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Investments | 6 Months Ended
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Jun. 30, 2024
Investments [Abstract] |
Investments | Note 4. Investments Available for Sale (AFS) Securities The amortized cost and estimated fair value of AFS securities as of June 30, 2024 and December 31, 2023 are as follows:
(Dollars in thousands) |  |  |  |  | Gross |  | Gross |  |  |
|  | Amortized |  | unrealized |  | unrealized |  | Fair
June 30, 2024 |  | cost |  | gains |  | losses |  | Value
U.S. Treasury |  | $ | 83,139 |  | $ | — |  | $ | (10,119) |  | $ | 73,020
Municipal |  |  | 158,445 |  |  | — |  |  | (23,744) |  |  | 134,701
Corporate |  |  | 26,346 |  |  | — |  |  | (2,658) |  |  | 23,688
Agency mortgage & asset-backed |  |  | 133,119 |  |  | 187 |  |  | (9,523) |  |  | 123,783
Non-Agency mortgage & asset-backed |  |  | 102,758 |  |  | 34 |  |  | (3,519) |  |  | 99,273
Total |  | $ | 503,807 |  | $ | 221 |  | $ | (49,563) |  | $ | 454,465
(Dollars in thousands) |  |  |  |  | Gross |  | Gross |  |  |
|  | Amortized |  | unrealized |  | unrealized |  | Fair
December 31, 2023 |  | cost |  | gains |  | losses |  | value
U.S. Treasury |  | $ | 83,494 |  | $ | — |  | $ | (9,403) |  | $ | 74,091
Municipal |  |  | 161,339 |  |  | — |  |  | (22,721) |  |  | 138,618
Corporate |  |  | 26,336 |  |  | — |  |  | (3,138) |  |  | 23,198
Agency mortgage & asset-backed |  |  | 142,565 |  |  | 90 |  |  | (10,064) |  |  | 132,591
Non-Agency mortgage & asset-backed |  |  | 108,185 |  |  | 48 |  |  | (4,228) |  |  | 104,005
Total |  | $ | 521,919 |  | $ | 138 |  | $ | (49,554) |  | $ | 472,503
At June 30, 2024 and December 31, 2023, the fair value of debt securities pledged to secure public funds, trust deposits and FHLB loan commitments totaled $231.0 million and $207.4 million, respectively. The Bank has no investment in a single issuer that exceeds 10% of shareholders’ equity, except for securities issued by the U.S. Treasury and U.S. government sponsored entities. The amortized cost and estimated fair value of debt securities at June 30, 2024, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities. Securities not due at a single maturity date are presented separately.
(Dollars in thousands) |  | Amortized ‎cost |  | Fair ‎value
Due in one year or less |  | $ | — |  | $ | —
Due after one year through five years |  |  | 85,160 |  |  | 75,619
Due after five years through ten years |  |  | 80,052 |  |  | 69,302
Due after ten years |  |  | 102,718 |  |  | 86,488
|  |  | 267,930 |  |  | 231,409
Mortgage & asset-backed |  |  | 235,877 |  |  | 223,056
|  | $ | 503,807 |  | $ | 454,465
The composition of the net realized gains (losses) on debt securities for the three and six months ended are as follows:
|  | For the Three Months Ended |  | For the Six Months Ended
|  | June 30, |  | June 30,
(Dollars in thousands) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Proceeds |  | $ | — |  | $ | 7,262 |  | $ | — |  | $ | 40,117
Gross gains realized |  | $ | — |  | $ | — |  | $ | — |  | $ | 12
Gross losses realized |  |  | — |  |  | (517) |  |  | — |  |  | (1,131)
Net (losses) gains realized |  | $ | — |  | $ | (517) |  | $ | — |  | $ | (1,119)
Tax benefit (provision) on net (losses) gains realized |  | $ | — |  | $ | 109 |  | $ | — |  | $ | 235
Credit Impairment: The debt securities portfolio contained 551 securities, with a fair value of $437.0 million, and $49.6 million in gross unrealized losses at June 30, 2024, essentially unchanged from the prior year-end. AFS securities in an unrealized loss position are evaluated for credit impairment at least quarterly. For these securities, the Bank considers: (1) the extent to which the fair value is less than amortized cost; (2) adverse conditions specifically related to the security, industry or geographic area; (3) the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future; (4) failure of the issuer of the security to make scheduled interest or principal payments; and (5) any changes to the rating of the security by a rating agency. In addition, the Bank considers whether it intends to sell these securities or whether it will be forced to sell these securities before the earlier of amortized cost recovery or maturity. The Bank does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost. The unrealized losses identified on debt securities and subject to evaluation at June 30, 2024, was determined not to be attributable to credit related factors; therefore, the Bank does not have an allowance for credit loss for these investments. ‎ The following table summarizes debt securities in the AFS portfolio in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category, length of time that individual securities have been in continuous unrealized loss position and the number of securities in each category as of June 30, 2024 and December 31, 2023:
| June 30, 2024
| Less than 12 months |  | 12 months or more |  | Total
| Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |
(Dollars in thousands) | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count
U.S. Treasury | $ | — |  | $ | — |  | — |  | $ | 73,020 |  | $ | (10,119) |  | 226 |  | $ | 73,020 |  | $ | (10,119) |  | 226
Municipal |  | — |  |  | — |  | — |  |  | 134,701 |  |  | (23,744) |  | 50 |  |  | 134,701 |  |  | (23,744) |  | 50
Corporate |  | 978 |  |  | (5) |  | 1 |  |  | 22,710 |  |  | (2,653) |  | 166 |  |  | 23,688 |  |  | (2,658) |  | 167
Agency mortgage & asset-backed |  | 745 |  |  | (10) |  | 4 |  |  | 108,925 |  |  | (9,513) |  | 57 |  |  | 109,670 |  |  | (9,523) |  | 61
Non-Agency mortgage & asset-backed |  | 38,658 |  |  | (194) |  | 19 |  |  | 57,302 |  |  | (3,325) |  | 28 |  |  | 95,960 |  |  | (3,519) |  | 47
Total temporarily impaired | $ | 40,381 |  | $ | (209) |  | 24 |  | $ | 396,658 |  | $ | (49,354) |  | 527 |  | $ | 437,039 |  | $ | (49,563) |  | 551
| December 31, 2023
| Less than 12 months |  | 12 months or more |  | Total
| Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |
(Dollars in thousands) | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count
U.S. Treasury | $ | — |  | $ | — |  | — |  | $ | 74,091 |  | $ | (9,403) |  | 28 |  | $ | 74,091 |  | $ | (9,403) |  | 28
Municipal |  | — |  |  | — |  | — |  |  | 138,618 |  |  | (22,721) |  | 168 |  |  | 138,618 |  |  | (22,721) |  | 168
Corporate |  | 1,483 |  |  | (167) |  | 5 |  |  | 21,715 |  |  | (2,971) |  | 46 |  |  | 23,198 |  |  | (3,138) |  | 51
Agency mortgage & asset-backed |  | 6,227 |  |  | (186) |  | 19 |  |  | 118,053 |  |  | (9,878) |  | 223 |  |  | 124,280 |  |  | (10,064) |  | 242
Non-Agency mortgage & asset-backed |  | 47,928 |  |  | (560) |  | 19 |  |  | 50,071 |  |  | (3,668) |  | 56 |  |  | 97,999 |  |  | (4,228) |  | 75
Total temporarily impaired | $ | 55,638 |  | $ | (913) |  | 43 |  | $ | 402,548 |  | $ | (48,641) |  | 521 |  | $ | 458,186 |  | $ | (49,554) |  | 564
Equity Securities at Fair Value The Corporation owns one equity investment with a readily determinable fair value. At June 30, 2024 and December 31, 2023, this investment was reported at fair value of $352 thousand and $427 thousand, respectively, with changes in value reported through income.

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