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


(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		ACL
December 31, 2024
Available-for-Sale:
Debt securities:
States and political subdivisions	$	147,014	$	2	$	(30,183)	$	116,833	$	—

U.S. Treasury obligations and direct obligations of U.S Government agencies	83,861		81		(2,742)		81,200		—
Collateralized loan obligations	31,254		—		(114)		31,140		—
Mortgage-backed securities:
Residential - U.S. Government-sponsored enterprises	472,476		42		(58,047)		414,471		—
Residential - Non-government agencies	17,836		151		(1,061)		16,926		—
Commercial - U.S. Government-sponsored enterprises	81,400		76		(14,315)		67,161		—
Commercial - Non-government agencies	9,933		—		(6)		9,927		—
Total available-for-sale investment securities	$	843,774	$	352	$	(106,468)	$	737,658	$	—


(Dollars in thousands)	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		ACL
December 31, 2024
Held-to-Maturity:
Debt securities:
States and political subdivisions	$	42,016	$	—	$	(8,884)	$	33,132	$	—



Mortgage-backed securities:
Residential - U.S. Government-sponsored enterprises	554,914				(81,365)		473,549		—




Total held-to-maturity investment securities	$	596,930	$	—	$	(90,249)	$	506,681	$	—


(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		ACL
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 obligations and direct obligations of U.S Government agencies	28,105		33		(1,941)		26,197		—

Mortgage-backed securities:
Residential - U.S. Government-sponsored enterprises	441,898		95		(63,607)		378,386		—
Residential - Non-government agencies	19,322		366		(980)		18,708		—
Commercial - U.S. Government-sponsored enterprises	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	$	—


(Dollars in thousands)	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		ACL
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 enterprises	590,379		61		(60,515)		529,925		—




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

In 2022, the Company transferred 81 investment securities that were classified as AFS to HTM. The investment securities had an amortized cost basis of $762.7 million and a fair market value of $673.2 million. On the date of transfers, these securities had a total net unrealized loss of $89.5 million. There was no impact to net income as a result of the reclassifications.

During the years ended December 31, 2024 and 2023, the Company recorded a total of $7.2 million and $7.4 million, respectively, in amortization of unrecognized losses on the aforementioned investment securities transferred from AFS to HTM.

These transfers were executed to mitigate the potential future impact to capital through accumulated other comprehensive loss in consideration of a rising interest rate environment and the impact of rising rates on the market value of the investment securities. The Company believes that it maintains sufficient liquidity for future business needs and it has the positive intent and ability to hold these securities to maturity.

The amortized cost, estimated fair value and weighted average yield of our investment securities at December 31, 2024 by contractual maturity are shown below. Actual maturities may differ from contractual maturities as issuers 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.


	December 31, 2024
(Dollars in thousands)	Amortized Cost		Fair Value		Weighted Average Yield (1)
Available-for-Sale:
Debt securities:
Due in one year or less	$	4,237	$	4,230	5.87	%
Due after one year through five years	37,393		36,866		4.11
Due after five years through ten years	68,257		65,126		3.87
Due after ten years	120,988		91,811		2.42
Collateralized loan obligations	31,254		31,140		6.07
Mortgage-backed securities
Residential - U.S. Government-sponsored enterprises	472,476		414,471		2.90
Residential - Non-government agencies	17,836		16,926		4.36
Commercial - U.S. Government-sponsored enterprises	81,400		67,161		2.72
Commercial - Non-government agencies	9,933		9,927		4.76

Total available-for-sale investment securities	$	843,774	$	737,658	3.18	%

Held-to-Maturity:
Debt securities:



Due after ten years	$	42,016	$	33,132	2.26	%


Mortgage-backed securities:
Residential - U.S. Government-sponsored enterprises	554,914		473,549		1.89




Total held-to-maturity investment securities	$	596,930	$	506,681	1.92	%



Total investment securities	$	1,440,704	$	1,244,339	2.62	%

In November 2024, the Company executed an investment portfolio repositioning of its AFS investment securities portfolio. The Company sold 24 lower-yielding AFS investment securities with a book value of $106.5 million and received proceeds of $96.6 million, which resulted in gross realized losses of $9.9 million. No gross gains were realized on the sale. With the proceeds, the Company purchased higher-yielding AFS investment securities totaling $101.6 million.

In December 2023, the Company executed an investment portfolio repositioning of its AFS investment securities portfolio. The Company sold 17 AFS investment securities with a book value of $30.0 million and received proceeds of $28.1 million, which resulted in gross realized losses of $1.9 million. No gross gains were realized on the sale. With the proceeds, the Company purchased higher yielding and shorter duration AFS investment securities totaling $28.3 million.

In September 2023, the Company sold two AFS commercial mortgage-backed securities issued by non-government agencies and received proceeds of $1.4 million. The investment securities had a cost basis of $1.5 million and were sold at a loss of $0.1 million.

There were a total of 218 and 208 AFS securities in an unrealized loss position at December 31, 2024 and 2023, respectively. There were a total of 83 and 82 HTM securities in an unrecognized loss position at December 31, 2024 and 2023, respectively.

The following table summarizes AFS and HTM securities which were in an unrealized or unrecognized loss position at December 31, 2024 and 2023, aggregated by major security type and length of time in a continuous unrealized or unrecognized loss position:


	Less Than 12 Months				12 Months or Longer				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
December 31, 2024
Available-for-Sale:
Debt securities:
States and political subdivisions	$	4,967	$	(85)	$	107,267	$	(30,098)	$	112,234	$	(30,183)

U.S. Treasury obligations and direct obligations of U.S Government agencies	56,139		(803)		12,971		(1,939)		69,110		(2,742)
Collateralized loan obligations	31,140		(114)		—		—		31,140		(114)
Mortgage-backed securities:
Residential - U.S. Government-sponsored enterprises	135,224		(2,254)		260,575		(55,793)		395,799		(58,047)
Residential - Non-government agencies	5,270		(100)		7,606		(961)		12,876		(1,061)
Commercial - U.S. Government-sponsored enterprises	12,469		(90)		48,304		(14,225)		60,773		(14,315)
Commercial - Non-government agencies	9,927		(6)		—		—		9,927		(6)
Total	$	255,136	$	(3,452)	$	436,723	$	(103,016)	$	691,859	$	(106,468)


	Less Than 12 Months				12 Months or Longer				Total
Description of Securities	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
	(Dollars in thousands)
December 31, 2024
Held-to-Maturity:
Debt securities:
States and political subdivisions	$	—	$	—	$	33,132	$	(8,884)	$	33,132	$	(8,884)



Mortgage-backed securities:
Residential - U.S. Government-sponsored enterprises	7,470		(19)		466,079		(81,346)		473,549		(81,365)



Total	$	7,470	$	(19)	$	499,211	$	(90,230)	$	506,681	$	(90,249)


	Less Than 12 Months				12 Months or Longer				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
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 obligations and direct obligations of U.S Government agencies	2,893		(87)		16,286		(1,854)		19,179		(1,941)

Mortgage-backed securities:
Residential - U.S. Government-sponsored enterprises	—		—		367,887		(63,607)		367,887		(63,607)
Residential - Non-government agencies	—		—		8,169		(980)		8,169		(980)
Commercial - U.S. Government-sponsored enterprises	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
Description of Securities	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
	(Dollars in thousands)
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 enterprises	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 on at least 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 HTM and AFS 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 are 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. Because we have no intent to sell securities in an unrecognized or unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, 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 as of December 31, 2024.

In 2022, the Company sold all of its 34,631 shares of Class B common stock of Visa, Inc. ("Visa") and received net proceeds of $8.5 million. The Company no longer holds any shares of Class B common stock of Visa.

The Company received these shares in 2008 as part of Visa's initial public offering ("IPO"). These shares were transferable only under limited circumstances until they could be converted into shares of the publicly traded Class A common stock. This conversion will not occur until the resolution of certain litigation, which is indemnified by Visa members. Since its IPO, Visa has funded a litigation reserve to settle these litigation claims. At its discretion, Visa may continue to increase the litigation

Due to the transfer restriction and the uncertainty of the outcome of the Visa litigation, the Company determined that the Visa Class B common stock did not have a readily determinable fair value and chose to carry the shares on the Company's consolidated balance sheets at zero cost basis. As a result, the entire net proceeds of $8.5 million were recognized as a pre-tax gain and included in net gain on sales of investment securities in the Company's consolidated statements of income.