Securities

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Securities

NOTE 3 - SECURITIES

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2023
U.S. Treasury securities and obligations of    U.S. government agencies	$	71,418	$	315	$	(4,075	)	$	67,658
Obligations of states and political subdivisions		359,452		2,725		(23,578	)		338,599
Mortgage-back securities in government sponsored    entities		242,022		19		(30,026	)		212,015
Total debt securities	$	672,892	$	3,059	$	(57,679	)	$	618,272

NOTE 3 – SECURITIES (Continued)

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2022
U.S. Treasury securities and obligations of    U.S. government agencies	$	66,495	$	20	$	(5,486	)	$	61,029
Obligations of states and political subdivisions		350,104		784		(33,640	)		317,248
Mortgage-back securities in government sponsored    entities		265,752		15		(28,642	)		237,125
Total debt securities	$	682,351	$	819	$	(67,768	)	$	615,402

The amortized cost and fair value of securities at year end 2023 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	2,652	$	2,652
Due from one to five years		78,395		73,198
Due from five to ten years		38,867		37,397
Due after ten years		310,956		293,010
Mortgage-backed securities in government sponsored    entities		242,022		212,015
Total securities available for sale	$	672,892	$	618,272

Securities with a carrying value of $211,616 and $218,344 were pledged as of December 31, 2023 and 2022, respectively, to secure public deposits, other deposits and liabilities as required or permitted by law.

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows:

	2023		2022		2021
Sale proceeds	$	—	$	57,332	$	1,810
Gross realized gains		—		—		1,785
Gross realized losses		—		—		—
Gains from securities called or settled by the    issuer		—		10		1

Debt securities with unrealized losses at year end 2023 and 2022 not recognized in income were as follows:

2023	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of    U.S. government agencies	$	224	$	(1	)	$	56,760	$	(4,074	)	$	56,984	$	(4,075	)
Obligations of states and political    subdivisions		19,168		(78	)		162,291		(23,500	)		181,459		(23,578	)
Mortgage-backed securities in gov’t    sponsored entities		20,112		(522	)		189,319		(29,504	)		209,431		(30,026	)
Total temporarily impaired	$	39,504	$	(601	)	$	408,370	$	(57,078	)	$	447,874	$	(57,679	)

NOTE 3 – SECURITIES (Continued)

2022	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of    U.S. government agencies	$	21,042	$	(880	)	$	39,567	$	(4,606	)	$	60,609	$	(5,486	)
Obligations of states and political    subdivisions		169,594		(13,016	)		73,967		(20,624	)		243,561		(33,640	)
Mortgage-backed securities in gov’t    sponsored entities		111,639		(4,713	)		124,622		(23,929	)		236,261		(28,642	)
Total temporarily impaired	$	302,275	$	(18,609	)	$	238,156	$	(49,159	)	$	540,431	$	(67,768	)

For AFS securities in an unrealized loss position, we first assess whether (i) we intend to sell, or (ii) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either case is affirmative, any previously recognized allowances are charged-off and the security's amortized cost is written down to fair value through income. If neither case is affirmative, the security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Adjustments to the allowance are reported in our income statement as a component of credit loss expense. AFS securities are charged-off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible by management or when either of the aforementioned criteria regarding intent or requirement to sell is met.

The Company has assessed each available for sale security position for credit impairment. Factors considered in determining whether a loss is temporary include:

•The length of time and the extent to which fair value has been below cost;

•The severity of impairment;

•The cause of the impairment and the financial condition and near-term prospects of the issuer;

•If the Company intends to sell the investment;

•If it’s more-likely-than-not the Company will be required to sell the investment before recovering its amortized cost basis; and

•If the Company does not expect to recover the investment’s entire amortized cost basis (even if the Company does not intend to sell the investment).

The Company’s review for impairment generally entails:

•Identification and evaluation of investments that have indications of impairment;

•Analysis of individual investments that have fair values less than amortized cost, including consideration of length of time each investment has been in unrealized loss position and the expected recovery period;

•Evaluation of factors or triggers that could cause individual investments to qualify as having other-than-temporary impairment; and

•Documentation of these analyses, as required by policy.

At December 31, 2023, the Company owned 394 securities that were considered temporarily impaired. The unrealized losses on these securities have not been recognized into income because the issuers’ bonds are of high

NOTE 3 – SECURITIES (Continued)

credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in market interest rates. The Company also considers sector specific credit rating changes in its analysis. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.

The following table presents the net gains and losses on equity investments recognized in earnings at year-end 2023 and 2022, and the portion of unrealized gains and losses for the period that relates to equity investments held at year-end 2023 and 2022:

	2023			2022
Net gains (losses) recognized on equity securities during the    year	$	(21	)	$	118
Less: Net gains realized on the sale of equity securities    during the period		—			—
Unrealized gains (losses) recognized in equity securities held at    December 31	$	(21	)	$	118