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 available-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.

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.


	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.

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.

•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.

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 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