The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of available-for-sale ("AFS") debt securities as of September 30, 2024 and December 31, 2023:



	September 30, 2024
($ in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	43,472	$	2	$	(3,313)	$	40,161
Residential collateralized mortgage obligations	166,819		1,014		(14,719)		153,114
Municipal securities - tax exempt	5,803		298		(3)		6,098
Total AFS debt securities	$	216,094	$	1,314	$	(18,035)	$	199,373



	December 31, 2023
($ in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	48,318	$	—	$	(4,441)	$	43,877
Residential collateralized mortgage obligations	162,142		67		(17,750)		144,459
Municipal securities - tax exempt	5,726		189		(1)		5,914
Total AFS debt securities	$	216,186	$	256	$	(22,192)	$	194,250



($ in thousands)	Amortized Cost		Fair Value
After one year through five years	$	976	$	950
After five years through ten years	2,608		2,443
After ten years	212,510		195,980
Total AFS debt securities	$	216,094	$	199,373

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. As of September 30, 2024 and December 31, 2023, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.

The following table presents the fair value and the associated gross unrealized losses on AFS debt securities by length of time those individual securities in each category have been in a continuous loss as of September 30, 2024 and December 31, 2023:



	September 30, 2024
	Less Than 12 Months				12 Months or Longer				Total
($ in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	—	$	—	$	34,246	$	(3,313)	$	34,246	$	(3,313)
Residential collateralized mortgage obligations	—		—		99,258		(14,719)		99,258		(14,719)
Municipal securities - tax exempt	—		—		1,841		(3)		1,841		(3)
Total AFS debt securities	$	—	$	—	$	135,345	$	(18,035)	$	135,345	$	(18,035)



	December 31, 2023
	Less Than 12 Months				12 Months or Longer				Total
($ in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	6,488	$	(59)	$	37,389	$	(4,382)	$	43,877	$	(4,441)
Residential collateralized mortgage obligations	25,439		(177)		105,963		(17,573)		131,402		(17,750)
Municipal securities - tax exempt	1,842		(1)		—		—		1,842		(1)
Total AFS debt securities	$	33,769	$	(237)	$	143,352	$	(21,955)	$	177,121	$	(22,192)

Available-for-sale debt securities are measured at fair value and are subject to impairment testing. A security is impaired if the fair value of the security is less than its amortized cost basis. When an available-for-sale debt security is considered impaired, the Company must determine if the decline in fair value has resulted from a credit-related loss or other factors and then, (1) recognize an allowance for credit losses by a charge to earnings for the credit-related component of the decline in fair value, and (2) recognize in other comprehensive income (loss) any non-credit related components of the fair value decline. If the amount of the amortized cost basis expected to be recovered increases in a future period, the valuation reserve would be reduced, but not more than the amount of the current existing reserve for that security.

The unrealized losses from the decline in fair value is attributable to changes in interest rates, and not credit quality. The issuers of the AFS debt securities are of high credit quality. Approximately 97% of the AFS debt securities are residential mortgage-backed securities and residential collateralized mortgage obligations that were issued by U.S. government-sponsored agencies, such as Ginnie Mae, Fannie Mae and Freddie Mac. The remaining 3% of the AFS debt securities are tax-exempt municipal securities.

We believe that the unrealized losses presented in the previous tables are temporary and no credit losses are expected. As a result, the Company expects full collection of the carrying amount of these securities, does not intend to sell the securities in an unrealized loss position, and it was more-likely-than-not the Company will not have to sell these securities prior to recovery of amortized cost. Accordingly, for available-for-sale debt securities, the Company did not have allowance for credit losses as of September 30, 2024 and December 31, 2023.

As of September 30, 2024 and December 31, 2023, there were no pledged securities to secure public deposits, borrowing and letters of credit from the Federal Home Loan Bank System ("FHLB") and the Board of Governors of the Federal Reserve System, and for other purposes required or permitted by law.

The following table presents the other investment securities, which are included in other investments on the Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023:



($ in thousands)	September 30, 2024		December 31, 2023
FHLB stock	$	12,615	$	12,528
Pacific Coast Bankers Bank ("PCBB") stock	190		190
Mutual fund - Community Reinvestment Act ("CRA") qualified	3,615		3,463
Time deposits placed in other banks	100		95
Total other investments	$	16,520	$	16,276

The Company has equity investment in a mutual fund with readily determinable fair value of $3.6 million and $3.5 million as of September 30, 2024 and December 31, 2023, respectively, which is measured at fair value with changes in fair value recorded in net income. The Company invested in the mutual fund for CRA purposes. For the mutual fund, the Company recorded a $127 thousand unrealized gain and a $106 thousand unrealized loss for the three months ended September 30, 2024 and 2023, respectively, and a $77 thousand unrealized gain and a $105 thousand unrealized loss for the nine months ended September 30, 2024 and 2023, respectively. The unrealized gains (losses) of the mutual fund are included in other income in the consolidated statements of income.