The amortized cost and estimated fair value of securities available-for-sale and held-to-maturity along with gross unrealized gains and losses are summarized as follows:


(dollars in thousands)
June 30, 2025	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale:
U.S. treasury securities	$	9,965	$	—	$	—	$	9,965
U.S. agency securities	2,781		—		(162)		2,619
Asset backed securities	15,492		—		(320)		15,172
State, county & municipal securities	110,308		3		(14,143)		96,168
Corporate debt securities	50,810		—		(4,873)		45,937
Mortgage-backed securities	220,556		711		(17,556)		203,711
Total	$	409,912	$	714	$	(37,054)	$	373,572

June 30, 2025	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Held-to-Maturity:
U.S. treasury securities	$	75,758	$	—	$	(1,546)	$	74,212
U.S. agency securities	16,084		—		(856)		15,228
State, county & municipal securities	137,392		—		(15,378)		122,014
Mortgage-backed securities	180,400		—		(22,751)		157,649
Total	$	409,634	$	—	$	(40,531)	$	369,103

December 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale:
U.S. treasury securities	$	3,173	$	—	$	—	$	3,173
U.S. agency securities	3,001		—		(246)		2,755
Asset backed securities	17,925		17		(118)		17,824
State, county & municipal securities	110,952		—		(15,315)		95,637
Corporate debt securities	53,324		1		(5,543)		47,782
Mortgage-backed securities	221,005		207		(22,334)		198,878
Total	$	409,380	$	225	$	(43,556)	$	366,049

December 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Held-to-Maturity:
U.S. treasury securities	$	91,004	$	—	$	(2,828)	$	88,176
U.S. agency securities	16,151		—		(1,263)		14,888
State, county & municipal securities	137,190		—		(15,915)		121,275
Mortgage-backed securities	185,732		—		(27,051)		158,681
Total	$	430,077	$	—	$	(47,057)	$	383,020

The Company elected to exclude accrued interest receivable from the amortized cost basis of available-for-sale and held-to-maturity securities disclosed throughout this note. As of June 30, 2025 and December 31, 2024, accrued interest receivable for available-for-sale and held-to-maturity securities totaled $2.4 million and $2.3 million, and $1.8 million and $1.8 million, respectively, and is included in the "Other assets" line item on the Company’s consolidated balance sheet.

The amortized cost and fair value of investment securities as of June 30, 2025, by contractual maturity, are shown hereafter. Expected maturities may differ from contractual maturities for certain investments because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.


	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	17,717	$	17,636	$	29,671	$	29,523
Due after one year through five years	14,529		13,461		63,118		61,215
Due after five years through ten years	95,175		84,222		70,659		64,386
Due after ten years	61,935		54,542		65,786		56,330
	$	189,356	$	169,861	$	229,234	$	211,454

Mortgage-backed securities	220,556		203,711		180,400		157,649
	$	409,912	$	373,572	$	409,634	$	369,103

The Company had no sales of investment securities for the three and six month periods ended June 30, 2025. For the three and six month periods ended June 30, 2024, the Company had proceeds from the sale of investment securities of $9.2 million and $17.8 million, respectively, which resulted in gross realized losses of $425,000 and $980,000 for each respective period. The purpose of these sales was to restructure underperforming assets and reinvest in assets with higher yields.


	Less Than 12 Months				12 Months or Greater				Total
(dollars in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
June 30, 2025
U.S. treasury securities	$	9,965	$	—	$	—	$	—	$	9,965	$	—
U.S. agency securities	—		—		2,619		(162)		2,619		(162)
Asset backed securities	7,045		(88)		8,127		(232)		15,172		(320)
State, county & municipal securities	40,532		(6,276)		55,092		(7,867)		95,624		(14,143)
Corporate debt securities	4,292		(459)		37,145		(4,414)		41,437		(4,873)
Mortgage-backed securities	6,460		(83)		149,678		(17,473)		156,138		(17,556)
	$	68,294	$	(6,906)	$	252,661	$	(30,148)	$	320,955	$	(37,054)

December 31, 2024

U.S. agency securities	—		—		2,755		(246)		2,755		(246)
Asset backed securities	3,715		(8)		8,269		(110)		11,984		(118)
State, county & municipal securities	2,829		(294)		92,808		(15,021)		95,637		(15,315)
Corporate debt securities	4,434		(720)		42,847		(4,823)		47,281		(5,543)
Mortgage-backed securities	21,278		(430)		160,343		(21,904)		181,621		(22,334)
	$	32,256	$	(1,452)	$	307,022	$	(42,104)	$	339,278	$	(43,556)


	Less Than 12 Months				12 Months or Greater				Total
(dollars in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
June 30, 2025
U.S. treasury securities	$	—	$	—	$	74,212	$	(1,546)	$	74,212	$	(1,546)
U.S. agency securities	—		—		15,228		(856)		15,228		(856)
State, county & municipal securities	46,291		(6,657)		75,723		(8,721)		122,014		(15,378)

Mortgage-backed securities	—		—		157,649		(22,751)		157,649		(22,751)
	$	46,291	$	(6,657)	$	322,812	$	(33,874)	$	369,103	$	(40,531)

December 31, 2024
U.S. treasury securities	$	—	$	—	$	88,176	$	(2,828)	$	88,176	$	(2,828)
U.S. agency securities	—		—		14,888		(1,263)		14,888		(1,263)
State, county & municipal securities	18,751		(374)		102,524		(15,541)		121,275		(15,915)
Mortgage-backed securities	—		—		158,681		(27,051)		158,681		(27,051)
	$	18,751	$	(374)	$	364,269	$	(46,683)	$	383,020	$	(47,057)

Management evaluates available-for-sale securities in an unrealized loss position at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation to determine if credit-related impairment exists. Management first evaluates whether they intend to sell or more likely than not will be required to sell an impaired security before recovering its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in earnings with a corresponding adjustment to the security's amortized cost basis. If either of the above criteria is not met, management evaluates whether the decline in fair value is attributable to credit or resulted from other factors. The Company does not intend to sell these investment securities in an unrealized loss position as of June 30, 2025, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity. Based on management's review, the Company's available-for-sale securities have no expected credit losses and no related allowance for credit losses has been established.

The Company uses a systematic methodology to determine its ACL for debt securities held-to-maturity considering the effects of past events, current conditions, and reasonable and supportable forecasts on the collectibility of the portfolio. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the held-to-maturity portfolio. The Company monitors the held-to-maturity portfolio on a quarterly basis to determine whether a valuation account would need to be recorded. Based on management's review, the Company's held-to-maturity securities have no expected credit losses and no related allowance for credit losses has been established.

At June 30, 2025, there were 225 available-for-sale securities and 154 held-to-maturity securities that had unrealized losses. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are due to reasons of credit quality.

The Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326), as amended on January 1, 2023 which included evaluation of expected credit losses on debt securities. As part of the Company's calculated credit losses, the allowance for credit losses on investment securities was determined to be de minimis due to the high credit quality of the portfolio, which includes securities issued or guaranteed by the U.S. treasury and U.S. government agencies and high quality municipalities. Therefore, no allowance for credit losses was recorded as of June 30, 2025. See Note 1 for additional details on the allowance for credit losses as it relates to the securities portfolio.