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Investment Securities

3 Months Ended

Mar. 31, 2025

(4) Investment Securities

Investment securities available for sale at March 31, 2025 and December 31, 2024 are as follows:

(Dollars in thousands)
	March 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	7,983		-		585		7,398
U.S. Government sponsored enterprises		6,129		-		425		5,704
GSE - Mortgage-backed securities		232,114		161		19,422		212,853
Private label mortgage-backed securities		42,091		99		1,117		41,073
State and political subdivisions		129,594		-		22,272		107,322
Total	$	417,911		260		43,821		374,350

(Dollars in thousands)
	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	7,981		-		724		7,257
U.S. Government sponsored enterprises		9,243		-		511		8,732
GSE - Mortgage-backed securities		248,837		162		23,207		225,792
Private label mortgage-backed securities		43,118		74		1,425		41,767
State and political subdivisions		129,659		-		25,204		104,455
Total	$	438,838		236		51,071		388,003

The current fair value and associated unrealized losses on investments in securities with unrealized losses at March 31, 2025 and December 31, 2024 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	March 31, 2025
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	-		-		7,398		585		7,398		585
U.S. government sponsored enterprises		-		-		5,704		425		5,704		425
GSE -Mortgage-backed securities		16,064		284		191,926		19,138		207,990		19,422
Private label mortgage-backed securities		8,932		81		25,595		1,036		34,527		1,117
State and political subdivisions		-		-		107,322		22,272		107,322		22,272
Total	$	24,996		365		337,945		43,456		362,941		43,821

(Dollars in thousands)
	December 31, 2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	-		-		7,257		724		7,257		724
U.S. government sponsored enterprises		-		-		8,732		511		8,732		511
GSE -Mortgage-backed securities		20,458		669		197,497		22,538		217,955		23,207
Private label mortgage-backed securities		4,010		9		21,727		1,416		25,737		1,425
State and political subdivisions		-		-		104,455		25,204		104,455		25,204
Total	$	24,468		678		339,668		50,393		364,136		51,071

At March 31, 2025, unrealized losses in the investment securities portfolio relating to debt securities totaled $43.8 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the March 31, 2025 table above, both of the U.S. Treasury securities, all 108 of the securities issued by state and political subdivisions contained unrealized losses, all six of the securities issued by U.S. Government sponsored enterprises (“GSE”), 110 of the 115 GSE mortgage-backed securities, and 13 of the 17 private label mortgage-backed securities contained unrealized losses. The Company did not have any reserves on securities at March 31, 2025, as no credit related losses were identified in the Company’s March 31, 2025 analysis. At December 31, 2024, unrealized losses in the investment securities portfolio relating to debt securities totaled $51.1 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the December 31, 2024 table above, both of the U.S. Treasury securities, all 108 of the securities issued by state and political subdivisions contained unrealized losses, all seven of the securities issued by GSEs, 114 of the 119 GSE mortgage-backed securities, and 11 of the 16 private label mortgage-backed securities contained unrealized losses. The Company did not have any reserves on securities at December 31, 2024, as no credit related losses were identified in the Company’s December 31, 2024 analysis.

The amortized cost and estimated fair value of investment securities available for sale, other than GSE mortgage-backed securities, at March 31, 2025, are shown below by contractual maturity. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

March 31, 2025
(Dollars in thousands)
	Amortized Cost		Fair Value
Due within one year	$	4,995		4,982
Due from one to five years		35,616		32,632
Due from five to ten years		74,710		61,835
Due after ten years		70,476		62,048
Mortgage-backed securities		232,114		212,853
Total	$	417,911		374,350

During the three months ended March 31, 2025, proceeds from sales of securities available for sale were $12.7 million and resulted in gross losses of $47,000 and gross gains of $43,000. No securities available for sale were sold during the three months ended March 31, 2024.

Securities with a fair value of approximately $36.7 million and $40.0 million at March 31, 2025 and December 31, 2024, respectively, were pledged to secure public deposits and for other purposes as required by law.