SECURITIES

12 Months Ended

Dec. 31, 2024

2.	SECURITIES

The amortized cost, related gross unrealized gains and losses, allowance for credit losses, and estimated fair value of securities available for sale at year-end follows (dollars in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Fair Value
December 31, 2024
Available for sale:
State and municipal	$	199,588	$	1	$	(26,292	)	$	—	$	173,297
Residential mortgage-backed securities		321,021		—		(56,925	)		—		264,096
Commercial mortgage-backed securities		46,601		—		(6,241	)		—		40,360
Commercial collateralized mortgage obligations		73,697		—		(214	)		—		73,483
Asset-backed and other amortizing securities		16,107		—		(1,526	)		—		14,581
Other securities		12,000		—		(577	)		—		11,423
	$	669,014	$	1	$	(91,775	)	$	—	$	577,240

December 31, 2023
Available for sale:
State and municipal	$	202,814	$	2	$	(22,241	)	$	—	$	180,575
Residential mortgage-backed securities		351,251		—		(50,547	)		—		300,704
Commercial mortgage-backed securities		47,898		—		(6,150	)		—		41,748
Commercial collateralized mortgage obligations		72,391		—		(461	)		—		71,930
Asset-backed and other amortizing securities		18,476		—		(1,436	)		—		17,040
Other securities		12,000		—		(1,235	)		—		10,765
	$	704,830	$	2	$	(82,070	)	$	—	$	622,762

The amortized cost and estimated fair value of securities at December 31, 2024 are presented below by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Declining-balance securities are shown separately since they are not due at a single maturity date.

	Available for Sale
	Amortized Cost		Fair Value
Within 1 year	$	2,919	$	2,899
After 1 year through 5 years		4,508		4,376
After 5 years through 10 years		20,909		19,548
After 10 years		183,252		157,897
Declining-balance securities		457,426		392,520
	$	669,014	$	577,240

At December 31, 2024 and 2023, there were no holdings of securities of any one issuer, other than the U.S. government, its agencies, or its sponsored enterprises, in an amount greater than 10% of stockholders’ equity.

Securities with a carrying value of approximately $309.0 million and $438.9 million at December 31, 2024 and 2023, respectively, were pledged to collateralize public deposits and for other purposes as required or permitted by law.

The Company sold $56.2 million of available for sale securities in the second quarter of 2023. This resulted in realized losses on sale of $3.4 million.

The following table segregates securities with unrealized losses at year-end, by the duration they have been in a loss position for which an allowance for credit losses has not been recorded (dollars in thousands):

	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
December 31, 2024
State and municipal	$	205	$	1	$	171,306	$	26,291	$	171,511	$	26,292
Residential mortgage-backed securities		8		—		264,088		56,925		264,096		56,925
Commercial mortgage-backed securities		—		—		40,360		6,241		40,360		6,241
Commercial collateralized mortgage obligations		73,483		214		—		—		73,483		214
Asset-backed and other amortizing securities		—		—		14,581		1,526		14,581		1,526
Other securities		—		—		11,423		577		11,423		577
	$	73,696	$	215	$	501,758	$	91,560	$	575,454	$	91,775


December 31, 2023
State and municipal	$	207	$	—	$	177,908	$	22,241	$	178,115	$	22,241
Residential mortgage-backed securities		9		—		300,695		50,547		300,704		50,547
Commercial mortgage-backed securities		—		—		41,748		6,150		41,748		6,150
Commercial collateralized mortgage obligations		—		—		71,930		461		71,930		461
Asset-backed and other amortizing securities		—		—		17,040		1,436		17,040		1,436
Other securities		3,286		214		7,479		1,021		10,765		1,235
	$	3,502	$	214	$	616,800	$	81,856	$	620,302	$	82,070

There were 144 securities with an unrealized loss at December 31, 2024, generally due to increases in market rates. Management evaluates AFS securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or non-credit related factors. Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for the anticipated recovery in fair value. Management does not have the intent to sell any of the securities in an unrealized loss position as there are adequate liquidity sources to meet expected and unexpected funding needs. The fair value of these securities is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of December 31, 2024, management believes the unrealized loss positions detailed in the previous table are due to non-credit related factors, including changes in interest rates and other market conditions, and therefore no ACL or losses have been recognized or realized in the consolidated financial statements.