Investment Securities

6 Months Ended

Jun. 30, 2024

Investment Securities

Investment Securities

(4) Investment Securities

Investment securities available for sale at June 30, 2024 and December 31, 2023 are as follows:

(Dollars in thousands)
	June 30, 2024
	Amortized Cost		Gross  Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	7,978		-		872		7,106
U.S. Government sponsored enterprises		10,163		-		590		9,573
GSE - Mortgage-backed securities		257,268		176		23,296		234,148
Private label mortgage-backed securities		39,971		11		1,854		38,128
State and political subdivisions		129,796		-		25,491		104,305
Total	$	445,176		187		52,103		393,260

(Dollars in thousands)
	December 31, 2023
	Amortized  Cost		Gross Unrealized Gains		Gross  Unrealized Losses		Fair Value
U.S. Treasuries	$	10,974		-		830		10,144
U.S. Government sponsored enterprises		11,111		-		596		10,515
GSE - Mortgage-backed securities		257,705		185		22,988		234,902
Private label mortgage-backed securities		33,317		16		2,063		31,270
State and political subdivisions		129,922		-		24,829		105,093
Total	$	443,029		201		51,306		391,924

The current fair value and associated unrealized losses on investments in securities with unrealized losses at June 30, 2024 and December 31, 2023 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	June 30, 2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	-		-		7,106		872		7,106		872
U.S. government sponsored enterprises		-		-		9,573		590		9,573		590
GSE -Mortgage-backed securities		10,239		144		210,829		23,152		221,068		23,296
Private label mortgage-backed securities		6,884		46		25,467		1,808		32,351		1,854
State and political subdivisions		-		-		104,305		25,491		104,305		25,491
Total	$	17,123		190		357,280		51,913		374,403		52,103

(Dollars in thousands)
	December 31, 2023
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	-		-		10,144		830		10,144		830
U.S. government sponsored enterprises		-		-		10,515		596		10,515		596
GSE -Mortgage-backed securities		24,167		546		203,234		22,442		227,401		22,988
Private label mortgage-backed securities		3,416		43		23,095		2,020		26,511		2,063
State and political subdivisions		-		-		105,093		24,829		105,093		24,829
Total	$	27,583		589		352,081		50,717		379,664		51,306

At June 30, 2024, unrealized losses in the investment securities portfolio relating to debt securities totaled $52.1 million.  The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary.  From the June 30, 2024 tables above, both of the U.S. Treasury securities, all 108 of the securities issued by state and political subdivisions contained unrealized losses, all seven of the securities issued by U.S. Government sponsored enterprises (“GSE”), 115 of the 124 GSE mortgage-backed securities, and 13 of the 16 private label mortgage backed securities contained unrealized losses.  The Company did not have any reserves on available for sale securities at June 30, 2024, as no credit related losses were identified in the Company’s June 30, 2024 analysis.  At December 31, 2023, unrealized losses in the investment securities portfolio relating to debt securities totaled $51.3 million.  The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary.  From the December 31, 2023 tables above, all three of the U.S. Treasury securities, all 108 of the securities issued by state and political subdivisions contained unrealized losses, all seven of the securities issued by GSE, 114 of the 121 GSE mortgage-backed securities, and 12 of the 14 private label mortgage backed securities contained unrealized losses.  The Company did not have an allowance for credit losses on available for sale securities at December 31, 2023, as no credit related losses were identified in the Company’s December 31, 2023 CECL analysis. 

The amortized cost and estimated fair value of investment securities available for sale at June 30, 2024, presented by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.

June 30, 2024
(Dollars in thousands)
	Amortized Cost		Fair Value
Due within one year	$	2,997		2,951
Due from one to five years		17,620		15,955
Due from five to ten years		59,340		49,675
Due after ten years		107,951		90,531
Mortgage-backed securities		257,268		234,148
Total	$	445,176		393,260

No securities available for sale were sold during the six months ended June 30, 2024. No securities available for sale were sold during the three months ended June 30, 2023. During the six months ended June 30, 2023, proceeds from sales of securities available for sale were $51.0 million and resulted in gross losses of $2.7 million and gross gains of $177,000.

Securities with a fair value of approximately $61.3 million and $132.0 million at June 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and for other purposes as required by law.