agencies	$	7,985	$	-	$	(886	)	$	7,099
Mortgage-backed securities		247,147		5		(37,673	)		209,479
State and political subdivisions		13,212		2		(2,117	)		11,097
Other corporate securities		17,200		-		(1,642	)		15,558

Totals	$	285,544	$	7	$	(42,318	)	$	243,233

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		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 September 30, 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	$	1,004	$	997
Due after one year through five years		2,558		2,481
Due after five years through ten years		25,488		22,934
Due after ten years		9,347		7,342
		38,397		33,754
Mortgage-backed securities		247,147		209,479

Totals	$	285,544	$	243,233

The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $63.1 million at September 30, 2022 and $54.2 million at December 31, 2021. The fair value of securities delivered for repurchase agreements was $24.6 million at September 30, 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 and nine months ended September 30, 2022 or September 30, 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 $239.5 million at September 30, 2022, and $214.2 million at December 31, 2021, which consisted of 145 securities, or approximately 99 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 September 30, 2022 and December 31, 2021, are as follows:

	Less than 12 Months					12 Months or Longer					Total
($ in thousands) September 30, 2022	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

U.S. Treasury and Government agencies	$	6,413	$	(874	)	$	584	$	(12	)	$	6,997	$	(886	)
Mortgage-backed securities		87,997		(12,101	)		121,033		(25,572	)		209,030		(37,673	)
State and political subdivisions		9,730		(1,945	)		444		(172	)		10,174		(2,117	)
Other corporate securities		11,124		(1,326	)		2,185		(316	)		13,309		(1,642	)
Totals	$	115,264	$	(16,246	)	$	124,246	$	(26,072	)	$	239,510	$	(42,318	)

	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 $42.3 million as of September 30, 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 September 30, 2022.