
(dollars in thousands)
December 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale:
U.S. treasury securities	$	3,173	$	—	$	—	$	3,173
U.S. agency securities	3,001		—		(246)		2,755
Asset backed securities	17,925		17		(118)		17,824
State, county & municipal securities	110,952		—		(15,315)		95,637
Corporate debt securities	53,324		1		(5,543)		47,782
Mortgage-backed securities	221,005		207		(22,334)		198,878
Total	$	409,380	$	225	$	(43,556)	$	366,049

December 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Held-to-Maturity:
U.S. treasury securities	$	91,004	$	—	$	(2,828)	$	88,176
U.S. agency securities	16,151		—		(1,263)		14,888

State, county & municipal securities	137,190		—		(15,915)		121,275
Mortgage-backed securities	185,732		—		(27,051)		158,681
Total	$	430,077	$	—	$	(47,057)	$	383,020


December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale:
U.S. treasury securities	$	500	$	—	$	(2)	$	498
U.S. agency securities	4,500		—		(361)		4,139
Asset backed securities	25,035		—		(405)		24,630
State, county & municipal securities	124,524		6		(15,494)		109,036
Corporate debt securities	53,834		16		(6,460)		47,390
Mortgage-backed securities	246,901		36		(25,248)		221,689
Total	$	455,294	$	58	$	(47,970)	$	407,382


December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Held-to-Maturity:
U.S. treasury securities	$	93,306	$	—	$	(3,212)	$	90,094
U.S. agency securities	16,282		—		(1,424)		14,858
State, county & municipal securities	136,685		356		(13,859)		123,182
Mortgage-backed securities	202,758		—		(25,316)		177,442
Total	$	449,031	$	356	$	(43,811)	$	405,576

The Company elected to exclude accrued interest receivable from the amortized cost basis of available-for-sale and held-to-maturity securities disclosed throughout this note. As of December 31, 2024 and December 31, 2023, accrued interest receivable for available-for-sale and held-to-maturity securities totaled $2.3 million and $2.4 million, and $1.8 million and $1.9 million, respectively, and is included in the "other assets" line item on the Company's consolidated balance sheet.

Information pertaining to available-for-sale securities with gross unrealized losses at December 31, 2024 and December 31, 2023 aggregated by investment category and length of time that securities have been in a continuous unrealized loss position are summarized as follows:


	Less Than 12 Months				12 Months or More				Total
(dollars in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
December 31, 2024

U.S. agency securities	—		—		2,755		(246)		2,755		(246)
Asset backed securities	3,715		(8)		8,269		(110)		11,984		(118)
State, county & municipal securities	2,829		(294)		92,808		(15,021)		95,637		(15,315)
Corporate debt securities	4,434		(720)		42,847		(4,823)		47,281		(5,543)
Mortgage-backed securities	21,278		(430)		160,343		(21,904)		181,621		(22,334)
Total debt securities	$	32,256	$	(1,452)	$	307,022	$	(42,104)	$	339,278	$	(43,556)

December 31, 2023
U.S. treasury securities	$	—	$	—	$	498	$	(2)	$	498	$	(2)
U.S. agency securities	—		—		4,139		(361)		4,139		(361)
Asset backed securities	6,196		(75)		17,424		(330)		23,620		$	(405)
State, county & municipal securities	1,033		(138)		107,443		(15,356)		108,476		$	(15,494)
Corporate debt securities	1,446		(105)		45,044		(6,355)		46,490		(6,460)
Mortgage-backed securities	5,921		(49)		212,876		(25,199)		218,797		(25,248)
Total debt securities	$	14,596	$	(367)	$	387,424	$	(47,603)	$	402,020	$	(47,970)

Information pertaining to held-to-maturity securities with gross unrealized losses at December 31, 2024 and December 31, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position is summarized as follows:


	Less Than 12 Months				12 Months or Greater				Total
(dollars in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
December 31, 2024
U.S. treasury securities	$	—	$	—	$	88,176	$	(2,828)	$	88,176	$	(2,828)
U.S. agency securities	—		—		14,888		(1,263)		14,888		(1,263)

State, county & municipal securities	18,751		(374)		102,524		(15,541)		121,275		(15,915)
Mortgage-backed securities	—		—		158,681		(27,051)		158,681		(27,051)
	$	18,751	$	(374)	$	364,269	$	(46,683)	$	383,020	$	(47,057)

December 31, 2023
U.S. treasury securities	$	—	$	—	$	90,094	$	(3,212)	$	90,094	$	(3,212)
U.S. agency securities	—		—		14,858		(1,424)		14,858		(1,424)
State, county & municipal securities	1,461		(78)		103,500		(13,781)		104,961		(13,859)
Mortgage-backed securities	—		—		177,442		(25,316)		177,442		(25,316)
	$	1,461	$	(78)	$	385,894	$	(43,733)	$	387,355	$	(43,811)

Management evaluates available-for-sale securities in an unrealized loss position at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation to determine if credit-related losses exists. Management first evaluates whether they intend to sell or more likely than not will be required to sell a security wtih losses before recovering its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in earnings with a

corresponding adjustment to the security's amortized cost basis. If either of the above criteria is not met, management evaluates whether the decline in fair value is attributable to credit or resulted from other factors. The Company does not intend to sell these investment securities in an unrealized loss position at December 31, 2024, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity. Based on management's review, the Company's available-for-sale securities have no expected credit losses and no related allowance for credit losses has been established.

The Company uses a systematic methodology to determine its ACL for debt securities held-to-maturity considering the effects of past events, current conditions, and reasonable and supportable forecasts on the collectability of the portfolio. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the held-to-maturity portfolio. The Company monitors the held-to-maturity portfolio on a quarterly basis to determine whether a valuation account would need to be recorded. Based on management's review, the Company's held-to-maturity securities have no expected credit losses and no related allowance for credit losses has been established.

At December 31, 2024, there are 237 available-for-sale securities and 156 held-to-maturity securities that have unrealized losses from the Company’s amortized cost basis. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are due to reasons of credit quality.

The amortized cost and fair value of investment securities as of December 31, 2024, by contractual maturity, are shown hereafter. Expected maturities may differ from contractual maturities for certain investments because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.


	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	5,173	$	5,153	$	33,647	$	33,401
Due after one year through five years	22,330		20,622		71,876		68,754
Due after five years through ten years	92,606		79,917		71,187		62,678
Due after ten years	68,266		61,479		67,635		59,506
	$	188,375	$	167,171	$	244,345	$	224,339

Mortgage-backed securities	221,005		198,878		185,732		158,681
	$	409,380	$	366,049	$	430,077	$	383,020

Proceeds from the sales of investment securities totaled $33.9 million for the year ended December 31, 2024, and resulted in gross realized losses of $1.8 million. The purpose of these sales in 2024 was to restructure underperforming assets and reinvest at higher yields. The sales do not impact our ability to hold the remaining available-for-sale securities, and we are not in a position to be required to sell any remaining securities at this time. The Company had no sales of investment securities in 2023.

The Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326), as amended on January 1, 2023 which included evaluation of expected credit losses on debt securities. As part of the Company's calculated credit losses, the allowance for credit losses on investment securities was determined to be de minimis due to the high credit quality of the portfolio, which includes securities issued or guaranteed by the U.S. Treasury, U.S. Government agencies and high quality municipalities. Therefore, no allowance for credit losses was recorded as of December 31, 2024 or 2023. See Note 1 for additional details on the allowance for credit losses as it relates to the securities portfolio.