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Investment Securities
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The following tables provide information on the amortized cost and estimated fair values of debt securities.
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
Available-for-sale securities:
September 30, 2024
U.S. Treasury and government agencies$23,047 $6 $2,363 $20,690 
Mortgage-backed-residential111,748 234 5,761 106,221 
Other debt securities6,146 328 46 6,428 
Total$140,941 $568 $8,170 $133,339 
December 31, 2023
U.S. Treasury and government agencies$23,472 $5 $3,002 $20,475 
Mortgage-backed-residential91,280 5 7,258 84,027 
Other debt securities6,080 59 120 6,019 
Total$120,832 $69 $10,380 $110,521 
No AFS securities were sold during the three and nine months ended September 30, 2024 and 2023.
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueAllowance for Credit Losses
Held-to-maturity securities:
September 30, 2024
U.S. Treasury and government agencies$132,870 $3 $7,375 $125,498 $— 
Mortgage-backed-residential339,848 51 36,293 303,606 — 
States and political subdivisions1,466 42 9 1,499 — 
Other debt securities10,500 — 807 9,693 101 
Total$484,684 $96 $44,484 $440,296 $101 
December 31, 2023
U.S. Treasury and government agencies$143,442 $— $10,377 $133,065 $— 
Mortgage-backed-residential357,870 — 43,864 314,006 — 
States and political subdivisions1,470 57 19 1,508 — 
Other debt securities 10,500 — 1,249 9,251 94 
Total$513,282 $57 $55,509 $457,830 $94 
Equity securities with an aggregate fair value of $6.0 million at September 30, 2024 and $5.7 million at December 31, 2023 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled a gain of $79 thousand for the three months ended September 30, 2024 and a gain of $151 thousand for the three months ended September 30, 2023. The fair value adjustment recorded through earnings totaled a gain of $38 thousand for the nine months ended September 30, 2024 and a gain of $300 thousand for the nine months ended September 30, 2023.
On January 1, 2023, the Company adopted ASC 326, which made changes to accounting for AFS debt securities whereby credit losses are presented as an allowance, rather than as a write-down when management does not intend to sell and does not believe that it is more likely than not they will be required to sell prior to maturity. In addition, ASC 326 requires an ACL to be recorded on HTM debt securities measured at amortized cost.
The following table summarizes the activity in the ACL on HTM securities as of the three and nine months ended September 30, 2024 and September 30, 2023.
($ in thousands)Three Months Ended September 30, 2024Three Months Ended September 30, 2023Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Balance, beginning of period$108 $163 $94 $— 
Other debt securities, (reversal of) provision for credit losses(7)(37)7 126 
Balance, end of period$101 $126 $101 $126 
The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at September 30, 2024 and December 31, 2023.
Less than 12 MonthsMore than 12 MonthsTotal
($ in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
September 30, 2024
Available-for-sale securities:
U.S. Treasury and government agencies$— $— $17,951 $2,363 $17,951 $2,363 
Mortgage-backed-residential20,768 53 45,536 5,708 66,304 5,761 
Other debt securities— — 1,958 46 1,958 46 
Total$20,768 $53 $65,445 $8,117 $86,213 $8,170 
Less than 12 MonthsMore than 12 MonthsTotal
($ in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
December 31, 2023
Available-for-sale securities:
U.S. Treasury and government agencies$74 $— $17,750 $3,002 $17,824 $3,002 
Mortgage-backed-residential24,405 150 52,864 7,108 77,269 7,258 
Other debt securities— — 1,890 120 1,890 120 
Total$24,479 $150 $72,504 $10,230 $96,983 $10,380 
There were 101 AFS debt securities with a fair value below the amortized cost basis, totaling $8.2 million of aggregate fair value as of September 30, 2024. The Company concluded that a credit loss does not exist in its AFS securities portfolio as of September 30, 2024, and no impairment loss has been recognized based on the fact that (1) changes in fair value were caused primarily by fluctuations in interest rates, (2) securities with unrealized losses had generally high credit quality, (3) the Company intends to hold these investments in debt securities to maturity and it is more-likely-than-not the Company will not be required to sell these investments before a recovery of its investment, and (4) issuers have continued to make timely payments of principal and interest. Additionally, the Company’s mortgage-back securities are issued by either U.S. government agencies or U.S. government sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments.
All HTM and AFS securities were current with no securities past due or on nonaccrual as of September 30, 2024.
The Company has securities which have been pledged as collateral for obligations to federal, state, and local government agencies, and other purpose as required or permitted by law, or sold under agreements to repurchase. At September 30, 2024, the carrying value of pledged AFS securities was $54.1 million and $191.4 million of pledged HTM securities. The comparable amounts for December 31, 2023 were $54.5 million and $185.9 million, respectively.
There were no obligations of states or political subdivisions with carrying values, as to any issuer, exceeding 10% of stockholders’ equity at September 30, 2024 or December 31, 2023.
The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at September 30, 2024.
Available for saleHeld to maturity
($ in thousands)Amortized CostFair ValueAmortized CostFair Value
Due in one year or less$2,495 $2,498 $7,057 $7,016 
Due after one year through five years14,064 13,368 118,995 113,847 
Due after five years through ten years29,194 27,403 36,270 33,973 
Due after ten years95,188 90,070 322,362 285,460 
Total$140,941 $133,339 $484,684 $440,296 
The maturity dates for debt securities are determined using contractual maturity dates.