Securities

6 Months Ended

Jun. 30, 2022

Debt Securities, Available-for-Sale and Held-to-Maturity, after Allowance for Credit Loss [Abstract]

DEBT SECURITIES

Debt Securities Available for Sale

The amortized cost, unrealized gains, unrealized losses and estimated fair values of debt securities available for sale at June 30, 2022 and December 31, 2021 are summarized as follows:


	June 30, 2022
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Debt Securities Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	26,657	$	107	$	333	$	26,431
Residential mortgage-backed securities:
Government-sponsored agencies	56,268		248		2,736		53,780
Nongovernment-sponsored entities	41,827		—		1,436		40,391
State and political subdivisions
General obligations	76,016		3		14,189		61,830





Sales tax revenues	6,900		—		1,473		5,427

Various tax revenues	13,015		—		1,943		11,072


Other revenues	21,635		—		3,316		18,319
Corporate debt securities	32,863		—		1,313		31,550
Asset-backed securities	25,604		—		625		24,979
Total taxable debt securities	300,785		358		27,364		273,779
Tax-exempt debt securities
State and political subdivisions
General obligations	64,642		168		5,044		59,766
Water and sewer revenues	14,034		1		940		13,095
Lease revenues	7,496		61		380		7,177







Various tax revenues	7,919		—		1,139		6,780
Other revenues	8,589		—		1,137		7,452
Total tax-exempt debt securities	102,680		230		8,640		94,270

Total debt securities available for sale	$	403,465	$	588	$	36,004	$	368,049


	December 31, 2021
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Debt Securities Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	36,820	$	169	$	360	$	36,629
Residential mortgage-backed securities:
Government-sponsored agencies	61,646		1,153		588		62,211
Nongovernment-sponsored entities	26,839		26		279		26,586
State and political subdivisions
General obligations	78,627		377		1,323		77,681
Water and sewer revenues	9,839		294		—		10,133
Lease revenues	6,401		215		26		6,590

Income tax revenues	6,487		250		3		6,734
Sales tax revenues	6,909		19		99		6,829
Various tax revenues	13,031		218		203		13,046
Utility revenues	7,153		137		130		7,160
Other revenues	9,291		331		9		9,613
Corporate debt securities	30,524		78		324		30,278
Asset-backed securities	24,873		97		87		24,883
Total taxable debt securities	318,440		3,364		3,431		318,373
Tax-exempt debt securities
State and political subdivisions
General obligations	47,583		1,526		270		48,839
Water and sewer revenues	10,618		375		15		10,978
Lease revenues	7,974		553		31		8,496





Other revenues	14,028		405		16		14,417
Total tax-exempt debt securities	80,203		2,859		332		82,730

Total debt securities available for sale	$	398,643	$	6,223	$	3,763	$	401,103

Accrued interest receivable on debt securities available for sale totaled $2.3 million at June 30, 2022 and December 31, 2021, respectively and is included in accrued interest and fees receivable in the accompanying consolidated balance sheets.

The below information is relative to the five states where issuers with the highest volume of state and political subdivision securities held in our available for sale portfolio are located. We own no such securities of any single issuer which we deem to be a concentration.


	June 30, 2022
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value

California	$	45,491	$	—	$	8,002	$	37,489
Texas	23,573		37		3,635		19,975
Michigan	19,584		—		1,821		17,763

Washington	14,399		67		1,300		13,166
Oregon	14,746		—		3,070		11,676

Management performs pre-purchase and ongoing analysis to confirm that all investment securities meet applicable credit quality standards.

The maturities, amortized cost and estimated fair values of debt securities available for sale at June 30, 2022, are summarized as follows:


Dollars in thousands	Amortized Cost		Estimated Fair Value
Due in one year or less	$	36,971	$	36,035
Due from one to five years	78,624		76,279
Due from five to ten years	57,340		54,286
Due after ten years	230,530		201,449

Total	$	403,465	$	368,049

The proceeds from sales, calls and maturities of debt securities available for sale, including principal payments received on mortgage-backed obligations, and the related gross gains and losses realized, for the six months ended June 30, 2022 and 2021 are as follows:


	Proceeds from						Gross realized
Dollars in thousands	Sales		Calls and Maturities		Principal Payments		Gains		Losses
For the Six Months Ended June 30,
2022	$	52,922	$	1,545	$	18,247	$	209	$	651

2021	$	8,241	$	3,055	$	14,812	$	628	$	26

Provided below is a summary of debt securities available for sale which were in an unrealized loss position at June 30, 2022 and December 31, 2021.


	June 30, 2022
		Less than 12 months				12 months or more				Total
Dollars in thousands	# of securities in loss position	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Taxable debt securities
U.S. Government agencies and corporations	29	$	5,927	$	57	$	14,390	$	276	$	20,317	$	333
Residential mortgage-backed securities:
Government-sponsored agencies	43	32,842		2,506		6,961		230		39,803		2,736
Nongovernment-sponsored entities	19	28,540		1,115		4,430		321		32,970		1,436
State and political subdivisions:
General obligations	53	59,419		13,831		1,416		358		60,835		14,189





Sales tax revenues	4	5,427		1,473		—		—		5,427		1,473


Various tax revenues	10	9,667		1,528		1,405		415		11,072		1,943
Other revenues	19	18,319		3,316		—		—		18,319		3,316
Corporate debt securities	21	12,487		610		9,640		703		22,127		1,313
Asset-backed securities	16	22,462		373		2,516		252		24,978		625
Tax-exempt debt securities
State and political subdivisions:
General obligations	28	40,134		4,183		6,411		861		46,545		5,044
Water and sewer revenues	10	12,419		940		—		—		12,419		940
Lease revenues	1	2,026		380		—		—		2,026		380






Various tax revenues	4	6,647		1,116		133		23		6,780		1,139
Other revenues	6	7,307		1,137		—		—		7,307		1,137
Total	263	$	263,623	$	32,565	$	47,302	$	3,439	$	310,925	$	36,004


	December 31, 2021
		Less than 12 months				12 months or more				Total
Dollars in thousands	# of securities in loss position	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Taxable debt securities
U.S. Government agencies and corporations	41	$	6,630	$	23	$	21,061	$	337	$	27,691	$	360
Residential mortgage-backed securities:
Government-sponsored agencies	19	19,828		376		6,886		212		26,714		588
Nongovernment-sponsored entities	6	4,345		61		7,591		218		11,936		279
State and political subdivisions:
General obligations	41	62,543		1,286		1,055		37		63,598		1,323

Lease revenues	2	1,564		14		494		12		2,058		26

Income tax revenues	1	721		3		—		—		721		3
Sales tax revenues	2	6,052		99		—		—		6,052		99
Various tax revenues	5	8,389		203		—		—		8,389		203
Utility revenues	3	5,175		130		—		—		5,175		130
Other revenues	1	744		9		—		—		744		9
Corporate debt securities	10	10,534		314		990		10		11,524		324
Asset-backed securities	8	10,522		86		751		1		11,273		87
Tax-exempt debt securities
State and political subdivisions:
General obligations	13	25,555		261		853		9		26,408		270
Water and sewer revenues	1	904		15		—		—		904		15
Lease revenues	1	2,396		31		—		—		2,396		31




Other revenues	3	3,558		15		156		1		3,714		16
Total	157	$	169,460	$	2,926	$	39,837	$	837	$	209,297	$	3,763

We do not intend to sell the above securities, and it is more likely than not that we will not be required to sell these securities before recovery of their amortized cost bases. We believe that this decline in value is primarily attributable to changes in market interest rates, and in some cases limited market liquidity and is not due to credit quality as none of these securities are in default and all carry above investment grade ratings. Accordingly, no allowance for credit losses has been recognized relative to these securities.

Debt Securities Held to Maturity

The amortized cost, unrealized gains, unrealized losses and estimated fair values of debt securities held to maturity at June 30, 2022 and December 31, 2021 are summarized as follows:


	June 30, 2022
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Debt Securities Held to Maturity
















Tax-exempt debt securities
State and political subdivisions:
General obligations	$	71,107	$	—	$	6,009	$	65,098
Water and sewer revenues	8,100		—		555		7,545
Lease revenues	4,275		—		507		3,768


Sales tax revenues	4,549		—		548		4,001




Various tax revenues	5,553		—		803		4,750
Other revenues	3,532		—		252		3,280


Total debt securities held to maturity	$	97,116	$	—	$	8,674	$	88,442


	December 31, 2021
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Debt Securities Held to Maturity
















Tax-exempt debt securities
State and political subdivisions:
General obligations	$	71,807	$	2,583	$	—	$	74,390
Water and sewer revenues	8,192		210		—		8,402
Lease revenues	4,316		74		—		4,390


Sales tax revenues	4,582		106		—		4,688




Other revenues	9,163		214		5		9,372


Total debt securities held to maturity	$	98,060	$	3,187	$	5	$	101,242

Accrued interest receivable on debt securities held to maturity totaled $1.1 million at June 30, 2022 and December 31, 2021, respectively and is included in accrued interest and fees receivable in the accompanying consolidated balance sheets.

The below information is relative to the five states where issuers with the highest volume of state and political subdivision securities held in our held to maturity portfolio are located. We own no such securities of any single issuer which we deem to be a concentration.


	June 30, 2022
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Texas	$	15,251	$	—	$	1,283	$	13,968
California	9,770		—		669		9,101
Pennsylvania	8,557		—		692		7,865
Florida	7,530		—		797		6,733
Michigan	6,969		—		684		6,285

The following table displays the amortized cost of held to maturity debt securities by credit rating at June 30, 2022 and December 31, 2021.


	June 30, 2022
Dollars in thousands	AAA		AA		A		BBB		Below Investment Grade
Tax-exempt state and political subdivisions	$	12,965	$	76,714	$	7,437	$	—	$	—

	December 31, 2021
Dollars in thousands	AAA		AA		A		BBB		Below Investment Grade
Tax-exempt state and political subdivisions	$	15,450	$	75,119	$	7,491	$	—	$	—

We owned no past due or nonaccrual held to maturity debt securities at June 30, 2022 or December 31, 2021.

The maturities, amortized cost and estimated fair values of held to maturity debt securities at June 30, 2022, are summarized as follows:


Dollars in thousands	Amortized Cost		Estimated Fair Value
Due in one year or less	$	—	$	—
Due from one to five years	—		—
Due from five to ten years	2,843		2,609
Due after ten years	94,273		85,833

Total	$	97,116	$	88,442

There were no proceeds from calls and maturities of debt securities held to maturity for the six months ended June 30, 2022 or for the year ended December 31, 2021.

At June 30, 2022, no allowance for credit losses on debt securities held to maturity has been recognized.