XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.25.1

Securities | 3 Months Ended
--- | ---
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities Securities are classified as AFS, HTM, and equity securities. Total securities were $699.5 million as of March 31, 2025. 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 March 31, 2025, the estimated fair value of securities AFS was $566.9 million. The net unrealized loss on securities AFS decreased $4.6 million for the three months ended March 31, 2025, resulting in a net unrealized loss of $58.7 million as of March 31, 2025. Securities HTM, which the Company has the intent and ability to hold until maturity, are carried at amortized cost. As of March 31, 2025, the amortized cost of securities HTM was $129.7 million. Investment activity for the three months ended March 31, 2025, included $36.8 million of securities purchased, partially offset by $26.8 million in maturities, principal repayments, and calls. 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:
| March 31, 2025
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities AFS: |  |  |  |  |  |  |
Mortgage-backed securities | $ | 351,989 |  |  | $ | 1,002 |  |  | $ | (24,708) |  |  | $ | 328,283 |
Municipal bonds | 201,832 |  |  | — |  |  | (33,443) |  |  | 168,389 |
U.S. Treasury securities | 3,498 |  |  | — |  |  | (14) |  |  | 3,484 |
U.S. agency securities | 68,205 |  |  | 14 |  |  | (1,501) |  |  | 66,718 |
Total Securities AFS | $ | 625,524 |  |  | $ | 1,016 |  |  | $ | (59,666) |  |  | $ | 566,874 |
Securities HTM: |  |  |  |  |  |  |
Mortgage-backed securities | $ | 128,752 |  |  | $ | — |  |  | $ | (21,671) |  |  | $ | 107,081 |
U.S. agency securities | 934 |  |  | — |  |  | (88) |  |  | 846 |
Total Securities HTM | $ | 129,686 |  |  | $ | — |  |  | $ | (21,759) |  |  | $ | 107,927 |
| 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 |
The amortized cost and estimated fair value of securities AFS and securities HTM as of March 31, 2025, 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.
| March 31, 2025
(in thousands) | Amortized Cost |  | Fair Value
Securities AFS: |  |  |
Within one year | $ | 11,048 |  |  | $ | 10,981 |
After one year but within five years | 25,126 |  |  | 24,496 |
After five years but within ten years | 126,954 |  |  | 118,862 |
After ten years | 462,396 |  |  | 412,535 |
Total Securities AFS | $ | 625,524 |  |  | $ | 566,874 |
Securities HTM: |  |  |
Within one year | $ | — |  |  | $ | — |
After one year but within five years | — |  |  | — |
After five years but within ten years | 934 |  |  | 846 |
After ten years | 128,752 |  |  | 107,081 |
Total Securities HTM | $ | 129,686 |  |  | $ | 107,927 |
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 evaluation of the considerations applied to the securities AFS, there was no ACL recorded for securities AFS as of March 31, 2025 and December 31, 2024. 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 March 31, 2025 and December 31, 2024. Accrued interest receivable totaled $3.0 million as of March 31, 2025 and December 31, 2024, 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 March 31, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows:
| March 31, 2025
| 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 | $ | (417) |  |  | $ | 61,515 |  |  | $ | (24,291) |  |  | $ | 175,263 |
Municipal bonds | (85) |  |  | 1,968 |  |  | (33,358) |  |  | 166,421 |
U.S. Treasury securities | — |  |  | — |  |  | (14) |  |  | 3,484 |
U.S. agency securities | (103) |  |  | 37,138 |  |  | (1,398) |  |  | 21,540 |
Total Securities AFS | $ | (605) |  |  | $ | 100,621 |  |  | $ | (59,061) |  |  | $ | 366,708 |
| 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 |
As of March 31, 2025, the Company held 479 securities AFS that were in unrealized loss positions. The aggregate unrealized loss of these securities AFS as of March 31, 2025, was 9.54% of the amortized cost basis of securities AFS. For the three months ended March 31, 2025 and 2024, there were no proceeds from sales 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 March 31, 2025, equity securities had a fair value of $3.0 million with a recognized gain of $44,000 for the three months ended March 31, 2025. 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. Pledged Securities Securities with carrying values of approximately $237.0 million and $226.5 million were used as collateral as of March 31, 2025 and December 31, 2024, respectively.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/940-320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph b -Publisher SEC Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481800/320-10-50-10 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration