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Investment Securities
 3 Months Ended
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2022 and December 31, 2021 were as follows:
Gross Unrealized
(in thousands)Total Amortized CostGainsLossesFair Value
March 31, 2022
U.S. Treasury$3,154 $3 $(12)$3,145 
U.S. government and federal agency obligations1,015—(40)975
U.S. government-sponsored enterprises26,498—(1,233)25,265
Obligations of states and political subdivisions134,88210(14,458)120,434
Mortgage-backed securities132,22281(8,455)123,848
Other debt securities (a)11,825222(226)11,821
Bank issued trust preferred securities (a)1,486—(220)1,266
Total available-for-sale securities$311,082 $316 $(24,644)$286,754 
December 31, 2021
U.S. Treasury$3,909 $11 $(3)$3,917 
U.S. government and federal agency obligations1,3145—1,319
U.S. government-sponsored enterprises26,49870(196)26,372
Obligations of states and political subdivisions128,0931,605(474)129,224
Mortgage-backed securities137,286791(1,611)136,466
Other debt securities (a)11,825482(23)12,284
Bank issued trust preferred securities (a)1,486—(198)1,288
Total available-for-sale securities$310,411 $2,964 $(2,505)$310,870 
(a) Certain hybrid instruments possessing characteristics typically associated with debt obligations.
The Company’s investment securities are classified as available for sale. Agency bonds and notes, SBA guaranteed loan certificates, residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), and the Federal Home Loan Bank (FHLB), which are U.S. government-sponsored enterprises.
Debt securities with carrying values aggregating approximately $189.5 million and $275.4 million at March 31, 2022 and December 31, 2021, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law.
The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2022, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.
(in thousands)Amortized CostFair Value
Due in one year or less$5,521 $5,517 
Due after one year through five years23,27122,653
Due after five years through ten years29,25428,264
Due after ten years120,814106,472
Total178,860162,906
Mortgage-backed securities132,222123,848
Total available-for-sale securities$311,082 $286,754 
Other Investment Securities
Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in FHLB stock, and Midwest Independent Bank (MIB) bankers bank stock, that do not have readily determinable fair values, are required for membership in those organizations.
(in thousands)March 31, 2022December 31, 2021
Other securities:
FHLB stock$5,283$5,197
MIB stock151151
Equity securities with readily determinable fair values5660
Total other investment securities$5,490$5,408
Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2022 and December 31, 2021 were as follows:
Less than 12 months12 months or more
(in thousands)Fair ValueUnrealized Losses Fair ValueUnrealized LossesTotal Fair ValueTotal Unrealized Losses
At March 31, 2022
U.S. Treasury$2,145 $(9)$248 $(3)$2,393 $(12)
U.S. government and federal agency obligations975 (40)— — 975 (40)
U.S. government-sponsored enterprises20,736 (763)4,530 (470)25,266 (1,233)
Obligations of states and political subdivisions110,254 (13,072)5,612 (1,386)115,866 (14,458)
Mortgage-backed securities87,136 (5,018)30,475 (3,437)117,611 (8,455)
Other debt securities4,598 (226)— — 4,598 (226)
Bank issued trust preferred securities— — 1,266 (220)1,266 (220)
Total$225,844 $(19,128)$42,131 $(5,516)$267,975 $(24,644)
(in thousands)
At December 31, 2021
U.S. Treasury$1,758 $(3)$— $— $1,758 $(3)
U.S. government-sponsored enterprises18,304 (196)— — 18,304 (196)
Obligations of states and political subdivisions39,221 (474)— — 39,221 (474)
Mortgage-backed securities89,520 (1,579)1,864 (32)91,384 (1,611)
Other debt securities3,802 (23)— — 3,802 (23)
Bank issued trust preferred securities— — 1,288 (198)1,288 (198)
Total$152,605 $(2,275)$3,152 $(230)$155,757 $(2,505)
The total available-for-sale portfolio consisted of approximately 440 securities at March 31, 2022. The portfolio included 393 securities having an aggregate fair value of $268.0 million that were in a loss position at March 31, 2022. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $42.1 million at fair value at March 31, 2022. The $24.6 million aggregate unrealized loss included in accumulated other comprehensive loss at March 31, 2022 was caused by interest rate fluctuations.
The total available-for-sale portfolio consisted of approximately 435 securities at December 31, 2021. The portfolio included 134 securities having an aggregate fair value of $155.8 million that were in a loss position at December 31, 2021. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $3.2 million at fair value at December 31, 2021. The $2.5 million aggregate unrealized loss included in accumulated other comprehensive loss at December 31, 2021 was caused by interest rate fluctuations.
Because the decline in fair value is attributable to changes in interest rates and not credit quality, these investments were not considered other-than-temporarily impaired at March 31, 2022 and December 31, 2021, respectively. In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date, or if market yields for such investments decline. In addition, the Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities.
The following table presents the gross realized gains and losses from sales and calls of available-for-sale securities, as well as gains and losses on equity securities from fair value adjustments which have been recognized in earnings:
Three Months Ended March 31,
(in thousands)20222021
Investment securities (losses) gains, net
Available-for-sale securities:
Gross realized gains$—$2
Gross realized losses—— 
Other-than-temporary impairment recognized——
Other investment securities:
Fair value adjustments, net(4)12
Investment securities (losses) gains, net$(4)$14