3.   INVESTMENT SECURITIES AVAILABLE FOR SALE

The amortized cost and estimated fair value of investment securities at June 30, 2025 and December 31, 2024 consisted of the following, in thousands:

Unrealized losses on available-for-sale investment securities totaling $29,355,000 were recorded, net of $8,677,000 in tax benefit, as accumulated other comprehensive loss within shareholders' equity at June 30, 2025.  During the six months ended June 30, 2025, the Company sold four available-for-sale investment securities for proceeds of $1,122,000, recording a $3,000 gain on sale. The Company realized a gain on sale from one of these securities totaling $5,000 and a loss on sale of 3 securities totaling $2,000.  During the six months ended June 30, 2024, the Company sold 155 available-for-sale investment securities for proceeds of $114,838,000, recording a $19,826,000 loss on sale. The Company realized a gain on sale from 9 of these securities totaling $86,000 and a loss on sale of 146 securities totaling $19,912,000.  

Unrealized losses on available-for-sale investment securities totaling $35,698,000 were recorded, net of $10,553,000 in tax benefits, as accumulated other comprehensive loss within shareholders' equity at December 31, 2024. During the twelve months ended December 31, 2024, the Company sold 157 available-for-sale investment securities for proceeds of $116,285,000, recording a $19,817,000 net loss on sale. The Company realized a gain on sale from ten of these securities totaling $115,000 and a loss on sale of 147 securities totaling $19,932,000.

There were no transfers of available-for-sale investment securities during the six months ended June 30, 2025 and twelve months ended December 31, 2024. There were no securities classified as held-to-maturity at June 30, 2025 or December 31, 2024.

Investment securities with unrealized losses at June 30, 2025 and December 31, 2024 are summarized and classified according to the duration of the loss period as follows, in thousands:

At June 30, 2025, the Company held 311 securities of which 43 were in a loss position for less than twelve months and 178 were in a loss position for twelve months or more. Of the 311 securities 94 are U.S. Government-sponsored agencies collateralized by residential mortgage obligations, 48 were U.S. Government agencies collateralized by commercial mortgage obligations and 169 were obligations of states and political subdivisions. The unrealized losses relate to market rate conditions. All of the securities continue to pay as scheduled. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis.  If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income.  At June 30, 2025, neither of the criteria regarding intent or requirement to sell was met for any of the securities in an unrealized loss position.

Unrealized losses on investments in obligations of U.S. government agencies and U.S. government sponsored agencies are caused by interest rate increases.

Obligations of states and political subdivisions: Management reviewed the collectability of the obligations of the states and political subdivisions taking into consideration such factors as the financial condition of the issuers, credit ratings, and other information. Management believes the unrealized losses on the obligations of states and political subdivisions are attributable to changes in the investment spreads and interest rates and not changes in the credit quality of the issuers.

Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

Investment securities with amortized costs totaling $419,992,000 and $225,313,000 and estimated fair values totaling $395,999,000 and $212,001,000 at June 30, 2025 and December 31, 2024, respectively, were pledged to secure deposits, repurchase agreements and Federal Reserve Bank borrowings.