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Investment Securities
 3 Months Ended
Mar. 31, 2023
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, 2023 and December 31, 2022 were as follows:
Gross Unrealized
(in thousands)Total Amortized CostGainsLossesFair Value
March 31, 2023
U.S. Treasury$5,125 $13 $(34)$5,104 
U.S. government and federal agency obligations515 — (25)490 
U.S. government-sponsored enterprises27,499 — (2,282)25,217 
Obligations of states and political subdivisions134,531 28 (21,970)112,589 
Mortgage-backed securities119,360 65 (15,045)104,380 
Other debt securities (a)11,825 — (1,099)10,726 
Bank issued trust preferred securities (a)1,486 — (339)1,147 
Total available-for-sale securities$300,341 $106 $(40,794)$259,653 
December 31, 2022
U.S. Treasury$2,198 $— $(46)$2,152 
U.S. government and federal agency obligations591 — (32)559 
U.S. government-sponsored enterprises26,499 — (2,722)23,777 
Obligations of states and political subdivisions134,994 — (25,554)109,440 
Mortgage-backed securities119,556 7 (16,864)102,699 
Other debt securities (a)11,825 — (882)10,943 
Bank issued trust preferred securities (a)1,486 — (309)1,177 
Total available-for-sale securities$297,149 $7 $(46,409)$250,747 
(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, loan certificates guaranteed by the Small Business Administration, residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations include securities issued by the Government National Mortgage Association, a U.S. government agency, and the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the FHLB, which are U.S. government-sponsored enterprises.
Debt securities with carrying values aggregating approximately $205.3 million and $111.6 million at March 31, 2023 and December 31, 2022, 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, 2023, by contractual maturity, are shown below. Accrued interest on investments totaled $1.4 million and $1.5 million at March 31, 2023 and December 31, 2022, respectively, and is included in the accrued interest receivable on the Company's Consolidated Balance Sheets. The total amount of accrued interest is excluded from the amortized cost basis of investments presented below. Further, the Company has elected not to measure an allowance for credit losses for accrued interest receivable. 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$10,317 $10,157 
Due after one year through five years19,01518,085
Due after five years through ten years30,66327,539
Due after ten years120,98699,492
Total$180,981 $155,273 
Mortgage-backed securities119,360104,380
Total available-for-sale securities$300,341 $259,653 
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 BankersBank (MIB) stock, that do not have readily determinable fair values, are required for membership in those organizations.
(in thousands)March 31, 2023December 31, 2022
Other securities:
FHLB stock$6,035$6,156
MIB stock151151
Equity securities with readily determinable fair values5446
Total other investment securities$6,240$6,353
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, 2023 and December 31, 2022 were as follows:
Less than 12 months12 months or more
(in thousands)Fair ValueUnrealized Losses Fair ValueUnrealized LossesTotal Fair ValueTotal Unrealized Losses
March 31, 2023
U.S. Treasury$468 $(3)$1,391 $(31)$1,859 $(34)
U.S. government and federal agency obligations— — 490 (25)490 (25)
U.S. government-sponsored enterprises996 (4)24,221 (2,278)25,217 (2,282)
Obligations of states and political subdivisions3,968 (180)106,281 (21,790)110,249 (21,970)
Mortgage-backed securities4,271 (119)93,925 (14,926)98,196 (15,045)
Other debt securities6,652 (348)4,074 (751)10,726 (1,099)
Bank issued trust preferred securities— — 1,147 (339)1,147 (339)
Total$16,355 $(654)$231,529 $(40,140)$247,884 $(40,794)
(in thousands)
December 31, 2022
U.S. Treasury$1,908 $(41)$244 $(5)$2,152 $(46)
U.S. government and federal agency obligations559(32)——559(32)
U.S. government-sponsored enterprises7,066 (933)16,711 (1,789)23,777 (2,722)
Obligations of states and political subdivisions79,396 (15,421)29,370 (10,133)108,766 (25,554)
Mortgage-backed securities33,334 (3,124)68,911 (13,740)102,245 (16,864)
Other debt securities7,557 (443)3,386 (439)10,943 (882)
Bank issued trust preferred securities— — 1,177 (309)1,177 (309)
Total$129,820 $(19,994)$119,799 $(26,415)$249,619 $(46,409)
The total available-for-sale portfolio consisted of approximately 444 securities at March 31, 2023. The portfolio included 426 securities having an aggregate fair value of $247.9 million that were in a loss position at March 31, 2023. Securities identified as which had been in a loss position for 12 months or longer totaled $231.5 million at fair value at March 31, 2023. The $40.8 million aggregate unrealized loss included in accumulated other comprehensive loss at March 31, 2023 was caused by interest rate fluctuations. As of March 31, 2023, there was no allowance for credit loss related to the Company's available-for-sale securities as the decline in fair value did not result from credit issues.
The total available-for-sale portfolio consisted of approximately 439 securities at December 31, 2022. The portfolio included 436 securities having an aggregate fair value of $249.6 million that were in a loss position at December 31, 2022. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $119.8 million at fair value at December 31, 2022. The $46.4 million aggregate unrealized loss included in accumulated other comprehensive loss at December 31, 2022 was caused by interest rate fluctuations. Because the decline in fair value is attributable to changes in interest rates and not credit quality, these investments were not considered other-than-temporarily impaired at and December 31, 2022.
In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date, or if market yields for such investments decline. In addition, the Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities.
The following table presents the gross realized gains and losses from sales and calls of available-for-sale securities, as well as gains and losses on equity securities from fair value adjustments which have been recognized in earnings:
Three Months Ended March 31,
(in thousands)20232022
Investment securities gains (losses), net
Available-for-sale securities:
Gross realized gains$—$—
Gross realized losses—— 
Other-than-temporary impairment recognized——
Other investment securities:
Fair value adjustments, net8(4)
Investment securities gains (losses), net$8$(4)