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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Available For Sale, Held-to-Maturity, and Restricted Equity Securities

The following table summarizes the amortized cost and estimated fair value of investment securities at September 30, 2024:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value (Estimated)
Securities available for sale
U.S. Treasury & Agency securities	$	26,040,000	$	—	$	(5,305,000)	$	20,735,000
Mortgage-backed securities	259,979,000		438,000		(33,043,000)		227,374,000
State and political subdivisions	40,254,000		42,000		(5,688,000)		34,608,000
Asset-backed securities	2,285,000		19,000		—		2,304,000

	$	328,558,000	$	499,000	$	(44,036,000)	$	285,021,000
Securities to be held to maturity
U.S. Treasury & Agency securities	$	38,100,000	$	—	$	(8,371,000)	$	29,729,000
Mortgage-backed securities	53,373,000		103,000		(9,378,000)		44,098,000
State and political subdivisions	252,636,000		267,000		(24,669,000)		228,234,000

Corporate securities	33,750,000		—		(2,236,000)		31,514,000
	$	377,859,000	$	370,000	$	(44,654,000)	$	333,575,000
Less allowance for credit losses	(224,000)		—		—		—
Net securities to be held to maturity	$	377,635,000	$	370,000	$	(44,654,000)	$	333,575,000
Restricted equity securities
Federal Home Loan Bank Stock	$	5,383,000	$	—	$	—	$	5,383,000
Federal Reserve Bank Stock	1,037,000		—		—		1,037,000
	$	6,420,000	$	—	$	—	$	6,420,000

The following table summarizes the amortized cost and estimated fair value of investment securities at December 31, 2023:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value (Estimated)
Securities available for sale
U.S. Treasury & Agency securities	$	26,033,000	$	—	$	(6,203,000)	$	19,830,000
Mortgage-backed securities	262,823,000		265,000		(38,491,000)		224,597,000
State and political subdivisions	40,306,000		41,000		(5,702,000)		34,645,000
Asset-backed securities	2,986,000		4,000		(9,000)		2,981,000

	$	332,148,000	$	310,000	$	(50,405,000)	$	282,053,000
Securities to be held to maturity
U.S. Treasury & Agency securities	$	40,100,000	$	—	$	(9,601,000)	$	30,499,000
Mortgage-backed securities	56,401,000		70,000		(10,398,000)		46,073,000
State and political subdivisions	254,418,000		313,000		(24,213,000)		230,518,000

Corporate securities	34,750,000		—		(3,270,000)		31,480,000
	$	385,669,000	$	383,000	$	(47,482,000)	$	338,570,000
Less allowance for credit losses	(434,000)		—		—		—
Net securities to be held to maturity	$	385,235,000	$	383,000	$	(47,482,000)	$	338,570,000
Restricted equity securities
Federal Home Loan Bank Stock	$	2,348,000	$	—	$	—	$	2,348,000
Federal Reserve Bank Stock	1,037,000		—		—		1,037,000
	$	3,385,000	$	—	$	—	$	3,385,000

The following table summarizes the amortized cost and estimated fair value of investment securities at September 30, 2023:


	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value (Estimated)
Securities available for sale
U.S. Treasury & Agency securities	$	45,851,000	$	—	$	(7,599,000)	$	38,252,000
Mortgage-backed securities	263,775,000		1,000		(50,930,000)		212,846,000
State and political subdivisions	40,417,000		—		(9,637,000)		30,780,000
Asset-backed securities	3,097,000		1,000		(4,000)		3,094,000

	$	353,140,000	$	2,000	$	(68,170,000)	$	284,972,000
Securities to be held to maturity
U.S. Treasury & Agency securities	$	40,100,000	$	—	$	(11,996,000)	$	28,104,000
Mortgage-backed securities	57,224,000		4,000		(13,336,000)		43,892,000
State and political subdivisions	255,732,000		16,000		(46,807,000)		208,941,000
Corporate securities	34,750,000		—		(3,823,000)		30,927,000
	$	387,806,000	$	20,000	$	(75,962,000)	$	311,864,000
Less allowance for credit losses	(432,000)		—		—		—
Net securities to be held to maturity	$	387,374,000	$	20,000	$	(75,962,000)	$	311,864,000
Restricted equity securities
Federal Home Loan Bank Stock	$	2,823,000	$	—	$	—	$	2,823,000
Federal Reserve Bank Stock	1,037,000		—		—		1,037,000
	$	3,860,000	$	—	$	—	$	3,860,000

Schedule of Contractual Maturities of Investment Securities

The following table summarizes the contractual maturities of investment securities at September 30, 2024:


	Securities available for sale				Securities to be held to maturity
	Amortized Cost		Fair Value (Estimated)		Amortized Cost		Fair Value (Estimated)
Due in 1 year or less	$	2,995,000	$	2,949,000	$	2,342,000	$	2,371,000
Due in 1 to 5 years	403,000		402,000		20,079,000		19,573,000
Due in 5 to 10 years	28,275,000		25,251,000		103,834,000		98,349,000
Due after 10 years	296,885,000		256,419,000		251,604,000		213,282,000

	$	328,558,000	$	285,021,000	$	377,859,000	$	333,575,000

The following table summarizes the contractual maturities of investment securities at December 31, 2023:


	Securities available for sale				Securities to be held to maturity
	Amortized Cost		Fair Value (Estimated)		Amortized Cost		Fair Value (Estimated)
Due in 1 year or less	$	—	$	—	$	1,674,000	$	1,672,000
Due in 1 to 5 years	3,489,000		3,373,000		16,387,000		15,814,000
Due in 5 to 10 years	28,551,000		25,089,000		99,942,000		93,894,000
Due after 10 years	300,108,000		253,591,000		267,666,000		227,190,000

	$	332,148,000	$	282,053,000	$	385,669,000	$	338,570,000

The following table summarizes the contractual maturities of investment securities at September 30, 2023:


	Securities available for sale				Securities to be held to maturity
	Amortized Cost		Fair Value (Estimated)		Amortized Cost		Fair Value (Estimated)
Due in 1 year or less	$	19,819,000	$	19,819,000	$	2,158,000	$	2,151,000
Due in 1 to 5 years	3,640,000		3,468,000		15,780,000		14,771,000
Due in 5 to 10 years	28,082,000		23,360,000		92,565,000		81,812,000
Due after 10 years	301,599,000		238,325,000		277,303,000		213,130,000

	$	353,140,000	$	284,972,000	$	387,806,000	$	311,864,000

Schedule of Temporary Impairment Losses

The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at September 30, 2024, aggregated by major security type and length of time in a continuous unrealized loss position:


	Less than 12 months				12 months or more				Total
	Fair Value (Estimated)		Unrealized Losses		Fair Value (Estimated)		Unrealized Losses		Fair Value (Estimated)		Unrealized Losses
U.S. Treasury & Agency securities	$	—	$	—	$	20,735,000	$	(5,305,000)	$	20,735,000	$	(5,305,000)
Mortgage-backed securities	4,762,000		(43,000)		199,001,000		(33,000,000)		203,763,000		(33,043,000)
State and political subdivisions	—		—		29,256,000		(5,688,000)		29,256,000		(5,688,000)


	$	4,762,000	$	(43,000)	$	248,992,000	$	(43,993,000)	$	253,754,000	$	(44,036,000)

The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at December 31, 2023 aggregated by major security type and length of time in a continuous unrealized loss position:


	Less than 12 months				12 months or more				Total
	Fair Value (Estimated)		Unrealized Losses		Fair Value (Estimated)		Unrealized Losses		Fair Value (Estimated)		Unrealized Losses
U.S. Treasury & Agency securities	$	—	$	—	$	19,830,000	$	(6,203,000)	$	19,830,000	$	(6,203,000)
Mortgage-backed securities	1,712,000		(14,000)		208,717,000		(38,477,000)		210,429,000		(38,491,000)
State and political subdivisions	2,082,000		(49,000)		27,700,000		(5,653,000)		29,782,000		(5,702,000)
Asset-backed securities	—		—		1,464,000		(9,000)		1,464,000		(9,000)

	$	3,794,000	$	(63,000)	$	257,711,000	$	(50,342,000)	$	261,505,000	$	(50,405,000)

The following table summarizes AFS debt securities in an unrealized loss position for which an ACL has not been recorded at September 30, 2023 aggregated by major security type and length of time in a continuous unrealized loss position:


	Less than 12 months				12 months or more				Total
	Fair Value (Estimated)		Unrealized Losses		Fair Value (Estimated)		Unrealized Losses		Fair Value (Estimated)		Unrealized Losses
U.S. Treasury & Agency securities	$	9,882,000	$	(1,000)	$	18,433,000	$	(7,598,000)	$	28,315,000	$	(7,599,000)
Mortgage-backed securities	12,550,000		(304,000)		200,166,000		(50,626,000)		212,716,000		(50,930,000)
State and political subdivisions	4,771,000		(626,000)		25,643,000		(9,011,000)		30,414,000		(9,637,000)
Asset-backed securities	—		—		1,510,000		(4,000)		1,510,000		(4,000)

	$	27,203,000	$	(931,000)	$	245,752,000	$	(67,239,000)	$	272,955,000	$	(68,170,000)

Schedule of Activity in the ACL for Held-to-maturity Debt Securities

The following table presents the activity in the ACL for HTM debt securities by major security type for the periods ended September 30, 2024 and 2023:


	For the nine months ended September 30, 2024						For the nine months ended September 30, 2023
	State and Political Subdivisions		Corporate Securities		Total		State and Political Subdivisions		Corporate Securities		Total
Allowance for credit losses:
Beginning balance	$	222,000	$	212,000	$	434,000	$	—	$	—	$	—
Impact of adopting ASC 326	—		—		—		229,000		209,000		438,000
Credit loss (reduction)1 expense	(84,000)		(126,000)		(210,000)		(17,000)		11,000		(6,000)
Securities charged-off	—		—		—		—		—		—
Recoveries	—		—		—		—		—		—
Total ending allowance balance	$	138,000	$	86,000	$	224,000	$	212,000	$	220,000	$	432,000

1September 30, 2023 total of (6,000) will not tie to Consolidated Statement of Income Credit loss (reduction) expense - debt securities HTM due to rounding.