The Company’s investment policy is designed primarily to provide and maintain liquidity, generate a favorable return on assets without incurring undue interest rate and credit risk and complement the Company’s lending activities.

The following tables present the amortized cost and fair value of investment securities and the corresponding amounts of gross unrealized and unrecognized gains and losses, including the corresponding amounts of gross unrealized gains and losses on investment securities available for sale recognized in AOCI, at the dates indicated:


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Dollars in thousands)
Investment securities available for sale:
U.S. government and agency securities	$	14,934	$	—	$	(2,390)	$	12,544
Municipal securities	61,169		12		(10,239)		50,942
Residential CMO and MBS(1)	407,520		711		(38,900)		369,331
Commercial CMO and MBS(1)	330,249		134		(20,642)		309,741
Corporate obligations	11,700		181		(111)		11,770
Other asset-backed securities	10,020		47		(1)		10,066
Total	$	835,592	$	1,085	$	(72,283)	$	764,394


	December 31, 2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(Dollars in thousands)
Investment securities held to maturity:
U.S. government and agency securities	$	151,216	$	—	$	(28,874)	$	122,342
Residential CMO and MBS(1)	244,309		—		(18,563)		225,746
Commercial CMO and MBS(1)	307,760		27		(32,423)		275,364
Total	$	703,285	$	27	$	(79,860)	$	623,452


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Dollars in thousands)
Investment securities available for sale:
U.S. government and agency securities	$	16,047	$	—	$	(2,297)	$	13,750
Municipal securities	92,231		9		(12,715)		79,525
Residential CMO and MBS(1)	555,518		2,656		(46,125)		512,049
Commercial CMO and MBS(1)	538,910		88		(34,740)		504,258
Corporate obligations	7,745		2		(134)		7,613
Other asset-backed securities	17,336		31		(209)		17,158
Total	$	1,227,787	$	2,786	$	(96,220)	$	1,134,353


	December 31, 2023
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(Dollars in thousands)
Investment securities held to maturity:
U.S. government and agency securities	$	151,075	$	—	$	(27,701)	$	123,374
Residential CMO and MBS(1)	267,204		—		(14,101)		253,103
Commercial CMO and MBS(1)	321,163		—		(35,190)		285,973
Total	$	739,442	$	—	$	(76,992)	$	662,450

The following table presents the amortized cost and fair value of investment securities by contractual maturity at the date indicated. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


	December 31, 2024
	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	6,442		6,111		—		—
Due after five years through ten years	34,201		31,418		93,294		78,092
Due after ten years	47,160		37,727		57,922		44,250
Total investment securities due at a single maturity date	87,803		75,256		151,216		122,342
MBS(1)	747,789		689,138		552,069		501,110
Total investment securities	$	835,592	$	764,394	$	703,285	$	623,452

There were no holdings of investment securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity, at December 31, 2024 and December 31, 2023.

The following tables present the gross unrealized losses and fair value of the Company’s investment securities available for sale for which an ACL on investment securities available for sale has not been recorded, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at the dates indicated:


	December 31, 2024
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. government and agency securities	$	—	$	—	$	12,544	$	(2,390)	$	12,544	$	(2,390)
Municipal securities	—		—		45,157		(10,239)		45,157		(10,239)
Residential CMO and MBS(1)	25,126		(321)		232,903		(38,579)		258,029		(38,900)
Commercial CMO and MBS(1)	17,772		(86)		270,897		(20,556)		288,669		(20,642)
Corporate obligations	—		—		3,890		(111)		3,890		(111)
Other asset-backed securities	1,568		(1)		—		—		1,568		(1)
Total	$	44,466	$	(408)	$	565,391	$	(71,875)	$	609,857	$	(72,283)


	December 31, 2023
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. government and agency securities	$	—	$	—	$	13,750	$	(2,297)	$	13,750	$	(2,297)
Municipal securities	3,548		(18)		71,458		(12,697)		75,006		(12,715)
Residential CMO and MBS(1)	—		—		358,316		(46,125)		358,316		(46,125)
Commercial CMO and MBS(1)	37,899		(228)		448,197		(34,512)		486,096		(34,740)
Corporate obligations	911		(20)		3,887		(114)		4,798		(134)
Other asset-backed securities	4,338		(22)		7,291		(187)		11,629		(209)
Total	$	46,696	$	(288)	$	902,899	$	(95,932)	$	949,595	$	(96,220)

The Company evaluated investment securities available for sale as of December 31, 2024 and December 31, 2023 and determined that any declines in fair value were attributable to changes in interest rates relative to where these investments fall within the yield curve and individual characteristics. Management monitors published credit ratings for adverse changes for all rated investment securities and none of these securities had a below investment grade credit rating as of both December 31, 2024 and December 31, 2023. In addition, the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of the amortized cost basis, which may be upon maturity. Therefore, no ACL on investment securities available for sale was recorded as of December 31, 2024 or December 31, 2023.

The Company also evaluated investment securities held to maturity for current expected credit losses as of December 31, 2024 and December 31, 2023. There were no investment securities held to maturity classified as nonaccrual or past due as of December 31, 2024 or December 31, 2023 and all were issued by the U.S. government and its agencies and either explicitly or implicitly guaranteed by the U.S. government, highly rated by major credit rating agencies and had a long history of no credit losses. Accordingly, the Company did not measure expected credit losses on investment securities held to maturity since the historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. Therefore, no ACL on investment securities held to maturity was recorded as of December 31, 2024 or December 31, 2023.

The following table presents the gross realized gains and losses on the sale of investment securities available for sale determined using the specific identification method for the dates indicated:


	Year ended December 31,
	2024		2023		2022
	(Dollars in thousands)
Gross realized gains	$	—	$	36	$	4
Gross realized losses	(22,742)		(12,267)		(260)
Net realized gains/(losses)	$	(22,742)	$	(12,231)	$	(256)


	December 31, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
State and local governments public deposits	$	236,047	$	220,104	$	238,060	$	224,879
FRB	434,534		373,410		845,098		742,197
Other securities pledged	53,296		48,169		54,636		49,032
Total	$	723,877	$	641,683	$	1,137,794	$	1,016,108

Accrued interest receivable excluded from the amortized cost of investment securities available for sale totaled $2.7 million and $3.8 million at December 31, 2024 and December 31, 2023, respectively. Accrued interest receivable excluded from the amortized cost on investment securities held to maturity totaled $2.2 million and $2.3 million at December 31, 2024 and December 31, 2023, respectively.

No amounts of accrued interest receivable on investment securities available for sale or held to maturity were reversed against interest income on investment securities during the years ended December 31, 2024, 2023, and 2022.

At December 31, 2022, as a member bank of Visa U.S.A., the Company held 6,549 shares of Visa Inc. Class B common stock. These shares had a carrying value of zero and were restricted from resale to non-member banks of Visa U.S.A. until their conversion into Class A (voting) shares upon the termination of Visa Inc.'s Covered Litigation escrow account. During the year ended December 31, 2023, the Company sold all of its shares of Visa Inc. Class B common stock and recognized a $1.6 million gain which was included in "Other income" in the Consolidated Statements of Income.