The amortized cost, gross unrecognized/unrealized gains and losses, fair value and related ACL on available-for-sale ("AFS") and held-to-maturity ("HTM") debt securities at September 30, 2024 and December 31, 2023 are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		ACL
(dollars in thousands)
September 30, 2024
Available-for-sale:
Debt securities:
States and political subdivisions	$	147,833	$	18	$	(24,670)	$	123,181	$	—
Corporate securities	35,373		—		(2,819)		32,554		—
U.S. Treasury and other government-sponsored entities and agencies	59,632		1,323		(1,725)		59,230		—

Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	433,493		857		(48,054)		386,296		—
Residential - Non-government agencies	18,085		471		(722)		17,834		—
Commercial - U.S. government-sponsored entities and agencies	101,018		425		(12,414)		89,029		—
Commercial - Non-government agencies	15,331		5		(7)		15,329		—
Total available-for-sale investment securities	$	810,765	$	3,099	$	(90,411)	$	723,453	$	—


	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		ACL
(dollars in thousands)
September 30, 2024
Held-to-maturity:
Debt securities:
States and political subdivisions	$	42,013	$	—	$	(7,283)	$	34,730	$	—



Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	564,104		63		(51,907)		512,260		—



Total held-to-maturity investment securities	$	606,117	$	63	$	(59,190)	$	546,990	$	—


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		ACL
(dollars in thousands)
December 31, 2023
Available-for-sale:
Debt securities:
States and political subdivisions	$	156,432	$	13	$	(29,810)	$	126,635	$	—
Corporate securities	35,731		—		(4,317)		31,414		—
U.S. Treasury and other government-sponsored entities and agencies	28,105		33		(1,941)		26,197		—

Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	441,898		95		(63,607)		378,386		—
Residential - Non-government agencies	19,322		366		(980)		18,708		—
Commercial - U.S. government-sponsored entities and agencies	58,318		—		(7,404)		50,914		—
Commercial - Non-government agencies	15,144		—		(188)		14,956		—
Total available-for-sale investment securities	$	754,950	$	507	$	(108,247)	$	647,210	$	—


	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		ACL
(dollars in thousands)
December 31, 2023
Held-to-maturity:
Debt securities:
States and political subdivisions	$	41,959	$	—	$	(6,706)	$	35,253	$	—



Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	590,379		61		(60,515)		529,925		—



Total held-to-maturity investment securities	$	632,338	$	61	$	(67,221)	$	565,178	$	—

During the first quarter of 2022, the Company entered into a forward starting interest rate swap, with a notional amount of $115.5 million, that was designated as a fair value hedge of certain municipal debt securities. The Company pays the counterparty a fixed rate of 2.095% and receives a floating rate based on the Federal Funds effective rate. The fair value hedge became effective on March 31, 2024 and has a maturity date of March 31, 2029.

During the three and nine months ended September 30, 2024, the Company recorded income from the interest rate swap of $1.1 million and $1.9 million, respectively, in interest income on taxable investment securities on the Company's consolidated statements of income.

During the three and nine months ended September 30, 2024, the Company recorded a total of $1.9 million and $5.4 million, respectively, in amortization of unrecognized losses on investment securities transferred from AFS to HTM. During the three and nine months ended September 30, 2023, the Company recorded a total of $2.0 million and $5.7 million, respectively, in amortization of unrecognized losses on investment securities transferred from AFS to HTM.

The Company elected to not measure an estimate of credit losses on accrued interest receivable as the Company writes off any uncollectible accrued interest receivable in a timely manner. Accrued interest receivable on investment securities is reported together with accrued interest receivable on loans and other assets in the consolidated balance sheets.

The amortized cost, estimated fair value and weighted average yield of our AFS and HTM debt securities at September 30, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


(dollars in thousands)	Amortized Cost		Fair Value		Weighted Average Yield (1)
Available-for-sale:
Debt securities:
Due in one year or less	$	4,287	$	4,300	5.88	%
Due after one year through five years	58,844		56,071		2.78
Due after five years through ten years	58,523		57,627		3.92
Due after ten years	121,184		96,967		2.43
Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	433,493		386,296		2.27
Residential - Non-government agencies	18,085		17,834		5.59
Commercial - U.S. government-sponsored entities and agencies	101,018		89,029		2.73
Commercial - Non-government agencies	15,331		15,329		4.55
Total available-for-sale securities	$	810,765	$	723,453	2.67	%


(dollars in thousands)	Amortized Cost		Fair Value		Weighted Average Yield (1)
Held-to-maturity:
Debt securities:



Due after ten years	$	42,013	$	34,730	2.26	%
Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	564,104		512,260		1.90



Total held-to-maturity securities	$	606,117	$	546,990	1.92	%

The Company did not sell any investment securities during the three and nine months ended September 30, 2024. During the three and nine months ended September 30, 2023, the Company sold two AFS commercial mortgage-backed securities issued by non-government agencies. The investment securities had a cost basis of $1.5 million and were sold at a loss of $0.1 million.

Investment securities with carrying values totaling $796.8 million and $990.4 million at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public funds on deposit, Federal Reserve Bank borrowings and other financial transactions.

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 shareholders' equity at September 30, 2024 and December 31, 2023.

The following tables summarize AFS and HTM investment securities, which were in a loss position as of the dates presented, aggregated by major security type and length of time in a continuous loss position. There were a total of 212 and 208 AFS investment securities which were in an unrealized loss position, without an ACL, at September 30, 2024 and December 31, 2023, respectively. There were a total of 82 HTM investment securities which were in an unrecognized loss position, without an ACL, at September 30, 2024 and December 31, 2023.


	Less Than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
September 30, 2024
Available-for-sale:
Debt securities:
States and political subdivisions	$	4,600	$	(33)	$	111,552	$	(24,637)	$	116,152	$	(24,670)
Corporate securities	—		—		32,554		(2,819)		32,554		(2,819)
U.S. Treasury and other government-sponsored entities and agencies	1,308		(26)		14,498		(1,699)		15,806		(1,725)

Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	23,295		(183)		329,454		(47,871)		352,749		(48,054)
Residential - Non-government agencies	—		—		7,992		(722)		7,992		(722)
Commercial - U.S. government-sponsored entities and agencies	1,275		(107)		68,444		(12,307)		69,719		(12,414)
Commercial - Non-government agencies	—		—		5,425		(7)		5,425		(7)
Total	$	30,478	$	(349)	$	569,919	$	(90,062)	$	600,397	$	(90,411)


	Less Than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
September 30, 2024
Held-to-maturity:
Debt securities:
States and political subdivisions	$	—	$	—	$	34,730	$	(7,283)	$	34,730	$	(7,283)



Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	—		—		504,405		(51,907)		504,405		(51,907)



Total	$	—	$	—	$	539,135	$	(59,190)	$	539,135	$	(59,190)


	Less Than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2023
Available-for-sale:
Debt securities:
States and political subdivisions	$	534	$	(1)	$	114,601	$	(29,809)	$	115,135	$	(29,810)
Corporate securities	—		—		31,414		(4,317)		31,414		(4,317)
U.S. Treasury and other government-sponsored entities and agencies	2,893		(87)		16,286		(1,854)		19,179		(1,941)

Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	—		—		367,887		(63,607)		367,887		(63,607)
Residential - Non-government agencies	—		—		8,169		(980)		8,169		(980)
Commercial - U.S. government-sponsored entities and agencies	6,467		(1)		44,447		(7,403)		50,914		(7,404)
Commercial - Non-government agencies	9,663		(130)		5,293		(58)		14,956		(188)
Total	$	19,557	$	(219)	$	588,097	$	(108,028)	$	607,654	$	(108,247)


	Less Than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
December 31, 2023
Held-to-maturity:
Debt securities:
States and political subdivisions	$	—	$	—	$	35,253	$	(6,706)	$	35,253	$	(6,706)



Mortgage-backed securities:
Residential - U.S. government-sponsored entities and agencies	8,853		(33)		512,378		(60,482)		521,231		(60,515)



Total	$	8,853	$	(33)	$	547,631	$	(67,188)	$	556,484	$	(67,221)

Investment securities in an unrecognized or unrealized loss position are evaluated at least on a quarterly basis, and include evaluating the changes in the investment securities' ratings issued by rating agencies and changes in the financial condition of the issuer. For mortgage-related securities, delinquency and loss information with respect to the underlying collateral, changes in levels of subordination for the Company's particular position within the repayment structure, and remaining credit enhancement as compared to projected credit losses of the security are also evaluated.

The Company has evaluated its AFS and HTM investment securities that are in an unrecognized or unrealized loss position and has determined that the unrecognized or unrealized losses on the Company's investment securities are unrelated to credit quality and primarily attributable to changes in interest rates and volatility in the financial markets since purchase. All of the investment securities in an unrecognized or unrealized loss position continue to be rated investment grade by one or more major rating agencies. The Company does not intend to sell the AFS and HTM securities that were in an unrecognized or unrealized loss position as of September 30, 2024 and December 31, 2023, and it is unlikely that the Company will be required to sell

these securities before recovery of its amortized cost basis that may be at maturity. Therefore, the Company has not recorded an ACL on these securities and the unrecognized or unrealized losses on these securities have not been recognized into income.