Investment Securities (Tables)

6 Months Ended

Jun. 30, 2023

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 June 30, 2023
U.S. Government-sponsored securities	$	3,845	$	17	$	21	$	3,841
Mortgage-backed securities (1)		123,302		4		23,238		100,068
Collateralized mortgage obligations (1)		599		-		13		586
Corporate securities		10,038		-		200		9,838
Other		310		-		-		310
Total available-for-sale securities	$	138,094	$	21	$	23,472	$	114,643

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

Available-for-Sale Securities			Gross Unrealized
(Dollars in thousands)	Amortized Cost		Gains		Losses		Fair Value
As of December 31, 2022
U.S. Treasury notes	$	4,989	$	-	$	25	$	4,964
U.S. Government-sponsored securities		4,430		21		24		4,427
Mortgage-backed securities (1)		162,314		9		29,795		132,528
Collateralized mortgage obligations (1)		1,085		-		31		1,054
Corporate securities		10,043		-		462		9,581
Other		310		-		-		310
Total available-for-sale securities	$	183,171	$	30	$	30,337	$	152,864

⁽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 June 30, 2023
Mortgage-backed securities (1)	$	685,028	$	16	$	138,764	$	546,280	$	-
Collateralized mortgage obligations (1)		77,290		-		15,022		62,268		-
Municipal securities		76,128		72		245		75,955		450
Total held-to-maturity securities	$	838,446	$	88	$	154,031	$	684,503	$	450

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

Held-to-Maturity Securities			Gross Unrealized
(Dollars in thousands)	Amortized Cost		Gains		Losses		Fair Value		Allowance for Credit Losses
As of December 31, 2022
Mortgage-backed securities(1)	$	702,858	$	29	$	141,121	$	561,766	$	-
Collateralized mortgage obligations(1)		80,186		-		15,701		64,485		-
Municipal securities		62,302		49		209		62,142		393
Total held-to-maturity securities	$	845,346	$	78	$	157,031	$	688,393	$	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 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:

	June 30, 2023
	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-Sale Securities
U.S. Government-sponsored securities	$	267	$	1	$	1,127	$	20	$	1,394	$	21
Mortgage-backed securities(1)		15,374		480		83,944		22,758		99,318		23,238
Collateralized mortgage obligations(1)		-		-		586		13		586		13
Corporate securities		-		-		9,838		200		9,838		200
Total available-for-sale securities	$	15,641	$	481	$	95,495	$	22,991	$	111,136	$	23,472

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

					December 31, 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
Available-for-Sale Securities
U.S. Treasury notes	$	4,964	$	25	$	-	$	-	$	4,964	$	25
U.S. Government-sponsored securities		378		1		1,326		23		1,704		24
Mortgage-backed securities (1)		35,117		1,639		96,589		28,156		131,706		29,795
Collateralized Mortgage Obligations (1)		1,054		31		-		-		1,054		31
Corporate securities		-		-		9,581		462		9,581		462
Total available-for-sale securities	$	41,513	$	1,696	$	107,496	$	28,641	$	149,009	$	30,337

⁽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 Securities by Major Type

The following table presents the activity in the allowance for credit losses for held-to-maturity securities by major type:

	June 30, 2023
(Dollars in thousands)	Municipal securities		Mortgage-backed securities		Collateralized Mortgage obligations		Total
Allowance for credit losses - securities
Beginning Balance	$	393	$	-	$	-	$	393
Provision for credit losses		57		-		-		57
Ending Balance	$	450	$	-	$	-	$	450

	December 31, 2022
(Dollars in thousands)	Municipal securities		Mortgage- backed securities		Collateralized Mortgage obligations		Total
Allowance for credit losses - securities
Beginning Balance	$	393	$	-	$	-	$	393
Provision for credit losses		-		-		-		-
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 June 30, 2023 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	$	321	$	321	$	283	$	283
After one year through five years		18,571		18,018		12,292		12,201
After five years through ten years		7,135		6,871		28,355		26,675
After ten years		112,067		89,433		797,516		645,344
Total	$	138,094	$	114,643	$	838,446	$	684,503

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

The following table summarizes the amortized cost of held-to-maturity municipal securities by credit rating at June 30, 2023:

	Held-to-Maturity
	Amortized Cost
(Dollars in thousands)	AAA/AA/A		BBB/BB/B		Not Rated		Total
June 30, 2023
Municipal securities	$	19,380	$	391	$	56,357	$	76,128
Total	$	19,380	$	391	$	56,357	$	76,128

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
Six months ended June 30, 2023	$	30,482	$	-	$	5,686
Six months ended June 30, 2022	$	2,610	$	2	$	-