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Securities
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Securities

NOTE 2 – SECURITIES

Securities consisted of the following on December 31:

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

23,194

 

 

$

—

 

 

$

(969

)

 

$

22,225

 

U.S. Government agencies

 

 

13,999

 

 

 

—

 

 

 

(1,369

)

 

 

12,630

 

Mortgage-backed securities of government agencies

 

 

77,677

 

 

 

72

 

 

 

(8,859

)

 

 

68,890

 

Asset-backed securities of government agencies

 

 

633

 

 

 

—

 

 

 

(15

)

 

 

618

 

State and political subdivisions

 

 

20,462

 

 

 

—

 

 

 

(985

)

 

 

19,477

 

Corporate bonds

 

 

28,740

 

 

 

—

 

 

 

(2,511

)

 

 

26,229

 

Total available-for-sale

 

 

164,705

 

 

 

72

 

 

 

(14,708

)

 

 

150,069

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

12,753

 

 

 

—

 

 

 

(1,136

)

 

 

11,617

 

Mortgage-backed securities of government agencies

 

 

232,068

 

 

 

—

 

 

 

(34,051

)

 

 

198,017

 

State and political subdivisions

 

 

2,580

 

 

 

1

 

 

 

(261

)

 

 

2,320

 

Total held-to-maturity

 

 

247,401

 

 

 

1

 

 

 

(35,448

)

 

 

211,954

 

Equity securities

 

 

185

 

 

 

59

 

 

 

—

 

 

 

244

 

Restricted stock

 

 

3,430

 

 

 

—

 

 

 

—

 

 

 

3,430

 

Total securities

 

$

415,721

 

 

$

132

 

 

$

(50,156

)

 

$

365,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

4,982

 

 

$

—

 

 

$

(10

)

 

$

4,972

 

U.S. Government agencies

 

 

13,999

 

 

 

—

 

 

 

(327

)

 

 

13,672

 

Mortgage-backed securities of government agencies

 

 

78,224

 

 

 

393

 

 

 

(843

)

 

 

77,774

 

Asset-backed securities of government agencies

 

 

760

 

 

 

—

 

 

 

(7

)

 

 

753

 

State and political subdivisions

 

 

23,189

 

 

 

343

 

 

 

(201

)

 

 

23,331

 

Corporate bonds

 

 

11,238

 

 

 

57

 

 

 

(89

)

 

 

11,206

 

Total available-for-sale

 

 

132,392

 

 

 

793

 

 

 

(1,477

)

 

 

131,708

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

12,700

 

 

 

32

 

 

 

(39

)

 

 

12,693

 

Mortgage-backed securities of government agencies

 

 

159,916

 

 

 

504

 

 

 

(766

)

 

 

159,654

 

State and political subdivisions

 

 

2,192

 

 

 

3

 

 

 

(14

)

 

 

2,181

 

Total held-to-maturity

 

 

174,808

 

 

 

539

 

 

 

(819

)

 

 

174,528

 

Equity securities

 

 

53

 

 

 

62

 

 

 

—

 

 

 

115

 

Restricted stock

 

 

4,614

 

 

 

—

 

 

 

—

 

 

 

4,614

 

Total securities

 

$

311,867

 

 

$

1,394

 

 

$

(2,296

)

 

$

310,965

 

 

The amortized cost and fair value of debt securities on December 31, 2022, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

(Dollars in thousands)

 

Amortized
Cost

 

 

Fair
Value

 

Available-for-sale

 

 

 

 

 

 

Due in one year or less

 

$

5,966

 

 

$

5,790

 

Due after one through five years

 

 

64,574

 

 

 

60,342

 

Due after five through ten years

 

 

24,930

 

 

 

22,979

 

Due after ten years

 

 

69,235

 

 

 

60,958

 

Total debt securities available-for-sale

 

$

164,705

 

 

$

150,069

 

 

 

 

 

 

 

 

Held-to-maturity

 

 

 

 

 

 

Due in one year or less

 

$

2,497

 

 

$

2,418

 

Due after one through five years

 

 

7,412

 

 

 

6,794

 

Due after five through ten years

 

 

4,761

 

 

 

4,155

 

Due after ten years

 

 

232,731

 

 

 

198,587

 

Total debt securities held-to-maturity

 

$

247,401

 

 

$

211,954

 

Securities with a carrying value of approximately $110.1 million and $103.0 million were pledged on December 31, 2022, and 2021 respectively, to secure public deposits, as well as other deposits and borrowings as required or permitted by law.

 

Restricted stock primarily consists of investments in FHLB and Federal Reserve Bank stock. The Bank’s investment in FHLB stock amounted to $2.9 million and $4.1 million on December 31, 2022, and 2021, respectively. Federal Reserve Bank stock was $471 thousand on December 31, 2022, and 2021.

There were no proceeds from sales of debt securities for the years ended December 31, 2022 and 2021. Gains and (losses) recognized on equity securities on the consolidated statements of income of $(3) thousand and $28 thousand, respectively for the years ended December 31, 2022 and 2021 were unrealized.

 

The following table presents gross unrealized losses, fair value of securities, aggregated by investment category, and length of time individual securities have been in a continuous unrealized loss position, on December 31:

 

 

 

Less Than 12 Months

 

 

12 Months or More

 

 

Total

 

(Dollars in thousands)

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

(798

)

 

$

17,405

 

 

$

(171

)

 

$

4,820

 

 

$

(969

)

 

$

22,225

 

U.S. Government agencies

 

 

—

 

 

 

—

 

 

 

(1,369

)

 

 

12,630

 

 

 

(1,369

)

 

 

12,630

 

Mortgage-backed securities of government
   agencies

 

 

(1,046

)

 

 

16,188

 

 

 

(7,813

)

 

 

44,519

 

 

 

(8,859

)

 

 

60,707

 

Asset-backed securities of government
   agencies

 

 

—

 

 

 

—

 

 

 

(15

)

 

 

618

 

 

 

(15

)

 

 

618

 

State and political subdivisions

 

 

(189

)

 

 

9,079

 

 

 

(796

)

 

 

9,848

 

 

 

(985

)

 

 

18,927

 

Corporate bonds

 

 

(1,165

)

 

 

13,502

 

 

 

(1,346

)

 

 

12,727

 

 

 

(2,511

)

 

 

26,229

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

—

 

 

 

—

 

 

 

(1,136

)

 

 

11,617

 

 

 

(1,136

)

 

 

11,617

 

Mortgage-backed securities of government
   agencies

 

 

(9,733

)

 

 

79,325

 

 

 

(24,318

)

 

 

118,692

 

 

 

(34,051

)

 

 

198,017

 

State and political subdivisions

 

 

—

 

 

 

—

 

 

 

(261

)

 

 

1,903

 

 

 

(261

)

 

 

1,903

 

Total temporarily impaired securities

 

$

(12,931

)

 

$

135,499

 

 

$

(37,225

)

 

$

217,374

 

 

$

(50,156

)

 

$

352,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

(10

)

 

$

4,972

 

 

$

—

 

 

$

—

 

 

$

(10

)

 

$

4,972

 

U.S. Government agencies

 

 

(69

)

 

 

2,930

 

 

 

(258

)

 

 

10,742

 

 

 

(327

)

 

 

13,672

 

Mortgage-backed securities of government
   agencies

 

 

(574

)

 

 

43,595

 

 

 

(269

)

 

 

12,653

 

 

 

(843

)

 

 

56,248

 

Asset-backed securities of government
   agencies

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

753

 

 

 

(7

)

 

 

753

 

State and political subdivisions

 

 

(201

)

 

 

9,646

 

 

 

—

 

 

 

—

 

 

 

(201

)

 

 

9,646

 

Corporate bonds

 

 

(44

)

 

 

5,710

 

 

 

(45

)

 

 

955

 

 

 

(89

)

 

 

6,665

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

(39

)

 

 

9,837

 

 

 

—

 

 

 

—

 

 

 

(39

)

 

 

9,837

 

Mortgage-backed securities of government
   agencies

 

 

(766

)

 

 

98,906

 

 

 

—

 

 

 

—

 

 

 

(766

)

 

 

98,906

 

State and political subdivisions

 

 

(14

)

 

 

1,749

 

 

 

—

 

 

 

—

 

 

 

(14

)

 

 

1,749

 

Total temporarily impaired securities

 

$

(1,717

)

 

$

177,345

 

 

$

(579

)

 

$

25,103

 

 

$

(2,296

)

 

$

202,448

 

There were 200 securities in an unrealized loss position on December 31, 2022, 90 of which were in a continuous loss position for twelve (12) or more months. At least quarterly, the Company conducts a comprehensive security-level impairment assessment. The assessments are based on the nature of the securities, the extent and duration of the securities, the extent and duration of the loss, and management’s intent to sell or if it is more likely than not that management will be required to sell a security before recovery of its amortized cost basis, which may be maturity. Management believes the Company will fully recover the cost of these securities and it does not intend to sell these securities and likely will not be required to sell them before the anticipated recovery of the remaining amortized cost basis, which may be maturity. As a result, management concluded that these securities were not other-than-temporarily impaired on December 31, 2022.