
	March 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. Treasury and U.S. government agencies	$	397,100	$	131	$	(13,516)	$	—	$	383,715
Mortgage-backed securities, residential	377,454		59		(16,817)		—		360,696
Collateralized mortgage obligations, residential	196,369		80		(6,659)		—		189,790
Mortgage-backed securities, multifamily	1,809		—		(206)		—		1,603
Collateralized mortgage obligations, multifamily	56,101		31		(1,901)		—		54,231
Asset-backed securities	63,685		9		(738)		—		62,956
Obligations of states and political subdivisions	24,069		1		(590)		(2)		23,478
Corporate bonds	96,232		227		(725)		(1,265)		94,469
Total	$	1,212,819	$	538	$	(41,152)	$	(1,267)	$	1,170,938


	December 31, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. Treasury and U.S. government agencies	$	202,961	$	1,215	$	(789)	$	—	$	203,387
Mortgage-backed securities, residential	238,456		1,250		(1,731)		—		237,975
Collateralized mortgage obligations, residential	191,086		1,693		(1,488)		—		191,291
Mortgage-backed securities, multifamily	1,816		—		(75)		—		1,741
Collateralized mortgage obligations, multifamily	32,254		511		(246)		—		32,519
Asset-backed securities	52,518		153		(87)		—		52,584

Corporate bonds	49,598		959		(15)		(83)		50,459
Total	$	768,689	$	5,781	$	(4,431)	$	(83)	$	769,956


	March 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. government agencies	$	21,795	$	52	$	(248)	$	—	$	21,599
Mortgage-backed securities, residential	367,084		71		(27,444)		—		339,711
Collateralized mortgage obligations, residential	14,433		—		(1,116)		—		13,317
Mortgage-backed securities, multifamily	4,270		—		(204)		—		4,066

Obligations of states and political subdivisions	530,403		24		(51,898)		(49)		478,480
Corporate bonds	3,000		—		(95)		(150)		2,755
Total	$	940,985	$	147	$	(81,005)	$	(199)	$	859,928


	December 31, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. government agencies	$	18,672	$	293	$	—	$	—	$	18,965
Mortgage-backed securities, residential	370,247		718		(5,989)		—		364,976
Collateralized mortgage obligations, residential	13,921		168		—		—		14,089
Mortgage-backed securities, multifamily	2,710		26		(2)		—		2,734

Obligations of states and political subdivisions	416,587		810		(5,800)		(21)		411,576
Corporate bonds	3,000		31		—		(160)		2,871
Total	$	825,137	$	2,046	$	(11,791)	$	(181)	$	815,211

During the third quarter of 2021, the Company transferred $494.2 million of previously designated available for sale securities to a held to maturity designation at estimated fair value. The reclassification for the period ended September 30, 2021 was permitted as the Company has appropriately determined the ability and intent to hold these securities as an investment until maturity or call. The securities transferred had an unrealized net gain of $3.8 million at the time of transfer, which is reflected, net of taxes, in accumulated other comprehensive income on the consolidated balance sheets. Subsequent amortization will be recognized over the life of the securities. The Company recorded net amortization of $135,000 during the first quarter of 2022.

The following table lists contractual maturities of investment securities classified as available for sale and held to maturity as of March 31, 2022. Mortgage-backed and asset-backed securities are not shown by maturity because expected maturities may differ from contractual maturities due to underlying loan prepayments of the issuer. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available for Sale				Held to Maturity
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	22,807	$	22,778	$	63,878	$	63,754
Due after one year through five years	264,511		256,516		35,136		34,352
Due after five years through ten years	155,023		149,933		64,103		59,765
Due after ten years	75,060		72,435		392,081		344,963
	517,401		501,662		555,198		502,834
Mortgage-backed and asset-backed securities	695,418		669,276		385,787		357,094
Total	$	1,212,819	$	1,170,938	$	940,985	$	859,928


March 31, 2022	Less Than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses
Available for Sale
U.S. Treasury and U.S. government agencies	$	329,916	$	12,391	$	18,066	$	1,125	58		$	347,982	$	13,516
Mortgage-backed securities, residential	341,088		15,974		12,992		843		110		354,080		16,817
Collateralized mortgage obligations, residential	158,210		6,557		4,645		102		78		162,855		6,659
Mortgage-backed securities, multifamily	—		—		1,603		206		1		1,603		206
Collateralized mortgage obligations, multifamily	41,205		1,832		797		69		16		42,002		1,901
Asset-backed securities	56,624		738		—		—		14		56,624		738
Obligations of states and political subdivisions	21,427		590		—		—		46		21,427		590
Corporate bonds	58,365		612		2,887		113		29		61,252		725
Total	$	1,006,835	$	38,694	$	40,990	$	2,458	$	352	$	1,047,825	$	41,152
Held to Maturity
U.S. government agencies	$	10,000	$	248	$	—	$	—	3		$	10,000	$	248
Mortgage-backed securities, residential	$	329,605	$	26,834	$	5,021	610		162		$	334,626	$	27,444
Collateralized mortgage obligations, residential	13,317		1,116		—		—		12		13,317		1,116
Mortgage-backed securities, multifamily	4,066		204		—		—		3		4,066		204

Obligations of states and political subdivisions	462,388		51,898		—		—		373		462,388		51,898
Corporate bonds	2,905		95		—		—		1		2,905		95
Total	$	822,281	$	80,395	$	5,021	$	610	554		$	827,302	$	81,005


December 31, 2021	Less Than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses
Available for Sale
U.S. Treasury and U.S. government agencies	$	76,106	$	322	$	14,670	$	467	15	$	90,776	$	789
Mortgage-backed securities, residential	176,990		1,465		14,582		266		45	191,572		1,731
Collateralized mortgage obligations, residential	86,749		1,429		5,000		59		18	91,749		1,488
Mortgage-backed securities, multifamily	—		—		1,741		75		1	1,741		75
Collateralized mortgage obligations, multifamily	9,083		210		1,072		36		4	10,155		246
Asset-backed securities	14,688		87		—		—		3	14,688		87

Corporate bonds	15,325		(5)		980		20		8	16,305		15
Total	$	378,941	$	3,508	$	38,045	$	923	94	$	416,986	$	4,431
Held to Maturity

Mortgage-backed securities, residential	$	340,474	$	5,882	$	2,376	$	107	96	$	342,850	$	5,989


Collateralized mortgage obligations, multifamily	2,051		2		—		—		1	2,051		2
Obligations of states and political subdivisions	307,827		5,800		—		—		239	307,827		5,800

Total	$	650,352	$	11,684	$	2,376	$	107	336	$	652,728	$	11,791

For available for sale securities, the Company assesses whether a loss is from credit or other factors and considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows is less than the amortized cost, a credit loss exists and an allowance is created, limited by the amount that the fair value is less than the amortized cost basis.

For held to maturity securities, management measures expected credit losses on a collective basis by major security type. All of the mortgage-backed securities are issued by U.S. government agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses and, therefore, the expectation of non-payment is zero. A range of historical losses method is utilized in estimating the net amount expected to be collected for mortgage-backed securities, collateralized mortgage obligations and obligations of states and political subdivisions.

The gross unrealized losses reported for residential mortgage-backed securities relate to investment securities issued by U.S. government sponsored entities such as Federal National Mortgage Association and Federal Home Loan Mortgage Corporation and U.S. government agencies such as Government National Mortgage Association. The total gross unrealized losses, shown in the tables above, were primarily attributable to changes in interest rates and levels of market liquidity, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities.

Credit ratings, which are updated monthly, are a key measure for estimating the probability of a bond's default and for monitoring credit quality on an on-going basis. For bonds other than U.S. Treasuries and bonds issued or guaranteed by U.S. government agencies, credit ratings issued by one or more nationally recognized statistical rating organizations are considered in conjunction with an assessment by the Company's management. Investment grade reflects a credit quality of BBB or above.


March 31, 2022	AAA		AA		A		BBB		Not Rated		Total
(in thousands)
U.S. government agencies	$	21,795	$	—	$	—	$	—	$	—	$	21,795
Mortgage-backed securities, residential	367,084		—		—		—		—		367,084
Collateralized mortgage obligations, residential	14,433		—		—		—		—		14,433
Mortgage-backed securities, multifamily	4,270		—		—		—		—		4,270

Obligations of states and political subdivisions	166,385		319,005		1,056		—		43,957		530,403
Corporate bonds	—		—		—		3,000		—		3,000
Total	$	573,967	$	319,005	$	1,056	$	3,000	$	43,957	$	940,985


December 31, 2021	AAA		AA		A		BBB		Not Rated		Total
(in thousands)
U.S. government agencies	$	18,672	$	—	$	—	$	—	$	—	$	18,672
Mortgage-backed securities, residential	370,247		—		—		—		—		370,247
Collateralized mortgage obligations, residential	13,921		—		—		—		—		13,921
Mortgage-backed securities, multifamily	2,710		—		—		—		—		2,710

Obligations of states and political subdivisions	143,777		270,909		1,068		—		833		416,587
Corporate bonds	—		—		—		3,000		—		3,000
Total	$	549,327	$	270,909	$	1,068	$	3,000	$	833	$	825,137

The Company has an equity securities portfolio which consists of investments in Community Reinvestment funds. The fair value of the equity portfolio was $16.9 million and $17.4 million at March 31, 2022 and December 31, 2021, respectively. For the three months ended March 31, 2022, the Company recorded no sales of equity securities or Community Reinvestment funds. The Company recorded fair value losses on equity securities of $485,000 and $144,000 for the first quarter of 2022 and 2021, respectively. Fair value gain or loss on equity securities are recorded in noninterest income.

As of March 31, 2022, the Company's investments in Community Reinvestment funds include $6.8 million that are primarily invested in community development loans that are guaranteed by the Small Business Administration (“SBA”). Because the funds are primarily guaranteed by the federal government, there are minimal changes in fair value between accounting periods. These funds can be redeemed with 60 days' notice at the net asset value less unpaid management fees with the approval of the fund manager. As of March 31, 2022, the net amortized cost equaled the fair value of the investment. There are no unfunded commitments related to these investments.

The Community Reinvestment funds also include $10.1 million of investment in government guaranteed loans, mortgage-backed securities, small business loans and other instruments supporting affordable housing and economic development as of March 31, 2022. The Company may redeem these funds at the net asset value calculated at the end of the current business day less any unpaid management fees. There are no restrictions on redemptions for the holdings in these investments other than the notice required by the fund manager. There are no unfunded commitments related to these investments.