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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2022

Investment Securities [Abstract]

Amortized Cost, Fair Values, and Unrealized Gains and Losses of Securities Available-for-Sale

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

Available-for-Sale Securities						Gross Unrealized
(Dollars in thousands)		Amortized Cost				Gains				Losses				Fair Value
As of September 30, 2022
U.S. Treasury notes		$	4,979			$	-			$	38			$	4,941
U.S. Government-sponsored securities			4,695				27				24				4,698
Mortgage-backed securities⁽¹⁾			194,600				16				38,163				156,453
Collateralized mortgage obligations⁽¹⁾			1,499				-				41				1,458
Corporate securities			10,046				-				452				9,594
Other			310				-				-				310
Total available-for-sale securities		$	216,129			$	43			$	38,718			$	177,454

⁽¹⁾All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government.

						Gross Unrealized
(Dollars in thousands)		Amortized Cost				Gains				Losses				Fair Value
As of December 31, 2021
U.S. Treasury notes		$	9,938			$	151			$	-			$	10,089
U.S. Government-sponsored securities			6,351				62				39				6,374
Mortgage-backed securities⁽¹⁾			253,300				3,200				5,380				251,120
Collateralized mortgage obligations⁽¹⁾			2,412				24				-				2,436
Other			435				-				-				435
Total available-for-sale securities		$	272,436			$	3,437			$	5,419			$	270,454

⁽¹⁾ All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government.

Book Values, Estimated Fair Values and Unrealized Gains and Losses of Investments Classified as Held-To-Maturity

The book values, estimated fair values and unrealized gains and losses of investments classified as held-to-maturity are as follows:

Held-to-Maturity Securities						Gross Unrealized
(Dollars in thousands)		Amortized Cost				Gains				Losses				Fair Value				Allowance for Credit Losses
As of September 30, 2022
Municipal securities		$	60,827			$	-			$	735			$	60,092			$	393
Mortgage-backed securities⁽¹⁾			709,541				-				145,836				563,705				-
Collateralized mortgage obligations⁽¹⁾			82,297				-				15,172				67,125				-
Total held-to-maturity securities		$	852,665			$	-			$	161,743			$	690,922			$	393

⁽¹⁾ All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government.

						Gross Unrealized
(Dollars in thousands)		Amortized Cost				Gains				Losses				Fair Value				Allowance for Credit Losses
As of December 31, 2021
Municipal securities		$	66,496			$	701			$	-			$	67,197			$	-
Mortgage-backed securities⁽¹⁾			596,775				45				11,764				585,056				-
Collateralized mortgage obligations⁽¹⁾			73,781				36				229				73,588				-
Total held-to-maturity securities		$	737,052			$	782			$	11,993			$	725,841			$	-

⁽¹⁾ All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government.

Gross Unrealized Losses for Available-for-Sale Securities

The following tables show the gross unrealized losses for available-for-sale securities, for which an allowance for credit losses has not been recorded, that are less than 12 months and 12 months or more:

Available-for-Sale Securities									As of September 30, 2022
		Less Than 12 Months							12 Months or More								Total
(Dollars in thousands)		Fair Value			Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
As of September 30, 2022
U.S. Treasury notes		$	4,941			$	38			$	-			$	-			$	4,941			$	38
U.S. Government-sponsored securities			128				1				1,409				23				1,537				24
Mortgage-backed securities⁽¹⁾			37,141				1,928				117,680				36,235				154,821				38,163
Collateralized mortgage obligations⁽¹⁾			1,458				41				-				-				1,458				41
Corporate securities			9,594				452				-				-				9,594				452
Total available-for-sale securities		$	53,262			$	2,460			$	119,089			$	36,258			$	172,351			$	38,718

⁽¹⁾ All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government.

										As of December 31, 2021
		Less Than 12 Months								12 Months or More								Total
(Dollars in thousands)		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
As of December 31, 2021
U.S. Government-sponsored securities		$	183			$	-			$	2,007			$	39			$	2,190			$	39
Mortgage-backed securities⁽¹⁾			61,469				1,192				104,489				4,188				165,958				5,380
Total available-for-sale securities		$	61,652			$	1,192			$	106,496			$	4,227			$	168,148			$	5,419

⁽¹⁾ All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. Government.

Activity in Allowance for Credit Losses for Held-to-Maturity Debt Securities by Major Type

The following table presents the activity in the allowance for credit losses for held-to-maturity debt securities by major type for the nine months ended September 30, 2022.

		For the Nine Months Ended September 30, 2022
(Dollars in thousands)		Municipal securities				Mortgage-backed securities				Collateralized Mortgage obligations				Total
Allowance for credit losses - securities
Beginning Balance		$	-			$	-			$	-			$	-
Provision for credit losses			393				-				-				393
Ending Balance		$	393			$	-			$	-			$	393

Amortized Cost and Estimated Fair Values of Investment Securities by Contractual Final Maturity

The amortized cost and estimated fair values of investment securities at September 30, 2022 by contractual final maturity are shown in the following table:

		Available-for-Sale								Held-to-Maturity
(Dollars in thousands)		Amortized Cost				Fair Value				Amortized Cost				Fair Value
Securities maturing in:
One year or less		$	5,312			$	5,274			$	883			$	883
After one year through five years			21,418				20,600				7,484				7,324
After five years through ten years			25,492				23,196				28,907				26,852
After ten years			163,907				128,384				815,391				655,863
Total		$	216,129			$	177,454			$	852,665			$	690,922

Credit Quality of Available-for-Sale and Held-to-Maturity Debt Securities

The Company monitors the credit quality of those available-for-sale and held-to-maturity debt securities not issued by the U.S. government or one of its agencies or government sponsored entities, through the use of credit ratings. Credit ratings are reviewed and updated quarterly. The following table summarizes the fair value of available-for-sale and amortized cost of held-to-maturity debt securities by credit rating at September 30, 2022:

		Available-for-Sale												Held-to-Maturity
		Fair Value												Amortized Cost
(Dollars in thousands)		AAA/AA/A				BBB/BB/B				Not Rated				AAA/AA/A				BBB/BB/B				Not Rated
September 30, 2022

Breakdown by Category:
U.S. Treasury notes		$	4,941			$	-			$	-			$	-			$	-			$	-
U.S. Government-sponsored securities			-				-				4,698				-				-				-
Mortgage-backed securities⁽¹⁾			-				-				156,453				-				-				709,541
Collateralized mortgage obligations⁽¹⁾			-				-				1,458				-				-				82,297
Municipal securities			-				-				-				18,025				386				42,416
Corporate securities			4,795				4,799				-				-				-				-
Other			-				-				310				-				-				-
Total Investment Grade		$	9,736			$	4,799			$	162,919			$	18,025			$	386			$	834,254

⁽¹⁾ All mortgage-backed securities and collateralized mortgage obligations were issued by an agency or government sponsored entity of the U.S. government.

Proceeds from Sales and Calls of Securities

Proceeds from sales and calls of these securities were as follows:

(Dollars in thousands)		Gross Proceeds				Gross Gains				Gross Losses
Nine months ended September 30, 2022		$	31,394			$	2			$	2,987
Nine months ended September 30, 2021		$	301,320			$	5,570			$	3,016