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DEBT SECURITIES
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
DEBT SECURITIES DEBT SECURITIES
The following presents the amortized cost, fair value, and allowance for credit losses of debt securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses as of the date noted (dollars in thousands):
December 31, 2024Amortized
Cost		Gross
Unrecognized
Gains		Gross
Unrecognized
Losses		Fair
Value		Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasury debt$246 $— $(4)$242 $— 
Corporate bonds23,578 — (2,801)20,777 (71)
Government National Mortgage Association ("GNMA") MBS – residential
31,361 — (3,383)27,978 — 
Federal National Mortgage Association ("FNMA") MBS – residential
12,011 — (689)11,322 — 
Government collateralized mortgage obligations ("GMO") and MBS – commercial5,075 5 (483)4,597 — 
Corporate CMO and MBS3,524 — (279)3,245 — 
Total debt securities held-to-maturity
$75,795 $5 $(7,639)$68,161 $(71)
December 31, 2023Amortized
Cost		Gross
Unrecognized
Gains		Gross
Unrecognized
Losses		Fair
Value		Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasury debt$253 $— $(11)$242 $— 
Corporate bonds23,687 — (3,020)20,667 (71)
GNMA mortgage-backed securities – residential34,579 — (3,410)31,169 — 
FNMA mortgage-backed securities – residential6,035 — (509)5,526 — 
Government GMO and MBS – commercial5,836 9 (377)5,468 — 
Corporate CMO and MBS3,783 — (238)3,545 — 
Total debt securities held-to-maturity
$74,173 $9 $(7,565)$66,617 $(71)
Net accretion of premiums and discounts related to held-to-maturity debt securities during each of the years ended December 31, 2024 and 2023 totaled $0.1 million and $0.0 million, respectively, and is included in Net interest income in the Consolidated Statements of Income.
As of December 31, 2024, the amortized cost and estimated fair value of held-to-maturity debt securities have contractual maturity dates shown in the table below (dollars in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
December 31, 2024Amortized
Cost		Fair
Value
Due within one year$— $— 
Due between one year and five years4,241 4,015 
Due between five years and ten years19,41016,844
Due after ten years173160
Securities (CMO and MBS)51,97147,142
Total$75,795 $68,161 
In 2022, the Company committed $6.0 million in total to two bank technology funds. During the year ended December 31, 2024 and 2023, the Company made $0.5 million and $0.8 million in contributions to the partnerships, respectively. During the year ended December 31, 2024 and 2023, the Company received a $0.3 million and $0.1 million return on investment from the partnerships, respectively. As of December 31, 2024 and 2023, the Company held a balance of $2.5 million and $2.0 million, respectively, which is included in Other assets in the accompanying Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $3.5 million in future contributions.
In 2014, the Company began investing in a small business investment company ("SBIC") fund administered by the Small Business Administration. The Company made $0.2 million and $0.2 million in contributions to the SBIC fund during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the Company held a balance of $2.4 million and $2.2 million, respectively, in the SBIC fund, which is included in Other assets in the accompanying Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $0.6 million in future SBIC investments.
As of December 31, 2024, securities with market values totaling $31.1 million were pledged to secure various public deposits and credit facilities of the Company. As of December 31, 2023, securities with carrying values of $45.1 million were pledged to secure various public deposits and credit facilities of the Company, including $39.3 million pledged under the BTFP program (refer to Note 1 – Organization and Summary of Significant Accounting Policies for more information on the BTFP program).
As of December 31, 2024 and 2023, there were no holdings of debt securities of any one issuer, other than the U.S. Government sponsored entities and agencies, in an amount greater than 10% of shareholders’ equity.
The Company did not sell any securities during the years ended December 31, 2024 or 2023.
Allowance for Credit Losses for HTM Debt Securities
Management measures expected credit losses on Held-to-maturity debt securities on a collective basis by major security type. The majority of our held-to-maturity investment portfolio consists of securities issued by U.S. government entities and agencies and we consider the risk of credit loss to be zero and, therefore, we do not record an ACL. The Company's non-government backed debt securities include private label CMO and MBS and corporate bonds. Accrued interest receivable on held-to-maturity debt securities totaled $0.3 million and $0.4 million at December 31, 2024 and 2023, respectively, and and is excluded from the estimate of credit losses. Refer to Note 1 – Organization and Summary of Significant Accounting Policies for additional information on the Company’s methodology on estimating credit losses. The following table presents the activity in the allowance for credit losses for Held-to-maturity debt securities by major security type for the years ended:
Year Ended December 31,
20242023
(dollars in thousands)Corporate BondsCorporate CMOCorporate BondsCorporate CMO
Allowance for credit losses:
Beginning balance$71 $— $— $— 
Impact of ASU 2016-13 adoption— — 71 — 
Provision for credit losses— — — — 
Securities charged-off (recoveries)— — — — 
Total ending allowance balance$71 $— $71 $— 
The Company monitors the credit quality of held-to-maturity debt securities on a quarterly basis. As of December 31, 2024, there were no held-to-maturity debt securities past due or on non-accrual.