The Company’s investment policy is designed primarily to provide and maintain liquidity, generate a favorable return on assets without incurring undue interest rate and credit risk, and complement the Bank’s lending activities.

The following tables present the amortized cost and fair value of investment securities, and the corresponding amounts of gross unrealized and unrecognized gains and losses including the corresponding amounts of gross unrealized gains and losses on investment securities available for sale recognized in AOCI, at the dates indicated:


	June 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Dollars in thousands)
Investment securities available for sale:
U.S. government and agency securities	$	13,275	$	—	$	(1,765)	$	11,510
Municipal securities	59,757		8		(9,550)		50,215
Residential CMO and MBS(1)	342,461		1,660		(26,907)		317,214
Commercial CMO and MBS(1)	272,033		572		(11,885)		260,720
Corporate obligations	9,857		203		(50)		10,010
Other asset-backed securities	6,824		8		(49)		6,783
Total	$	704,207	$	2,451	$	(50,206)	$	656,452


	June 30, 2025
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(Dollars in thousands)
Investment securities held to maturity:
U.S. government and agency securities	$	151,274	$	—	$	(23,816)	$	127,458
Residential CMO and MBS(1)	232,244		24		(12,755)		219,513
Commercial CMO and MBS(1)	306,304		30		(23,647)		282,687
Total	$	689,822	$	54	$	(60,218)	$	629,658


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Dollars in thousands)
Investment securities available for sale:
U.S. government and agency securities	$	14,934	$	—	$	(2,390)	$	12,544
Municipal securities	61,169		12		(10,239)		50,942
Residential CMO and MBS(1)	407,520		711		(38,900)		369,331
Commercial CMO and MBS(1)	330,249		134		(20,642)		309,741
Corporate obligations	11,700		181		(111)		11,770
Other asset-backed securities	10,020		47		(1)		10,066
Total	$	835,592	$	1,085	$	(72,283)	$	764,394


	December 31, 2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(Dollars in thousands)
Investment securities held to maturity:
U.S. government and agency securities	$	151,216	$	—	$	(28,874)	$	122,342
Residential CMO and MBS(1)	244,309		—		(18,563)		225,746
Commercial CMO and MBS(1)	307,760		27		(32,423)		275,364
Total	$	703,285	$	27	$	(79,860)	$	623,452

The following table presents the amortized cost and fair value of investment securities by contractual maturity at the date indicated. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


	June 30, 2025
	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	500	$	501	$	—	$	—
Due after one year through five years	8,797		8,744		—		—
Due after five years through ten years	40,493		36,470		101,545		88,493
Due after ten years	33,099		26,020		49,729		38,965
Total investment securities due at a single maturity date	82,889		71,735		151,274		127,458
MBS(1)	621,318		584,717		538,548		502,200
Total investment securities	$	704,207	$	656,452	$	689,822	$	629,658

There were no holdings of investment securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity at June 30, 2025 and December 31, 2024.

The following tables present the gross unrealized losses and fair value of the Company’s investment securities available for sale for which an ACL on investment securities available for sale has not been recorded, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at the dates indicated:


	June 30, 2025
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. government and agency securities	$	—	$	—	$	11,510	$	(1,765)	$	11,510	$	(1,765)
Municipal securities	1,315		(1)		44,447		(9,549)		45,762		(9,550)
Residential CMO and MBS(1)	4,094		(86)		191,397		(26,821)		195,491		(26,907)
Commercial CMO and MBS(1)	30,918		(59)		148,047		(11,826)		178,965		(11,885)
Corporate obligations	—		—		3,950		(50)		3,950		(50)
Other asset-backed securities	4,865		(49)		—		—		4,865		(49)
Total	$	41,192	$	(195)	$	399,351	$	(50,011)	$	440,543	$	(50,206)


	December 31, 2024
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. government and agency securities	$	—	$	—	$	12,544	$	(2,390)	$	12,544	$	(2,390)
Municipal securities	—		—		45,157		(10,239)		45,157		(10,239)
Residential CMO and MBS(1)	25,126		(321)		232,903		(38,579)		258,029		(38,900)
Commercial CMO and MBS(1)	17,772		(86)		270,897		(20,556)		288,669		(20,642)
Corporate obligations	—		—		3,890		(111)		3,890		(111)
Other asset-backed securities	1,568		(1)		—		—		1,568		(1)
Total	$	44,466	$	(408)	$	565,391	$	(71,875)	$	609,857	$	(72,283)

The Company evaluated investment securities available for sale as of June 30, 2025 and December 31, 2024, and determined that any declines in fair value were attributable to changes in interest rates relative to where these investments fall within the yield curve and individual characteristics. Management monitors published credit ratings for adverse changes for all rated investment securities and none of these securities had a below investment grade credit rating as of either June 30, 2025 or December 31, 2024. In addition, the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of the amortized cost basis, which may be upon maturity. Therefore, no ACL on investment securities available for sale was recorded as of June 30, 2025 and December 31, 2024.

The Company also evaluated investment securities held to maturity for current expected credit losses as of June 30, 2025 and December 31, 2024. There were no investment securities held to maturity classified as nonaccrual or past due as of June 30, 2025 and December 31, 2024, and all were issued by the U.S. government and its agencies and either explicitly or implicitly guaranteed by the U.S. government, highly rated by major credit rating agencies and had a long history of no credit losses. Accordingly, the Company did not measure expected credit losses on investment securities held to maturity since the historical credit loss information adjusted for current conditions and reasonable and supportable forecast results in an expectation that nonpayment of the amortized cost basis is zero. Therefore, no ACL on investment securities held to maturity was recorded as of June 30, 2025 or December 31, 2024.


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(Dollars in thousands)
Gross realized gains	$	—	$	—	$	—	$	—
Gross realized losses	(6,854)		(1,921)		(10,741)		(11,894)
Net realized losses	$	(6,854)	$	(1,921)	$	(10,741)	$	(11,894)


	June 30, 2025				December 31, 2024
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
State and local governments public deposits	$	229,996	$	218,657	$	236,047	$	220,104
FRB	404,876		360,669		434,534		373,410
Other securities pledged	55,604		50,908		53,296		48,169
Total	$	690,476	$	630,234	$	723,877	$	641,683

Accrued interest receivable excluded from the amortized cost of investment securities available for sale totaled $2.4 million and $2.7 million at June 30, 2025 and December 31, 2024, respectively. Accrued interest receivable excluded from the amortized cost on investment securities held to maturity totaled $2.2 million at June 30, 2025 and December 31, 2024.

No amounts of accrued interest receivable on investment securities available for sale or held to maturity were reversed against interest income on investment securities during the six months ended June 30, 2025 and 2024.