The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2024 and December 31, 2023 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrealized gains and losses (in thousands):


	March 31, 2024
Available-for-Sale Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Credit Losses
Debt securities:
U.S. Treasury securities	$	9,990	$	—	$	(1,112)	$	8,878	$	—
U.S. Government agencies	100		—		(8)		92		—
Obligations of states and political subdivisions	197,311		—		(18,906)		178,405		—
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	86,205		4		(5,411)		80,798		—
Private label mortgage and asset backed securities	349,919		7		(44,565)		305,361		—

Total available-for-sale	$	643,525	$	11	$	(70,002)	$	573,534	$	—

	March 31, 2024
Held-to-Maturity Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Credit Losses
Debt securities:
Obligations of states and political subdivisions	$	192,099	$	70	$	(15,964)	$	176,205	$	14
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	10,841		—		(2,010)		8,831		—
Private label mortgage and asset backed securities	54,354		—		(5,738)		48,616		11
Corporate debt securities	46,112		—		(4,871)		41,241		869
Total held-to-maturity	$	303,406	$	70	$	(28,583)	$	274,893	$	894


	December 31, 2023
Available-for-Sale Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
Debt securities:
U.S. Treasury securities	$	9,990	$	—	$	(1,036)	$	—	$	8,954
U.S. Government agencies	102		—		(7)		—		95
Obligations of states and political subdivisions	198,070		—		(17,848)		—		180,222
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	88,874		3		(5,525)		—		83,352
Private label mortgage and asset backed securities	372,610		10		(48,047)		—		324,573

Total available-for-sale	$	669,646	$	13	$	(72,463)	$	—	$	597,196


	December 31, 2023
Held-to-Maturity Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Credit Losses
Debt securities:
Obligations of states and political subdivisions	192,070		70		(14,188)		$	177,952	$	20
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	10,758		—		(1,692)		9,066		—
Private label mortgage and asset backed securities	54,579		—		(5,944)		48,635		11
Corporate debt securities	46,086		—		(4,736)		41,350		1,020
Total held-to-maturity	$	303,493	$	70	$	(26,560)	$	277,003	$	1,051

Proceeds and gross realized gains (losses) from the sales or calls of available-for-sale investment securities for the periods ended March 31, 2024 and 2023 are shown below (in thousands):


	For the Three Month Ended March 31,
Available-for-Sale Securities		2024		2023
Proceeds from sales or calls		$	5,700	$	12,066
Gross realized gains from sales or calls		—		—
Gross realized losses from sales or calls		(373)		(219)

The amortized cost and estimated fair value of available-for-sale and held-to maturity investment securities at March 31, 2024 by contractual maturity is shown below (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	March 31, 2024				December 31, 2023
Available-for-Sale Securities	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Within one year	$	—	$	—	$	—	$	—
After one year through five years	15,662		13,754		9,992		8,954
After five years through ten years	34,482		30,340		40,264		35,379
After ten years	157,157		143,189		157,804		144,843
	207,301		187,283		208,060		189,176
Investment securities not due at a single maturity date:

U.S. Government agencies	100		92		102		95
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	86,205		80,798		88,874		83,352
Private label mortgage and asset backed securities	349,919		305,361		372,610		324,573

Total available-for-sale	$	643,525	$	573,534	$	669,646	$	597,196

















	March 31, 2024				December 31, 2023
Held-to-Maturity Securities	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Within one year	$	—	$	—	$	—	$	—
After one year through five years	8,492		8,142		8,463		8,136
After five years through ten years	74,868		68,489		74,746		68,552
After ten years	108,739		99,574		108,861		101,264
	192,099		176,205		192,070		177,952
Investment securities not due at a single maturity date:
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	10,841		8,831		10,758		9,066
Private label mortgage and asset backed securities	54,354		48,616		54,579		48,635
Corporate debt securities	46,112		41,241		46,086		41,350
Total held-to-maturity	$	303,406	$	274,893	$	303,493	$	277,003

At March 31, 2024 there were five issuers of private label mortgage securities in which the Company had holdings of securities in amounts greater than 10% of shareholders’ equity. Investments with these issuers were in senior tranches and/or were rated “AAA” or higher and there were no credit issues identified.

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):


	March 31, 2024
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-Sale Securities	Value		Losses		Value		Losses		Value		Losses
Debt securities:
U.S. Treasury securities	$	—	$	—	$	8,878	$	(1,112)	$	8,878	$	(1,112)
U.S. Government agencies	—		—		92		(8)		92		(8)
Obligations of states and political subdivisions	—		—		178,405		(18,906)		178,405		(18,906)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	375		(7)		80,225		(5,404)		80,600		(5,411)
Private label mortgage and asset backed securities	856		(8)		304,451		(44,557)		305,307		(44,565)

Total available-for-sale	$	1,231	$	(15)	$	572,051	$	(69,987)	$	573,282	$	(70,002)


	December 31, 2023
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-Sale Securities	Value		Losses		Value		Losses		Value		Losses
Debt securities:
U.S. Treasury securities	$	—	$	—	$	8,954	$	(1,036)	$	8,954	$	(1,036)
U.S. Government agencies	—		—		95		(7)		95		(7)
Obligations of states and political subdivisions	—		—		180,222		(17,848)		180,222		(17,848)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	392		(3)		82,760		(5,522)		83,152		(5,525)
Private label mortgage and asset backed securities	—		—		323,655		(48,047)		323,655		(48,047)
Total available-for-sale	$	392	$	(3)	$	595,686	$	(72,460)	$	596,078	$	(72,463)

As of March 31, 2024, the Company had a total of 173 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting of 6 U.S. Treasury securities and U.S. Government agencies, 43 obligations of states and political subdivisions, 48 U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations, and 76 private label mortgage and asset backed securities.

Each reporting period, the Company assesses each AFS debt security that is in an unrealized loss position to determine whether the decline in fair value below the amortized cost basis results from a credit loss or other factors. The Company did not record an ACL on any available for sale securities at March 31, 2024. As of that date, the Company considers the unrealized losses across the classes of major security-type to be related to fluctuations in market conditions, primarily interest rates, and not reflective of a deterioration in credit value. As of March 31, 2024, the Company determined that it is not more likely than not that there is an intention to sell securities or that the Company would be required to sell securities.

•Obligations of States and Political Subdivisions: The unrealized losses on investments in obligations of states and political subdivisions are caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment.

•U.S. Treasury and Government Sponsored Entities and Agencies Collateralized by Residential Mortgage Obligations: The unrealized losses on the Company’s investments in U.S. treasuries and government sponsored entities and agencies collateralized by residential mortgage obligations were caused by interest rate changes. The contractual cash flows of those investments are guaranteed or supported by an agency or sponsored entity of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment.

•Private Label Mortgage and Asset Backed Securities: The Company has invested exclusively in AA and AAA tranches of various private label mortgage and asset backed securities. Each purchase is subject to a credit and structure review prior to their purchase. Ratings are reviewed on a quarterly basis in addition to other metrics provided through third-party services. Following review of the financial metrics and ratings, management concluded that the unrealized loss position of the private label mortgage and asset backed securities related exclusively to the fluctuation in market conditions and were not reflective of any credit concerns with the tranches comprising the Company’s investments.

No allowance for credit losses have been recognized on AFS debt securities in an unrealized loss position, as management does not believe that any of the securities are impaired due to credit risk factors as of March 31, 2024 and December 31, 2023.

The Company separately evaluates its HTM debt securities for any credit losses based on probability of default and loss given default utilizing historical industry data based on investment category, while also considering reasonable and supportable forecasts. The probability of default and loss given default are incorporated into the present value of expected cash flows and compared against amortized cost.

The allowance for credit losses on HTM securities was $894,000 at March 31, 2024. The allowance for credit losses on HTM securities is driven by economic scenarios, estimated probabilities of default and loss given default. Economic scenarios are updated quarterly.

During the three month period ended March 31, 2024, the credit to credit losses for held-to-maturity securities was primarily driven by improving economic scenarios and improvements in the probabilities of loss given default. Management believes that the allowance for credit losses for held-to-maturity securities at March 31, 2024 appropriately reflected expected credit losses at that date.

The Company monitors credit quality of debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. For non-rated investment securities, management receives quarterly performance updates to monitor for any credit concerns. There were no HTM securities on nonaccrual or past due over 89 days and still on accrual. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator. U.S. Government sponsored agencies are not included in the below tables as credit ratings are not applicable.


	March 31, 2024
Debt Securities Held-to-Maturity (in thousands)	AAA/AA/A		BBB		Unrated
Obligations of states and political subdivisions	$	192,099	$	—	$	—

Private label mortgage and asset backed securities	46,316		—		8,038
Corporate debt securities	—		30,182		15,930
Total debt securities held-to-maturity	$	238,415	$	30,182	$	23,968