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Securities & Allowance for Securities Credit Losses (Tables) | 9 Months Ended
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Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract] |
Schedule Of Marketable Securities | The following tables summarize the amortized cost, gross unrealized gains and losses, fair value and allowance for credit losses of AFS and HTM debt securities at September 30, 2024 and December 31, 2023 (dollars in thousands):
| September 30, 2024
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Fair Value |  | Allowance for Credit Losses
Securities available for sale: |  |  |  |  |  |  |  |  |
U.S. government and federal agencies | $ | 131,089 |  |  | $ | 52 |  |  | $ | (1,416) |  |  | $ | 129,725 |  |  | $ | — |
Mortgage backed securities | 8,658 |  |  | — |  |  | (429) |  |  | 8,229 |  |  | — |
Corporate bonds | 53,283 |  |  | 62 |  |  | (750) |  |  | 52,595 |  |  | — |
State and municipal securities | 107,323 |  |  | 88 |  |  | (3,206) |  |  | 104,205 |  |  | — |
Total securities available for sale | $ | 300,353 |  |  | $ | 202 |  |  | $ | (5,801) |  |  | $ | 294,754 |  |  | $ | — |
Securities held to maturity: |  |  |  |  |  |  |  |  |
U.S. government and federal agencies | $ | 122,447 |  |  | $ | 6 |  |  | $ | (7,236) |  |  | $ | 115,217 |  |  | $ | — |
Mortgage backed securities | 1,173 |  |  | — |  |  | (1) |  |  | 1,172 |  |  | — |
Corporate bonds | 58,409 |  |  | 90 |  |  | (1,545) |  |  | 56,954 |  |  | (230) |
State and municipal securities | 120,580 |  |  | 23 |  |  | (8,166) |  |  | 112,437 |  |  | (31) |
Total securities held to maturity | $ | 302,609 |  |  | $ | 119 |  |  | $ | (16,948) |  |  | $ | 285,780 |  |  | $ | (261) |
Total securities | $ | 602,962 |  |  | $ | 321 |  |  | $ | (22,749) |  |  | $ | 580,534 |  |  | $ | (261) |
| December 31, 2023
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Fair Value |  | Allowance for Credit Losses
Securities available for sale: |  |  |  |  |  |  |  |  |
U.S. government and federal agencies | $ | 95,129 |  |  | $ | 32 |  |  | $ | (2,864) |  |  | $ | 92,297 |  |  | $ | — |
Mortgage backed securities | 9,247 |  |  | 11 |  |  | (609) |  |  | 8,649 |  |  | — |
Corporate bonds | 57,304 |  |  | 5 |  |  | (1,837) |  |  | 55,472 |  |  | — |
State and municipal securities | 106,472 |  |  | 34 |  |  | (4,810) |  |  | 101,696 |  |  | — |
Total securities available for sale | $ | 268,152 |  |  | $ | 82 |  |  | $ | (10,120) |  |  | $ | 258,114 |  |  | $ | — |
Securities held to maturity: |  |  |  |  |  |  |  |  |
U.S. government and federal agencies | $ | 123,938 |  |  | $ | — |  |  | $ | (10,069) |  |  | $ | 113,869 |  |  | $ | — |
Mortgage backed securities | 1,190 |  |  | — |  |  | (17) |  |  | 1,173 |  |  | — |
Corporate bonds | 59,629 |  |  | 59 |  |  | (3,027) |  |  | 56,661 |  |  | (322) |
State and municipal securities | 123,649 |  |  | 6 |  |  | (11,442) |  |  | 112,213 |  |  | (26) |
Total securities held to maturity | $ | 308,406 |  |  | $ | 65 |  |  | $ | (24,555) |  |  | $ | 283,916 |  |  | $ | (348) |
Total securities | $ | 576,558 |  |  | $ | 147 |  |  | $ | (34,675) |  |  | $ | 542,030 |  |  | $ | (348) |
Schedule of Proceeds, Realized Gain and Loss | The proceeds, gross realized gains and losses from sales of debt securities during the three and nine months ended September 30, 2024 and 2023 were as follows (dollars in thousands):
| Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024
| Available for Sale | Held to Maturity | Available for Sale | Held to Maturity
Proceeds from sales of securities | $ | — |  | $ | 953 |  | $ | — |  | $ | 953 |
Gross gains | — |  | — |  | — |  | — |
Gross losses | — |  | (65) |  | — |  | (65) |
Net losses on sale of a securities | $ | — |  | $ | (65) |  | $ | — |  | $ | (65) |
Income tax benefit attributable to realized net losses on sale of securities | $ | — |  | $ | 14 |  | $ | — |  | $ | 14 |
| Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023
| Available for Sale | Held to Maturity | Available for Sale | Held to Maturity
Proceeds from sales of securities | $ | 977 |  | $ | — |  | $ | 1,929 |  | $ | — |
Gross gains | — |  | — |  | — |  | — |
Gross losses | (30) |  | — |  | (312) |  | — |
Net losses on sale of a securities | $ | (30) |  | $ | — |  | $ | (312) |  | $ | — |
Income tax benefit attributable to realized net losses on sale of securities | $ | 6 |  | $ | — |  | $ | 66 |  | $ | — |
Schedule of Amortized Cost and Fair Value of Investment Securities | The amortized cost and fair value of debt securities by contractual maturity at September 30, 2024 is as follows (dollars in thousands):
| Available for Sale |  | Held to Maturity
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Within one year | $ | 166,593 |  |  | $ | 166,033 |  |  | $ | 16,873 |  |  | $ | 16,668 |
After one year through five years | 98,391 |  |  | 95,808 |  |  | 189,090 |  |  | 181,392 |
After five years through ten years | 29,950 |  |  | 27,843 |  |  | 92,329 |  |  | 83,923 |
Over ten years | 5,419 |  |  | 5,070 |  |  | 4,317 |  |  | 3,797 |
Total | $ | 300,353 |  |  | $ | 294,754 |  |  | $ | 302,609 |  |  | $ | 285,780 |
Schedule of Available-for-sale in Continuous Unrealized Loss Position | The following table shows the gross unrealized losses and fair value of the Company’s AFS debt securities with unrealized losses aggregated by investment category and length of time that individual debt securities have been in a continuous unrealized loss position at September 30, 2024 and December 31, 2023 (dollars in thousands):
| September 30, 2024
| Less Than Twelve Months |  | Over Twelve Months |  | Total
| Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |
U.S. government and federal agencies | $ | (1) |  |  | $ | 10,997 |  |  | $ | (1,415) |  |  | $ | 46,445 |  |  | $ | (1,416) |  |  | $ | 57,442 |
Mortgage backed securities | — |  |  | 27 |  |  | (429) |  |  | 8,170 |  |  | (429) |  |  | 8,197 |
Corporate bonds | (17) |  |  | 5,454 |  |  | (733) |  |  | 37,865 |  |  | (750) |  |  | 43,319 |
State and municipal securities | (27) |  |  | 6,061 |  |  | (3,179) |  |  | 83,089 |  |  | (3,206) |  |  | 89,150 |
Total securities available for sale | $ | (45) |  |  | $ | 22,539 |  |  | $ | (5,756) |  |  | $ | 175,569 |  |  | $ | (5,801) |  |  | $ | 198,108 |
| December 31, 2023
| Less Than Twelve Months |  | Over Twelve Months |  | Total
| Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |
U.S. government and federal agencies | $ | (16) |  |  | $ | 5,860 |  |  | $ | (2,848) |  |  | $ | 70,906 |  |  | $ | (2,864) |  |  | $ | 76,766 |
Mortgage backed securities | — |  |  | — |  |  | (609) |  |  | 8,604 |  |  | (609) |  |  | 8,604 |
Corporate bonds | (3) |  |  | 2,482 |  |  | (1,834) |  |  | 51,987 |  |  | (1,837) |  |  | 54,469 |
State and municipal securities | (31) |  |  | 3,675 |  |  | (4,779) |  |  | 89,828 |  |  | (4,810) |  |  | 93,503 |
Total securities available for sale | $ | (50) |  |  | $ | 12,017 |  |  | $ | (10,070) |  |  | $ | 221,325 |  |  | $ | (10,120) |  |  | $ | 233,342 |
Schedule of Debt Securities, Available-for-Sale, Allowance for Credit Loss | The table below presents a rollforward by major security type of the allowance for credit losses on AFS debt securities for the nine months ended September 30, 2024 and 2023 (dollars in thousands):
| September 30, 2024
For the nine months ended | U.S. Government and Federal Agencies |  | Mortgage Backed Securities |  | Corporate Bonds |  | State and Municipal Securities |  | Total AFS Securities
Allowance for credit losses: |  |  |  |  |  |  |  |  |
Beginning balance, December 31, 2023 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Provision for (recapture of) credit losses | — |  |  | — |  |  | (210) |  |  | — |  |  | (210) |
Write offs charged against the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Recoveries of amounts previously written off | — |  |  | — |  |  | 210 |  |  | — |  |  | 210 |
Ending balance, September 30, 2024 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
At September 30, 2024, there was no allowance for credit losses on AFS debt securities recorded. During the nine months ended September 30, 2024, the Bank received proceeds totaling $210 thousand for a bond that was fully charged off during 2023, and recorded a recovery of credit loss. The entire ACL recovery during 2024 was recorded in the first quarter.
| September 30, 2023
For the nine months ended | U.S. Government and Federal Agencies |  | Mortgage Backed Securities |  | Corporate Bonds |  | State and Municipal Securities |  | Total AFS Securities
Allowance for credit losses: |  |  |  |  |  |  |  |  |
Beginning balance, December 31, 2022 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Impact of adopting ASC 326 | — |  |  | — |  |  | — |  |  | — |  |  | — |
Provision for credit losses | — |  |  | — |  |  | 785 |  |  | — |  |  | 785 |
Write offs charged against the allowance | — |  |  | — |  |  | (785) |  |  | — |  |  | (785) |
Recoveries of amounts previously written off | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ending balance, September 30, 2023 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Schedule of Debt Securities, Held-to-Maturity, Credit Quality Indicator | The following table presents the amortized cost of HTM debt securities as of September 30, 2024 and December 31, 2023 by security type and credit rating (dollars in thousands):
| September 30, 2024
| U.S. Government and Federal Agencies |  | Mortgage Backed Securities |  | Corporate Bonds |  | State and Municipal Securities |  | Total HTM Securities
AAA / AA / A | $ | 122,447 |  |  | $ | 1,173 |  |  | $ | 18,447 |  |  | $ | 120,580 |  |  | $ | 262,647 |
BBB / BB / B | — |  |  | — |  |  | 39,962 |  |  | — |  |  | 39,962 |
Total | $ | 122,447 |  |  | $ | 1,173 |  |  | $ | 58,409 |  |  | $ | 120,580 |  |  | $ | 302,609 |
| December 31, 2023
| U.S. Government and Federal Agencies |  | Mortgage Backed Securities |  | Corporate Bonds |  | State and Municipal Securities |  | Total HTM Securities
AAA / AA / A | $ | 123,938 |  |  | $ | 1,190 |  |  | $ | 20,091 |  |  | $ | 123,168 |  |  | $ | 268,387 |
BBB / BB / B | — |  |  | — |  |  | 39,538 |  |  | 481 |  |  | 40,019 |
Total | $ | 123,938 |  |  | $ | 1,190 |  |  | $ | 59,629 |  |  | $ | 123,649 |  |  | $ | 308,406 |
Schedule of Amortized Cost of HTM Debt Securities | The following tables summarize the change in the allowance for credit losses on HTM debt securities for the three and nine months ended September 30, 2024 and 2023 and the twelve months ended December 31, 2023 (dollars in thousands):
| September 30, 2024
For the three months ended | U.S. Government and Federal Agencies |  | Mortgage Backed Securities |  | Corporate Bonds |  | State and Municipal Securities |  | Total HTM Securities
Allowance for credit losses: |  |  |  |  |  |  |  |  |
Beginning balance, June 30, 2024 | $ | — |  |  | $ | — |  |  | $ | 215 |  |  | $ | 33 |  |  | $ | 248 |
Provision for (recapture of) credit losses | — |  |  | — |  |  | 15 |  |  | (2) |  |  | 13 |
Write offs charged against the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Recoveries of amounts previously written off | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ending balance, September 30, 2024 | $ | — |  |  | $ | — |  |  | $ | 230 |  | $ | — |  | $ | 31 |  | $ | — |  | $ | 261 |
| September 30, 2023
For the three months ended | U.S. Government and Federal Agencies |  | Mortgage Backed Securities |  | Corporate Bonds |  | State and Municipal Securities |  | Total HTM Securities
Allowance for credit losses: |  |  |  |  |  |  |  |  |
Beginning balance, June 30, 2023 | $ | — |  |  | $ | — |  |  | $ | 316 |  |  | $ | 26 |  |  | $ | 342 |
Provision for (recapture of) credit losses | — |  |  | — |  |  | (8) |  |  | 14 |  |  | 6 |
Write offs charged against the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Recoveries of amounts previously written off | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ending balance, September 30, 2023 | — |  |  | — |  |  | 308 |  |  | 40 |  |  | 348 |
| September 30, 2024
For the nine months ended | U.S. Government and Federal Agencies |  | Mortgage Backed Securities |  | Corporate Bonds |  | State and Municipal Securities |  | Total HTM Securities
Allowance for credit losses: |  |  |  |  |  |  |  |  |
Beginning balance, December 31, 2023 | $ | — |  |  | $ | — |  |  | $ | 322 |  |  | $ | 26 |  |  | $ | 348 |
Provision for (recapture of) credit losses | — |  |  | — |  |  | (92) |  |  | 5 |  |  | (87) |
Write offs charged against the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Recoveries of amounts previously written off | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ending balance, September 30, 2024 | $ | — |  |  | $ | — |  |  | $ | 230 |  |  | $ | 31 |  |  | $ | 261 |
| September 30, 2023
For the nine months ended | U.S. Government and Federal Agencies |  | Mortgage Backed Securities |  | Corporate Bonds |  | State and Municipal Securities |  | Total HTM Securities
Allowance for credit losses: |  |  |  |  |  |  |  |  |
Beginning balance, December 31, 2022 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Impact of adopting ASC 326 | — |  |  | — |  |  | 303 |  |  | 26 |  |  | 329 |
Provision for credit losses | — |  |  | — |  |  | 5 |  |  | 14 |  |  | 19 |
Write offs charged against the allowance | — |  |  | — |  |  | — |  |  | — |  |  | — |
Recoveries of amounts previously written off | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ending balance, September 30, 2023 | $ | — |  |  | $ | — |  |  | $ | 308 |  |  | $ | 40 |  |  | $ | 348 |

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