Securities

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

AFS debt securities at December 31, 2024 and 2023 were as follows:


	December 31, 2024
	Amortized		Gross Unrealized				Allowance For		Fair
	Cost		Gains		Losses		Credit Losses		Value
U.S. Gov’t sponsored entities	$	14,795	$	17	$	(2)	$	—	$	14,810
State & political subdivisions	104,025		11		(13,080)		—		90,956
Residential & multi-family mortgage	352,983		60		(34,133)		—		318,910
Corporate notes & bonds	39,022		—		(3,812)		—		35,210

Pooled SBA	9,398		—		(738)		—		8,660

Total	$	520,223	$	88	$	(51,765)	$	—	$	468,546


	December 31, 2023
	Amortized		Gross Unrealized				Allowance For		Fair
	Cost		Gains		Losses		Credit Losses		Value
U.S. Gov’t sponsored entities	$	5,024	$	—	$	(36)	$	—	$	4,988
State & political subdivisions	105,102		22		(13,315)		—		91,809
Residential & multi-family mortgage	225,871		1		(34,353)		—		191,519
Corporate notes & bonds	48,459		13		(5,333)		—		43,139

Pooled SBA	11,347		—		(847)		—		10,500

Total	$	395,803	$	36	$	(53,884)	$	—	$	341,955

HTM debt securities at December 31, 2024 and 2023 are as follows:


	December 31, 2024
	Amortized		Gross Unrealized				Allowance For		Fair
	Cost		Gains		Losses		Credit Losses		Value
U.S. Gov’t sponsored entities	$	229,504	$	—	$	(13,354)	$	—	$	216,150
Residential & multi-family mortgage	76,577		—		(9,757)		—		66,820
Total	$	306,081	$	—	$	(23,111)	$	—	$	282,970


	December 31, 2023
	Amortized		Gross Unrealized				Allowance For		Fair
	Cost		Gains		Losses		Credit Losses		Value
U.S. Gov’t sponsored entities	$	302,945	$	—	$	(19,038)	$	—	$	283,907
Residential & multi-family mortgage	86,023		—		(9,360)		—		76,663
Total	$	388,968	$	—	$	(28,398)	$	—	$	360,570

The Corporation elected to transfer 74 AFS debt securities with an aggregate fair value of $213.7 million to a classification of HTM during the year ended December 31, 2022. In accordance with FASB ASC 320-10-55-24, the transfer from AFS to HTM must be recorded at the fair value of the AFS debt securities at the time of transfer. The net unrealized holding loss of $5.6 million, net of tax, at the date of transfer was retained in accumulated other comprehensive income (loss), with the associated pre-tax amount retained in the carrying value of the HTM debt securities. Such amounts will be amortized to comprehensive income over the remaining life of the securities.

Information pertaining to AFS security sales is as follows:


Year ended December 31	Proceeds		Gross Gains		Gross Losses
2024	$	806	$	83	$	9
2023	13,151		52		—
2022	22,164		651		—

The tax provision related to these net realized gains at December 31, 2024, 2023, and 2022 were $16 thousand, $11 thousand, and $137 thousand, respectively.

The following is a schedule of the contractual maturity of AFS and HTM debt securities, excluding equity securities, at December 31, 2024:


	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
1 year or less	$	23,840	$	23,789	$	52,148	$	51,496
1 year – 5 years	47,805		44,781		158,625		148,881
5 years – 10 years	65,830		57,461		18,731		15,773
After 10 years	20,367		14,945		—		—
	157,842		140,976		229,504		216,150
Residential and multi-family mortgage	352,983		318,910		76,577		66,820
Pooled SBA	9,398		8,660		—		—

Total debt securities	$	520,223	$	468,546	$	306,081	$	282,970

Mortgage securities and pooled SBA securities are not due at a single date; periodic payments are received based on the payment patterns of the underlying collateral.

On December 31, 2024 and 2023, securities carried at $443.9 million and $489.0 million, respectively, were pledged to secure public deposits and for other purposes as provided by law.

At December 31, 2024 and 2023, there were no holdings of securities by any one issuer, other than U.S. Government sponsored entities, in an amount greater than 10% of shareholders’ equity.

AFS debt securities with unrealized losses at December 31, 2024 and 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:


December 31, 2024	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	249	$	(1)	$	3,340	$	(1)	$	3,589	$	(2)
State & political subdivisions	6,519		(90)		80,172		(12,990)		86,691		(13,080)
Residential & multi-family mortgage	118,057		(810)		159,576		(33,323)		277,633		(34,133)
Corporate notes & bonds	987		(13)		34,224		(3,799)		35,211		(3,812)
Pooled SBA	410		(2)		8,250		(736)		8,660		(738)

Total	$	126,222	$	(916)	$	285,562	$	(50,849)	$	411,784	$	(51,765)


December 31, 2023	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	2,487	$	(1)	$	1,956	$	(35)	$	4,443	$	(36)
State & political subdivisions	749		—		84,828		(13,315)		85,577		(13,315)
Residential and multi-family mortgage	—		—		191,436		(34,353)		191,436		(34,353)
Corporate notes & bonds	978		(22)		41,488		(5,311)		42,466		(5,333)
Pooled SBA	—		—		10,409		(847)		10,409		(847)

Total	$	4,214	$	(23)	$	330,117	$	(53,861)	$	334,331	$	(53,884)

HTM debt securities with unrealized losses at December 31, 2024 and 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:


December 31, 2024	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	—	$	—	$	216,150	$	(13,354)	$	216,150	$	(13,354)
Residential & multi-family mortgage	—		—		66,820		(9,757)		66,820		(9,757)

Total	$	—	$	—	$	282,970	$	(23,111)	$	282,970	$	(23,111)


December 31, 2023	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	—	$	—	$	283,907	$	(19,038)	$	283,907	$	(19,038)
State & political subdivisions	—		—		76,663		(9,360)		76,663		(9,360)
Total	$	—	$	—	$	360,570	$	(28,398)	$	360,570	$	(28,398)

The Corporation evaluates securities for possible credit allowance on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation.

As of December 31, 2024 and 2023, management performed an assessment for allowance for credit losses on the Corporation’s AFS debt securities in an unrealized loss position and as of December 31, 2024 management performed an assessment for allowance for credit losses on the Corporation's HTM debt securities.

First an assessment was performed to determine if the Corporation intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost. Management determined it does not intend to sell and will not be required to sell any of the securities before recovery of its amortized cost. Next, management performed an evaluation relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. For the securities that comprise corporate notes and bonds and the securities that are issued by state and political subdivisions, management monitors publicly available financial information, such as filings with the Securities and Exchange Commission, in order to evaluate the securities credit quality and ability to repay its debt obligations. For financial institution issuers, management monitors information from quarterly "call" report filings that are used to generate Uniform Bank Performance Reports. All other securities that were in an unrealized loss position at the balance sheet date were reviewed by management, and issuer-specific documents were reviewed as appropriate given the following considerations; the financial condition and near-term prospects of the issuer and whether downgrades by bond rating agencies have occurred. Based on the results of the assessment, management believes the decline in fair value is not the result of credit losses. As a result no credit allowance is required as of December 31, 2024.

As of December 31, 2024 and 2023 management concluded that the securities described in the previous paragraph did not decline in fair value due to credit factors for the following reasons:

•There is no indication of any significant deterioration of the creditworthiness of the institutions that issued the securities.

•All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be timely received.

In addition, the rise in interest rates is the primary driver of the decline in fair value below amortized cost as of December 31, 2024.

Equity securities at December 31, 2024 and 2023 were as follows:


	December 31, 2024		December 31, 2023
Corporate equity securities	$	6,542	$	5,341
Mutual funds	1,936		2,223
Money market	287		1,103
Corporate notes	1,691		634

Total	$	10,456	$	9,301

During the year ended December 31, 2024, 2023, and 2022, the proceeds from sold equity securities were zero in 2024, $296 thousand in 2023 and zero in 2022, resulting in net realized gains of zero in 2024, $22 thousand in 2023, and zero in 2022.