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Investment Securities
 12 Months Ended
Dec. 31, 2024
Investment Securities [Abstract]  
Investment Securities
(2)
Investment Securities

The amortized cost, unrealized gains and losses, estimated fair values and related allowance for credit losses on investments in debt and other securities at December 31, 2024 are summarized as follows:

 
Amortized
cost
    
Unrealized
gains
    
Unrealized
losses
    
Estimated
fair value
     ACL
  
Investment securities available-for-sale:
                              
U.S. Treasury securities
  
$
107,188
    
$
134
    
$
(1,777
)
  
$
105,545
     $
 —  
Securities of U.S. government agencies and corporations
    
100,218
      
62
      
(4,596
)
    
95,684
       —  
Obligations of states and political subdivisions
    
72,576
      
87
      
(5,072
)
    
67,591
       —  
Collateralized mortgage obligations
    
113,641
      
5
      
(18,701
)
    
94,945
       —  
Mortgage-backed securities
    
288,723
      
70
      
(18,705
)
    
270,088
       —  
                                     
 
Total debt securities
  
$
682,346
    
$
358
    
$
(48,851
)
  
$
633,853
     $
 —  

The amortized cost, unrealized gains and losses, estimated fair values and related allowance for credit losses on investments in debt and other securities at December 31, 2023 are summarized as follows:

   
Amortized
cost
    
Unrealized
gains
    
Unrealized
losses
    
Estimated
fair value
    
ACL
  
Investment securities available-for-sale:
                              
U.S. Treasury securities
  
$
90,063
    
$
134
    
$
(3,015
)
  
$
87,182
    
$
—
  
Securities of U.S. government agencies and corporations
    
121,305
      
105
      
(6,331
)
    
115,079
      
—
  
Obligations of states and political subdivisions
    
55,021
      
237
      
(3,581
)
    
51,677
      
—
  
Collateralized mortgage obligations
    
107,658
      
15
      
(16,726
)
    
90,947
      
—
  
Mortgage-backed securities
    
246,267
      
242
      
(19,037
)
    
227,472
      
—
  
                                         
Total debt securities
  
$
620,314
    
$
733
    
$
(48,690
)
  
$
572,357
    
$
—
  

Gross realized gains from sales and calls of available-for-sale securities were $0 and $96 for the years ended December 31, 2024 and 2023, respectively. Gross realized losses from sales of available-for-sale securities were $234 and $208 for the years ended December 31, 2024 and 2023, respectively.

The amortized cost and estimated fair value of debt and other securities at December 31, 2024, by contractual maturity, are shown in the following table:

 
Amortized
cost
    
Estimated
fair value
  
             
Maturity in years:
            
Due in one year or less
  
$
62,647
    
$
62,107
  
Due after one year through five years
    
131,918
      
127,071
  
Due after five years through ten years
    
40,745
      
38,370
  
Due after ten years
    
44,672
      
41,272
  
Subtotal
    
279,982
      
268,820
  
Mortgage-backed securities and Collateralized mortgage obligations
    
402,364
      
365,033
  
Total
  
$
682,346
    
$
633,853
  

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. In addition, factors such as prepayments and interest rates may affect the yield on the carrying value of mortgage-related securities.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2024, follows:

 
Less than 12 months
    
12 months or more
    
Total
  
   
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
U.S. Treasury securities
  
$
27,055
    
$
(431
)
  
$
42,603
    
$
(1,346
)
  
$
69,658
    
$
(1,777
)
Securities of U.S. government agencies and corporations
    
22,383
      
(471
)
    
58,585
      
(4,125
)
    
80,968
      
(4,596
)
Obligations of states and political subdivisions
    
33,078
      
(1,083
)
    
29,025
      
(3,989
)
    
62,103
      
(5,072
)
Collateralized mortgage obligations
    
28,937
      
(1,860
)
    
62,320
      
(16,841
)
    
91,257
      
(18,701
)
Mortgage-backed securities
    
110,599
      
(2,715
)
    
143,892
      
(15,990
)
    
254,491
      
(18,705
)
                                                 
Total
  
$
222,052
    
$
(6,560
)
  
$
336,425
    
$
(42,291
)
  
$
558,477
    
$
(48,851
)

One hundred fifty-five securities, all considered investment grade, which had a fair value of $222,052 and a total unrealized loss of $6,560, have been in an unrealized loss position for less than twelve months as of December 31, 2024. Three hundred seventy-five securities, all considered investment grade, which had a fair value of $336,425 and total unrealized loss of $42,291, have been in an unrealized loss position for more than twelve months as of December 31, 2024. The unrealized losses on the Company’s investment securities were caused by market conditions for these types of investments, particularly changes in risk-free interest rates. The decline in fair value is attributable to changes in interest rates and not credit quality, and the Company does not intend to sell the securities. The Company has concluded it is not more likely than not that the Company will be required to sell these securities prior to recovery of their anticipated cost basis. Therefore, as of December 31, 2024 and December 31, 2023, the Company had not recorded an allowance for credit losses on these securities and the unrecognized or unrealized losses on these securities have not been recognized into income.

The fair value of investment securities could decline in the future if the general economy deteriorates, inflation increases, credit ratings decline, the issuer’s financial condition deteriorates, or the liquidity for securities declines. As a result, a credit loss may occur in the future.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2023, follows:


  
Less than 12 months
    
12 months or more
    
Total
  
   
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
    
Fair Value
    
Unrealized
losses
  
U.S. Treasury Securities
  
$
—
    
$
-
 
$
77,203
    
$
(3,015
)
  
$
77,203
    
$
(3,015
)
Securities of U.S. government agencies and corporation
    
3,424
      
(7
)
    
97,057
      
(6,324
)
    
100,481
      
(6,331
)
Obligations of states and political subdivision
    
4,981
      
(31
)
    
32,578
      
(3,550
)
    
37,559
      
(3,581
)
Collateralized mortgage obligations
    
6,597
      
(26
)
    
80,995
      
(16,700
)
    
87,592
      
(16,726
)
Mortgage-backed securities
    
17,023
      
(124
)
    
182,626
      
(18,913
)
    
199,649
      
(19,037
)
                                                 
Total
  
$
32,025
    
$
(188
)
  
$
470,459
    
$
(48,502
)
  
$
502,484
    
$
(48,690
)

Investment securities carried at $53,589 and $43,884 at December 31, 2024 and 2023, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.