SECURITIES

9 Months Ended

Sep. 30, 2022

SECURITIES.

SECURITIES

NOTE 2: SECURITIES

The amortized cost, related gross unrealized gains and losses and fair values of investments in securities as of the dates indicated below were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses		Fair Value
September 30, 2022
Debt securities available for sale:
State and municipal securities	$	175,763	$	—	$	(40,665)	$	135,098
U.S. Treasury securities		111,045		—		(3,786)		107,259
U.S. agency securities:
Callable debentures		3,000		—		(436)		2,564
Collateralized mortgage obligations		97,307		—		(12,909)		84,398
Mortgage-backed securities		211,497		—		(30,579)		180,918
Equity securities		1,201		—		(156)		1,045
Total	$	599,813	$	—	$	(88,531)	$	511,282
December 31, 2021
Debt securities available for sale:
State and municipal securities	$	168,541	$	4,451	$	(392)	$	172,600
U.S. Treasury securities		11,888		—		(91)		11,797
U.S. agency securities:
Callable debentures		3,000		—		(27)		2,973
Collateralized mortgage obligations		63,129		115		(862)		62,382
Mortgage-backed securities		173,446		1,805		(1,130)		174,121
Equity securities		1,189		—		(16)		1,173
Total	$	421,193	$	6,371	$	(2,518)	$	425,046

The amortized cost and estimated fair value of securities, by contractual maturities, as of the dates indicated below were as follows:

(Dollars in thousands)	1 Year or Less		After 1 Year to 5 Years		After 5 Years to 10 Years		After 10 Years		Total
September 30, 2022
Amortized cost:
Debt securities available for sale:
State and municipal securities	$	—	$	506	$	21,400	$	153,857	$	175,763
U.S. Treasury securities		69,486		38,655		2,904		—		111,045
U.S. agency securities:
Callable debentures		—		—		3,000		—		3,000
Collateralized mortgage obligations		—		—		2,487		94,820		97,307
Mortgage-backed securities		2		593		24,013		186,889		211,497
Equity securities		1,201		—		—		—		1,201
Total	$	70,689	$	39,754	$	53,804	$	435,566	$	599,813
Fair value:
Debt securities available for sale:
State and municipal securities	$	—	$	484	$	19,797	$	114,817	$	135,098
U.S. Treasury securities		68,069		36,672		2,518		—		107,259
U.S. agency securities:
Callable debentures		—		—		2,564		—		2,564
Collateralized mortgage obligations		—		—		2,408		81,990		84,398
Mortgage-backed securities		2		575		22,280		158,061		180,918
Equity securities		1,045		—		—		—		1,045
Total	$	69,116	$	37,731	$	49,567	$	354,868	$	511,282

(Dollars in thousands)	1 Year or Less		After 1 Year to 5 Years		After 5 Years to 10 Years		After 10 Years		Total
December 31, 2021
Amortized cost:
Debt securities available for sale:
State and municipal securities	$	881	$	—	$	12,339	$	155,321	$	168,541
U.S. Treasury securities		—		6,138		5,750		—		11,888
U.S. agency securities:
Callable debentures		—		—		3,000		—		3,000
Collateralized mortgage obligations		—		—		4,528		58,601		63,129
Mortgage-backed securities		—		953		4,056		168,437		173,446
Equity securities		1,189		—		—		—		1,189
Total	$	2,070	$	7,091	$	29,673	$	382,359	$	421,193
Fair value:
Debt securities available for sale:
State and municipal securities	$	883	$	—	$	12,905	$	158,812	$	172,600
U.S. Treasury securities		—		6,072		5,725		—		11,797
U.S. agency securities:
Callable debentures		—		—		2,973		—		2,973
Collateralized mortgage obligations		—		—		4,591		57,791		62,382
Mortgage-backed securities		—		994		4,166		168,961		174,121
Equity securities		1,173		—		—		—		1,173
Total	$	2,056	$	7,066	$	30,360	$	385,564	$	425,046

Actual maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

No securities were sold in the nine months ended September 30, 2022 and 2021. At September 30, 2022 and December 31, 2021, securities with a carrying amount of $25.4 million and $25.6 million, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

Management did not believe that any of the securities the Company held at September 30, 2022 or December 31, 2021 were impaired due to credit quality. Accordingly, no allowance for credit losses, or ACL, was recorded in the Company’s condensed consolidated balance sheets at September 30, 2022 or during 2021. This is based upon our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our available for sale securities and in consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline.

Accrued interest receivable for securities was $1.7 million and $2.0 million at September 30, 2022 and December 31, 2021, respectively, and is included in other assets in the condensed consolidated balance sheets.

The Company held 472 and 115 securities at September 30, 2022 and December 31, 2021, respectively, that were in a gross unrealized loss position.

Securities with unrealized losses as of the dates indicated below, aggregated by category and the length of time, were as follows:

	Less than Twelve Months				Twelve Months or More
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses
September 30, 2022
Debt securities available for sale:
State and municipal securities	$	110,933	$	(28,504)	$	24,165	$	(12,161)
U.S. Treasury securities		104,544		(3,427)		2,715		(359)
U.S. agency securities:
Callable debentures		2,564		(436)		—		—
Collateralized mortgage obligations		62,830		(8,187)		21,568		(4,722)
Mortgage-backed securities		138,312		(20,371)		42,529		(10,208)
Equity securities		—		—		1,045		(156)
	$	419,183	$	(60,925)	$	92,022	$	(27,606)
December 31, 2021
Debt securities available for sale:
State and municipal securities	$	36,962	$	(387)	$	257	$	(5)
U.S. Treasury securities		11,797		(91)		—		—
U.S. agency securities:
Callable debentures		2,973		(27)		—		—
Collateralized mortgage obligations		40,776		(860)		241		(2)
Mortgage-backed securities		87,220		(1,130)		—		—
Equity securities		1,173		(16)		—		—
	$	180,901	$	(2,511)	$	498	$	(7)