Securities

12 Months Ended

Dec. 31, 2023

Securities

Securities

3) Securities

The amortized cost and estimated fair value of securities at year-end were as follows:

			Gross		Gross		Allowance		Estimated
	Amortized		Unrealized		Unrealized		for Credit		Fair
December 31, 2023	Cost		Gains		(Losses)		Losses		Value
	(Dollars in thousands)
Securities available-for-sale:
U.S. Treasury	$	387,990	$	—	$	(5,621)	$	—	$	382,369
Agency mortgage-backed securities		64,580		—		(4,313)		—		60,267
Total	$	452,570	$	—	$	(9,934)	$	—	$	442,636
			Gross		Gross		Estimated		Allowance
	Amortized		Unrecognized		Unrecognized		Fair		for Credit
December 31, 2023	Cost		Gains		(Losses)		Value		Losses
	(Dollars in thousands)
Securities held-to-maturity:
Agency mortgage-backed securities	$	618,374	$	282	$	(86,011)	$	532,645	$	—
Municipals - exempt from Federal tax		32,203		3		(724)		31,482		(12)
Total	$	650,577	$	285	$	(86,735)	$	564,127	$	(12)

			Gross		Gross		Allowance		Estimated
	Amortized		Unrealized		Unrealized		for Credit		Fair
December 31, 2022	Cost		Gains		(Losses)		Losses		Value
	(Dollars in thousands)
Securities available-for-sale:
U.S. Treasury	$	428,797	$	—	$	(10,323)	$	—	$	418,474
Agency mortgage-backed securities		76,916		—		(5,794)		—		71,122
Total	$	505,713	$	—	$	(16,117)	$	—	$	489,596
			Gross		Gross		Estimated		Allowance
	Amortized		Unrecognized		Unrecognized		Fair		for Credit
December 31, 2022	Cost		Gains		(Losses)		Value		Losses
	(Dollars in thousands)
Securities held-to-maturity:
Agency mortgage-backed securities	$	677,381	$	235	$	(99,977)	$	577,639	$	—
Municipals - exempt from Federal tax		37,623		9		(819)		36,813		(14)
Total	$	715,004	$	244	$	(100,796)	$	614,452	$	(14)

Securities with unrealized losses at year end, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in an unrealized loss position are as follows:

	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2023	Value		(Losses)		Value		(Losses)		Value		(Losses)
	(Dollars in thousands)
Securities available-for-sale:
U.S. Treasury	$	4,926	$	(40)	$	377,443	$	(5,581)	$	382,369	$	(5,621)
Agency mortgage-backed securities		—		—		60,267		(4,313)		60,267		(4,313)
Total	$	4,926	$	(40)	$	437,710	$	(9,894)	$	442,636	$	(9,934)
Securities held-to-maturity:
Agency mortgage-backed securities	$	—	$	—	$	520,615	$	(86,011)	$	520,615	$	(86,011)
Municipals — exempt from Federal tax		9,790		(176)		13,151		(548)		22,941		(724)
Total	$	9,790	$	(176)	$	533,766	$	(86,559)	$	543,556	$	(86,735)

	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2022	Value		(Losses)		Value		(Losses)		Value		(Losses)
	(Dollars in thousands)
Securities available-for-sale:
U.S. Treasury	$	418,474	$	(10,323)	$	—	$	—	$	418,474	$	(10,323)
Agency mortgage-backed securities		71,122		(5,794)		—		—		71,122		(5,794)
Total	$	489,596	$	(16,117)	$	—	$	—	$	489,596	$	(16,117)
Securities held-to-maturity:
Agency mortgage-backed securities	$	136,264	$	(12,866)	$	429,257	$	(87,111)	$	565,521	$	(99,977)
Municipals — exempt from Federal tax		31,007		(819)		—		—		31,007		(819)
Total	$	167,271	$	(13,685)	$	429,257	$	(87,111)	$	596,528	$	(100,796)

There were no holdings of securities of any one issuer, other than the U.S. Government and its sponsored entities, in an amount greater than 10% of shareholders’ equity. At December 31, 2023, the Company held 437 securities (164 available-for-sale and 273 held-to-maturity), of which 406 had fair values below amortized cost. The unrealized losses were due to higher interest rates at period end compared to when the securities were purchased. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline. The Company does not believe that it is more likely than not that the Company will be required to sell a security in an unrealized loss position prior to recovery in value.

The amortized cost and fair value of debt securities as of December 31, 2023, by contractual maturity, are shown below. The expected maturities will differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Available-for-sale
	Amortized		Estimated
	Cost		Fair Value
	(Dollars in thousands)
Due three months or less	$	19,953	$	19,920
Due after three months through one year		193,476		191,662
Due after one through five years		174,561		170,787
Agency mortgage-backed securities		64,580		60,267
Total	$	452,570	$	442,636

	Held-to-maturity
	Amortized		Estimated
	Cost (1)		Fair Value
	(Dollars in thousands)
Due three months or less	$	400	$	400
Due after three months through one year		665		665
Due after one through five years		7,271		7,157
Due after five through ten years		23,867		23,260
Agency mortgage-backed securities		618,374		532,645
Total	$	650,577	$	564,127

Securities with amortized cost of $1,041,608,000 and $66,272,000 as of December 31, 2023 and 2022 were pledged to secure public deposits and for other purposes as required or permitted by law or contract.

The table below presents a roll-forward by major security type for the year ended December 31, 2023 of the allowance for credit losses on debt securities held-to-maturity held at period end:

		Municipals
		(Dollars in thousands)
Beginning balance January 1, 2023	$	14
Recapture of credit losses		(2)
Ending balance December 31, 2023	$	12

For the year ended December 31, 2023, there was a reduction of $2,000 to the allowance for credit losses on the Company’s held-to-maturity municipal investment securities portfolio. This reduction was the result of a reduction in municipal securities amortized balances resulting from regular payments.