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Available-for-Sale Securities

12 Months Ended

Dec. 31, 2022

Available-for-Sale Securities [Abstract]

Note 3: Available-for-Sale Securities

The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of available-for-sale securities are as follows:

			Gross		Gross
($ in thousands)	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
December 31, 2022:
U.S. Treasury and Government agencies	$	7,636	$	-	$	(872	)	$	6,764
Mortgage-backed securities		241,741		4		(35,910	)		205,835
State and political subdivisions		12,862		10		(1,769	)		11,103
Other corporate securities		17,200		-		(2,122	)		15,078

Totals	$	279,439	$	14	$	(40,673	)	$	238,780

			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 December 31, 2022, by contractual maturity, are shown below. Expected maturities 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	$	1,092	$	1,080
Due after one year through five years		1,882		1,814
Due after five years through ten years		25,490		22,470
Due after ten years		9,234		7,581
		37,698		32,945
Mortgage-backed securities		241,741		205,835

Totals	$	279,439	$	238,780

The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $53.9 million at December 31, 2022, and $54.2 million at December 31, 2021. Securities delivered for repurchase agreements (not included above) were $17.8 million at December 31, 2022 and $23.6 million at December 31, 2021.

There were no realized gains or losses on available-for-sale securities in 2022 and 2021.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. There were 144 securities and 65 securities reported with amounts less than their historical value at December 31, 2022 and 2021, respectively. Total fair value of these investments were $235.5 million and $214.2 million at December 31, 2022 and 2021, respectively, which was approximately 99 percent and 81 percent, respectively, of the Company’s available-for-sale investment portfolio.

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.

The following tables present securities with unrealized losses at December 31, 2022 and 2021:

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

U.S. Treasury and Government agencies	$	3,788	$	(452	)	$	2,974	$	(420	)	$	6,762	$	(872	)
Mortgage-backed securities		52,351		(5,234	)		153,055		(30,676	)		205,406		(35,910	)
State and political subdivisions		7,461		(1,370	)		1,268		(399	)		8,729		(1,769	)
Other corporate securities		12,015		(1,736	)		2,564		(386	)		14,579		(2,122	)

Totals	$	75,615	$	(8,792	)	$	159,861	$	(31,881	)	$	235,476	$	(40,673	)

	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 unrealized loss on the securities portfolio increased by $37.1 million as of December 31, 2022, from the prior year. Management reviews these securities on a quarterly basis and has determined that no impairment exists. 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. When the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other- than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income (loss).