XML 19 R9.htm IDEA: XBRL DOCUMENT v3.23.2
SECURITIES
 6 Months Ended
Jun. 30, 2023
SECURITIES [Abstract]  
SECURITIES
2.  SECURITIES

The amortized cost, related gross unrealized gains and losses, allowance for credit losses, and estimated fair value of securities available for sale at the dates indicated follows (dollars in thousands):

 
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
 Allowance
for Credit
Losses
    
Fair
Value
  
June 30, 2023
                              
Available for sale:
                              
State and municipal
  
$
206,835
    
$
2
    
$
(26,442
)
   $ —    
$
180,395
  
Residential mortgage-backed securities
     366,207       —       (56,020 )     —       310,187  
Commercial mortgage-backed securities
     48,533       —       (7,315 )     —       41,218  
Commercial collateralized mortgage obligations
    
72,823
      
—
      
(5,228
)
     —      
67,595
  
Asset-backed and other amortizing securities
    
19,529
      
—
      
(1,744
)
     —      
17,785
  
Other securities
    
12,000
      
—
      
(1,087
)
     —      
10,913
  
   
$
725,927
    
$
2
    
$
(97,836
)
   $
 —    
$
628,093
  

 
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair
Value
  
December 31, 2022
                        
Available for sale:
                        
State and municipal
  
$
259,429
    
$
27
    
$
(34,401
)
  
$
225,055
  
Residential mortgage-backed securities
    386,783       —       (57,938 )     328,845  
Commercial mortgage-backed securities
    49,161       —       (7,194 )     41,967  
Commercial collateralized mortgage obligations
    
76,189
      
—
      
(551
)
    
75,638
  
Asset-backed and other amortizing securities
    
20,907
      
—
      
(1,813
)
    
19,094
  
Other securities
    
12,000
      
—
      
(888
)
    
11,112
  
   
$
804,469
    
$
27
    
$
(102,785
)
  
$
701,711
  

The amortized cost and estimated fair value of securities at June 30, 2023 are presented below by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Other securities are shown separately since they are not due at a single maturity date.

 
Available for Sale
  
   
Amortized
Cost
    
Fair
Value
  
Within 1 year
  
$
2,628
    
$
2,629
  
After 1 year through 5 years
    
5,387
      
5,119
  
After 5 years through 10 years
    
17,405
      
16,179
  
After 10 years
    
193,415
      
167,381
  
Other
    
507,092
      
436,785
  
   
$
725,927
    
$
628,093
  

At both June 30, 2023 and December 31, 2022, the Company had no holdings of securities of any one issuer, other than the U.S. government, its agencies, or its sponsored enterprises, in an amount greater than 10% of stockholders’ equity.

Securities with a carrying value of approximately $424.1 million and $464.1 million at June 30, 2023 and December 31, 2022, respectively, were pledged to collateralize public deposits and for other purposes as required or permitted by law.

The following table segregates securities with unrealized losses at the periods indicated, by the duration they have been in a loss position for which an allowance for credit losses has not been recorded (dollars in thousands):

 
Less than 12 Months
    
12 Months or More
    
Total
  
   
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
  
June 30, 2023
                                    
State and municipal
  
$
5,903
    
$
92
    
$
171,217
    
$
26,350
    
$
177,120
    
$
26,442
  
Residential mortgage-backed securities
     —       —       310,178       56,020       310,178       56,020  
Commercial mortgage-backed securities
     —       —       41,218       7,315       41,218       7,315  
Commercial collateralized mortgage obligations
    
67,595
      
5,228
      
—
      
—
      
67,595
      
5,228
  
Asset-backed and other amortizing securities
    
—
      
—
      
17,785
      
1,744
      
17,785
      
1,744
  
Other securities
    
3,405
      
95
      
7,508
      
992
      
10,913
      
1,087
  
   
$
76,903
    
$
5,415
    
$
547,906
    
$
92,421
    
$
624,809
    
$
97,836
  
                                                 
December 31, 2022
                                                
State and municipal
  
$
162,746
    
$
23,538
    
$
57,675
    
$
10,863
    
$
220,421
    
$
34,401
  
Residential mortgage-backed securities
    220,752       27,967       108,080       29,971       328,832       57,938  
Commercial mortgage-backed securities
    41,966       7,194       —       —       41,966       7,194  
Commercial collateralized mortgage obligations
    
75,638
      
551
      
—
      
—
      
75,638
      
551
  
Asset-backed and other amortizing securities
    
19,094
      
1,813
      
—
      
—
      
19,094
      
1,813
  
Other securities
    
11,112
      
888
      
—
      
—
      
11,112
      
888
  
   
$
531,308
    
$
61,951
    
$
165,755
    
$
40,834
    
$
697,063
    
$
102,785
  

The Company had 147 securities with an unrealized loss at June 30, 2023, generally due to increases in market rates. Management evaluates AFS securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or non-credit related factors. Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for the anticipated recovery in fair value. Management does not have the intent to sell any of the securities in an unrealized loss position as there are adequate liquidity sources to meet expected and unexpected funding needs. The fair value of these securities is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of June 30, 2023, management believes the unrealized loss positions detailed in the previous table are due to non-credit related factors, including changes in interest rates and other market conditions, and therefore no ACL or losses have been recognized or realized in the consolidated financial statements.