XML 21 R11.htm IDEA: XBRL DOCUMENT

Available for Sale Securities

3 Months Ended

Mar. 31, 2023

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 securities at March 31, 2023 and December 31, 2022 were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized
($ in thousands)	Cost		Gains		Losses			Fair Value
March 31, 2023
U.S. Treasury and
Government agencies	$	8,150	$	-	$	(687	)	$	7,463
Mortgage-backed securities		236,978		3		(33,206	)		203,775
State and political subdivisions		12,837		15		(1,428	)		11,424
Other corporate securities		17,200		-		(2,255	)		14,945

Totals	$	275,165	$	18	$	(37,576	)	$	237,607

			Gross		Gross
	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

The amortized cost and fair value of securities available for sale at March 31, 2023, 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	$	1,336	$	1,325
Due after one year through five years		2,737		2,691
Due after five years through ten years		24,866		21,922
Due after ten years		9,248		7,894
		38,187		33,832
Mortgage-backed securities		236,978		203,775

Totals	$	275,165	$	237,607

The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $60.2 million at March 31, 2023 and $53.9 million at December 31, 2022. The fair value of securities delivered for repurchase agreements was $23.8 million at March 31, 2023 and $17.8 million at December 31, 2022.

There were no realized gains or losses from sales of available-for-sale securities for the three months ended March 31, 2023 or March 31, 2022.

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 $235.0 million at March 31, 2023, and $235.5 million at December 31, 2022, which consisted of 149 securities, or 100 percent, and 144 securities, or approximately 99 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.

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, 2023 and December 31, 2022, are as follows:

	Less than 12 Months					12 Months or Longer					Total
($ in thousands) March 31, 2023	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

U.S. Treasury and
Government agencies	$	1,315	$	(45	)	$	6,117	$	(642	)	$	7,432	$	(687	)
Mortgage-backed securities		17,644		(1,004	)		185,794		(32,202	)		203,438		(33,206	)
State and political subdivisions		3,057		(223	)		6,630		(1,205	)		9,687		(1,428	)
Other corporate securities		4,169		(681	)		10,276		(1,574	)		14,445		(2,255	)

Totals	$	26,185	$	(1,953	)	$	208,817	$	(35,623	)	$	235,002	$	(37,576	)

	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	)

The total unrealized loss in the securities portfolio was $37.6 million as of March 31, 2023 compared to a $40.7 million unrealized loss at December 31, 2022. Management evaluates if any security has a fair value less than its amortized cost on a quarterly basis. Once these securities are identified, management determines whether a decline in fair value resulted from a credit loss or other factors. In making the assessment, the Company may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment indicates that a credit loss exists, a provision is recorded to the ACL.