
	December 31, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. Treasury and U.S. government agencies	$	339,364	$	99	$	(19,694)	$	—	$	319,769
Mortgage-backed securities, residential	320,947		16		(34,546)		—		286,417
Collateralized mortgage obligations, residential	150,726		—		(13,656)		—		137,070
Mortgage-backed securities, multifamily	856		—		(180)		—		676
Collateralized mortgage obligations, multifamily	46,541		—		(4,045)		—		42,496
Asset-backed securities	44,561		—		(868)		—		43,693
Obligations of states and political subdivisions	19,699		—		(571)		—		19,128
Debt securities	112,544		—		(15,511)		—		97,033
Total	$	1,035,238	$	115	$	(89,071)	$	—	$	946,282


	December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. Treasury and U.S. government agencies	$	383,958	$	100	$	(28,419)	$	—	$	355,639
Mortgage-backed securities, residential	351,355		6		(40,748)		—		310,613
Collateralized mortgage obligations, residential	170,502		—		(16,444)		—		154,058
Mortgage-backed securities, multifamily	1,000		—		(215)		—		785
Collateralized mortgage obligations, multifamily	51,108		—		(4,775)		—		46,333
Asset-backed securities	54,105		—		(1,710)		—		52,395
Obligations of states and political subdivisions	22,112		—		(989)		(1)		21,122
Debt securities	124,394		—		(10,718)		(309)		113,367
Total	$	1,158,534	$	106	$	(104,018)	$	(310)	$	1,054,312


	December 31, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. government agencies	$	10,406	$	7	$	(499)	$	—	$	9,914
Mortgage-backed securities, residential	332,509		82		(52,165)		—		280,426
Collateralized mortgage obligations, residential	12,243		—		(2,796)		—		9,447
Mortgage-backed securities, multifamily	4,145		—		(651)		—		3,494

Obligations of states and political subdivisions	474,220		43		(77,379)		(25)		396,859
Debt securities	3,000		—		(456)		(121)		2,423
Total	$	836,523	$	132	$	(133,946)	$	(146)	$	702,563


	December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. government agencies	$	11,099	$	11	$	(725)	$	—	$	10,385
Mortgage-backed securities, residential	360,683		57		(58,128)		—		302,612
Collateralized mortgage obligations, residential	13,026		—		(2,570)		—		10,456
Mortgage-backed securities, multifamily	5,094		—		(747)		—		4,347

Obligations of states and political subdivisions	530,513		2		(100,400)		(7)		430,108
Debt securities	3,000		—		(353)		(100)		2,547
Total	$	923,415	$	70	$	(162,923)	$	(107)	$	760,455

The following table lists contractual maturities of investment securities classified as available for sale and held to maturity as of December 31, 2023. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available for Sale				Held to Maturity
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	90,745	$	88,651	$	24,853	$	24,696
Due after one year through five years	217,816		204,111		33,733		32,023
Due after five years through ten years	107,767		93,372		108,972		95,124
Due after ten years	55,279		49,796		320,068		257,353
	471,607		435,930		487,626		409,196
Mortgage-backed and asset-backed securities	563,631		510,352		348,897		293,367
Total	$	1,035,238	$	946,282	$	836,523	$	702,563

For the years ended December 31, 2023 and 2022, there were no sales of available for sale securities. There were $4.4 million sales of securities for the year ended December 31, 2021 with gross gains on sales of securities of $9,000 and no gross losses on sales of securities. Gains or losses on sales of securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method.


December 31, 2023	Less Than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses
AVAILABLE FOR SALE
U.S. Treasury and U.S. government agencies	$	2,587	$	—	$	308,315	$	19,694	59	$	310,902	$	19,694
Mortgage-backed securities, residential	10		—		284,803		34,546		129	284,813		34,546
Collateralized mortgage obligations, residential	—		—		137,070		13,656		100	137,070		13,656
Mortgage-backed securities, multifamily	—		—		676		180		1	676		180
Collateralized mortgage obligations, multifamily	—		—		42,496		4,045		20	42,496		4,045
Asset-backed securities	2,694		25		40,999		843		16	43,693		868
Obligations of states and political subdivisions	270		—		16,353		571		36	16,623		571
Debt securities	—		—		97,033		15,511		46	97,033		15,511
Total	$	5,561	$	25	$	927,745	$	89,046	407	$	933,306	$	89,071
HELD TO MATURITY
U.S. government agencies	$	—	$	—	$	8,956	$	499	3	$	8,956	$	499
Mortgage-backed securities, residential	$	285	$	2	$	274,528	$	52,163	183	$	274,813	$	52,165
Collateralized mortgage obligations, residential	—		—		9,447		2,796		11	9,447		2,796
Mortgage-backed securities, multifamily	—		—		3,494		651		3	3,494		651

Obligations of states and political subdivisions	3,691		2		380,787		77,377		341	384,478		77,379
Debt securities	—		—		2,544		456		1	2,544		456
Total	$	3,976	$	4	$	679,756	$	133,942	542	$	683,732	$	133,946


December 31, 2022	Less Than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses
AVAILABLE FOR SALE
U.S. Treasury and U.S. government agencies	$	114,514	$	5,856	$	229,094	$	22,563	67	$	343,608	$	28,419
Mortgage-backed securities, residential	127,363		12,399		182,079		28,349		135	309,442		40,748
Collateralized mortgage obligations, residential	66,316		3,958		87,742		12,486		104	154,058		16,444
Mortgage-backed securities, multifamily	—		—		786		215		1	786		215
Collateralized mortgage obligations, multifamily	37,407		2,861		8,926		1,914		20	46,333		4,775
Asset-backed securities	34,871		977		17,524		733		17	52,395		1,710
Obligations of states and political subdivisions	3,771		276		16,746		713		46	20,517		989
Debt securities	88,489		7,437		22,880		3,281		49	111,369		10,718
Total	$	472,731	$	33,764	$	565,777	$	70,254	439	$	1,038,508	$	104,018
HELD TO MATURITY
U.S. government agencies	$	6,671	$	336	$	2,412	$	389	3	$	9,083	$	725
Mortgage-backed securities, residential	$	32,549	$	2,275	$	264,035	$	55,853	182	$	296,584	$	58,128
Collateralized mortgage obligations, residential	4,668		516		5,787		2,054		12	10,455		2,570
Mortgage-backed securities, multifamily	2,671		376		1,676		371		4	4,347		747

Obligations of states and political subdivisions	82,459		3,689		341,076		96,711		379	423,535		100,400
Debt securities	—		—		2,647		353		1	2,647		353
Total	$	129,018	$	7,192	$	617,633	$	155,731	581	$	746,651	$	162,923

For available for sale securities, the Company assesses whether a loss is from credit or other factors and considers the extent to which fair value is less than amortized cost, adverse changes to the rating of the security by a rating agency, a security's market yield as compared to similar securities and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows is less than the amortized cost, a credit loss exists and an allowance is created, limited by the amount that the fair value is less than the amortized cost basis.

For held to maturity securities, management measures expected credit losses on a collective basis by major security type. All of the mortgage-backed securities are issued by U.S. government agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses and, therefore, the expectation of non-payment is zero. A range of historical losses method is utilized in estimating the net amount

The gross unrealized losses reported for residential mortgage-backed securities relate to investment securities issued by U.S. government sponsored entities such as Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, and U.S. government agencies such as Government National Mortgage Association. The total gross unrealized losses, shown in the tables above, were primarily attributable to changes in interest rates and levels of market liquidity, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities.

Credit ratings, which are updated monthly, are a key measure for estimating the probability of a bond's default and for monitoring credit quality on an on-going basis. For bonds other than U.S. Treasuries and bonds issued or guaranteed by U.S. government agencies, credit ratings issued by one or more nationally recognized statistical rating organizations are considered in conjunction with an assessment by the Company's management. Investment grade reflects a credit quality of A or above.


December 31, 2023	AAA		AA		A		BB		Not Rated		Total
(in thousands)
U.S. Treasury and U.S. government agencies	$	10,406	$	—	$	—	$	—	$	—	$	10,406
Mortgage-backed securities, residential	332,509		—		—		—		—		332,509
Collateralized mortgage obligations, residential	12,243		—		—		—		—		12,243
Mortgage-backed securities, multifamily	4,145		—		—		—		—		4,145

Obligations of states and political subdivisions	152,167		309,788		—		—		12,265		474,220
Debt securities	—		—		—		3,000		—		3,000
Total	$	511,470	$	309,788	$	—	$	3,000	$	12,265	$	836,523


December 31, 2022	AAA		AA		A		BBB		Not Rated		Total
(in thousands)
U.S. Treasury and U.S. government agencies	$	11,099	$	—	$	—	$	—	$	—	$	11,099
Mortgage-backed securities, residential	360,683		—		—		—		—		360,683
Collateralized mortgage obligations, residential	13,026		—		—		—		—		13,026
Mortgage-backed securities, multifamily	5,094		—		—		—		—		5,094

Obligations of states and political subdivisions	156,661		317,566		1,020		—		55,266		530,513
Debt securities	—		—		—		3,000		—		3,000
Total	$	546,563	$	317,566	$	1,020	$	3,000	$	55,266	$	923,415

The Company has an equity securities portfolio which consists of investments in Community Reinvestment funds. The fair value of the equity portfolio was $17.7 million and $17.3 million at December 31, 2023 and December 31, 2022, respectively. The Company recorded no sales of equity securities for the years ended December 31, 2023, 2022 and 2021. The Company recorded gains of $110,000 for the year ended December 31, 2023, and $1.3 million and $285,000 in fair value losses on equity securities in noninterest income for the years ended December 31, 2022 and 2021, respectively.

As of December 31, 2023, the Company's investments in Community Reinvestment funds include $7.8 million that are primarily invested in community development loans that are guaranteed by the SBA. Because the funds are primarily guaranteed by the federal government, there are minimal changes in fair value between accounting periods. These funds can be redeemed with 60 days' notice at the net asset value less unpaid management fees with the approval of the fund manager. As of December 31, 2023, the net amortized cost equaled the fair value of the investment. There are no unfunded commitments related to these investments.

The Community Reinvestment funds also include $9.9 million of investment in government guaranteed loans, mortgage-backed securities, small business loans and other instruments supporting affordable housing and economic development as of December 31, 2023. The Company may redeem these funds at the net asset value calculated at the end of the current business day less any unpaid management fees. There are no restrictions on redemptions for the holdings in these investments other than the notice required by the fund manager. There are no unfunded commitments related to these investments.