Investment Securities

3 Months Ended

Mar. 31, 2022

Investment Securities

2. Investment Securities

(2) Investment Securities 

Investment securities available for sale at March 31, 2022 and December 31, 2021 are as follows:

(Dollars in thousands)
	March 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S Treasuries	$	10,934		-		565		10,369
U.S. Government
sponsored enterprises		13,724		56		372		13,408
Mortgage-backed securities		233,773		783		9,901		224,655
State and political subdivisions		173,292		691		14,378		159,605
Total	$	431,723		1,530		25,216		408,037

(Dollars in thousands)
	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S Treasuries	$	7,964		-		75		7,889
U.S. Government
sponsored enterprises		14,252		200		185		14,267
Mortgage-backed securities		218,402		1,769		3,019		217,152
State and political subdivisions		165,804		3,694		2,257		167,241
Total	$	406,422		5,663		5,536		406,549

The current fair value and associated unrealized losses on investments in securities with unrealized losses at March 31, 2022 and December 31, 2021 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	March 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	$	10,369		565		-		-		10,369		565
U.S. Government
sponsored enterprises		2,415		182		7,949		190		10,364		372
Mortgage-backed securities		146,319		8,509		21,727		1,392		168,046		9,901
State and political subdivisions		106,097		11,285		16,608		3,093		122,705		14,378
Total	$	265,200		20,541		46,284		4,675		311,484		25,216

(Dollars in thousands)
	December 31, 2021
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	7,889		75		-		-		7,889		75
U.S. Government
sponsored enterprises		5,232		15		3,263		170		8,495		185
Mortgage-backed securities		131,483		2,477		19,632		542		151,115		3,019
State and political subdivisions		80,076		1,981		5,922		276		85,998		2,257
Total	$	224,680		4,548		28,817		988		253,497		5,536

At March 31, 2022, unrealized losses in the investment securities portfolio relating to debt securities totaled $25.2 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the March 31, 2022 tables above, all three U.S. Treasury securities, 113 out of 156 securities issued by state and political subdivisions and 75 out of 108 securities issued by U.S. Government sponsored enterprises 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, are government backed. At December 31, 2021, unrealized losses in the investment securities portfolio relating to debt securities totaled $5.5 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the December 31, 2021 tables above, both of the U.S. Treasury securities, 70 of the 146 securities issued by state and political subdivisions contained unrealized losses and 54 of the 99 securities issued by U.S. Government sponsored enterprises, including 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, are government backed.

The amortized cost and estimated fair value of investment securities available for sale at March 31, 2022, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

March 31, 2022
(Dollars in thousands)
	Amortized Cost		Fair Value
Due within one year	$	2,608		2,623
Due from one to five years		11,047		11,150
Due from five to ten years		83,496		80,272
Due after ten years		100,799		89,337
Mortgage-backed securities		233,773		224,655
Total	$	431,723		408,037

No securities available for sale were sold during the three months ended March 31, 2022 and 2021.

Securities with a fair value of approximately $99.7 million and $98.6 million at March 31, 2022 and December 31, 2021, respectively, were pledged to secure public deposits and for other purposes as required by law.