
	June 30, 2023
	Amortized		Unrealized				Allowance For		Fair
	Cost		Gains		Losses		Credit Losses		Value
U.S. Government sponsored entities	$	3,074	$	—	$	(80)	$	—	$	2,994
State & political subdivisions	107,396		8		(14,928)		—		92,476
Residential & multi-family mortgage	240,874		—		(37,442)		—		203,432
Corporate notes & bonds	48,779		9		(5,931)		—		42,857
Pooled SBA	12,413		—		(1,036)		—		11,377

Total	$	412,536	$	17	$	(59,417)	$	—	$	353,136


	December 31, 2022
	Amortized		Unrealized				Allowance For		Fair
	Cost		Gains		Losses		Credit Losses		Value
U.S. Government sponsored entities	$	3,213	$	—	$	(84)	$	—	$	3,129
State & political subdivisions	112,734		24		(17,095)		—		95,663
Residential & multi-family mortgage	256,111		—		(38,564)		—		217,547
Corporate notes & bonds	47,111		—		(4,720)		—		42,391
Pooled SBA	13,823		—		(1,144)		—		12,679

Total	$	432,992	$	24	$	(61,607)	$	—	$	371,409


	June 30, 2023
	Amortized		Unrealized				Allowance For		Fair
	Cost		Gains		Losses		Credit Losses		Value
U.S. Government sponsored entities	$	302,798	$	—	$	(25,781)	$	—	$	277,017
Residential & multi-family mortgage	91,440		—		(9,651)		—		81,789





Total	$	394,238	$	—	$	(35,432)	$	—	$	358,806


	December 31, 2022
	Amortized		Unrealized				Allowance For		Fair
	Cost		Gains		Losses		Credit Losses		Value
U.S. Government sponsored entities	$	307,711	$	—	$	(27,276)	$	—	$	280,435
Residential & multi-family mortgage	97,054		—		(10,101)		—		86,953





Total	$	404,765	$	—	$	(37,377)	$	—	$	367,388

The Corporation elected to transfer 74 AFS securities with an aggregate fair value of $213.7 million to a classification of HTM during the twelve months ended December 31, 2022. In accordance with FASB ASC 320-10-55-24, the transfer from AFS to HTM must be recorded at the fair value of the AFS securities at the time of transfer. The net unrealized holding loss of $5.6 million, net of tax, at the date of transfer was retained in accumulated other comprehensive income (loss), with the associated pre-tax amount retained in the carrying value of the HTM securities. Such amounts will be amortized to comprehensive income over the remaining life of the securities.


	Proceeds		Gross Gains		Gross Losses
Three months ended June 30, 2023	$	3,492	$	30	$	—
Three months ended June 30, 2022	—		—		—
Six months ended June 30, 2023	13,151		52		—
Six months ended June 30, 2022	22,164		651		—

The tax provision related to these net realized gains was $6 thousand and $11 thousand for the three and six months ended June 30, 2023 and zero and $137 thousand for the three and six months ended June 30, 2022, respectively.


	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
1 year or less	$	7,839	$	7,754	$	19,912	$	19,299
1 year – 5 years	45,110		42,446		232,093		214,648
5 years – 10 years	83,578		70,916		50,793		43,070
After 10 years	22,722		17,211		—		—
	159,249		138,327		302,798		277,017
Residential & multi-family mortgage	240,874		203,432		91,440		81,789
Pooled SBA	12,413		11,377		—		—

Total debt securities	$	412,536	$	353,136	$	394,238	$	358,806

At June 30, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government sponsored entities, in an amount greater than 10% of shareholders’ equity. The Corporation’s residential and multi-family mortgage securities are issued by government sponsored entities.

AFS debt securities with unrealized losses at June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:


	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government sponsored entities	$	1,478	$	(5)	$	1,516	$	(75)	$	2,994	$	(80)
State & political subdivisions	12,482		(194)		77,811		(14,734)		90,293		(14,928)
Residential & multi-family mortgage	7,833		(356)		195,504		(37,086)		203,337		(37,442)
Corporate notes and bonds	10,624		(905)		31,225		(5,026)		41,849		(5,931)
Pooled SBA	643		(12)		10,734		(1,024)		11,377		(1,036)

	$	33,060	$	(1,472)	$	316,790	$	(57,945)	$	349,850	$	(59,417)


	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government sponsored entities	$	3,129	$	(84)	$	—	$	—	$	3,129	$	(84)
State & political subdivisions	34,667		(1,887)		54,546		(15,208)		89,213		(17,095)
Residential & multi-family mortgage	48,996		(3,122)		168,551		(35,442)		217,547		(38,564)
Corporate notes and bonds	31,730		(3,403)		10,661		(1,317)		42,391		(4,720)
Pooled SBA	5,107		(314)		7,572		(830)		12,679		(1,144)

	$	123,629	$	(8,810)	$	241,330	$	(52,797)	$	364,959	$	(61,607)

HTM debt securities with unrealized losses at June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:


	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government sponsored entities	$	—	$	—	$	277,017	$	(25,781)	$	277,017	$	(25,781)
Residential & multi-family mortgage	1,158		(244)		80,631		(9,407)		81,789		(9,651)





	$	1,158	$	(244)	$	357,648	$	(35,188)	$	358,806	$	(35,432)


	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government sponsored entities	$	143,556	$	(10,063)	$	136,879	$	(17,213)	$	280,435	$	(27,276)
Residential & multi-family mortgage	24,132		(2,253)		62,821		(7,848)		86,953		(10,101)





	$	167,688	$	(12,316)	$	199,700	$	(25,061)	$	367,388	$	(37,377)

At June 30, 2023 and December 31, 2022, management performed an assessment for possible impairment related to credit losses of the Corporation’s debt securities, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. Based on the results of the assessment, management believes there is no credit related impairment of these debt securities at June 30, 2023 and December 31, 2022.

For the securities that comprise corporate notes and bonds and the securities that are issued by state and political subdivisions, management monitors publicly available financial information, such as filings with the Securities and Exchange Commission, in order to evaluate the securities for potential credit impairment. For financial institution issuers, management monitors information from quarterly “call” report filings that are used to generate Uniform Bank Performance Reports. All other securities that were in an unrealized loss position at the balance sheet date were reviewed by management, and issuer-specific documents were reviewed as appropriate given the following considerations; the financial condition and near-term prospects of the issuer and whether downgrades by bond rating agencies have occurred, the length of time and extent to which fair value has been less than cost, and whether management does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery.

•All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be timely received.