
	March 31, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. Treasury and U.S. government agencies	$	372,114	$	95	$	(23,790)	$	—	$	348,419
Mortgage-backed securities, residential	344,792		6		(36,615)		—		308,183
Collateralized mortgage obligations, residential	165,787		—		(14,069)		—		151,718
Mortgage-backed securities, multifamily	994		—		(206)		—		788
Collateralized mortgage obligations, multifamily	50,692		—		(4,270)		—		46,422
Asset-backed securities	50,826		—		(1,577)		—		49,249
Obligations of states and political subdivisions	21,993		—		(701)		(2)		21,290
Corporate bonds	115,703		—		(12,487)		(158)		103,058
Total	$	1,122,901	$	101	$	(93,715)	$	(160)	$	1,029,127


	December 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	$	383,958	$	100	$	(28,419)	$	—	$	355,639
Mortgage-backed securities, residential	351,355		6		(40,748)		—		310,613
Collateralized mortgage obligations, residential	170,502		—		(16,444)		—		154,058
Mortgage-backed securities, multifamily	1,000		—		(215)		—		785
Collateralized mortgage obligations, multifamily	51,108		—		(4,775)		—		46,333
Asset-backed securities	54,105		—		(1,710)		—		52,395
Obligations of states and political subdivisions	22,112		—		(989)		(1)		21,122
Corporate bonds	124,394		—		(10,718)		(309)		113,367
Total	$	1,158,534	$	106	$	(104,018)	$	(310)	$	1,054,312


	March 31, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. government agencies	$	10,968	$	10	$	(622)	$	—	$	10,356
Mortgage-backed securities, residential	354,514		123		(52,843)		—		301,794
Collateralized mortgage obligations, residential	12,813		—		(2,325)		—		10,488
Mortgage-backed securities, multifamily	5,071		—		(665)		—		4,406

Obligations of states and political subdivisions	516,289		4		(83,042)		(45)		433,206
Corporate bonds	3,000		—		(418)		(112)		2,470
Total	$	902,655	$	137	$	(139,915)	$	(157)	$	762,720


	December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. government agencies	$	11,099	$	11	$	(725)	$	—	$	10,385
Mortgage-backed securities, residential	360,683		57		(58,128)		—		302,612
Collateralized mortgage obligations, residential	13,026		—		(2,570)		—		10,456
Mortgage-backed securities, multifamily	5,094		—		(747)		—		4,347

Obligations of states and political subdivisions	530,513		2		(100,400)		(7)		430,108
Corporate bonds	3,000		—		(353)		(100)		2,547
Total	$	923,415	$	70	$	(162,923)	$	(107)	$	760,455

The following table lists contractual maturities of investment securities classified as available for sale and held to maturity as of March 31, 2023. 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	$	42,276	$	41,645	$	54,927	$	54,712
Due after one year through five years	250,381		235,641		33,746		32,297
Due after five years through ten years	155,291		139,130		77,738		68,421
Due after ten years	61,862		56,351		363,846		290,602
	509,810		472,767		530,257		446,032
Mortgage-backed and asset-backed securities	613,091		556,360		372,398		316,688
Total	$	1,122,901	$	1,029,127	$	902,655	$	762,720


March 31, 2023	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	$	13,915	$	30	$	319,832	$	23,760	62	$	333,747	$	23,790
Mortgage-backed securities, residential	5,635		315		301,414		36,300		134	307,049		36,615
Collateralized mortgage obligations, residential	16,300		503		135,417		13,566		104	151,717		14,069
Mortgage-backed securities, multifamily	—		—		788		206		1	788		206
Collateralized mortgage obligations, multifamily	10,716		141		35,706		4,129		20	46,422		4,270
Asset-backed securities	3,316		13		45,933		1,564		17	49,249		1,577
Obligations of states and political subdivisions	1,214		11		18,461		690		42	19,675		701
Corporate bonds	32,800		3,411		70,259		9,076		47	103,059		12,487
Total	$	83,896	$	4,424	$	927,810	$	89,291	427	$	1,011,706	$	93,715
Held to Maturity
U.S. government agencies	$	—	$	—	$	9,115	$	622	3	$	9,115	$	622
Mortgage-backed securities, residential	20,853		849		274,937		51,994		183	295,790		52,843
Collateralized mortgage obligations, residential	—		—		10,488		2,325		11	10,488		2,325
Mortgage-backed securities, multifamily	—		—		4,406		665		4	4,406		665

Obligations of states and political subdivisions	49,185		177		379,143		82,865		366	428,328		83,042
Corporate bonds	—		—		2,582		418		1	2,582		418
Total	$	70,038	$	1,026	$	680,671	$	138,889	568	$	750,709	$	139,915


December 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	$	114,514	$	5,856	$	229,094	$	22,563	67	$	343,608	$	28,419
Mortgage-backed securities, residential	127,363		12,399		182,079		28,349		135	309,442		40,748
Collateralized mortgage obligations, residential	66,316		3,958		87,742		12,486		104	154,058		16,444
Mortgage-backed securities, multifamily	—		—		786		215		1	786		215
Collateralized mortgage obligations, multifamily	37,407		2,861		8,926		1,914		20	46,333		4,775
Asset-backed securities	34,871		977		17,524		733		17	52,395		1,710
Obligations of states and political subdivisions	3,771		276		16,746		713		46	20,517		989
Corporate bonds	88,489		7,437		22,880		3,281		49	111,369		10,718
Total	$	472,731	$	33,764	$	565,777	$	70,254	439	$	1,038,508	$	104,018
Held to Maturity
U.S. government agencies	$	6,671	$	336	$	2,412	$	389	3	$	9,083	$	725
Mortgage-backed securities, residential	$	32,549	$	2,275	$	264,035	$	55,853	182	$	296,584	$	58,128
Collateralized mortgage obligations, residential	4,668		516		5,787		2,054		12	10,455		2,570

Collateralized mortgage obligations, multifamily	2,671		376		1,676		371		4	4,347		747
Obligations of states and political subdivisions	82,459		3,689		341,076		96,711		379	423,535		100,400
Debt securities	—		—		2,647		353		1	2,647		353
Total	$	129,018	$	7,192	$	617,633	$	155,731	581	$	746,651	$	162,923

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, adverse changes to the rating of the security by a rating agency, a security's market yield as compared to similar securities 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. In the first quarter of 2023, the Company recorded a provision and a subsequent charge-off of $6.6 million in subordinated debt securities of Signature Bank which failed in March 2023.

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, 2023	AAA		AA		A		BBB		Not Rated		Total
(in thousands)
U.S. government agencies	$	10,968	$	—	$	—	$	—	$	—	$	10,968
Mortgage-backed securities, residential	354,514		—		—		—		—		354,514
Collateralized mortgage obligations, residential	12,813		—		—		—		—		12,813
Mortgage-backed securities, multifamily	5,071		—		—		—		—		5,071

Obligations of states and political subdivisions	154,133		315,110		1,008		—		46,038		516,289
Corporate bonds	—		—		—		3,000		—		3,000
Total	$	537,499	$	315,110	$	1,008	$	3,000	$	46,038	$	902,655


December 31, 2022	AAA		AA		A		BBB		Not Rated		Total
(in thousands)
U.S. government agencies	$	11,099	$	—	$	—	$	—	$	—	$	11,099
Mortgage-backed securities, residential	360,683		—		—		—		—		360,683
Collateralized mortgage obligations, residential	13,026		—		—		—		—		13,026
Mortgage-backed securities, multifamily	5,094		—		—		—		—		5,094

Obligations of states and political subdivisions	156,661		317,566		1,020		—		55,266		530,513
Corporate bonds	—		—		—		3,000		—		3,000
Total	$	546,563	$	317,566	$	1,020	$	3,000	$	55,266	$	923,415

The Company has an equity securities portfolio, which primarily consists of investments in Community Reinvestment funds. The fair value of the equity portfolio was $17.5 million and $17.3 million at March 31, 2023 and December 31, 2022, respectively. For the three months ended March 31, 2023 and 2022, the Company recorded no sales of equity securities or Community Reinvestment funds. The Company recorded fair value gains on equity securities of $148,000 for the first quarter of 2023 and fair value losses of $485,000 for the first quarter of 2022. Fair value gain or loss on equity securities are recorded in noninterest income.

As of March 31, 2023, the Company's investments in Community Reinvestment funds include $7.8 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, 2023, the net amortized cost equaled the fair value of the investment. There are no unfunded commitments related to these investments.