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SECURITIES
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
The following table summarizes the amortized cost, gross unrealized gains, and losses, and estimated fair values of AFS securities and securities HTM at December 31, 2024 and 2023:
($ in thousands)December 31, 2024
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Available-for-sale:
U.S. Treasury$5,297 $— $64 $5,233 
Obligations of U.S. government agencies and sponsored entities109,289 — 13,064 96,225 
Tax-exempt and taxable obligations of states and municipal subdivisions448,463 240 49,171 399,532 
Mortgage-backed securities - residential298,461 30 33,566 264,925 
Mortgage-backed securities - commercial225,892 117 18,516 207,493 
Corporate obligations31,632 37 1,774 29,895 
Total available-for-sale$1,119,034 $424 $116,155 $1,003,303 
Held-to-maturity:
U.S. Treasury$52,216 $— $1,244 $50,972 
Obligations of U.S. government agencies and sponsored entities17,950 — 1,417 16,533 
Tax-exempt and taxable obligations of states and municipal subdivisions244,729 3,368 15,568 232,529 
Mortgage-backed securities - residential127,492 — 15,989 111,503 
Mortgage-backed securities - commercial130,552 — 13,327 117,225 
Corporate obligations10,000 — 1,487 8,513 
Total held-to-maturity$582,939 $3,368 $49,032 $537,275 
($ in thousands)December 31, 2023
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Available-for-sale:
U.S. Treasury$16,985 $— $310 $16,675 
Obligations of U.S. government agencies and sponsored entities119,868 1 14,946 104,923 
Tax-exempt and taxable obligations of states and municipal subdivisions486,293 449 48,276 438,466 
Mortgage-backed securities - residential297,735 11 34,430 263,316 
Mortgage-backed securities - commercial198,944 76 20,675 178,345 
Corporate obligations41,347 — 3,750 37,597 
Other3,055 — 12 3,043 
Total available-for-sale$1,164,227 $537 $122,399 $1,042,365 
Held-to-maturity:
U.S. Treasury$89,688 $— $2,804 $86,884 
Obligations of U.S. government agencies and sponsored entities33,659 — 1,803 31,856 
Tax-exempt and taxable obligations of states and municipal subdivisions246,908 9,566 14,697 241,777 
Mortgage-backed securities - residential141,573 — 14,237 127,336 
Mortgage-backed securities - commercial132,711 — 12,334 120,377 
Corporate obligations10,000 — 2,286 7,714 
Total held-to-maturity$654,539 $9,566 $48,161 $615,944 
ACL on Securities
Securities Available-for-Sale
Quarterly, the Company evaluates if a security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, the Company performs further analysis as outlined below:
•Review the extent to which the fair value is less than the amortized cost and determine if the decline is indicative of credit loss or other factors.
•The securities that violate the credit loss trigger above would be subjected to additional analysis.
•If the Company determines that a credit loss exists, the credit portion of the allowance will be measured using the DCF analysis using the effective interest rate. The amount of credit loss the Company records will be limited to the amount by which the amortized cost exceeds the fair value. The allowance for the calculated credit loss will be monitored going forward for further credit deterioration or improvement.
At December 31, 2024 and 2023, the results of the analysis did not identify any securities where the decline was indicative of credit loss factors; therefore, no DCF analysis was performed, and no credit loss was recognized on any of the securities AFS.
Accrued interest receivable is excluded from the estimate of credit losses for securities AFS. Accrued interest receivable totaled $5.0 million and $5.2 million at December 31, 2024 and 2023, respectively and was reported in interest receivable on the accompanying Consolidated Balance Sheet.
All AFS securities were current with no securities past due or on nonaccrual as of December 31, 2024.
Securities Held to Maturity
The potential credit loss exposure totaled $201 thousand and $205 thousand at December 31, 2024 and 2023, respectively and consisted of tax-exempt and taxable obligations of states and municipal subdivisions and corporate obligations securities. After applying appropriate probability of default (“PD”) and loss given default (“LGD”) assumptions, the total amount of current expected credit losses was deemed immaterial. Therefore, no reserve was recorded for the years ended December 31, 2024 and 2023.
Accrued interest receivable is excluded from the estimate of credit losses for securities held-to-maturity. Accrued interest receivable totaled $3.1 million and $3.4 million at December 31, 2024 and 2023, respectively and was reported in interest receivable on the accompanying Consolidated Balance Sheet.
At December 31, 2024, the Company had no securities held-to-maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held-to-maturity classified as nonaccrual for the years ended December 31, 2024 and 2023.
The Company monitors the credit quality of the debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at December 31, 2024 and 2023, aggregated by credit quality indicators.
($ in thousands)December 31, 2024December 31, 2023
Aaa$361,656 $431,527 
Aa1/Aa2/Aa3112,535 129,751 
A1/A2/A312,273 13,902 
BBB10,000 10,000 
Not rated86,475 69,359 
Total$582,939 $654,539 
The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
($ in thousands)December 31, 2024
Available-for-SaleAmortized
Cost		Fair
Value
Within one year$42,008 $41,807 
One to five years127,945 121,463 
Five to ten years311,010 271,828 
Beyond ten years113,718 95,787 
Mortgage-backed securities: residential298,461 264,925 
Mortgage-backed securities: commercial225,892 207,493 
Total$1,119,034 $1,003,303 
Held-to-maturity
Within one year$28,527 $28,334 
One to five years30,868 29,360 
Five to ten years62,237 58,225 
Beyond ten years203,263 192,628 
Mortgage-backed securities: residential127,492 111,503 
Mortgage-backed securities: commercial130,552 117,225 
Total$582,939 $537,275 
The proceeds from sales and calls of securities and the associated gains and losses are listed below:
($ in thousands)202420232022
Gross gains$47 $65 $82 
Gross losses78 9,781 164 
Realized net (loss) gain$(31)$(9,716)$(82)
The amortized costs of securities pledged as collateral, to secure public deposits and for other purposes, was $1.089 billion and $1.095 billion at December 31, 2024 and 2023, respectively.
The following table summarizes securities in an unrealized losses position for which an allowance for credit losses has not been recorded at December 31, 2024 and 2023. The securities are aggregated by major security type and length of time in a continuous unrealized loss position:
2024
($ in thousands)Less than 12 Months12 Months or LongerTotal
Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Available-for-sale:
U.S. Treasury$— $— $5,233 $64 $5,233 $64 
Obligations of U.S. government agencies and sponsored entities262 1 95,958 13,063 96,220 13,064 
Tax-exempt and taxable obligations of states and municipal subdivisions32,717 2,174 349,879 46,997 382,596 49,171 
Mortgage-backed securities - residential40,448 451 222,555 33,115 263,003 33,566 
Mortgage-backed securities - commercial33,439 942 152,532 17,574 185,971 18,516 
Corporate obligations— — 24,858 1,774 24,858 1,774 
 Total available-for-sale$106,866 $3,568 $851,015 $112,587 $957,881 $116,155 
Held-to-maturity:
U.S. Treasury$— $— $50,972 $1,244 $50,972 $1,244 
Obligations of U.S. government agencies and sponsored entities761 24 15,772 1,393 16,533 1,417 
Tax-exempt and taxable obligations of states and municipal subdivisions45,064 970 98,527 14,598 143,591 15,568 
Mortgage-backed securities - residential— — 111,503 15,989 111,503 15,989 
Mortgage-backed securities - commercial892 30 116,333 13,297 117,225 13,327 
Corporate obligations— — 8,513 1,487 8,513 1,487 
Total held-to-maturity$46,717 $1,024 $401,620 $48,008 $448,337 $49,032 
2023
Less than 12 Months12 Months or LongerTotal
($ in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Available-for-sale:
U.S. Treasury$— $— $16,675 $310 $16,675 $310 
Obligations of U.S. government agencies and sponsored entities123 — 104,495 14,946 104,618 14,946 
Tax-exempt and taxable obligations of states and municipal subdivisions20,879 1,479 389,113 46,797 409,992 48,276 
Mortgage-backed securities: residential222 2 262,012 34,428 262,234 34,430 
Mortgage-backed securities: commercial2,896 52 170,256 20,623 173,152 20,675 
Corporate obligations— — 37,597 3,750 37,597 3,750 
Other3,055 12 — — 3,055 12 
Total available-for-sale$27,175 $1,545 $980,148 $120,854 $1,007,323 $122,399 
Held-to-maturity:
U.S. Treasury$— $— $86,884 $2,804 $86,884 $2,804 
Obligations of U.S. government agencies and sponsored entities747 5 31,109 1,798 31,856 1,803 
Tax-exempt and taxable obligations of states and municipal subdivisions10,472 3,949 91,480 10,748 101,952 14,697 
Mortgage-backed securities - residential— — 127,336 14,237 127,336 14,237 
Mortgage-backed securities - commercial920 2 119,457 12,332 120,377 12,334 
Corporate obligations— — 7,714 2,286 7,714 2,286 
Total held-to-maturity$12,139 $3,956 $463,980 $44,205 $476,119 $48,161 
At December 31, 2024 and December 31, 2023, the Company’s securities portfolio consisted of 1,063 and 1,125 securities, respectively, which were in an unrealized loss position. AFS securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost basis.
Equity Securities
In 2024, the Company made a correction of an immaterial error and moved one of its securities from AFS to Equity Securities. The equity security consists of our investment in a market-rate bond mutual fund that invests in high quality fixed income bonds, mainly government agency securities whose proceeds are designed to positively impact community development throughout the United States. The mutual fund focuses exclusively on providing affordable housing to low- and moderate-income borrowers and renters, including Majority Minority Census Tracts.
As of December 31, 2024, the Company had equity securities with carrying values totaling $15.7 million. During the twelve months ended December 31, 2024, we recognized an unrealized loss of $78 thousand in net income on our equity securities. These unrealized losses are recorded in the change in value of equity securities on the Consolidated Statements of Income.