
	December 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	119,690	$	—	$	(8,545)	$	—	$	111,145
U.S. government agency	55,742		—		(2,544)		—		53,198
Municipal	150,163		—		(19,484)		—		130,679
Mortgage-backed:
Agency residential	241,342		253		(14,227)		—		227,368
Agency commercial	128,823		3		(12,145)		—		116,681
Corporate	61,732		156		(2,910)		—		58,978
Total available-for-sale	$	757,492	$	412	$	(59,855)	$	—	$	698,049

	December 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses

Held-to-maturity:
U.S. government agency	$	88,472	$	—	$	(8,819)	$	79,653	$	—
Municipal	35,862		48		(371)		35,539		—
Mortgage-backed:
Agency residential	85,643		—		(5,796)		79,847		—
Agency commercial	289,881		—		(39,734)		250,147		—
Total held-to-maturity	$	499,858	$	48	$	(54,720)	$	445,186	$	—


	December 31, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	159,715	$	—	$	(11,093)	$	—	$	148,622
U.S. government agency	55,359		—		(3,262)		—		52,097
Municipal	229,030		26		(23,499)		—		205,557
Mortgage-backed:
Agency residential	188,641		61		(14,718)		—		173,984
Agency commercial	141,214		3		(14,205)		—		127,012
Corporate	57,665		9		(5,485)		—		52,189
Total available-for-sale	$	831,624	$	99	$	(72,262)	$	—	$	759,461

	December 31, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses

Held-to-maturity:
U.S. government agency	$	88,448	$	—	$	(8,292)	$	80,156	$	—
Municipal	38,442		394		(163)		38,673		—
Mortgage-backed:
Agency residential	95,828		—		(5,569)		90,259		—
Agency commercial	298,721		—		(41,313)		257,408		—
Total held-to-maturity	$	521,439	$	394	$	(55,337)	$	466,496	$	—

On March 31, 2022, the Company transferred certain debt securities from the available-for-sale category to the held-to-maturity category in order to better reflect the revised intentions of the Company due to possible market value volatility, resulting from a potential rise in interest rates. The following is a summary of the amortized cost and fair value of securities transferred to the held-to-maturity category:


	March 31, 2022
(dollars in thousands)	Amortized Cost		Fair Value

U.S. government agency	$	78,841	$	71,048
Mortgage-backed:
Agency residential	8,175		7,651
Agency commercial	27,834		25,432
Total	$	114,850	$	104,131

The debt securities were transferred between categories at fair value, with the transfer date fair value becoming the new amortized cost for each security transferred. The unrealized gain (loss), net of tax, at the date of transfer remains a component of accumulated other comprehensive income (loss), but will be amortized over the remaining life of the debt securities as an adjustment of yield in a manner consistent with amortization of any premium or discount. As a result, the amortization of an unrealized gain (loss) reported in accumulated other comprehensive income (loss) will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity debt security.

As of December 31, 2024 and 2023, the Bank had debt securities with a carrying value of $468.8 million and $419.4 million, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, available borrowing capacity, and for other purposes required or permitted by law.

The amortized cost and fair value of debt securities by contractual maturity, as of December 31, 2024, are shown below. Expected maturities may 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
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due in 1 year or less	$	45,843	$	45,201	$	7,084	$	7,063
Due after 1 year through 5 years	178,269		165,830		52,350		49,614
Due after 5 years through 10 years	145,184		127,690		62,645		56,321
Due after 10 years	18,031		15,279		2,255		2,194

Mortgage-backed:
Agency residential	241,342		227,368		85,643		79,847
Agency commercial	128,823		116,681		289,881		250,147
Total	$	757,492	$	698,049	$	499,858	$	445,186

The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of December 31, 2024 and December 31, 2023, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position:


	December 31, 2024
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:
U.S. Treasury	$	—	$	—	$	(8,545)	$	111,145	$	(8,545)	$	111,145
U.S. government agency	(141)		7,594		(2,403)		45,604		(2,544)		53,198
Municipal	(8)		2,634		(19,476)		127,776		(19,484)		130,410
Mortgage-backed:
Agency residential	(2,041)		81,055		(12,186)		129,178		(14,227)		210,233
Agency commercial	(125)		3,327		(12,020)		112,118		(12,145)		115,445
Corporate	(4)		1,996		(2,906)		43,064		(2,910)		45,060
Total available-for-sale	$	(2,319)	$	96,606	$	(57,536)	$	568,885	$	(59,855)	$	665,491


	December 31, 2023
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:
U.S. Treasury	$	—	$	—	$	(11,093)	$	148,622	$	(11,093)	$	148,622
U.S. government agency	(2)		168		(3,260)		51,910		(3,262)		52,078
Municipal	(26)		4,749		(23,473)		194,287		(23,499)		199,036
Mortgage-backed:
Agency residential	(163)		9,354		(14,555)		156,785		(14,718)		166,139
Agency commercial	(26)		3,016		(14,179)		123,404		(14,205)		126,420
Corporate	(414)		4,361		(5,071)		45,826		(5,485)		50,187
Total available-for-sale	$	(631)	$	21,648	$	(71,631)	$	720,834	$	(72,262)	$	742,482

As of December 31, 2024, there were 615 debt securities in an unrealized loss position for a period of twelve months or more, and 91 debt securities in an unrealized loss position for a period of less than twelve months.

U.S. Treasury, U.S. government agency, and agency mortgage-backed securities are considered to have no risk of credit loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as prepayment and liquidity risks.

Municipal securities include general obligation bonds which have a very low historical default rate due to issuers generally having taxing authority to service the debt and represent approximately 72% of the total fair value of our municipal securities portfolio as of December 31, 2024. The remainder of the municipal securities are also of high credit quality with ratings of Aa3/AA- or better. The Company evaluates credit risk through monitoring credit ratings and reviews of available financial data. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. The estimated allowance for credit losses for the municipal debt securities held-to-maturity was deemed insignificant.

Corporate securities include investment grade corporate and bank subordinated debt securities. The Company evaluates credit risk through monitoring credit ratings, reviews of available issuer financial data, and sector trends. The changes in fair value in corporate securities were considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks.

As of December 31, 2024, the Company did not intend to sell the debt securities that are in an unrealized loss position, and it was more likely than not that the Company would recover the amortized cost prior to being required to sell the debt securities.

Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the consolidated statements of income. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer.


	December 31, 2024
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,124	$	2,998
Cumulative net unrealized gains (losses)	191		(369)
Carrying value	$	3,315	$	2,629


	December 31, 2023
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,143	$	2,840
Cumulative net unrealized gains (losses)	217		(335)
Carrying value	$	3,360	$	2,505

As of December 31, 2024 and December 31, 2023, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect impairments of $0.2 million and downward adjustments based on observable price changes of an identical investment of $0.2 million. There have been no upward adjustments based on observable price changes to equity securities with no readily determinable fair value.


	Year Ended December 31,
(dollars in thousands)		2024		2023		2022

Readily determinable fair value		$	(25)	$	330	$	(414)
No readily determinable fair value		(34)		(170)		—
Unrealized gains (losses) on equity securities		$	(59)	$	160	$	(414)