XML 29 R12.htm IDEA: XBRL DOCUMENT
v3.25.1

Investment Securities | 12 Months Ended
--- | ---
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | INVESTMENT SECURITIES The following tables summarize the amortized cost and fair value of securities available-for-sale and securities held-for-maturity at December 31, 2024 and 2023 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and the allowance for credit losses on held-to-maturity securities (in thousands):
| December 31, 2024 |  |
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Allowance for Credit Losses
Available-for-Sale Securities |  |  |  |  |  |  |  |  |
Debt Securities: |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 9,994 |  |  | $ | — |  |  | $ | (936) |  |  | $ | 9,058 |  |  | $ | — |
U.S. Government agencies | 70 |  |  | — |  |  | (5) |  |  | 65 |  |  | — |
Obligations of states and political subdivisions | 183,766 |  |  | — |  |  | (19,126) |  |  | 164,640 |  |  | — |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 76,732 |  |  | 8 |  |  | (4,438) |  |  | 72,302 |  |  | — |
Private label mortgage and asset backed securities | 265,302 |  |  | 6 |  |  | (34,753) |  |  | 230,555 |  |  | — |
Corporate debt securities | 470 |  |  | 23 |  |  | — |  |  | 493 |  |  | — |
| $ | 536,334 |  |  | $ | 37 |  |  | $ | (59,258) |  |  | $ | 477,113 |  |  | $ | — |
| December 31, 2024
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Allowance for Credit Losses
Held to Maturity Securities |  |  |  |  |  |  |  |  |
Debt Securities: |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 192,156 |  |  | $ | 54 |  |  | $ | (17,392) |  |  | $ | 174,818 |  |  | $ | 12 |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 11,095 |  |  | — |  |  | (2,100) |  |  | 8,995 |  |  | — |
Private label mortgage and asset backed securities | 53,066 |  |  | — |  |  | (5,633) |  |  | 47,433 |  |  | 8 |
Corporate debt securities | 46,198 |  |  | — |  |  | (2,876) |  |  | 43,322 |  |  | 1,136 |
| $ | 302,515 |  |  | $ | 54 |  |  | $ | (28,001) |  |  | $ | 274,568 |  |  | $ | 1,156 |
| December 31, 2023 |  |
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Allowance for Credit Losses
Available-for-Sale Securities |  |  |  |  |  |  |  |  |
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 |  |  | — |
` | $ | 669,646 |  |  | $ | 13 |  |  | $ | (72,463) |  |  | $ | 597,196 |  |  | $ | — |
| December 31, 2023
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Allowance for Credit Losses
Held to Maturity Securities |  |  |  |  |  |  |  |  |
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 |
| $ | 303,493 |  |  | $ | 70 |  |  | $ | (26,560) |  |  | $ | 277,003 |  |  | $ | 1,051 |
Proceeds and gross realized (losses)/gains on investment securities for the years ended December 31, 2024, 2023, and 2022 are shown below (in thousands):
|  | Years Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Available-for-Sale Securities |  |  |  |  |  |
Proceeds from sales or calls |  | $ | 64,230 |  |  | $ | 26,361 |  |  | $ | 252,331 |
Gross realized gains from sales or calls |  | $ | — |  |  | $ | — |  |  | $ | 5,235 |
Gross realized losses from sales or calls |  | $ | (4,199) |  |  | $ | (907) |  |  | $ | (6,965) |
During the second quarter of 2022, the Company re-designated certain securities previously classified as available-for-sale to the held-to-maturity classification. The securities re-designated consisted of obligations of states and political subdivision securities, U.S. Government sponsored entity and agency securities collateralized by residential mortgage obligations, private label mortgage and asset backed securities, and corporate debt securities with a total carrying value of $306.7 million at April 1, 2022. At the time of re-designation, the securities included $25.3 million of pretax unrealized losses in other comprehensive income; which is being amortized over the remaining life of the securities in a manner consistent with the amortization of a premium or discount. As market interest rates or risks associated with an avail able-for-sale security’s issuer continue to change and impact the actual or perceived values of investment securities, the Company may determine that selling these securities and using proceeds to purchase securities that fit with the Company’s current risk profile is appropriate and beneficial to the Company. Losses recognized in 2024, 2023, and 2022 were incurred in order to strategically reposition the investment securities portfolio based on the current rate environment. The securities sold at a loss were acquired when the rate environment was not as volatile. The securities sold were primarily purchased to serve a purpose in the rate environment in which the securities were purchased. The Company addressed risks in the security portfolio by selling these securities and using the proceeds to fund loan growth and enhance on-balance sheet liquidity. The provision for income taxes includes $1,241,000, $268,000, and $511,000 income tax benefit from the reclassification of unrealized net losses on available-for-sale securities to realized net losses on available-for-sale securities for the years ended December 31, 2024, 2023, and 2022, respectively. The amortized cost and estimated fair value of available-for-sale and held-to-maturity investment securities at December 31, 2024 and 2023 by contractual maturity are shown in the two tables 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.
|  | December 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 |  | 15,661 |  |  | 14,056 |  |  | 9,992 |  |  | 8,954 |
After five years through ten years |  | 33,585 |  |  | 29,670 |  |  | 40,264 |  |  | 35,379 |
After ten years |  | 144,514 |  |  | 129,972 |  |  | 157,804 |  |  | 144,843 |
|  | 193,760 |  |  | 173,698 |  |  | 208,060 |  |  | 189,176 |
Investment securities not due at a single maturity date: |  |  |  |  |  |  |  |
U.S. Government agencies |  | 70 |  |  | 65 |  |  | 102 |  |  | 95 |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations |  | 76,732 |  |  | 72,302 |  |  | 88,874 |  |  | 83,352 |
Private label mortgage and asset backed securities |  | 265,302 |  |  | 230,555 |  |  | 372,610 |  |  | 324,573 |
Corporate debt securities |  | 470 |  |  | 493 |  |  | — |  |  | — |
|  | $ | 536,334 |  |  | $ | 477,113 |  |  | $ | 669,646 |  |  | $ | 597,196 |
|  | December 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 |  | 24,535 |  |  | 23,368 |  |  | 8,463 |  |  | 8,136 |
After five years through ten years |  | 60,369 |  |  | 54,685 |  |  | 74,746 |  |  | 68,552 |
After ten years |  | 107,252 |  |  | 96,765 |  |  | 108,861 |  |  | 101,264 |
|  | 192,156 |  |  | 174,818 |  |  | 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 |  | 11,095 |  |  | 8,995 |  |  | 10,758 |  |  | 9,066 |
Private label mortgage and asset backed securities |  | 53,066 |  |  | 47,433 |  |  | 54,579 |  |  | 48,635 |
Corporate debt securities |  | 46,198 |  |  | 43,322 |  |  | 46,086 |  |  | 41,350 |
|  | $ | 302,515 |  |  | $ | 274,568 |  |  | $ | 303,493 |  |  | $ | 277,003 |
At December 31, 2024, there were two 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 or were rated “AAA” or higher and there were no credit issues identified. The following table summarizes the Company’s 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):
| December 31, 2024
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Available-for-Sale Securities |  |  |  |  |  |  |  |  |  |  |
Debt Securities: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | — |  |  | $ | — |  |  | $ | 9,058 |  |  | $ | (936) |  |  | $ | 9,058 |  |  | $ | (936) |
U.S. Government agencies | — |  |  | — |  |  | 65 |  |  | (5) |  |  | 65 |  |  | (5) |
Obligations of states and political subdivisions | 1,853 |  |  | (152) |  |  | 162,787 |  |  | (18,974) |  |  | 164,640 |  |  | (19,126) |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | 359 |  |  | (4) |  |  | 63,401 |  |  | (4,434) |  |  | 63,760 |  |  | (4,438) |
Private label residential mortgage and asset backed securities | — |  |  | — |  |  | 226,070 |  |  | (34,753) |  |  | 226,070 |  |  | (34,753) |
| $ | 2,212 |  |  | $ | (156) |  |  | $ | 461,381 |  |  | $ | (59,102) |  |  | $ | 463,593 |  |  | $ | (59,258) |
| December 31, 2024
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Held-to-Maturity Securities |  |  |  |  |  |  |  |  |  |  |
Debt Securities: |  |  |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 110 |  |  | $ | (2) |  |  | $ | 172,229 |  |  | $ | (17,390) |  |  | $ | 172,339 |  |  | $ | (17,392) |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | — |  |  | — |  |  | 8,995 |  |  | (2,100) |  |  | 8,995 |  |  | (2,100) |
Private label residential mortgage and asset backed securities | — |  |  | — |  |  | 47,433 |  |  | (5,633) |  |  | 47,433 |  |  | (5,633) |
Corporate debt securities | — |  |  | — |  |  | 43,322 |  |  | (2,876) |  |  | 43,322 |  |  | (2,876) |
| $ | 110 |  |  | $ | (2) |  |  | $ | 271,979 |  |  | $ | (27,999) |  |  | $ | 272,089 |  |  | $ | (28,001) |
| December 31, 2023
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Available-for-Sale Securities |  |  |  |  |  |  |  |  |  |  |
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 residential mortgage backed securities | — |  |  | — |  |  | 323,655 |  |  | (48,047) |  |  | 323,655 |  |  | (48,047) |
| $ | 392 |  |  | $ | (3) |  |  | $ | 595,686 |  |  | $ | (72,460) |  |  | $ | 596,078 |  |  | $ | (72,463) |
| December 31, 2023
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Held-to-Maturity Securities |  |  |  |  |  |  |  |  |  |  |
Debt Securities: |  |  |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 108 |  |  | $ | (1) |  |  | $ | 175,309 |  |  | $ | (14,187) |  |  | $ | 175,417 |  |  | $ | (14,188) |
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations | — |  |  | — |  |  | 9,066 |  |  | (1,692) |  |  | 9,066 |  |  | (1,692) |
Private label residential mortgage and asset backed securities | — |  |  | — |  |  | 48,635 |  |  | (5,944) |  |  | 48,635 |  |  | (5,944) |
Corporate debt securities | — |  |  | — |  |  | 41,350 |  |  | (4,736) |  |  | 41,350 |  |  | (4,736) |
| $ | 108 |  |  | $ | (1) |  |  | $ | 274,360 |  |  | $ | (26,559) |  |  | $ | 274,468 |  |  | $ | (26,560) |
As of December 31, 2024, the Company had a total of 139 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting of one U.S. Treasury security and U.S. Government agencies, 42 obligations of states and political subdivisions, 43 U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations, and 53 private label mortgage and asset backed securities. Allowance for Credit Losses on Available-for-Sale Debt 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 December 31, 2024. 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. In addition, as of December 31, 2024, the Company determined that it is not more likely than not that the Company would be required to sell securities. The gross unrealized losses presented in the preceding tables were primarily attributable to interest rate increases and liquidity and were mainly comprised of the following: •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 December 31, 2024 and December 31, 2023. Allowance for Credit Losses on Held-to-Maturity Debt Securities 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 $1,156,000 as of December 31, 2024 compared to $1,051,000 as of December 31, 2023. 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. The provisions for credit losses for the years ended December 31, 2024 and 2023 were driven solely from the impact of the economic scenarios. There were no changes to the weightings of the economic scenarios, or the assumptions used for the the estimated probabilities of default or loss given default. The following table shows the summary of activities for the allowance for credit losses related to held-to-maturity debt securities for the twelve months ended December 31, 2024 and 2023 (in thousands):
|  | For the Twelve Months Ended December 31,
Debt Securities Held-to-Maturity |  | 2024 | 2023
Beginning ACL balance |  | $ | 1,051 |  | $ | — |
Impact of adoption of ASU 2016-13 |  | — |  | 775 |
Provision to credit losses |  | 105 |  | 276 |
Total Ending ACL balance |  | $ | 1,156 |  | $ | 1,051 |
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.
|  | December 31, 2024 |  | December 31, 2023
Debt Securities Held-to-Maturity |  | AAA/AA/A | BBB | Unrated |  | AAA/AA/A | BBB/BB/B | Unrated
Obligations of states and political subdivisions |  | $ | 192,156 |  | $ | — |  | $ | — |  |  | $ | 192,070 |  | $ | — |  | $ | — |
Private label mortgage and asset backed securities |  | 51,427 |  | — |  | 1,639 |  |  | 46,334 |  | — |  | 8,245 |
Corporate debt securities |  | — |  | 30,218 |  | 15,990 |  |  | — |  | 30,173 |  | 15,913 |
Total debt securities held-to-maturity |  | $ | 243,583 |  | $ | 30,218 |  | $ | 17,629 |  |  | $ | 238,404 |  | $ | 30,173 |  | $ | 24,158 |
Investment securities with amortized costs totaling $476,966,000 and $343,629,000 and fair values totaling $435,571,000 and $315,069,000 were pledged as collateral for borrowing arrangements, public funds and for other purposes at December 31, 2024 and 2023, 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