fcap20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_____________________ to__________________

Commission File No. 0-25023

First Capital, Inc.

(Exact name of registrant as specified in its charter)

Indiana

35-2056949

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

220 Federal Drive NW, Corydon, Indiana 47112 1-812-738-2198

(Address of principal executive offices, zip code, telephone number)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exhange on which registered
Common stock, par value $0.01 per share	FCAP	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Non-accelerated filer ☒

Accelerated filer ☐

Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 3,372,212 shares of common stock were outstanding as of July 22, 2022.

FIRST CAPITAL, INC.

INDEX

Part I	Financial Information	Page

	Item 1. Consolidated Financial Statements

	Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (unaudited)	3

	Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021 (unaudited)	4

	Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 and 2021 (unaudited)	5

	Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021 (unaudited)	6

	Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (unaudited)	7

	Notes to Consolidated Financial Statements (unaudited)	8-43

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	44-50

	Item 3. Quantitative and Qualitative Disclosures About Market Risk	51-54

	Item 4. Controls and Procedures	54

Part II	Other Information

	Item 1. Legal Proceedings	55

	Item 1A. Risk Factors	55

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	55

	Item 3. Defaults Upon Senior Securities	55

	Item 4. Mine Safety Disclosures	55

	Item 5. Other Information	55

	Item 6. Exhibits	56



Signatures

-2-

PART I - FINANCIAL INFORMATION
FIRST CAPITAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

	June 30,			December 31,
	2022			2021
	(In thousands)
ASSETS
Cash and due from banks	$	28,109		$	23,497
Interest bearing deposits with banks		3,943			3,937
Federal funds sold		92,016			145,075
Total cash and cash equivalents		124,068			172,509

Interest-bearing time deposits		4,386			4,839
Securities available for sale, at fair value		458,620			447,335
Securities held to maturity		7,000			2,000
Loans, net		527,309			483,287
Loans held for sale		606			2,413
Federal Home Loan Bank and other stock, at cost		1,836			1,988
Foreclosed real estate		-			36
Premises and equipment		14,894			15,177
Accrued interest receivable		3,808			3,430
Cash value of life insurance		8,811			8,698
Goodwill		6,472			6,472
Core deposit intangible		452			526
Other assets		16,845			7,893

Total Assets	$	1,175,107		$	1,156,603

LIABILITIES
Deposits:
Noninterest-bearing	$	275,717		$	242,685
Interest-bearing		808,926			792,877
Total deposits		1,084,643			1,035,562

Accrued interest payable		79			97
Accrued expenses and other liabilities		4,771			7,004
Total liabilities		1,089,493			1,042,663

EQUITY
Preferred stock of $.01 par value per share Authorized 1,000,000 shares; none issued		-			-
Common stock of $.01 par value per share Authorized 7,500,000 shares; issued 3,805,533 shares; outstanding 3,373,095		38			38
Additional paid-in capital		41,684			41,684
Retained earnings-substantially restricted		83,553			80,070
Unearned stock compensation		(837	)		(1,033	)
Accumulated other comprehensive income (loss)		(30,264	)		1,734
Less treasury stock, at cost - 432,438 shares		(8,665	)		(8,665	)
Total First Capital, Inc. stockholders' equity		85,509			113,828

Noncontrolling interest in subsidiary		105			112
Total equity		85,614			113,940

Total Liabilities and Equity	$	1,175,107		$	1,156,603

See accompanying notes to consolidated financial statements.

-3-

PART I - FINANCIAL INFORMATION
FIRST CAPITAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2022			2021		2022			2021
INTEREST INCOME	(In thousands, except per share data)
Loans, including fees	$	5,859		$	5,746	$	11,352		$	11,819
Securities:
Taxable		1,061			632		1,948			1,140
Tax-exempt		780			671		1,521			1,305
Dividends		4			4		9			7
Other interest income		194			80		273			154
Total interest income		7,898			7,133		15,103			14,425
INTEREST EXPENSE
Deposits		267			289		520			577
Total interest expense		267			289		520			577
Net interest income		7,631			6,844		14,583			13,848
Provision for loan losses		200			-		375			75
Net interest income after provision for loan losses		7,431			6,844		14,208			13,773
NONINTEREST INCOME
Service charges on deposit accounts		543			424		1,052			834
ATM and debit card fees		1,066			1,050		2,073			2,018
Commission and fee income		118			87		240			169
Gain on sale of securities available for sale		-			-		-			7
Unrealized gain (loss) on equity securities		(99	)		193		(36	)		427
Gain on sale of loans		215			661		550			1,297
Increase in cash surrender value of life insurance		63			71		113			118
Other income		59			66		120			120
Total noninterest income		1,965			2,552		4,112			4,990
NONINTEREST EXPENSE
Compensation and benefits		3,651			3,612		7,145			7,142
Occupancy and equipment		456			410		923			874
Data processing		993			867		1,862			1,676
Professional fees		178			348		468			587
Advertising		79			80		141			130
Other expenses		878			848		1,690			1,563
Total noninterest expense		6,235			6,165		12,229			11,972
Income before income taxes		3,161			3,231		6,091			6,791
Income tax expense		447			497		847			1,115
Net Income		2,714			2,734		5,244			5,676
Less: net income attributable to noncontrolling interest in subsidiary		4			4		7			7
Net Income Attributable to First Capital, Inc.	$	2,710		$	2,730	$	5,237		$	5,669

Earnings per common share attributable to First Capital, Inc.:
Basic	$	0.81		$	0.82	$	1.56		$	1.70
Diluted	$	0.81		$	0.82	$	1.56		$	1.69

Dividends per share	$	0.26		$	0.26	$	0.52		$	0.52

See accompanying notes to consolidated financial statements.

-4-

PART I - FINANCIAL INFORMATION
FIRST CAPITAL, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

	*Three Months Ended*						*Six Months Ended*
	*June 30,*						*June 30,*
	*2022*			*2021*			*2022*			*2021*
	(In thousands)

Net Income	$	2,714		$	2,734		$	5,244		$	5,676

OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period		(16,626	)		839			(41,540	)		(3,041	)
Income tax (expense) benefit		3,799			(165	)		9,542			717
Net of tax amount		(12,827	)		674			(31,998	)		(2,324	)

Less: reclassification adjustment for realized gains included in net income		-			-			-			(7	)
Income tax expense		-			-			-			1
Net of tax amount		-			-			-			(6.00	)

Other Comprehensive Income (Loss), net of tax		(12,827	)		674			(31,998	)		(2,330	)

Comprehensive Income		(10,113	)		3,408			(26,754	)		3,346
Less: comprehensive income attributable to the noncontrolling interest in subsidiary		4			4			7			7

Comprehensive Income Attributable to First Capital, Inc.	$	(10,117	)	$	3,404		$	(26,761	)	$	3,339

See accompanying notes to consolidated financial statements.

-5-

PART I - FINANCIAL INFORMATION
FIRST CAPITAL, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)

								*Accumulated*
			*Additional*					*Other*			*Unearned*
	*Common*		*Paid-in*		*Retained*			*Comprehensive*			*Stock*			*Treasury*			*Noncontrolling*
(In thousands)	*Stock*		*Capital*		*Earnings*			*Income (Loss)*			*Compensation*			*Stock*			*Interest*			*Total*

Balances at April 1, 2022	$	38	$	41,684	$	81,720		$	(17,437	)	$	(935	)	$	(8,665	)	$	115		$	96,520
Net income		-		-		2,710			-			-			-			4			2,714
Other comprehensive loss		-		-		-			(12,827	)		-			-			-			(12,827	)
Cash dividends		-		-		(877	)		-			-			-			(14	)		(891	)
Stock compensation expense		-		-		-			-			98			-			-			98

Balances at June 30, 2022	$	38	$	41,684	$	83,553		$	(30,264	)	$	(837	)	$	(8,665	)	$	105		$	85,614

Balances at April 1, 2021	$	38	$	41,684	$	74,216		$	3,818		$	(1,405	)	$	(8,580	)	$	115		$	109,886
Net income		-		-		2,730			-			-			-			4			2,734
Other comprehensive income		-		-		-			674			-			-			-			674
Cash dividends		-		-		(877	)		-			-			-			(14	)		(891	)
Stock compensation expense		-		-		-			-			115			-			-			115

Balances at June 30, 2021	$	38	$	41,684	$	76,069		$	4,492		$	(1,290	)	$	(8,580	)	$	105		$	112,518

Balances at January 1, 2022	$	38	$	41,684	$	80,070		$	1,734		$	(1,033	)	$	(8,665	)	$	112		$	113,940
Net income		-		-		5,237			-			-			-			7			5,244
Other comprehensive loss		-		-		-			(31,998	)		-			-			-			(31,998	)
Cash dividends		-		-		(1,754	)		-			-			-			(14	)		(1,768	)
Stock compensation expense		-		-		-			-			196			-			-			196

Balances at June 30, 2022	$	38	$	41,684	$	83,553		$	(30,264	)	$	(837	)	$	(8,665	)	$	105		$	85,614

Balances at January 1, 2021	$	38	$	41,684	$	72,155		$	6,822		$	(1,520	)	$	(8,540	)	$	112		$	110,751
Net income		-		-		5,669			-			-			-			7			5,676
Other comprehensive loss		-		-		-			(2,330	)		-			-			-			(2,330	)
Cash dividends		-		-		(1,755	)		-			-			-			(14	)		(1,769	)
Stock compensation expense		-		-		-			-			230			-			-			230
Purchase of treasury shares		-		-		-			-			-			(40	)		-			(40	)

Balances at June 30, 2021	$	38	$	41,684	$	76,069		$	4,492		$	(1,290	)	$	(8,580	)	$	105		$	112,518

See accompanying notes to consolidated financial statements.

-6-

PART I - FINANCIAL INFORMATION
FIRST CAPITAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	*Six Months Ended*
	*June 30,*
	*2022*			*2021*
CASH FLOWS FROM OPERATING ACTIVITIES	(In thousands)
Net incom	$	5,244		$	5,676
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Amortization of premiums and accretion of discounts on securities, net		1,102			1,041
Depreciation and amortization expense		543			585
Deferred income taxes		(200	)		(467	)
Stock compensation expense		196			230
Increase in cash value of life insurance		(113	)		(118	)
Gain on sale of securities		-			(7	)
Provision for loan losses		375			75
Proceeds from sales of loans		29,574			73,054
Loans originated for sale		(27,217	)		(69,169	)
Gain on sale of loans		(550	)		(1,297	)
Amortization of tax credit investment		177			177
Unrealized (gain) loss on equity securities		36			(427	)
Net realized and unrealized gain on foreclosed real estate		(15	)		-
(Increase) decrease in accrued interest receivable		(378	)		119
Increase (decrease) in accrued interest payable		(18	)		(32	)
Net change in other assets/liabilities		(1,655	)		(4	)
Net Cash Provided By Operating Activities		7,101			9,436

CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in interest-bearing time deposits		453			200
Purchase of securities available for sale		(70,693	)		(123,660	)
Purchase of securities held to maturity		(5,000	)		(2,000	)
Proceeds from maturities of securities available for sale		4,051			28,231
Proceeds from sales of securities available for sale		-			1,798
Principal collected on mortgage-backed obligations		12,714			19,568
Net (increase) decrease in loans receivable		(44,385	)		15,396
Investment in tax credit entity		-			(100	)
Proceeds from sale of foreclosed real estate		39			-
Proceeds from redemption of Federal Home Loan Bank stock		152			-
Purchase of premises and equipment		(186	)		(72	)
Net Cash Used In Investing Activities		(102,855	)		(60,639	)

CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits		49,081			61,120
Purchase of treasury stock		-			(40	)
Dividends paid		(1,768	)		(1,769	)
Net Cash Provided By Financing Activities		47,313			59,311

Net Increase (Decrease) in Cash and Cash Equivalents		(48,441	)		8,108
Cash and cash equivalents at beginning of period		172,509			175,888
Cash and Cash Equivalents at End of Period	$	124,068		$	183,996

See accompanying notes to consolidated financial statements.

-7-

FIRST CAPITAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.	Presentation of Interim Information

First Capital, Inc. (“Company”) is the financial holding company for First Harrison Bank (“Bank”), an Indiana chartered commercial bank and wholly owned subsidiary. First Harrison Investments, Inc. and First Harrison Holdings, Inc. are wholly-owned Nevada corporate subsidiaries of the Bank that jointly own First Harrison, LLC, a Nevada limited liability corporation that holds and manages an investment portfolio. First Harrison REIT, Inc. (“REIT”) is a wholly-owned subsidiary of First Harrison Holdings, Inc. that holds a portion of the Bank’s real estate mortgage loan portfolio. FHB Risk Mitigation Services, Inc. (“Captive”) is a wholly-owned insurance subsidiary of the Company that provides property and casualty insurance coverage to the Company, the Bank and the Bank’s subsidiaries, and reinsurance to nine other third party insurance captives for which insurance may not be currently available or economically feasible in the insurance marketplace. Heritage Hill, LLC is a wholly-owned subsidiary of the Bank that is currently inactive.

In the opinion of management, the unaudited consolidated financial statements include all adjustments considered necessary to present fairly the financial position as of June 30, 2022, and the results of operations for the three and six months ended June 30, 2022 and 2021 and the cash flows for the six months ended June 30, 2022 and 2021. All of these adjustments are of a normal, recurring nature. Such adjustments are the only adjustments included in the unaudited consolidated financial statements. Interim results are not necessarily indicative of results for a full year or any other period.

The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and are presented as permitted by the instructions to Form 10-Q. Accordingly, they do not contain certain information included in the Company’s annual audited consolidated financial statements and related footnotes for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K.

The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform with the current period presentation. The reclassifications had no effect on net income or stockholders’ equity.

COVID-19

On March 11, 2020, the World Health Organization declared the outbreak of the novel coronavirus (“COVID-19”) as a global pandemic, which continues to spread throughout the United States and around the world. The COVID-19 pandemic has adversely affected, and may continue to adversely affect economic activity globally, nationally and locally. COVID-19 and actions taken to mitigate the spread of it have had and are expected to continue to have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the Company operates. Such events also may adversely affect business and consumer confidence, generally, and the Company and its customers, and their respective suppliers, vendors and processors, may be adversely affected.

- 8-

FIRST CAPITAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(1 – continued)

Due to the COVID-19 pandemic market interest rates initially declined significantly, as the Federal Open Market Committee (“FOMC”) reduced the targeted federal funds interest rate range by 150 basis points during the month of March 2020 to 0% to 0.25%. The FOMC has increased the targeted rate by 150 basis points through June 2022. These changes in interest rates and other effects of the COVID-19 pandemic may adversely affect the Company's financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the financial impact will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including expected credit losses on loans.

On March 22, 2020, the federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”. This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that in consultation with the Financial Accounting Standards Board (“FASB”) staff that the federal banking agencies concluded that short-term modifications (e.g., six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not troubled debt restructurings (“TDRs”). The Coronavirus Aid, Relief and Economic Security (“CARES”) Act was passed by Congress on March 27, 2020. The CARES Act also addressed COVID-19 related modifications and specified that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. The Consolidated Appropriations Act of 2021 signed into law on December 27, 2020 further extended the relief from TDR accounting for qualified modifications to the earlier of January 1, 2022, or 60 days after the national emergency concerning COVID-19 terminates. The Bank applied this guidance related to payment deferrals and other COVID-19 related loan modifications made through December 31, 2021.

The CARES Act also included a total allocation of $659 billion for loans to be issued by financial institutions through the Small Business Administration (“SBA”) as part of the Paycheck Protection Program (“PPP”). The Consolidation Appropriations Act previously mentioned included the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, which allocated an additional $284 million in a second round of PPP loans. PPP loans are forgivable, in whole or in part, if the proceeds are used for eligible payroll costs and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00% and a term of two or five years, if not forgiven in whole or in part. Payments are deferred until the SBA remits the borrower’s loan forgiveness amount to the lender or, if the borrow does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period, and the loans are 100% guaranteed by the SBA. The SBA pays the originating bank a processing fee based on the size of the loan. The SBA began accepting submissions for these PPP loans on April 3, 2020 and the second round ended May 31, 2021. The Bank received SBA authorizations for PPP loans totaling approximately $62.4 million, including $16.5 million in second-draw loans originated in 2021. As of July 22, 2022, the Bank has received payoffs on $62.3 million of PPP loans from the SBA and all deferred fees related to PPP loans had been recognized. For the three months ended June 30, 2022 and 2021, the Bank recognized $2,000 and $336,000, respectively, in PPP fees in interest income. For the six months ended June 30, 2022 and 2021, the Bank recognized $27,000 and $961,000, respectively, in PPP fees in interest income.

- 9-

FIRST CAPITAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2.	Investment Securities

Investment securities have been classified in the consolidated balance sheets according to management’s intent. Investment securities at June 30, 2022 and December 31, 2021 are summarized as follows:

			Gross		Gross
	*Amortized*		*Unrealized*		*Unrealized*		*Fair*
(In thousands)	*Cost*		*Gains*		*Losses*		*Value*

June 30, 2022
Securities available for sale:
Agency mortgage-backed securities	$	102,404	$	1	$	9,096	$	93,309
Agency CMO		8,204		-		197		8,007
Other debt securities:
Agency notes and bonds		142,737		-		10,100		132,637
Treasury notes and bonds		79,347		23		2,776		76,594
Municipal obligations		165,354		100		17,381		148,073

Total securities available for sale	$	498,046	$	124	$	39,550	$	458,620

Securities held to maturity:
Other debt securities:
Corporate notes	$	7,000	$	-	$	724	$	6,276

Total securities held to maturity	$	7,000	$	-	$	724	$	6,276

December 31, 2021
Securities available for sale:
Agency mortgage-backed securities	$	102,767	$	604	$	635	$	102,736
Agency CMO		7,863		98		-		7,961
Other debt securities:
Agency notes and bonds		130,641		489		2,034		129,096
Treasury notes and bonds		50,339		-		545		49,794
Municipal obligations		153,610		4,721		583		157,748

Total securities available for sale	$	445,220	$	5,912	$	3,797	$	447,335

Securities held to maturity:
Other debt securities:
Corporate notes	$	2,000	$	4	$	-	$	2,004

Total securities held to maturity	$	2,000	$	4	$	-	$	2,004

Agency notes and bonds, 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”), the Federal Farm Credit Bank (“FFCB”) and the Federal Home Loan Bank (“FHLB”), which are government-sponsored enterprises. Corporate notes classified as held to maturity include subordinated debt obligations issues by other bank holding companies.

- 10-

FIRST CAPITAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(2 – continued)

The amortized cost and fair value of debt securities as of June 30, 2022, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities and CMO may differ from contractual maturities because the mortgages underlying the obligations may be prepaid without penalty.

	Securities Available for Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
(In thousands)

Due in one year or less	$	7,605	$	7,452	$	-	$	-
Due after one year through five years		227,390		214,814		-		-
Due after five years through ten years		48,645		45,648		2,000		1,796
Due after ten years		103,798		89,390		5,000		4,480
		387,438		357,304		7,000		6,276
Mortgage-backed securities and CMO		110,608		101,316		-		-

	$	498,046	$	458,620	$	7,000	$	6,276

Information pertaining to investment securities with gross unrealized losses at June 30, 2022, aggregated by investment category and the length of time that individual investment securities have been in a continuous position, follows.

	Number of				Gross
	Investment		Fair		Unrealized
	Positions		Value		Losses
(Dollars in thousands)

June 30, 2022:
Securities available for sale:
Continuous loss position less than twelve months:
Agency mortgage-backed securities		91	$	84,065	$	8,048
Agency CMO		29		8,007		197
Agency notes and bonds		39		86,629		5,759
Treasury notes and bonds		23		68,544		2,612
Muncipal obligations		223		118,853		15,918
Total less than twelve months		405		366,098		32,534

Continuous loss position more than twelve months:
Agency mortgage-backed securities		5		8,123		1,048
Agency notes and bonds		17		46,008		4,341
Treasury notes and bonds		1		4,830		164
Muncipal obligations		11		6,993		1,463
Total more than twelve months		34