The following presents the amortized cost, fair value, and ACL of debt securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses as of the date noted (dollars in thousands):


June 30, 2025	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasury debt	$	247	$	—	$	—	$	247	$	—

Corporate bonds	23,580		52		(2,173)		21,459		(71)
Government National Mortgage Association (GNMA) MBS – residential	28,619		—		(2,765)		25,854		—
Federal National Mortgage Association (FNMA) MBS – residential	25,238		44		(546)		24,736		—
Government CMO and MBS – commercial	7,938		5		(366)		7,577		—
Corporate CMO and MBS	14,274		44		(212)		14,106		—
Total debt securities held-to-maturity	$	99,896	$	145	$	(6,062)	$	93,979	$	(71)


December 31, 2024	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasury debt	$	246	$	—	$	(4)	$	242	$	—

Corporate bonds	23,578		—		(2,801)		20,777		(71)
GNMA MBS – residential	31,361		—		(3,383)		27,978		—
FNMA MBS – residential	12,011		—		(689)		11,322		—
Government CMO and MBS – commercial	5,075		5		(483)		4,597		—
Corporate CMO and MBS	3,524		—		(279)		3,245		—
Total debt securities held-to-maturity	$	75,795	$	5	$	(7,639)	$	68,161	$	(71)

Net accretion of premiums and amortization of discounts related to HTM debt securities during the three and six month periods ended June 30, 2025 and 2024 was immaterial, and is included in Net interest income in the Consolidated Statements of Income.

As of June 30, 2025, the amortized cost and estimated fair value of HTM debt securities have contractual maturity dates shown in the table below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Debt securities not due at a single maturity date are shown separately.


	June 30, 2025
(dollars in thousands)	Amortized Cost		Fair Value
Due within one year	$	—	$	—
Due between one year and five years	4,244		4,220
Due between five years and ten years	19,417		17,332
Due after ten years	166		154
CMO and MBS securities	76,069		72,273
Total	$	99,896	$	93,979

In 2022, the Company committed $6.0 million in total to two bank technology funds. During the six months ended June 30, 2025, the Company made $0.8 million of contributions to the partnerships and received $0.0 million of returns on investment. During the year ended December 31, 2024, the Company made $0.5 million of contributions to the partnerships and received $0.3 million of returns on investment. As of June 30, 2025 and December 31, 2024, the Company held a balance of $3.2 million and $2.5 million, respectively, which is included in Other assets in the accompanying Condensed Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $2.8 million in future contributions.

In 2014, the Company began investing in a small business investment company (SBIC) fund administered by the Small Business Administration (SBA). The Company made no contributions to the SBIC fund during the six months ended June 30, 2025. During the year ended December 31, 2024, the Company made $0.2 million of contributions to the SBIC fund. As of June 30, 2025 and December 31, 2024, the Company held a balance of $2.4 million in the SBIC fund, which is included in Other assets in the accompanying Condensed Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $0.6 million in future SBIC investments.

As of June 30, 2025 and December 31, 2024, securities with market values of $28.0 million and $31.1 million, respectively, were pledged to secure various public deposits and credit facilities of the Company.

As of June 30, 2025 and December 31, 2024, there were no holdings of debt securities of any one issuer, other than the U.S. Government sponsored entities and agencies, in an amount greater than 10% of shareholders’ equity.

Management measures expected credit losses on HTM debt securities on a collective basis by major security type. The majority of our HTM investment portfolio consists of securities issued by U.S. government entities and agencies and we consider the risk of credit loss to be zero and, therefore, we do not record an ACL. The Company's non-government backed debt securities include private label CMO and MBS and corporate bonds. Accrued interest receivable on HTM debt securities totaled $0.4 million and $0.3 million as of June 30, 2025 and December 31, 2024, respectively, and is excluded from the estimate of credit losses. Refer to Note 1 – Organization and Summary of Significant Accounting Policies for additional information on the Company’s methodology on estimating credit losses. The following presents the activity in the ACL for debt securities HTM by major security type for the periods noted:


	Three Months Ended June 30,
	2025				2024
(dollars in thousands)	Corporate Bonds		Corporate CMO		Corporate Bonds		Corporate CMO
Allowance for credit losses:
Beginning balance	$	71	$	—	$	71	$	—

Provision for credit losses	—		—		—		—
Securities charged-off (recoveries)	—		—		—		—
Total ending allowance balance	$	71	$	—	$	71	$	—


	Six Months Ended June 30,
	2025				2024
(dollars in thousands)	Corporate Bonds		Corporate CMO		Corporate Bonds		Corporate CMO
Allowance for credit losses:
Beginning balance	$	71	$	—	$	71	$	—

Provision for credit losses	—		—		—		—
Securities charged-off (recoveries)	—		—		—		—
Total ending allowance balance	$	71	$	—	$	71	$	—

The Company monitors the credit quality of HTM debt securities on a quarterly basis. As of June 30, 2025 and December 31, 2024, there were no HTM debt securities past due or on non-accrual.