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Securities
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
Securities are classified as AFS, HTM, and equity securities. Total securities were $697.7 million as of September 30, 2024.
Securities AFS and Securities HTM
Securities AFS and securities HTM are debt securities. Securities AFS are held for indefinite periods of time and are carried at estimated fair value. As of September 30, 2024, the estimated fair value of securities AFS was $560.6 million. The net unrealized loss on securities AFS decreased $12.7 million for the nine months ended September 30, 2024, resulting in a net unrealized loss of $49.5 million as of September 30, 2024.
Securities HTM, which the Company has the intent and ability to hold until maturity, are carried at amortized cost. As of September 30, 2024, the amortized cost of securities HTM was $134.1 million.
Investment activity for the nine months ended September 30, 2024, included $117.3 million in maturities, principal repayments, and calls, partially offset by $87.8 million of securities purchased. There were no sales of securities AFS, and there were no purchases or sales of securities HTM for the same period.
The amortized cost and estimated fair value of securities AFS and securities HTM are summarized in the following tables:
September 30, 2024
(in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Securities AFS:
Mortgage-backed securities$315,569 $1,438 $(22,431)$294,576 
Municipal bonds203,626 8 (27,089)176,545 
U.S. Treasury securities29,994 — (258)29,736 
U.S. agency securities60,819 103 (1,224)59,698 
Total Securities AFS$610,008 $1,549 $(51,002)$560,555 
Securities HTM:
Mortgage-backed securities$133,216 $— $(17,211)$116,005 
U.S. agency securities929 — (75)854 
Total Securities HTM$134,145 $— $(17,286)$116,859 
December 31, 2023
(in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Securities AFS:
Mortgage-backed securities$288,793 $395 $(31,228)$257,960 
Municipal bonds211,848 13 (27,732)184,129 
U.S. Treasury securities92,054 — (1,912)90,142 
U.S. agency securities39,563 5 (1,707)37,861 
Total Securities AFS$632,258 $413 $(62,579)$570,092 
Securities HTM:
Mortgage-backed securities$140,314 $— $(22,098)$118,216 
U.S. agency securities922 — (109)813 
Total Securities HTM$141,236 $— $(22,207)$119,029 
The amortized cost and estimated fair value of securities AFS and securities HTM as of September 30, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to call or repay obligations with or without call or prepayment penalties.
September 30, 2024
(in thousands)Amortized
Cost		Fair
Value
Securities AFS:
Within one year$37,206 $36,858 
After one year but within five years25,613 25,207 
After five years but within ten years123,252 117,247 
After ten years423,937 381,243 
Total Securities AFS$610,008 $560,555 
Securities HTM:
Within one year$— $— 
After one year but within five years— — 
After five years but within ten years929 854 
After ten years133,216 116,005 
Total Securities HTM$134,145 $116,859 
Accounting for Credit Losses – Securities AFS and Securities HTM
The Company evaluates securities AFS for impairment when there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Due to the zero credit loss assumption and the considerations applied to the securities AFS, there was no ACL recorded for securities AFS as of September 30, 2024 and December 31, 2023. Also, as part of the Company’s evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, the Company considers its investment strategy, cash flow needs, liquidity position, capital adequacy, and interest rate risk position. Management does not intend to sell these securities prior to recovery, and it is more likely than not that the Company will have the ability to hold them, primarily due to adequate liquidity, until each security has recovered its cost basis.
Due to the zero credit loss assumption on the securities HTM portfolio, there was no ACL recorded for securities HTM as of September 30, 2024 and December 31, 2023.
Accrued interest receivable totaled $3.0 million as of September 30, 2024 and December 31, 2023, for securities AFS and securities HTM and was reported in accrued interest receivable on the consolidated balance sheets.
Information pertaining to securities AFS with gross unrealized losses as of September 30, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows:
September 30, 2024
Less than twelve monthsTwelve months or more
(in thousands)Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value
Securities AFS:
Mortgage-backed securities$(26)$12,404 $(22,405)$192,372 
Municipal bonds(46)1,406 (27,043)173,314 
U.S. Treasury securities— — (258)29,736 
U.S. agency securities(11)10,417 (1,213)18,992 
Total Securities AFS$(83)$24,227 $(50,919)$414,414 
December 31, 2023
Less than twelve monthsTwelve months or more
(in thousands)Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value
Securities AFS:
Mortgage-backed securities$(35)$19,383 $(31,193)$206,518 
Municipal bonds(83)4,815 (27,649)176,098 
U.S. Treasury securities— — (1,912)90,142 
U.S. agency securities(82)19,301 (1,625)14,475 
Total Securities AFS$(200)$43,499 $(62,379)$487,233 
As of September 30, 2024, the Company held 449 securities AFS that were in unrealized loss positions. The aggregate unrealized loss of these securities AFS as of September 30, 2024, was 8.36% of the amortized cost basis of securities AFS.
For the three and nine months ended September 30, 2024 and 2023, there were no proceeds from sales and calls of debt securities.
Equity Securities
Equity securities are an investment in a CRA mutual fund, consisting primarily of bonds. Equity securities are carried at fair value on the consolidated balance sheets with periodic changes in value recorded through the consolidated statements of income. As of September 30, 2024, equity securities had a fair value of $3.0 million with a recognized gain of $63,000 for the nine months ended September 30, 2024. As of December 31, 2023, equity securities had a fair value of $3.0 million with a recognized loss of $14,000 for the year ended December 31, 2023.
Pledged Securities
Securities with carrying values of approximately $225.8 million and $230.9 million were used as collateral as of September 30, 2024 and December 31, 2023, respectively.