The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2025 and December 31, 2024 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, 2025
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	$	9,994	$	—	$	(770)	$	9,224	$	—
U.S. Government agencies	69		—		(3)		66		—
Obligations of states and political subdivisions	183,031		—		(20,796)		162,235		—
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	74,625		11		(4,042)		70,594		—
Private label mortgage and asset backed securities	257,322		6		(30,901)		226,427		—
Corporate debt securities	458		29		—		487		—
Total available-for-sale	$	525,499	$	46	$	(56,512)	$	469,033	$	—

	March 31, 2025
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	$	192,187	$	54	$	(18,894)	$	173,347	$	12
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	11,181		—		(1,874)		9,307		—
Private label mortgage and asset backed securities	52,540		—		(4,776)		47,764		7
Corporate debt securities	46,226		—		(2,530)		43,696		955
Total held-to-maturity	$	302,134	$	54	$	(28,074)	$	274,114	$	974


	December 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	$	9,994	$	—	$	(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
Total available-for-sale	$	536,334	$	37	$	(59,258)	$	477,113	$	—


	December 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	$	192,156	$	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
Total held-to-maturity	$	302,515	$	54	$	(28,001)	$	274,568	$	1,156

The amortized cost and estimated fair value of available-for-sale and held-to maturity investment securities at March 31, 2025 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, 2025				December 31, 2024
Available-for-Sale Securities	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Within one year	$	—	$	—	$	—	$	—
After one year through five years	15,660		14,320		15,661		14,056
After five years through ten years	39,021		34,843		33,585		29,670
After ten years	138,344		122,296		144,514		129,972
	193,025		171,459		193,760		173,698
Investment securities not due at a single maturity date:

U.S. Government agencies	69		66		70		65
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	74,625		70,594		76,732		72,302
Private label mortgage and asset backed securities	257,322		226,427		265,302		230,555
Corporate debt securities	458		487		470		493
Total available-for-sale	$	525,499	$	469,033	$	536,334	$	477,113

















	March 31, 2025				December 31, 2024
Held-to-Maturity Securities	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Within one year	$	—	$	—	$	—	$	—
After one year through five years	26,422		25,491		24,535		23,368
After five years through ten years	58,637		54,009		60,369		54,685
After ten years	107,128		93,847		107,252		96,765
	192,187		173,347		192,156		174,818
Investment securities not due at a single maturity date:
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	11,181		9,307		11,095		8,995
Private label mortgage and asset backed securities	52,540		47,764		53,066		47,433
Corporate debt securities	46,226		43,696		46,198		43,322
Total held-to-maturity	$	302,134	$	274,114	$	302,515	$	274,568

At March 31, 2025 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 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, 2025
	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	$	—	$	—	$	9,224	$	(770)	$	9,224	$	(770)
U.S. Government agencies	—		—		66		(3)		66		(3)
Obligations of states and political subdivisions	2,802		(450)		159,433		(20,346)		162,235		(20,796)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	4,602		(22)		64,892		(4,020)		69,494		(4,042)
Private label mortgage and asset backed securities	—		—		226,369		(30,901)		226,369		(30,901)

Total available-for-sale	$	7,404	$	(472)	$	459,984	$	(56,040)	$	467,388	$	(56,512)


	December 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	$	—	$	—	$	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 mortgage and asset backed securities	—		—		226,070		(34,753)		226,070		(34,753)
Total available-for-sale	$	2,212	$	(156)	$	461,381	$	(59,102)	$	463,593	$	(59,258)

As of March 31, 2025, the Company had a total of 139 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting of 1 U.S. Treasury security, 1 U.S. Government agency security, 43 obligations of states and political subdivisions, 43 U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations, and 52 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, 2025. 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, 2025, 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.

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 $974,000 and $1,156,000 at March 31, 2025 and December 31, 2024, respectively. 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, 2025, the credit to credit losses for held-to-maturity securities was primarily driven by economic conditions included in the forecasted economic scenarios. There were no changes to the economic scenarios utilized nor the weightings utilized during the quarter. Management believes that the allowance for credit losses for held-to-maturity securities at March 31, 2025 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, 2025
Debt Securities Held-to-Maturity (in thousands)	AAA/AA/A		BBB		Unrated
Obligations of states and political subdivisions	$	192,187	$	—	$	—

Private label mortgage and asset backed securities	50,936		—		1,604
Corporate debt securities	—		30,224		16,002
Total debt securities held-to-maturity	$	243,123	$	30,224	$	17,606