Investment securities have been classified in the consolidated balance sheets according to management’s intent. Management assesses securities in its investment portfolio for impairment on a quarterly basis or when events or circumstances suggest that the carrying amount of an investment may be impaired. In accordance with ASC 326, available-for-sale securities are evaluated as of each reporting date when the fair value is less than amortized cost, and credit losses are to be calculated individually using a discounted cash flow method through which management compares the present value of the expected cash flows with the amortized costs. An allowance for credit losses is established to reflect the credit loss component of the decline in fair value.

Factors management considers in assessing whether a discounted cash flow method evaluation is needed for a security whose fair value is less than amortized costs include: (1) management will assess whether it intends to sell, or if it is more likely than not it will be required to sell, the security before recovery of the amortized cost basis; (2) the length of time (duration) and the extent (severity) to which the market value has been less than costs; (3) the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer, such as changes in technology that impair the earnings potential of the investment or the discontinuance of a segment of the business that may affect the future earnings potential; and (4) changes in the rating of the security by a rating agency.

The carrying amount of securities and their approximate fair values as of June 30, 2024 and December 31, 2023 are as follows:


(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
June 30, 2024
Securities available-for-sale:
U.S government and agency securities	$	18,844	$	43	$	73	$	18,814
State and municipal securities		1,000		3		—		1,003
Mortgage-backed securities and collateralized mortgage obligations		177,120		996		1,240		176,876
Corporate bonds		94,744		408		5,678		89,474
	$	291,708	$	1,450	$	6,991	$	286,167


December 31, 2023
Securities Available-for-sale:
U.S. government and agency securities	$	4,017	$	—	$	26	$	3,991
Mortgage-backed securities and collateralized mortgage obligations		77,703		1,599		769		78,533
Corporate bonds		100,371		861		5,669		95,563
	$	182,091	$	2,460	$	6,464	$	178,087

Mortgage-backed securities are typically issued with stated principal amounts and are backed by pools of mortgages that have loans with varying maturities. The characteristics of the underlying pool of mortgages, such as prepayment risk, are passed on to the certificate holder. Accordingly, the term of mortgage-backed securities approximates the term of the underlying mortgages and can vary significantly due to prepayments. Therefore, schedules of maturities for mortgage-backed securities have been excluded from the below disclosure.

The amortized cost and estimated fair value of securities available-for-sale at June 30, 2024, by contractual maturity, are shown below.


	June 30, 2024
	Securities Available-for-Sale
(Dollars in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	7,401	$	7,400
Due from one year to five years		7,946		8,010
Due from five to ten years		80,397		75,067
Over ten years		18,844		18,814
		114,588		109,291
Mortgage-backed securities and collateralized mortgage obligations		177,120		176,876
	$	291,708	$	286,167

The following table summarizes securities with unrealized losses at June 30, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous unrealized loss position:


(Dollars in thousands)	Less Than 12 Months in a Loss Position		Greater Than 12 Months in a Loss Position		Total Unrealized Loss		Estimated Fair Value
June 30, 2024
Securities available-for-sale:
U.S. government and agency securities	$	73	$	—	$	73	$	8,727
Mortgage-backed securities and collateralized mortgage obligations		271		969		1,240		63,664
Corporate bonds		1,398		4,280		5,678		60,506
	$	1,742	$	5,249	$	6,991	$	132,897
December 31, 2023
Securities available-for-sale:
U.S. government and agency securities	$	26	$	—	$	26	$	3,991
Mortgage-backed securities and collateralized mortgage obligations		—		769		769		16,001
Corporate bonds		128		5,541		5,669		64,143
	$	154	$	6,310	$	6,464	$	84,135

There were 43 investments in an unrealized loss position at June 30, 2024, and 37 investments in an unrealized loss position at December 31, 2023. As of June 30, 2024, no allowance for credit losses has been recognized on available-for-sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to reasons of credit quality. This is based upon our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our available-for-sale securities and in consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. In addition, a portion of our investments are guaranteed by the U.S. Government, Treasury, or municipalities. Furthermore, management does not have the intent to sell any of the securities classified as available-for-sale in the table above and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline.

There were no securities pledged as collateral as of June 30, 2024 and December 31, 2023.

Proceeds from the sales of securities and their gross gains for the six months ended June 30, 2024 were $14.5 million and $280,000, respectively. For the six months ended June 30, 2023, proceeds from the sales of securities and their gross gains were $3.9 million and $97,000, respectively.

Proceeds from the sales of securities and their gross gains for the three months ended June 30, 2024 were $9.2 million and $123,000, respectively. For the three months ended June 30, 2023, no proceeds or gross gains were recorded from the sales of securities. There were no gross losses recorded from the sales of securities for the six and three months ended June 30, 2024 and 2023.