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Securities
 6 Months Ended
Jun. 30, 2023
Securities [Abstract]  
Securities

Note 2. Securities


On January 1, 2023, the Company adopted ASC 326, which made changes to the accounting for available-for-sale debt securities whereby credit losses should be presented as an allowance, rather than as a write-down when management does not intend to sell and does not believe that it is more likely than not they will be required to sell prior to maturity. For further discussion on the Company’s accounting policies and policy elections related to the accounting standard update refer to Note 1. Description of Business and Summary of Significant Accounting Policies.

All securities information presented as of June 30, 2023, is in accordance with ASC 326. All securities information presented prior to June 30, 2023 is in accordance with previous applicable GAAP. See information regarding the Company’s prior accounting policies in Note 1. Significant Accounting Policies in the Company’s 2022 Form 10-K.


Amortized costs and fair values, with gross unrealized gains and losses, of securities available-for-sale as of the dates indicated were as follows:


   
June 30, 2023
 
           Gross      Gross        
     Amortized      Unrealized      Unrealized      Fair  
(Dollars in thousands)
  
Cost
    
Gains
    
(Losses)
    
Value
  
U.S. Treasury securities
  
$
4,083
    
$
-
    
$
(283
)
  
$
3,800
  
Obligations of U.S. Government agencies
    
38,984
      
70
      
(829
)
    
38,225
  
Obligations of state and political subdivisions
    
65,890
      
13
      
(9,369
)
    
56,534
  
Mortgage-backed securities
    
96,790
      
-
      
(10,762
)
    
86,028
  
Money market investments
    
1,833
      
-
      
-
      
1,833
  
Corporate bonds and other securities
    
27,990
      
-
      
(3,849
)
    
24,141
  
   
$
235,570
    
$
83
    
$
(25,092
)
  
$
210,561
  


   
December 31, 2022
 
           Gross      Gross        
     Amortized      Unrealized       Unrealized      Fair  
(Dollars in thousands)
  
Cost
    
Gains
    
(Losses)
    
Value
  
U.S. Treasury securities
  
$
8,013
    
$
-
    
$
(342
)
  
$
7,671
  
Obligations of U.S. Government agencies
    
43,622
      
10
      
(1,233
)
    
42,399
  
Obligations of state and political subdivisions
    
70,491
      
-
      
(11,107
)
    
59,384
  
Mortgage-backed securities
    
99,874
      
-
      
(10,961
)
    
88,913
  
Money market investments
    
1,816
      
-
      
-
      
1,816
  
Corporate bonds and other securities
    
27,990
      
-
      
(2,655
)
    
25,335
  
   
$
251,806
    
$
10
    
$
(26,298
)
  
$
225,518
  


The amortized cost and fair value of securities by contractual maturity are shown below.
   
June 30, 2023
 
      Amortized      Fair  
(Dollars in thousands)
  
Cost
    
Value
  
Due in one year or less
  
$
1,860
    
$
1,816
  
Due after one year through five years
    
15,025
      
14,212
  
Due after five through ten years
    
64,652
      
55,890
  
Due after ten years
    
152,200
      
136,810
  
Other securities, restricted
    
1,833
      
1,833
  
   
$
235,570
    
$
210,561
  



The following table shows realized gains or losses on the sale of investment securities during the three and six months ended June 30, 2023 and 2022, respectively.


   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
June 30,
  
(Dollars in thousands)
  
2023
    
2022
    
2023
    
2022
  
Securities Available-for-sale
                        
Realized losses on sales of securities
    
(164
)
    
-
    
$
(164
)
  
$
-
  
Net realized loss
  
$
(164
)
  
$
-
    
$
(164
)
  
$
-
  



The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses for which an allowance for credit losses has not been recorded as of June 30, 2023 and that are deemed to be temporarily impaired as of December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated:


   
June 30, 2023
  
   
Less than 12 months
    
12 months or more
    
Total
        
   
Gross
          
Gross
          
Gross
          
Number
  
   
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
of
  
(Dollars in thousands)
  
Losses
    
Value
    
Losses
    
Value
    
Losses
    
Value
    
Securities
  
U.S. Treasury securities
  
$
-
    
$
-
    
$
283
    
$
3,800
    
$
283
    
$
3,800
      
2
  
Obligations of U.S. Government agencies
    
17
      
5,215
      
812
      
27,186
      
829
      
32,401
      
44
  
Obligations of state and political subdivisions
    
286
      
1,521
      
9,083
      
54,013
      
9,369
      
55,534
      
52
  
Mortgage-backed securities
    
532
      
12,139
      
10,230
      
73,888
      
10,762
      
86,027
      
43
  
Corporate bonds and other securities
    
231
      
2,259
      
3,618
      
20,882
      
3,849
      
23,141
      
25
  
Total securities available-for-sale
  
$
1,066
    
$
21,134
    
$
24,026
    
$
179,769
    
$
25,092
    
$
200,903
      
166
  

   
December 31, 2022
  
   
Less than 12 months
    
12 months or more
    
Total
        
   
Gross
          
Gross
          
Gross
          
Number
  
   
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
of
  
(Dollars in thousands)
  
Losses
    
Value
    
Losses
    
Value
    
Losses
    
Value
    
Securities
  
U.S. Treasury securities
  
$
342
    
$
7,671
    
$
-
    
$
-
    
$
342
    
$
7,671
      
4
  
Obligations of U.S. Government agencies
    
258
      
13,873
      
975
      
22,851
      
1,233
      
36,724
      
43
  
Obligations of state and political subdivisions
    
5,386
      
33,720
      
5,721
      
23,856
      
11,107
      
57,576
      
56
  
Mortgage-backed securities
    
4,157
      
52,717
      
6,804
      
36,196
      
10,961
      
88,913
      
38
  
Corporate bonds and other securities
    
1,084
      
12,906
      
1,571
      
11,429
      
2,655
      
24,335
      
21
  
Total securities available-for-sale
  
$
11,227
    
$
120,887
    
$
15,071
    
$
94,332
    
$
26,298
    
$
215,219
      
162
  

The number of investments in an unrealized loss position as of June 30, 2023 and December 31, 2022 were 166 and 162, respectively. The Company concluded no allowance for credit loss should be recognized as of June 30, 2023 and December 31, 2022, based primarily on the fact that changes in fair value were caused primarily by increases in interest rates, securities with unrealized losses had generally high credit quality, the Company intends to hold these investments to maturity, it is more-likely-than-not that the Company will not be required to sell these investments before a recovery of its investment, and issuers have continued to make timely payments of principal and interest. Additionally, the Company’s mortgage-backed securities are entirely issued by either U.S. government agencies or U.S. government sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments.


Restricted Stock

The restricted stock category is comprised of stock in FHLB, FRB, and CBB. These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and the securities lack a market. Therefore, FHLB, FRB, and CBB stock are carried at cost and evaluated for impairment. When evaluating these stocks for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Restricted stock is viewed as a long-term investment and management believes that the Company has the ability and the intent to hold this stock until its value is recovered.