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Investment Securities
 6 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment SecuritiesThe amortized cost and estimated fair value of securities available-for-sale and held-to-maturity along with gross unrealized gains and losses are summarized as follows:
(dollars in thousands)
June 30, 2023Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Securities Available for Sale:
U.S. treasury securities$1,494 $— $(16)$1,478 
U.S. agency4,706 — (454)4,252 
Asset backed securities28,462 — (678)27,784 
State, county & municipal securities125,409 — (18,301)107,108 
Corporate debt securities54,701 — (7,965)46,736 
Mortgage-backed securities262,298 3 (28,411)233,890 
Total$477,070 $3 $(55,825)$421,248 
June 30, 2023Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Securities Held to Maturity:
U.S. treasury securities$92,454 $— $(4,601)$87,853 
U.S. agency16,345 — (1,766)14,579 
State, county & municipal securities136,407 79 (15,519)120,967 
Mortgage-backed securities208,706 — (27,399)181,307 
Total$453,912 $79 $(49,285)$404,706 
December 31, 2022Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Securities Available for Sale:
U.S. treasury securities$1,644 $— $(22)$1,622 
U.S. agency5,035 — (450)4,585 
Asset backed securities31,468 — (1,480)29,988 
State, county & municipal securities126,119 — (21,363)104,756 
Corporate debt securities54,741 164 (5,320)49,585 
Mortgage-backed securities271,199 9 (29,191)242,017 
Total$490,206 $173 $(57,826)$432,553 
December 31, 2022Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Securities Held to Maturity:
U.S. treasury securities$91,615 $— $(4,149)$87,466 
U.S. agency16,409 — (1,838)14,571 
State, county & municipal securities136,138 32 (19,518)116,652 
Mortgage-backed securities221,696 — (29,121)192,575 
Total$465,858 $32 $(54,626)$411,264 
The Company elected to exclude accrued interest receivable from the amortized cost basis of available-for-sale and held-to-maturity securities disclosed throughout this note. As of June 30, 2023 and December 31, 2022, accrued interest receivable for available-for-sale and held-to-maturity securities totaled $2.5 million and $2.6 million, and $1.9 million and $1.9 million, respectively, and is included in the "other assets" line item on the Company’s consolidated balance sheet.

The Company transferred certain agency-issued securities from the available-for-sale to held-to-maturity portfolio on January 1, 2022 and September 1, 2022, having a combined book value of approximately $511.0 million and a combined market value of approximately $477.0 million. As of the date of each transfer, the related pre-tax net unrecognized losses of approximately $34.0 million within the accumulated other comprehensive loss balance are being amortized over the remaining term of the securities using the effective interest method. This transfer was completed after careful consideration of the Company’s intent and ability to hold these securities to maturity. Factors used in assessing the ability to hold these securities to maturity were future liquidity needs and sources of funding. The Company has had no other transfers of securities since September 1, 2022.
The amortized cost and fair value of investment securities as of June 30, 2023, by contractual maturity, are shown hereafter. Expected maturities may differ from contractual maturities for certain investments because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.
Available for SaleHeld to Maturity
(dollars in thousands)Amortized CostFair ValueAmortized CostFair Value
Due in one year or less$1,665 $1,648 $— $— 
Due after one year through five years14,196 13,020 89,427 84,806 
Due after five years through ten years96,094 81,109 71,551 64,054 
Due after ten years102,817 91,581 84,228 74,539 
$214,772 $187,358 $245,206 $223,399 
Mortgage-backed securities262,298 233,890 208,706 181,307 
$477,070 $421,248 $453,912 $404,706 
Proceeds from the sale of investment securities totaled $0 and $3.1 million for the three and six month periods ended June 30, 2022, respectively. The sale of investment securities resulted in gross realized gains of $24,000 for the six months ended June 30, 2022.
Investment securities having a carrying value of approximately $418.0 million and $541.8 million were pledged to secure public deposits and for other purposes as of June 30, 2023 and December 31, 2022, respectively.
Information pertaining to available-for-sale securities with gross unrealized losses at June 30, 2023 and December 31, 2022 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as
follows:
Less Than 12 Months12 Months or GreaterTotal
(dollars in thousands)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
June 30, 2023
U.S. treasury securities$1,282 $(12)$196 $(4)$1,478 $(16)
U.S. agency securities147 (1)4,105 (453)4,252 (454)
Asset backed securities5,910 (19)21,874 (659)27,784 (678)
State, county & municipal securities724 (5)106,384 (18,296)107,108 (18,301)
Corporate debt securities9,021 (1,815)37,716 (6,150)46,737 (7,965)
Mortgage-backed securities19,534 (410)213,801 (28,001)233,335 (28,411)
$36,618 $(2,262)$384,076 $(53,563)$420,694 $(55,825)
December 31, 2022
U.S. treasury securities$1,377 $(17)$245 $(5)$1,622 $(22)
U.S. agency securities3,221 (257)1,364 (193)4,585 (450)
Asset backed securities10,780 (319)19,208 (1,161)29,988 (1,480)
State, county & municipal securities29,284 (3,629)75,472 (17,734)104,756 (21,363)
Corporate debt securities17,258 (1,463)30,651 (3,857)47,909 (5,320)
Mortgage-backed securities122,031 (7,890)119,409 (21,301)241,440 (29,191)
$183,951 $(13,575)$246,349 $(44,251)$430,300 $(57,826)
Information pertaining to held-to-maturity securities with gross unrealized losses at June 30, 2023 and December 31, 2022 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows:
Less Than 12 Months12 Months or GreaterTotal
(dollars in thousands)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
June 30, 2023
U.S. treasury securities$— $— $87,853 $(4,601)$87,853 $(4,601)
U.S. agency securities— — 14,579 (1,766)14,579 (1,766)
State, county & municipal securities13,149 (209)101,721 (15,310)114,870 (15,519)
Mortgage-backed securities— — 181,307 (27,399)181,307 (27,399)
$13,149 $(209)$385,460 $(49,076)$398,609 $(49,285)
December 31, 2022
U.S. treasury securities$— $— $87,466 $(4,149)$87,466 $(4,149)
U.S. agency securities— — 14,571 (1,838)14,571 (1,838)
State, county & municipal securities9,858 (1,392)105,734 (18,126)115,592 (19,518)
Mortgage-backed securities13,580 (729)178,995 (28,392)192,575 (29,121)
$23,438 $(2,121)$386,766 $(52,505)$410,204 $(54,626)
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant 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
and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.
At June 30, 2023, there were 286 available-for-sale securities and 154 held-to-maturity securities that had unrealized losses. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other than temporary.
The Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326), as amended on January 1, 2023 which included evaluation of expected credit losses on debt securities. As part of the Company's calculated credit losses, the allowance for credit losses on investment securities was determined to be de minimis due to the high credit quality of the portfolio, which includes securities issued or guaranteed by the U.S. Treasury, U.S. Government agencies and high quality municipalities. Therefore, no allowance for credit losses was recorded as of June 30, 2023. See Note 1 for additional details on the allowance for credit losses as it relates to the securities portfolio.