Note 3 - INVESTMENT SECURITIES (Tables)

9 Months Ended

Sep. 30, 2022

Notes Tables

Amortized cost and fair value of investment securities

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost*		Gains		(Losses)		Value
	(dollars in thousands)
September 30, 2022:
Securities HTM:
Municipal securities	$	538,861	$	1,564	$	(30,022)	$	510,403
Other securities		1,050		—		(6)		1,044
	$	539,911	$	1,564	$	(30,028)	$	511,447
Securities AFS:
U.S. treasuries and govt. sponsored agency securities	$	23,389	$	22	$	(2,884)	$	20,527
Residential mortgage-backed and related securities		76,680		—		(7,836)		68,844
Municipal securities		241,292		23		(55,972)		185,343
Asset-backed securities		19,654		170		(194)		19,630
Other securities		47,700		—		(2,307)		45,393
	$	408,715	$	215	$	(69,193)	$	339,737

*     HTM securities shown on the balance sheet of $539.7 million represent amortized cost of $539.9 million, net of allowance for credit losses of $198 thousand as of September 30, 2022.

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		(Losses)		Value
	(dollars in thousands)
December 31, 2021:
Securities HTM:
Municipal securities	$	471,533	$	49,715	$	—	$	521,248
Other securities		1,050		—		(1)		1,049
	$	472,583	$	49,715	$	(1)	$	522,297
Securities AFS:
U.S. govt. sponsored agency securities	$	23,370	$	254	$	(296)	$	23,328
Residential mortgage-backed and related securities		92,431		2,672		(780)		94,323
Municipal securities		163,253		5,228		(215)		168,266
Asset-backed securities		26,372		752		—		27,124
Other securities		24,568		251		(30)		24,789
	$	329,994	$	9,157	$	(1,321)	$	337,830

*     HTM securities shown on the balance sheet of $472.4 million represent amortized cost of $472.6 million, net of allowance for credit losses of $198 thousand as of December 31, 2021.

Securities have been in a continuous unrealized loss position

	Less than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(dollars in thousands)
September 30, 2022:
Securities HTM:
Municipal securities	$	385,027	$	(30,022)	$	—	$	—	$	385,027	$	(30,022)
Other securities		544		(6)		—		—		544		(6)
	$	385,571	$	(30,028)	$	—	$	—	$	385,571	$	(30,028)
Securities AFS:
U.S. treasuries and govt. sponsored agency securities	$	8,705	$	(349)	$	10,530	$	(2,535)	$	19,235	$	(2,884)
Residential mortgage-backed and related securities		51,073		(3,671)		17,669		(4,165)		68,742		(7,836)
Municipal securities		175,686		(53,159)		6,536		(2,813)		182,222		(55,972)
Asset-backed securities		10,742		(194)		—		—		10,742		(194)
Other securities		39,900		(2,203)		896		(104)		40,796		(2,307)
	$	286,106	$	(59,576)	$	35,631	$	(9,617)	$	321,737	$	(69,193)

	Less than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(dollars in thousands)
December 31, 2021:
Securities HTM:
Other securities	$	1,049	$	(1)	$	—	$	—	$	1,049	$	(1)
Securities AFS:
U.S. treasuries and govt. sponsored agency securities	$	9,802	$	(156)	$	3,035	$	(140)	$	12,837	$	(296)
Residential mortgage-backed and related securities		5,363		(67)		19,406		(713)		24,769		(780)
Municipal securities		13,287		(211)		1,001		(4)		14,288		(215)
Other securities		4,528		(30)		—		—		4,528		(30)
	$	32,980	$	(464)	$	23,442	$	(857)	$	56,422	$	(1,321)

Activity in allowance for credit losses

	Three Months Ended September 30, 2022						Three Months Ended September 30, 2021						Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
	Municipal		Other				Municipal		Other				Municipal		Other				Municipal		Other
	securities		securities		Total		securities		securities		Total		securities		securities		Total		securities		securities		Total
Allowance for credit losses:
Beginning balance	$	198	$	—	$	198	$	173	$	1	$	174	$	198	$	—	$	198	$	—	$	—	$	—
Impact of adopting ASU 2016-13		—		—		—		—		—		—		—		—		—		182		1		183
Provision for credit loss expense		—		—		—		—		—		—		—		—		—		(9)		—		(9)
Balance, ending	$	198	$	—	$	198	$	173	$	1	$	174	$	198	$	—	$	198	$	173	$	1	$	174

Realized gain (loss) on investments

	Nine Months Ended
	September 30, 2022		September 30, 2021
Proceeds from sales of securities	$	111,375	$	23,874
Gross gains from sales of securities		—		—
Gross losses from sales of securities		—		(88)

Investments classified by maturity date

	Amortized Cost		Fair Value
	(dollars in thousands)
Securities HTM:
Due in one year or less	$	3,061	$	3,046
Due after one year through five years		15,199		14,862
Due after five years		521,651		493,539
	$	539,911	$	511,447
Securities AFS:
Due in one year or less	$	8,558	$	8,535
Due after one year through five years		3,760		3,705
Due after five years		300,063		239,023
		312,381		251,263
Residential mortgage-backed and related securities		76,680		68,844
Asset-backed securities		19,654		19,630
	$	408,715	$	339,737

Schedule of investment in callable securities

	Amortized Cost		Fair Value
	(dollars in thousands)
Securities HTM:
Municipal securities	$	305,743	$	295,096
Securities AFS:
Municipal securities		237,105		181,201
Other securities		46,277		44,017
	$	283,382	$	225,218