
	March 31, 2024
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. Treasury and U.S. government agencies	$	324,367	$	92	$	(19,570)	$	—	$	304,889
Mortgage-backed securities, residential	314,413		12		(36,346)		—		278,079
Collateralized mortgage obligations, residential	146,080		—		(13,874)		—		132,206
Mortgage-backed securities, multifamily	851		—		(184)		—		667
Collateralized mortgage obligations, multifamily	45,806		—		(4,033)		—		41,773
Asset-backed securities	41,313		8		(412)		—		40,909
Obligations of states and political subdivisions	19,013		—		(605)		—		18,408
Corporate bonds	112,490		1		(15,393)		—		97,098
Total	$	1,004,333	$	113	$	(90,417)	$	—	$	914,029


	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
Corporate bonds	112,544		—		(15,511)		—		97,033
Total	$	1,035,238	$	115	$	(89,071)	$	—	$	946,282


	March 31, 2024
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. government agencies	$	10,270	$	6	$	(499)	$	—	$	9,777
Mortgage-backed securities, residential	326,731		5		(57,889)		—		268,847
Collateralized mortgage obligations, residential	12,079		—		(2,878)		—		9,201
Mortgage-backed securities, multifamily	4,126		—		(677)		—		3,449

Obligations of states and political subdivisions	471,047		25		(82,520)		(25)		388,527
Corporate bonds	3,000		—		(823)		(121)		2,056
Total	$	827,253	$	36	$	(145,286)	$	(146)	$	681,857


	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
Corporate bonds	3,000		—		(456)		(121)		2,423
Total	$	836,523	$	132	$	(133,946)	$	(146)	$	702,563

The following table lists contractual maturities of investment securities classified as available for sale and held to maturity as of March 31, 2024. Mortgage-backed and asset-backed securities are not shown by maturity because expected maturities may differ from contractual maturities due to underlying loan prepayments of the issuer. 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	$	151,972	$	148,067	$	25,668	$	25,508
Due after one year through five years	143,867		132,305		32,891		30,830
Due after five years through ten years	106,678		92,296		111,040		94,807
Due after ten years	53,353		47,727		314,718		249,215
	455,870		420,395		484,317		400,360
Mortgage-backed and asset-backed securities	548,463		493,634		342,936		281,497
Total	$	1,004,333	$	914,029	$	827,253	$	681,857

During the first quarter of 2023, there were no sales of available for sale securities. In the first quarter of 2024, the Company sold its subordinated debt securities of Signature Bank that it had previously charged off. It recorded a recovery of $2.9 million. 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.


March 31, 2024	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	$	3,515	$	7	$	290,930	$	19,563	57	$	294,445	$	19,570
Mortgage-backed securities, residential	212		1		276,555		36,345		130	276,767		36,346
Collateralized mortgage obligations, residential	—		—		132,206		13,874		100	132,206		13,874
Mortgage-backed securities, multifamily	—		—		667		184		1	667		184
Collateralized mortgage obligations, multifamily	—		—		41,773		4,033		18	41,773		4,033
Asset-backed securities	1,532		—		32,814		412		14	34,346		412
Obligations of states and political subdivisions	2,288		6		15,570		599		39	17,858		605
Corporate bonds	—		—		94,097		15,393		45	94,097		15,393
Total	$	7,547	$	14	$	884,612	$	90,403	404	$	892,159	$	90,417
Held to Maturity
U.S. government agencies	$	—	$	—	$	8,913	$	499	3	$	8,913	$	499
Mortgage-backed securities, residential	5,208		8		263,239		57,881		184	268,447		57,889
Collateralized mortgage obligations, residential	—		—		9,201		2,878		10	9,201		2,878
Mortgage-backed securities, multifamily	—		—		3,449		677		3	3,449		677

Obligations of states and political subdivisions	4,193		16		371,272		82,504		337	375,465		82,520
Corporate bonds	—		—		2,177		823		1	2,177		823
Total	$	9,401	$	24	$	658,251	$	145,262	538	$	667,652	$	145,286


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
Corporate bonds	—		—		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
Corporate bonds	—		—		2,544		456		1	2,544		456
Total	$	3,976	$	4	$	679,756	$	133,942	542	$	683,732	$	133,946

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. In the first quarter of 2023, the Company recorded a provision and a subsequent charge-off of $6.6 million in subordinated debt securities of Signature Bank, which failed in March 2023. In the first quarter of 2024, the Company recorded a $2.9 million recovery on the subordinated debt securities of Signature Bank.

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 expected to be collected for mortgage-backed securities, collateralized mortgage obligations and obligations of states and political subdivisions.

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 BBB or above.


March 31, 2024	AAA		AA		A		BB		Not Rated		Total
(in thousands)
U.S. government agencies	$	10,270	$	—	$	—	$	—	$	—	$	10,270
Mortgage-backed securities, residential	326,731		—		—		—		—		326,731
Collateralized mortgage obligations, residential	12,079		—		—		—		—		12,079
Mortgage-backed securities, multifamily	4,126		—		—		—		—		4,126

Obligations of states and political subdivisions	151,638		306,444		—		—		12,965		471,047
Corporate bonds	—		—		—		3,000		—		3,000
Total	$	504,844	$	306,444	$	—	$	3,000	$	12,965	$	827,253


December 31, 2023	AAA		AA		A		BB		Not Rated		Total
(in thousands)
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
Corporate bonds	—		—		—		3,000		—		3,000
Total	$	511,470	$	309,788	$	—	$	3,000	$	12,265	$	836,523

The Company has an equity securities portfolio, which primarily consists of investments in Community Reinvestment funds. The fair value of the equity portfolio was $17.6 million and $17.7 million at March 31, 2024 and December 31, 2023, respectively. For the three months ended March 31, 2024 and 2023, there were no sales of equity securities or Community Reinvestment funds. The Company recorded fair value losses on equity securities of $129,000 for the first quarter of 2024 and fair value gains of $148,000 for the first quarter of 2023. Fair value gain or loss on equity securities are recorded in noninterest income.

As of March 31, 2024, 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 Small Business Administration (“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 March 31, 2024, 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 included $9.8 million of investment in government guaranteed loans, mortgage-backed securities, small business loans and other instruments supporting affordable housing and economic development as of March 31, 2024. 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.