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Securities | 12 Months Ended
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Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities Securities are classified as AFS, HTM, and equity securities. Total securities were $684.9 million as of December 31, 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 December 31, 2024, the estimated fair value of securities AFS was $550.1 million. The net unrealized loss on securities AFS increased $1.0 million for the year ended December 31, 2024, resulting in a net unrealized loss of $63.2 million as of December 31, 2024. Securities HTM, which the Company has the intent and ability to hold until maturity, are carried at amortized cost. As of December 31, 2024, the amortized cost of securities HTM was $131.8 million. Investment activity for the year ended December 31, 2024, included $157.3 million in maturities, principal repayments, and calls, partially offset by $128.9 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:
| December 31, 2024
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities AFS: |  |  |  |  |  |  |
Mortgage-backed securities | $ | 334,123 |  |  | $ | 539 |  |  | $ | (27,562) |  |  | $ | 307,100 |
Municipal bonds | 203,394 |  |  | — |  |  | (34,551) |  |  | 168,843 |
U.S. Treasury securities | 10,995 |  |  | — |  |  | (63) |  |  | 10,932 |
U.S. agency securities | 64,881 |  |  | 18 |  |  | (1,626) |  |  | 63,273 |
Total Securities AFS | $ | 613,393 |  |  | $ | 557 |  |  | $ | (63,802) |  |  | $ | 550,148 |
Securities HTM: |  |  |  |  |  |  |
Mortgage-backed securities | $ | 130,864 |  |  | $ | — |  |  | $ | (22,698) |  |  | $ | 108,166 |
U.S. agency securities | 932 |  |  | — |  |  | (108) |  |  | 824 |
Total Securities HTM | $ | 131,796 |  |  | $ | — |  |  | $ | (22,806) |  |  | $ | 108,990 |
| 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 bonds | 211,848 |  |  | 13 |  |  | (27,732) |  |  | 184,129 |
U.S. Treasury securities | 92,054 |  |  | — |  |  | (1,912) |  |  | 90,142 |
U.S. agency securities | 39,563 |  |  | 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 securities | 922 |  |  | — |  |  | (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 December 31, 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.
| December 31, 2024
(in thousands) | Amortized Cost |  | Fair Value
Securities AFS: |  |  |
Within one year | $ | 17,974 |  |  | $ | 17,845 |
After one year but within five years | 25,071 |  |  | 24,278 |
After five years but within ten years | 126,667 |  |  | 118,100 |
After ten years | 443,681 |  |  | 389,925 |
Total Securities AFS | $ | 613,393 |  |  | $ | 550,148 |
Securities HTM: |  |  |
Within one year | $ | — |  |  | $ | — |
After one year but within five years | — |  |  | — |
After five years but within ten years | 932 |  |  | 824 |
After ten years | 130,864 |  |  | 108,166 |
Total Securities HTM | $ | 131,796 |  |  | $ | 108,990 |
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 evaluation of the considerations applied to the securities AFS, there was no ACL for securities AFS as of December 31, 2024 and 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 December 31, 2024 and 2023. Accrued interest receivable totaled $3.0 million as of December 31, 2024 and 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 December 31, 2024 and 2023, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows:
| December 31, 2024
| Less than twelve months |  | Twelve months or more
(in thousands) | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value
Securities AFS: |  |  |  |  |  |  |
Mortgage-backed securities | $ | (642) |  |  | $ | 66,986 |  |  | $ | (26,920) |  |  | $ | 179,644 |
Municipal bonds | (136) |  |  | 2,863 |  |  | (34,415) |  |  | 165,980 |
U.S. Treasury securities | — |  |  | — |  |  | (63) |  |  | 10,932 |
U.S. agency securities | (82) |  |  | 27,329 |  |  | (1,544) |  |  | 19,801 |
Total Securities AFS | $ | (860) |  |  | $ | 97,178 |  |  | $ | (62,942) |  |  | $ | 376,357 |
| December 31, 2023
| Less than twelve months |  | Twelve months or more
| 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 December 31, 2024, the Company held 485 securities AFS that were in unrealized loss positions. The aggregate unrealized loss of these securities AFS as of December 31, 2024, was 10.40% of the amortized cost basis of securities AFS. The proceeds from sales of debt securities and their gross gain (loss) for the years ended December 31, 2024, 2023, and 2022, are shown below:
| Years Ended December 31,
(in thousands) | 2024 |  | 2023 |  | 2022
Proceeds (1) | $ | — |  |  | $ | — |  |  | $ | 41,234 |
Gross gain | — |  |  | — |  |  | 64 |
Gross loss | — |  |  | — |  |  | (123) |
(1)The proceeds include the gross gain and loss. 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 December 31, 2024, equity securities had a fair value of $2.9 million with a recognized loss of $28,000 for the year ended December 31, 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 $226.5 million and $230.9 million were used as collateral as of December 31, 2024 and 2023, respectively.

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