
	September 30, 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	$	347,515	$	114	$	(26,741)	$	—	$	320,888
Mortgage-backed securities, residential	328,434		—		(49,151)		—		279,283
Collateralized mortgage obligations, residential	155,532		—		(17,499)		—		138,033
Mortgage-backed securities, multifamily	861		—		(221)		—		640
Collateralized mortgage obligations, multifamily	49,588		—		(5,452)		—		44,136
Asset-backed securities	46,681		—		(857)		—		45,824
Obligations of states and political subdivisions	20,387		—		(1,385)		—		19,002
Corporate bonds	112,598		—		(17,894)		—		94,704
Total	$	1,061,596	$	114	$	(119,200)	$	—	$	942,510


	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


	September 30, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. government agencies	$	10,598	$	9	$	(690)	$	—	$	9,917
Mortgage-backed securities, residential	339,427		—		(71,117)		—		268,310
Collateralized mortgage obligations, residential	12,474		—		(3,062)		—		9,412
Mortgage-backed securities, multifamily	5,024		—		(883)		—		4,141

Obligations of states and political subdivisions	477,322		15		(114,639)		(25)		362,673
Corporate bonds	3,000		—		(607)		(121)		2,272
Total	$	847,845	$	24	$	(190,998)	$	(146)	$	656,725


	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 September 30, 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	$	57,725	$	56,140	$	19,963	$	19,882
Due after one year through five years	228,358		211,652		36,981		34,401
Due after five years through ten years	136,143		115,478		96,873		78,179
Due after ten years	58,274		51,324		337,103		242,400
	480,500		434,594		490,920		374,862
Mortgage-backed and asset-backed securities	581,096		507,916		356,925		281,863
Total	$	1,061,596	$	942,510	$	847,845	$	656,725


September 30, 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	$	11,753	$	20	$	296,137	$	26,721	59	$	307,890	$	26,741
Mortgage-backed securities, residential	860		6		278,423		49,145		132	279,283		49,151
Collateralized mortgage obligations, residential	—		—		138,033		17,499		100	138,033		17,499
Mortgage-backed securities, multifamily	—		—		640		221		1	640		221
Collateralized mortgage obligations, multifamily	—		—		44,136		5,452		20	44,136		5,452
Asset-backed securities	2,899		27		42,925		830		17	45,824		857
Obligations of states and political subdivisions	2,075		40		16,927		1,345		46	19,002		1,385
Corporate bonds	—		—		94,703		17,894		46	94,703		17,894
Total	$	17,587	$	93	$	911,924	$	119,107	421	$	929,511	$	119,200
Held to Maturity
U.S. government agencies	$	—	$	—	$	8,833	$	690	3	$	8,833	$	690
Mortgage-backed securities, residential	11,286		493		257,024		70,624		191	268,310		71,117
Collateralized mortgage obligations, residential	—		—		9,412		3,062		11	9,412		3,062
Mortgage-backed securities, multifamily	—		—		4,141		883		4	4,141		883

Obligations of states and political subdivisions	7,579		92		344,587		114,547		350	352,166		114,639
Corporate bonds	—		—		2,393		607		1	2,393		607
Total	$	18,865	$	585	$	626,390	$	190,413	560	$	645,255	$	190,998


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

Mortgage-backed securities, 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
Corporate bonds	—		—		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.

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.


September 30, 2023	AAA		AA		A		BB		Not Rated		Total
(in thousands)
U.S. government agencies	$	10,598	$	—	$	—	$	—	$	—	$	10,598
Mortgage-backed securities, residential	339,427		—		—		—		—		339,427
Collateralized mortgage obligations, residential	12,474		—		—		—		—		12,474
Mortgage-backed securities, multifamily	5,024		—		—		—		—		5,024

Obligations of states and political subdivisions	152,795		311,224		—		—		13,303		477,322
Corporate bonds	—		—		—		3,000		—		3,000
Total	$	520,318	$	311,224	$	—	$	3,000	$	13,303	$	847,845


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 $17.2 million and $17.3 million at September 30, 2023 and December 31, 2022, respectively. For the three and nine months ended September 30, 2023 and 2022, the Company recorded no sales of equity securities or Community Reinvestment funds. The Company recorded fair value losses on equity securities of $294,000 for the third quarter of 2023 and fair value losses of $464,000 for the third quarter of 2022. The Company recorded fair value losses on equity securities of $281,000 for the nine months ended September 30, 2023 and losses of $1,313,000 for the nine months ended September 30, 2022. Fair value gain or loss on equity securities are recorded in noninterest income.

As of September 30, 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 September 30, 2023, the net amortized cost equaled the fair value of the investment. There are no unfunded commitments related to these investments.