The amortized cost and estimated fair value of AFS securities as of September 30, 2024 and December 31, 2023 are as follows:



(Dollars in thousands)			Gross		Gross
	Amortized		unrealized		unrealized		Fair
September 30, 2024	cost		gains		losses		Value
U.S. Treasury	$	82,959	$	—	$	(7,271)	$	75,688
Municipal		158,133		—		(18,411)		139,722
Corporate		26,351		1		(2,031)		24,321
Agency mortgage & asset-backed		127,867		147		(7,312)		120,702
Non-Agency mortgage & asset-backed		107,863		516		(2,327)		106,052
Total	$	503,173	$	664	$	(37,352)	$	466,485



(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 September 30, 2024 and December 31, 2023, the fair value of debt securities pledged to secure public funds, trust deposits and FHLB loan commitments totaled $233.8 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 September 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		84,976		78,189
Due after five years through ten years		79,998		72,194
Due after ten years		102,469		89,348
		267,443		239,731
Mortgage & asset-backed		235,730		226,754
	$	503,173	$	466,485

The composition of the net realized gains (losses) on debt securities for the three and nine months ended are as follows:



	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2024		2023		2024		2023
Proceeds	$	—	$	—	$	—	$	40,117
Gross gains realized	$	—	$	—	$	—	$	12
Gross losses realized		—		—		—		(1,131)
Net (losses) gains realized	$	—	$	—	$	—	$	(1,119)

Tax benefit (provision) on net (losses) gains realized	$	—	$	—	$	—	$	235

Credit Impairment:

The debt securities portfolio contained 534 securities, having a fair value of $430.9 million, with $37.4 million in gross unrealized losses at September 30, 2024, an improvement of $12.2 million 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 September 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 September 30, 2024 and December 31, 2023:



	September 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	$	—	$	—	—	$	75,688	$	(7,271)	28	$	75,688	$	(7,271)	28
Municipal		—		—	—		139,722		(18,411)	166		139,722		(18,411)	166
Corporate		—		—	—		23,335		(2,031)	50		23,335		(2,031)	50
Agency mortgage & asset-backed		1,562		(2)	4		107,560		(7,310)	223		109,122		(7,312)	227
Non-Agency mortgage & asset-backed		10,508		(41)	5		72,532		(2,286)	58		83,040		(2,327)	63
Total temporarily impaired	$	12,070	$	(43)	9	$	418,837	$	(37,309)	525	$	430,907	$	(37,352)	534



	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

The Corporation owns one equity investment with a readily determinable fair value. At September 30, 2024 and December 31, 2023, this investment was reported at fair value of $655 thousand and $427 thousand, respectively, with changes in value reported through income.