Investment Securities

6 Months Ended

Jun. 30, 2023

Investment Securities

Investment Securities

(2) Investment Securities

Investment securities available for sale at June 30, 2023 and December 31, 2022 are as follows:

(Dollars in thousands)
	June 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S Treasuries	$	10,963		-		1,069		9,894
U.S. Government sponsored enterprises		11,714		-		694		11,020
Mortgage-backed securities		298,133		67		28,480		269,720
State and political subdivisions		130,063		-		26,613		103,450
Total	$	450,873		67		56,856		394,084

(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 June 30, 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)
	June 30, 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	$	-		-		9,894		1,069		9,894		1,069
U.S. Government sponsored enterprises		-		-		11,020		694		11,020		694
Mortgage-backed securities		69,059		3,522		195,720		24,958		264,779		28,480
State and political subdivisions		-		-		103,450		26,613		103,450		26,613
Total	$	69,059		3,522		320,084		53,334		389,143		56,856

(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 June 30, 2023, unrealized losses in the investment securities portfolio relating to debt securities totaled $56.9 million.  The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary.  From the June 30, 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 129 of the 134 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 June 30, 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 June 30, 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.

June 30, 2023
(Dollars in thousands)
	Amortized Cost		Fair Value
Due within one year	$	5,983		5,814
Due from one to five years		10,828		9,588
Due from five to ten years		50,349		42,759
Due after ten years		85,580		66,203
Mortgage-backed securities		298,133		269,720
Total	$	450,873		394,084

No securities available for sale were sold during the three months ended June 30, 2023.   During the six months ended June 30, 2023, proceeds from sales of securities available for sale were $51.0 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 six months ended June 30, 2022.   

Securities with a fair value of approximately $120.7 million and $96.0 million at June 30, 2023 and December 31, 2022, respectively, were pledged to secure public deposits and for other purposes as required by law.