Securities

9 Months Ended

Sep. 30, 2022

Securities

Securities

Note 3: Securities

The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at September 30, 2022 and December 31, 2021:

	September 30, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized
(dollars in thousands)	Cost		Gains		Losses		Fair Value
Securities Available for Sale:
U.S. Treasury Securities	$	2,374	$	—	$	(36)	$	2,338
Municipal Bonds		196,102		54		(25,920)		170,236
Mortgage-Backed Securities		207,973		8		(16,396)		191,585
Corporate Securities		113,041		39		(5,020)		108,060
SBA Securities		22,585		96		(141)		22,540
Asset-Backed Securities		47,359		348		(459)		47,248
Total Securities Available for Sale	$	589,434	$	545	$	(47,972)	$	542,007

	December 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized
(dollars in thousands)	Cost		Gains		Losses		Fair Value
Securities Available for Sale:
U.S. Treasury Securities	$	756	$	—	$	(2)	$	754
Municipal Bonds		151,665		7,492		(788)		158,369
Mortgage-Backed Securities		125,563		1,085		(2,111)		124,537
Corporate Securities		81,925		2,740		(185)		84,480
SBA Securities		30,474		102		(206)		30,370
Asset-Backed Securities		39,867		1,044		(59)		40,852
Total Securities Available for Sale	$	430,250	$	12,463	$	(3,351)	$	439,362

The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2022 and December 31, 2021:

	Less Than 12 Months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
(dollars in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
September 30, 2022
U.S. Treasury Securities	$	2,338	$	(36)	$	—	$	—	$	2,338	$	(36)
Municipal Bonds		135,714		(16,465)		31,839		(9,455)		167,553		(25,920)
Mortgage-Backed Securities		125,805		(6,300)		54,041		(10,096)		179,846		(16,396)
Corporate Securities		93,186		(4,098)		9,549		(922)		102,735		(5,020)
SBA Securities		1,071		(2)		10,645		(139)		11,716		(141)
Asset-Backed Securities		24,382		(330)		2,900		(129)		27,282		(459)
Total Securities Available for Sale	$	382,496	$	(27,231)	$	108,974	$	(20,741)	$	491,470	$	(47,972)

	Less Than 12 Months				12 Months or Greater				Total
			Unrealized				Unrealized				Unrealized
(dollars in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
December 31, 2021
U.S. Treasury Securities	$	754	$	(2)	$	—	$	—	$	754	$	(2)
Municipal Bonds		44,332		(708)		3,757		(80)		48,089		(788)
Mortgage-Backed Securities		36,921		(630)		35,949		(1,481)		72,870		(2,111)
Corporate Securities		9,398		(133)		1,948		(52)		11,346		(185)
SBA Securities		3,896		(7)		16,297		(199)		20,193		(206)
Asset-Backed Securities		6,742		(59)		—		—		6,742		(59)
Total Securities Available for Sale	$	102,043	$	(1,539)	$	57,951	$	(1,812)	$	159,994	$	(3,351)

At September 30, 2022, 564 debt securities had unrealized losses with aggregate depreciation of approximately 8.9% from the Company’s amortized cost basis. At December 31, 2021, 199 debt securities had unrealized losses with aggregate depreciation of approximately 2.1% from the Company’s amortized cost basis. These unrealized losses related principally to changes in interest rates and were not due to changes in the financial condition of the issuer, the quality of any underlying assets, or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other than temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer, and the quality of any underlying assets or credit enhancements. Since management has the ability and intent to hold these debt securities for the foreseeable future, no declines were deemed to be other than temporary as of September 30, 2022.

The following table presents a summary of amortized cost and estimated fair value of debt securities by the lesser of expected call date or contractual maturity as of September 30, 2022. Call date is used when a call of the debt security is expected, as determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed, SBA securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties.

(dollars in thousands)	Amortized Cost		Fair Value
September 30, 2022
Due in One Year or Less	$	2,692	$	2,665
Due After One Year Through Five Years		35,380		34,227
Due After Five Years Through 10 Years		158,065		146,852
Due After 10 Years		115,380		96,890
Subtotal		311,517		280,634
Mortgage-Backed Securities		207,973		191,585
SBA Securities		22,585		22,540
Asset-Backed Securities		47,359		47,248
Totals	$	589,434	$	542,007

As of September 30, 2022 and December 31, 2021, the securities portfolio was unencumbered.

The following table presents a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the three and nine months ended September 30, 2022 and September 30, 2021:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in thousands)	2022		2021		2022		2021
Proceeds From Sales of Securities	$	—	$	4,119	$	25,066	$	11,877
Gross Gains on Sales		—		498		234		1,200
Gross Losses on Sales		—		(450)		(182)		(450)