Investment Securities

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Note 2 – Investment Securities

The following tables present amortized cost and fair values of investment securities available-for-sale as of the periods shown:


	March 31, 2025
(Dollars in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
United States government agency securities	$	44,042	$	11	$	(4,700)	$	39,353
United States sponsored mortgage-backed securities	183,245		921		(11,376)		172,790
United States treasury securities	84,023		—		(1,269)		82,754
Municipal securities	115,827		28		(14,792)		101,063
Corporate debt securities	15,491		69		(85)		15,475
Other debt securities	7,500		—		—		7,500
Total available-for-sale debt securities	450,128		1,029		(32,222)		418,935
Other securities	682		—		—		682
Investment securities available-for-sale	$	450,810	$	1,029	$	(32,222)	$	419,617


	December 31, 2024
(Dollars in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
United States government agency securities	$	45,449	$	10	$	(5,613)	$	39,846
United States sponsored mortgage-backed securities	161,032		130		(13,582)		147,580
United States treasury securities	106,095		—		(2,120)		103,975
Municipal securities	114,845		28		(12,733)		102,140
Corporate debt securities	9,943		67		(92)		9,918
Other debt securities	7,500		—		—		7,500
Total available-for-sale debt securities	444,864		235		(34,140)		410,959
Other securities	681		—		—		681
Investment securities available-for-sale	$	445,545	$	235	$	(34,140)	$	411,640

The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period shown:


	March 31, 2025
(Dollars in thousands)	Amortized Cost		Fair Value
Within one year	$	86,673	$	85,404
After one year, but within five years	14,858		14,308
After five years, but within ten years	48,107		44,340
After ten years	300,490		274,883
Total available-for-sale debt securities	$	450,128	$	418,935

The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may be repaid sooner than scheduled.

Investment securities with a carrying value of $258.4 million and $247.4 million at March 31, 2025 and December 31, 2024, respectively, were pledged to secure public funds, repurchase agreements and potential borrowings at the Federal Reserve discount window.

Our investment portfolio includes securities that are in an unrealized loss position as of March 31, 2025. We evaluate available-for-sale debt securities to determine whether the unrealized loss is due to credit-related factors or non-credit-related factors. When determining the ACL on securities, we consider such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, our ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency and whether or not the financial condition of the security issuer has severely deteriorated. There was no activity in the ACL related to available-for-sale debt securities during the three months ended March 31, 2025 and March 31, 2024.

Although the available-for-sale debt securities in an unrealized loss position would result in a pre-tax loss of $32.2 million if sold at March 31, 2025, we have no intent to sell the applicable securities at such fair values, and maintain that we have the ability to hold these securities until all principal has been recovered. It is more likely than not that we will not, for liquidity purposes, sell any securities at a loss. Declines in the fair values of these securities can be traced to general market conditions, which reflect the prospect for the economy as a whole, rather than credit-related conditions. Therefore, we have no ACL related to these securities as of March 31, 2025.

The following tables show available-for-sale debt securities in an unrealized loss position for which an ACL has not been recorded as of March 31, 2025 and December 31, 2024, aggregated by investment category and length of time that the individual securities have been in a continuous loss position:


	March 31, 2025
(Dollars in thousands)	Less than 12 months				12 months or more
Description and number of positions	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
United States government agency securities (28)	$	5,938	$	(114)	$	32,453	$	(4,586)
United States sponsored mortgage-backed securities (66)	59,630		(1,153)		44,249		(10,223)
United States treasury securities (18)	—		—		82,754		(1,269)
Municipal securities (202)	18,288		(1,704)		81,861		(13,088)
Corporate debt securities (6)	1,194		(30)		2,344		(55)

Total	$	85,050	$	(3,001)	$	243,661	$	(29,221)


	December 31, 2024
(Dollars in thousands)	Less than 12 months				12 months or more
Description and number of positions	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
United States government agency securities (28)	$	5,956	$	(264)	$	32,854	$	(5,349)
United States sponsored mortgage-backed securities (75)	92,929		(2,291)		44,444		(11,291)
United States treasury securities (23)	—		—		103,975		(2,120)
Municipal securities (201)	17,613		(1,425)		83,592		(11,308)
Corporate debt securities (6)	990		(10)		2,818		(82)

Total	$	117,488	$	(3,990)	$	267,683	$	(30,150)

The following table summarizes investment sales, related gains and losses and unrealized holding losses for the periods shown:


	Three Months Ended March 31,
(Dollars in thousands)	2025		2024
Proceeds from sales of available-for-sale securities	$	515	$	11,711
Gains, gross	—		658
Losses, gross	42		—





Unrealized holding losses on equity securities	$	(266)	$	(49)