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SECURITIES
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
Debt securities purchased with the intent and ability to hold to their maturity are classified as held-to-maturity securities. All other investment securities are classified as available-for-sale securities.
Available-for-Sale Securities
Information related to the amortized cost, fair value and allowance for credit losses of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) at December 31, 2024 and 2023 is provided in the tables below.
(dollars in thousands)Amortized
Cost		Gross
Unrealized
Gain		Gross
Unrealized
Losses		Allowance for Credit LossesFair
Value
2024
U.S. government sponsored agencies$137,150 $0 $(27,715)$0 $109,435 
Mortgage-backed securities: residential500,278 83 (77,952)0 422,409 
State and municipal securities545,073 17 (85,508)0 459,582 
Total$1,182,501 $100 $(191,175)$0 $991,426 
2023
U.S. government sponsored agencies$146,692 $0 $(27,213)$0 $119,479 
Mortgage-backed securities: residential522,275 118 (74,551)0 447,842 
State and municipal securities557,352 65 (73,010)0 484,407 
Total$1,226,319 $183 $(174,774)$0 $1,051,728 
Held-to-Maturity Securities
Information related to the amortized cost, fair value and allowance for credit losses of securities held-to-maturity and the related gross gains and unrealized gains and losses at December 31, 2024 and 2023 is presented in the table below.
(dollars in thousands)Amortized
Cost		Gross Unrealized GainGross Unrealized LossesAllowance for Credit LossesFair Value
2024
State and municipal securities$131,568 $0 $(18,461)$0 $113,107 
2023
State and municipal securities$129,918 $0 $(10,703)$0 $119,215 
On April 1, 2022, the Company elected to transfer securities from available-for-sale to held-to-maturity as an overall balance sheet management strategy. The fair value of securities transferred was $127.0 million from available-for-sale to held-to-maturity. The Company has the current intent and ability to hold the transferred securities until maturity. Any net unrealized gain or loss on the transferred securities included in accumulated other comprehensive income (loss) at the time of the transfer will be amortized over the remaining life of the underlying security as an adjustment to the yield on those securities. The unrealized loss on the securities transferred from available-for-sale to held-to-maturity was $24.4 million ($19.3 million, net of tax) based on the fair value of the securities on the transfer date and has amortized down to $19.0 million ($15.0 million, net of tax) at December 31, 2024.
NOTE 2 – SECURITIES (continued)
Information regarding the fair value and amortized cost of available-for-sale and held-to-maturity debt securities by maturity as of December 31, 2024 is presented below. Maturity information is based on contractual maturity for all securities other than mortgage-backed securities. Actual maturities of securities may differ from contractual maturities because borrowers may have the right to prepay the obligation without prepayment penalty.
Available-for-SaleHeld-to-Maturity
(dollars in thousands)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due in one year or less$440 $438 $0 $0 
Due after one year through five years8,359 7,778 0 0 
Due after five years through ten years60,937 55,046 7,202 6,343 
Due after ten years612,487 505,755 124,366 106,764 
682,223 569,017 131,568 113,107 
Mortgage-backed securities500,278 422,409 0 0 
Total debt securities$1,182,501 $991,426 $131,568 $113,107 
Security proceeds, gross gains and gross losses for 2024, 2023 and 2022 were as follows:
(dollars in thousands)202420232022
Sales of securities available-for-sale
Proceeds$7,136 $105,175 $25,332 
Gross gains0 439 140 
Gross losses(46)(464)(119)
Number of securities15 115 30 
In accordance with ASU 2017-8, purchase premiums for callable securities are amortized to the earliest call date and premiums on non-callable securities as well as discounts are recognized in interest income using the interest method over the terms of the securities or over the estimated lives of mortgage-backed securities. Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date.

Securities with fair values of $560.2 million and $792.0 million were pledged as of December 31, 2024 and 2023, respectively, as collateral for borrowings from the FHLB and Federal Reserve Bank and for other purposes as permitted or required by law.
NOTE 2 – SECURITIES (continued)
Unrealized Loss Analysis on Available-for-Sale and Held-to-Maturity Securities
Information regarding available-for-sale securities securities with unrealized losses as of December 31, 2024 and 2023 is presented below. The tables distribute the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.
Less than 12 months12 months or moreTotal
(dollars in thousands)Fair
Value		Unrealized LossesFair
Value		Unrealized LossesFair
Value		Unrealized Losses
2024            
U.S. government sponsored agencies$0 $0 $109,435 $27,715 $109,435 $27,715 
Mortgage-backed securities: residential23,204 249 390,483 77,703 413,687 77,952 
State and municipal securities12,928 439 443,569 85,069 456,497 85,508 
Total temporarily impaired$36,132 $688 $943,487 $190,487 $979,619 $191,175 
2023
U.S. government sponsored agencies$0 $0 $119,479 $27,213 $119,479 $27,213 
Mortgage-backed securities: residential52 0 442,765 74,551 442,817 74,551 
State and municipal securities31,345 440 440,446 72,570 471,791 73,010 
Total temporarily impaired$31,397 $440 $1,002,690 $174,334 $1,034,087 $174,774 
Information regarding held-to-maturity securities with unrealized losses as of December 31, 2024 and 2023 is presented below. The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.
Less than 12 months12 months or moreTotal
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
2024
State and municipal securities$0 $0 $113,107 $18,461 $113,107 $18,461 
2023
State and municipal securities$0 $0 $119,215 $10,703 $119,215 $10,703 
NOTE 2 – SECURITIES (continued)
The number of securities with unrealized losses as of December 31, 2024 and 2023 is presented below.
Available-for-SaleHeld-to-Maturity
Less than
12 months		12 months
or more		TotalLess than
12 months		12 months
or more		Total
2024    
U.S. government sponsored agencies0 17 17 0 0 0 
Mortgage-backed securities: residential9 124 133 0 0 0 
State and municipal securities23 392 415 0 41 41 
Total temporarily impaired32 533 565 0 41 41 
2023
U.S. government sponsored agencies0 17 17 0 0 0 
Mortgage-backed securities: residential1 126 127 0 0 0 
State and municipal securities40 370 410 0 41 41 
Total temporarily impaired41 513 554 0 41 41 
Available-for-sale and held-to-maturity debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for-sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the consolidated income statement. For available-for-sale debt securities that do not meet the criteria and for held-to-maturity securities, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, management compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. For available-for-sale debt securities, any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes.
No allowance for credit losses for available-for-sale or held-to-maturity securities was recorded at December 31, 2024 or 2023. Accrued interest receivable on available-for-sale and held-to-maturity debt securities totaled $7.5 million and $7.6 million at December 31, 2024 and 2023, respectively, and is excluded from the estimate of credit losses.
Ninety-nine percent of the securities are backed by the U.S. government, government agencies, government sponsored agencies or are rated above investment grade with a long history of no credit losses, except for certain non-local or local municipal securities, which are not rated. The U.S. government sponsored agencies and mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. State and municipal securities credit losses are benchmarked against highly rated municipal securities of similar duration, as published by Moody's, resulting in an immaterial allowance for credit losses.
On April 8, 2024, Visa Inc. announced the commencement of an exchange offer for Visa Class B-1 common stock, which was being carried at a historical cost basis of zero on the Company's balance sheet. On May 7, 2024, the Bank received notice that Visa had accepted the Bank's tender of its 23,804 shares of Visa Class B-1 common stock in exchange for a combination of Visa Class B-2 common stock and Visa Class C common stock, which are carried at fair value.
Subsequent to the exchange and during the second quarter of 2024, the Bank sold its Visa Class B-2 common stock, which resulted in a realized gain of $3.9 million. During the second and third quarters of 2024, the Bank liquidated its Visa Class C common stock, which resulted in a net realized gain of $5.1 million. The Bank remains a party of a makewhole agreement with Visa as a requirement of entering the exchange. The Bank did not record a liability as of December 31, 2024 under the terms of this agreement as a loss was neither probable nor estimable at this time.