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INVESTMENT SECURITIES (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

The amortized cost and estimated fair values of investment securities are summarized below:

 

AVAILABLE-FOR-SALE:

(Dollars in thousands)   Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  
December 31, 2024                                
US Treasury securities   $ 15,822     $ —     $ (2,582 )   $ 13,240  
Government Sponsored Enterprises     2,500       —       (390 )     2,110  
Mortgage-backed securities     260,023       40       (15,859 )     244,204  
Small Business Administration pools     12,437       15       (373 )     12,079  
Corporate and other securities     8,755       —       (806 )     7,949  
Total   $ 299,537     $ 55     $ (20,010 )   $ 279,582  
                                 
(Dollars in thousands)   Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  
December 31, 2023                                
US Treasury securities   $ 20,791     $ —     $ (2,445 )   $ 18,346  
Government Sponsored Enterprises     2,500       —       (371 )     2,129  
Mortgage-backed securities     255,757       15       (17,613 )     238,159  
Small Business Administration pools     16,108       24       (411 )     15,721  
Corporate and other securities     8,759       —       (888 )     7,871  
Total   $ 303,915     $ 39     $ (21,728 )   $ 282,226  

 

 

HELD-TO-MATURITY:

 

(Dollars in thousands)  

Amortized Cost
Net of Allowance

for Credit Losses

     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  
December 31, 2024                                
Mortgage-backed securities   $ 105,563     $ —     $ (8,645 )   $ 96,918  
State and local government     103,850       —       (4,728 )     99,122  
Total   $ 209,413     $ —     $ (13,373 )   $ 196,040  
                         
(Dollars in thousands)  

Amortized Cost
Net of Allowance

for Credit Losses

     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  
December 31, 2023                                
Mortgage-backed securities   $ 112,740       —     $ (8,490 )   $ 104,250  
State and local government     104,430       282       (3,445 )     101,268  
Total   $ 217,170     $ 282     $ (11,935 )   $ 205,518  

 

On June 1, 2022, the Company reclassified $224.5 million in investments to held-to-maturity (HTM) from available-for-sale (AFS). These securities were transferred at fair value at the time of the transfer, which became the new cost basis for the securities held to maturity. The pretax unrealized net holding loss on the available for sale securities on the date of transfer totaled approximately $16.7 million, and continued to be reported as a component of accumulated other comprehensive loss. This net unrealized loss is being amortized to interest income over the remaining life of the securities as a yield adjustment. There were no gains or losses recognized as a result of this transfer. The remaining pretax unrealized net holding loss on these investments was $12.3 million ($9.7 million net of tax) at December 31, 2024, $14.0 million ($11.1 million net of tax) at December 31, 2023 and $15.7 million ($12.4 million net of tax) at December 31, 2022.

 

During the year ended December 31, 2023, the Company sold $39.9 million of book value US Treasury securities from the available-for-sale investment securities portfolio. This sale created a one-time pre-tax loss of $1.2 million and provided additional liquidity to pay down borrowings and fund loan growth. During the years ended December 31, 2024 and 2022, the Company sold no investment securities. The tax benefit applicable to the net realized loss was approximately $0 and $262, and $0 for 2024 and 2023 respectively.

 

The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at December 31, 2024 and December 31, 2023. 

 

(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2024   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Available-for-sale securities:   Value     Loss     Value     Loss     Value     Loss  
US Treasury Securities   $ —     $ —     $ 13,240     $ 2,582     $ 13,240     $ 2,582  
Government Sponsored Enterprise     —       —       2,110       390       2,110       390  
Mortgage-backed securities     14,310       150       216,452       15,709       230,762       15,859  
Small Business Administration pools     1,279       2       8,554       371       9,833       373  
Corporate and other securities     1,488       263       6,449       543       7,937       806  
Total   $ 17,077     $ 415     $ 246,805     $ 19,595     $ 263,882     $ 20,010  
                                     
(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2023   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Available-for-sale securities:   Value     Loss     Value     Loss     Value     Loss  
US Treasury Securities   $ —     $ —     $ 18,346     $ 2,445     $ 18,346     $ 2,445  
Government Sponsored Enterprise     —       —       2,129       371       2,129       371  
Mortgage-backed securities     8,164       423       223,844       17,190       232,008       17,613  
Small Business Administration pools     4,253       45       7,638       366       11,891       411  
Corporate and other securities     1,880       115       4,236       773       6,116       888  
Total   $ 14,297     $ 583     $ 256,193     $ 21,145     $ 270,490     $ 21,728  

 

                                     
(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2024   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Held-to-maturity securities:   Value     Loss     Value     Loss     Value     Loss  
Mortgage-backed securities     —       —       96,918       8,645       96,918       8,645  
State and local government     21,376       436       76,104       4,292       97,480       4,728  
Total   $ 21,376     $ 436     $ 173,022     $ 12,937     $ 194,398     $ 13,373  
                                     
(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2023   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Held-to-maturity securities:   Value     Loss     Value     Loss     Value     Loss  
Mortgage-backed securities     —       —       104,250       8,490       104,250       8,490  
State and local government     6,278       25       78,597       3,420       84,875       3,445  
Total   $ 6,278     $ 25     $ 182,847     $ 11,910     $ 189,125     $ 11,935  
Schedule of gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

HELD-TO-MATURITY:

 

(Dollars in thousands)  

Amortized Cost
Net of Allowance

for Credit Losses

     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  
December 31, 2024                                
Mortgage-backed securities   $ 105,563     $ —     $ (8,645 )   $ 96,918  
State and local government     103,850       —       (4,728 )     99,122  
Total   $ 209,413     $ —     $ (13,373 )   $ 196,040  
                         
(Dollars in thousands)  

Amortized Cost
Net of Allowance

for Credit Losses

     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  
December 31, 2023                                
Mortgage-backed securities   $ 112,740       —     $ (8,490 )   $ 104,250  
State and local government     104,430       282       (3,445 )     101,268  
Total   $ 217,170     $ 282     $ (11,935 )   $ 205,518  

 

On June 1, 2022, the Company reclassified $224.5 million in investments to held-to-maturity (HTM) from available-for-sale (AFS). These securities were transferred at fair value at the time of the transfer, which became the new cost basis for the securities held to maturity. The pretax unrealized net holding loss on the available for sale securities on the date of transfer totaled approximately $16.7 million, and continued to be reported as a component of accumulated other comprehensive loss. This net unrealized loss is being amortized to interest income over the remaining life of the securities as a yield adjustment. There were no gains or losses recognized as a result of this transfer. The remaining pretax unrealized net holding loss on these investments was $12.3 million ($9.7 million net of tax) at December 31, 2024, $14.0 million ($11.1 million net of tax) at December 31, 2023 and $15.7 million ($12.4 million net of tax) at December 31, 2022.

 

During the year ended December 31, 2023, the Company sold $39.9 million of book value US Treasury securities from the available-for-sale investment securities portfolio. This sale created a one-time pre-tax loss of $1.2 million and provided additional liquidity to pay down borrowings and fund loan growth. During the years ended December 31, 2024 and 2022, the Company sold no investment securities. The tax benefit applicable to the net realized loss was approximately $0 and $262, and $0 for 2024 and 2023 respectively.

 

The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at December 31, 2024 and December 31, 2023. 

 

(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2024   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Available-for-sale securities:   Value     Loss     Value     Loss     Value     Loss  
US Treasury Securities   $ —     $ —     $ 13,240     $ 2,582     $ 13,240     $ 2,582  
Government Sponsored Enterprise     —       —       2,110       390       2,110       390  
Mortgage-backed securities     14,310       150       216,452       15,709       230,762       15,859  
Small Business Administration pools     1,279       2       8,554       371       9,833       373  
Corporate and other securities     1,488       263       6,449       543       7,937       806  
Total   $ 17,077     $ 415     $ 246,805     $ 19,595     $ 263,882     $ 20,010  
                                     
(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2023   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Available-for-sale securities:   Value     Loss     Value     Loss     Value     Loss  
US Treasury Securities   $ —     $ —     $ 18,346     $ 2,445     $ 18,346     $ 2,445  
Government Sponsored Enterprise     —       —       2,129       371       2,129       371  
Mortgage-backed securities     8,164       423       223,844       17,190       232,008       17,613  
Small Business Administration pools     4,253       45       7,638       366       11,891       411  
Corporate and other securities     1,880       115       4,236       773       6,116       888  
Total   $ 14,297     $ 583     $ 256,193     $ 21,145     $ 270,490     $ 21,728  

 

                                     
(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2024   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Held-to-maturity securities:   Value     Loss     Value     Loss     Value     Loss  
Mortgage-backed securities     —       —       96,918       8,645       96,918       8,645  
State and local government     21,376       436       76,104       4,292       97,480       4,728  
Total   $ 21,376     $ 436     $ 173,022     $ 12,937     $ 194,398     $ 13,373  
                                     
(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2023   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Held-to-maturity securities:   Value     Loss     Value     Loss     Value     Loss  
Mortgage-backed securities     —       —       104,250       8,490       104,250       8,490  
State and local government     6,278       25       78,597       3,420       84,875       3,445  
Total   $ 6,278     $ 25     $ 182,847     $ 11,910     $ 189,125     $ 11,935  
Schedule of gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position.

The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at December 31, 2024 and December 31, 2023. 

 

(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2024   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Available-for-sale securities:   Value     Loss     Value     Loss     Value     Loss  
US Treasury Securities   $ —     $ —     $ 13,240     $ 2,582     $ 13,240     $ 2,582  
Government Sponsored Enterprise     —       —       2,110       390       2,110       390  
Mortgage-backed securities     14,310       150       216,452       15,709       230,762       15,859  
Small Business Administration pools     1,279       2       8,554       371       9,833       373  
Corporate and other securities     1,488       263       6,449       543       7,937       806  
Total   $ 17,077     $ 415     $ 246,805     $ 19,595     $ 263,882     $ 20,010  
                                     
(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2023   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Available-for-sale securities:   Value     Loss     Value     Loss     Value     Loss  
US Treasury Securities   $ —     $ —     $ 18,346     $ 2,445     $ 18,346     $ 2,445  
Government Sponsored Enterprise     —       —       2,129       371       2,129       371  
Mortgage-backed securities     8,164       423       223,844       17,190       232,008       17,613  
Small Business Administration pools     4,253       45       7,638       366       11,891       411  
Corporate and other securities     1,880       115       4,236       773       6,116       888  
Total   $ 14,297     $ 583     $ 256,193     $ 21,145     $ 270,490     $ 21,728  

 

                                     
(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2024   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Held-to-maturity securities:   Value     Loss     Value     Loss     Value     Loss  
Mortgage-backed securities     —       —       96,918       8,645       96,918       8,645  
State and local government     21,376       436       76,104       4,292       97,480       4,728  
Total   $ 21,376     $ 436     $ 173,022     $ 12,937     $ 194,398     $ 13,373  
                                     
(Dollars in thousands)   Less than 12 months     12 months or more     Total  
December 31, 2023   Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
Held-to-maturity securities:   Value     Loss     Value     Loss     Value     Loss  
Mortgage-backed securities     —       —       104,250       8,490       104,250       8,490  
State and local government     6,278       25       78,597       3,420       84,875       3,445  
Total   $ 6,278     $ 25     $ 182,847     $ 11,910     $ 189,125     $ 11,935  
Schedule of Amortized Cost and Fair Value of Investment Securities

The amortized cost and fair value of investment securities at December 31, 2024, by expected maturity, follow. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. Mortgage-backed securities are included in the year corresponding with the remaining expected life.

 

AVAILABLE-FOR-SALE:

(Dollars in thousands)  Available-for-sale 
   Amortized
Cost		   Fair
Value		 
Due in one year or less  $490   $487 
Due after one year through five years   15,045    14,634 
Due after five years through ten years   33,167    29,179 
Due after ten years   250,835    235,282 
   $299,537   $279,582 

 

HELD-TO-MATURITY:

(Dollars in thousands)  Held-to-maturity 
   Amortized
Cost		   Fair
Value		 
Due in one year or less  $7,284   $7,234 
Due after one year through five years   56,701    54,511 
Due after five years through ten years   58,285    55,222 
Due after ten years   87,166    79,096 
Allowance for Credit Losses on Held-to-Maturity Securities   (23)   (23)
   $209,413   $196,040 
Schedule of allowance for credit losses on held to maturity securities

The following table shows a roll forward of the allowance for credit losses on held to maturity securities for the years ended December 31, 2024 and 2023.

   State and 
   local 
(Dollars in thousands)  government 
Allowance for Credit Losses on Held-to-Maturity Securities:     
      
Beginning balance, December 31, 2022  $— 
Adjustment for adoption of ASU 2016-13   (43)
Release of credit losses   13 
Ending balance, December 31, 2023  $(30)

   State and 
   local 
(Dollars in thousands)  government 
Allowance for Credit Losses on Held-to-Maturity Securities:     
      
Beginning balance, December 31, 2023  $(30)
Release of credit losses   7 
Ending balance, December 31, 2024  $(23)