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Securities

12 Months Ended

Dec. 31, 2024

Note 5: Securities

The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at December 31, 2024 and 2023:


		December 31, 2024
					Gross			Gross
		Amortized			Unrealized			Unrealized
(dollars in thousands)		Cost			Gains			Losses			Fair Value
Securities Available for Sale:
U.S. Treasury Securities		$	179,835		$	3		$	(12,090)		$	167,748
Municipal Bonds			139,891			23			(17,649)			122,265
Mortgage-Backed Securities			259,833			882			(15,825)			244,890
Corporate Securities			139,161			1,041			(6,016)			134,186
U.S Government Agency Securities			22,053			85			(56)			22,082
Asset-Backed Securities			76,891			211			(26)			77,076
Total Securities Available for Sale		$	817,664		$	2,245		$	(51,662)		$	768,247


		December 31, 2023
					Gross			Gross
		Amortized			Unrealized			Unrealized
(dollars in thousands)		Cost			Gains			Losses			Fair Value
Securities Available for Sale:
Municipal Bonds		$	151,512		$	47		$	(19,035)			132,524
Mortgage-Backed Securities			249,455			2,261			(16,401)			235,315
Corporate Securities			142,098			386			(11,879)			130,605
SBA Securities			18,497			279			(102)			18,674
Asset-Backed Securities			87,054			357			(425)			86,986
Total Securities Available for Sale		$	648,616		$	3,330		$	(47,842)		$	604,104

Securities with a carrying value of $289.9 million and $170.7 million were pledged to secure public fund deposits and borrowing capacity at the Federal Reserve Discount Window as of December 31, 2024 and December 31, 2023, respectively.

The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2024 and 2023:


				Less Than 12 Months						12 Months or Greater						Total
		Number of					Unrealized						Unrealized						Unrealized
(dollars in thousands, except number of holdings)		Holdings		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
December 31, 2024
U.S. Treasury Securities		14		$	157,091		$	(12,090)		$	—		$	—		$	157,091		$	(12,090)
Municipal Bonds		236			21,329			(120)			95,774			(17,529)			117,103			(17,649)
Mortgage-Backed Securities		168			47,636			(391)			118,824			(15,434)			166,460			(15,825)
Corporate Securities		93			6,860			(75)			91,666			(5,941)			98,526			(6,016)
U.S Government Agency Securities		38			5,878			(5)			4,071			(51)			9,949			(56)
Asset-Backed Securities		7			5,735			(5)			10,161			(21)			15,896			(26)
Total Securities Available for Sale		556		$	244,529		$	(12,686)		$	320,496		$	(38,976)		$	565,025		$	(51,662)


				Less Than 12 Months						12 Months or Greater						Total
		Number of					Unrealized						Unrealized						Unrealized
(dollars in thousands, except number of holdings)		Holdings		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
December 31, 2023
Municipal Bonds		212		$	4,052		$	(17)		$	120,527		$	(19,018)			124,579			(19,035)
Mortgage-Backed Securities		128			35,719			(310)			135,829			(16,091)			171,548			(16,401)
Corporate Securities		110			14,528			(756)			101,311			(11,123)			115,839			(11,879)
SBA Securities		47			1,731			(3)			7,072			(99)			8,803			(102)
Asset-Backed Securities		24			39,011			(234)			13,805			(191)			52,816			(425)
Total Securities Available for Sale		521		$	95,041		$	(1,320)		$	378,544		$	(46,522)		$	473,585		$	(47,842)

Beginning January 1, 2023, the Company evaluates all securities quarterly to determine if any securities in a loss position require an allowance for credit losses on securities in accordance with ASC 326 - Measurement of Credit Losses on Financial Instruments.

At December 31, 2024 and 2023, 556 and 521 debt securities had unrealized losses with aggregate depreciation of approximately 8.4% and 9.2%, respectively, from the Company’s amortized cost basis. These unrealized losses have not been recognized into income because management does not intend to sell these securities, and it is not more likely than not it will be required to sell the securities before recovery of its amortized cost basis. Furthermore, the unrealized losses are due to changes in interest rates and other market conditions and were not reflective of credit events. To make this determination, consideration is given to such factors as the credit rating of the issuer, level of credit enhancement, changes in credit ratings, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. As of December 31, 2024 and 2023, there was no allowance for credit losses carried on the Company’s securities portfolio.

Accrued interest receivable on securities, which is recorded within accrued interest on the balance sheet, totaled $6.2 million and $4.9 million at December 31, 2024 and 2023, respectively, and was excluded from the estimate of credit losses.

The Company has entered into a fair value hedging transaction to mitigate the impact of changing interest rates on the fair value of U.S. treasury securities. See Note 11 – Derivative Instruments and Hedging Activities for disclosure of the gains and losses recognized on derivative instruments and the cumulative fair value hedging adjustments to the carrying amount of the hedged securities.

The following table presents a summary of amortized cost and estimated fair value of debt securities by the lesser of expected call date or contractual maturity as of December 31, 2024. Call date is used when a call of the debt security is expected, determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed, U.S. government agency securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties.


(dollars in thousands)		Amortized Cost			Fair Value
December 31, 2024
Due in One Year or Less		$	41,153		$	41,645
Due After One Year Through Five Years			83,174			81,633
Due After Five Years Through 10 Years			157,405			140,245
Due After 10 Years			177,155			160,676
Subtotal			458,887			424,199
Mortgage-Backed Securities			259,833			244,890
U.S Government Agency Securities			22,053			22,082
Asset-Backed Securities			76,891			77,076
Totals		$	817,664		$	768,247

The following table presents a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the years ended December 31, 2024, 2023, and 2022:


		Year Ended December 31,
(dollars in thousands)		2024			2023			2022
Proceeds From Sales of Securities		$	101,612		$	28,756		$	64,439
Gross Gains on Sales			1,594			247			612
Gross Losses on Sales			(1,209)			(280)			(530)