Investment Securities

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Debt securities AFS as of the balance sheet dates consisted of the following:


December 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Dollars in thousands)

U.S. Government-sponsored enterprises	$	29,664	$	—	$	(3,449)	$	26,215
Agency MBS	206,170		—		(32,895)		173,275
State and political subdivisions	55,737		14		(7,201)		48,550
Corporate	2,500		2		(38)		2,464
Total	$	294,071	$	16	$	(43,583)	$	250,504


December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Dollars in thousands)

U.S. Government-sponsored enterprises	$	44,153	$	—	$	(4,802)	$	39,351
Agency MBS	182,568		88		(30,272)		152,384
State and political subdivisions	72,254		395		(6,210)		66,439
Corporate	6,358		—		(149)		6,209
Total	$	305,333	$	483	$	(41,433)	$	264,383

There were no investment securities classified as HTM or trading at December 31, 2024 or 2023. Investment securities AFS with a fair value of $96.0 million and $926 thousand were pledged as collateral for FHLB borrowings and other credit subject to collateralization, public unit deposits or for other purposes as required or permitted by law at December 31, 2024 and 2023, respectively. Investment securities AFS pledged as collateral for the discount window and BTFP borrowings at the FRB consisted of U.S. government-sponsored enterprises and Agency MBS with a fair value of $9.7 million and $8.9 million at December 31, 2024 and December 31, 2023, respectively. The Company utilized BTFP as a source of liquidity during 2023 until the BTFP ceased making new loans in March 2024. (See Note 12.)

Information pertaining to AFS debt securities with gross unrealized losses, for which an ACL has not been recorded, as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:


December 31, 2024	Less Than 12 Months					12 Months and Over					Total
	Number of Securities	Fair Value		Gross Unrealized Loss		Number of Securities	Fair Value		Gross Unrealized Loss		Number of Securities	Fair Value		Gross Unrealized Loss
		(Dollars in thousands)

U.S. Government- sponsored enterprises	1	$	2,012	$	(69)	26	$	24,203	$	(3,380)	27	$	26,215	$	(3,449)
Agency MBS	11	43,367		(784)		87	129,908		(32,111)		98	173,275		(32,895)
State and political subdivisions	1	1,564		(8)		52	46,470		(7,193)		53	48,034		(7,201)
Corporate	1	499		(1)		3	1,463		(37)		4	1,962		(38)


Total	14	$	47,442	$	(862)	168	$	202,044	$	(42,721)	182	$	249,486	$	(43,583)


December 31, 2023	Less Than 12 Months					12 Months and Over					Total
	Number of Securities	Fair Value		Gross Unrealized Loss		Number of Securities	Fair Value		Gross Unrealized Loss		Number of Securities	Fair Value		Gross Unrealized Loss
		(Dollars in thousands)

U.S. Government- sponsored enterprises	2	$	2,891	$	(4)	32	$	36,460	$	(4,798)	34	$	39,351	$	(4,802)
Agency MBS	—	—		—		93	147,260		(30,272)		93	147,260		(30,272)
State and political subdivisions	10	14,532		(276)		65	40,720		(5,934)		75	55,252		(6,210)
Corporate	—	—		—		13	6,209		(149)		13	6,209		(149)


Total	12	$	17,423	$	(280)	203	$	230,649	$	(41,153)	215	$	248,072	$	(41,433)

AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses and an ACL is recorded for any credit loss identified. No ACL for AFS debt securities was recorded at December 31, 2024 or December 31, 2023. Accrued interest receivable on AFS debt securities totaled $1.2 million and $1.4 million at December 31, 2024 and 2023, respectively, and is excluded from the estimate of credit losses.

There were no dispositions of AFS debt securities for the year ended December 31, 2023. The following table presents the proceeds from sales resulting in gross realized gains and gross realized losses from the disposition of AFS debt securities for the year ended December 31, 2024:



	2024
	(Dollars in thousands)
Proceeds from sales	$	37,218


Gross gains	218
Gross losses	(1,511)
Net losses	$	(1,293)

The amortized cost and estimated fair value of AFS debt securities by contractual scheduled maturity as of December 31, 2024, were as follows:


	Amortized Cost		Fair Value
Available-for-sale	(Dollars in thousands)
Due in one year or less	$	1,011	$	1,011
Due from one to five years	14,519		13,235
Due from five to ten years	11,511		10,115
Due after ten years	60,860		52,868
	87,901		77,229
Agency MBS	206,170		173,275
Total	$	294,071	$	250,504

Actual maturities may differ for certain AFS debt securities that may be called by the issuer prior to the contractual maturity. Actual maturities may differ from contractual maturities on agency MBS because the mortgages underlying the securities may be prepaid, usually without any penalties. Therefore, these agency MBS are shown separately and not included in the contractual maturity categories in the above maturity summary.