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INVESTMENT SECURITIES
6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES DEBT SECURITIES
The following presents the amortized cost, fair value, and allowance for credit losses 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, 2024Amortized
Cost
Gross
Unrecognized
Gains
Gross
Unrecognized
Losses
Fair
Value
Allowance for
Credit Losses
Debt securities held-to-maturity:
U.S. Treasury debt$268 $— $(20)$248 $— 
Corporate bonds23,656 — (3,168)20,488 (71)
Government National Mortgage Association ("GNMA") mortgage-backed securities ("MBS") – residential33,208 — (3,559)29,649 — 
Federal National Mortgage Association ("FNMA") MBS – residential12,805 31 (567)12,269 — 
Government collateralized mortgage obligations ("GMO") and MBS – commercial5,429 (395)5,043 — 
Corporate collateralized mortgage obligations ("CMO") and MBS(1)
3,632 — (262)3,370 — 
Total debt securities held-to-maturity$78,998 $40 $(7,971)$71,067 $(71)

December 31, 2023Amortized
Cost
Gross
Unrecognized
Gains
Gross
Unrecognized
Losses
Fair
Value
Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasury debt$253 $— $(11)$242 $— 
Corporate bonds23,687 — (3,020)20,667 (71)
GNMA mortgage-backed securities – residential34,579 — (3,410)31,169 — 
FNMA mortgage-backed securities – residential6,035 — (509)5,526 — 
Government GMO and MBS commercial
5,836 (377)5,468 — 
Corporate CMO and MBS3,783 — (238)3,545 — 
Total debt securities held-to-maturity$74,173 $$(7,565)$66,617 $(71)
As of June 30, 2024, the amortized cost and estimated fair value of held-to-maturity debt securities have contractual maturity dates shown in the table below (dollars in thousands). 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, 2024Amortized
Cost
Fair
Value
Due within one year$268 $248 
Due between one year and five years4,070 3,792 
Due between five years and ten years19,403 16,532 
Due after ten years183 164 
Securities (CMO and MBS)55,074 50,331 
Total$78,998 $71,067 
In 2022, the Company committed $6.0 million in total to two bank technology funds. During the six months ended June 30, 2024, the Company made $0.2 million of contributions to the partnerships and received $0.2 million of returns on investment. During the year ended December 31, 2023, the Company made $0.8 million of contributions to both partnerships and received $0.1 million of returns on investment. As of June 30, 2024, the Company held a balance of $2.2 million, which is included in Other assets in the accompanying Condensed Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $3.8 million in future contributions.
In 2014, the Company began investing in a small business investment company ("SBIC") fund administered by the Small Business Administration. The Company made $0.2 million of contributions to the SBIC fund during the six months ended June 30, 2024. During the year ended December 31, 2023, the Company made $0.2 million of contributions to the SBIC fund. As of June 30, 2024 and December 31, 2023, the Company held a balance of $2.4 million and $2.2 million, respectively, 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, 2024, securities with market values totaling $37.4 million were pledged to secure various public deposits and credit facilities of the Company, including $10.1 million pledged under the BTFP program (refer to Note 1 – Organization and Summary of Significant Accounting Policies for more information on the BTFP program). As of December 31, 2023, securities with market values of $45.1 million were pledged to secure various public deposits and credit facilities of the Company, including $39.3 million pledged under the BTFP program.
As of June 30, 2024 and December 31, 2023, 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.
Allowance for Credit Losses for HTM Debt Securities
Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type. The majority of our held-to-maturity 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 held-to-maturity debt securities totaled $0.4 million and $0.4 million as of June 30, 2024 and December 31, 2023, 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 table presents the activity in the allowance for credit losses for debt securities held-to-maturity by major security type for the periods noted (dollars in thousands):

Three Months Ended June 30,
20242023
(dollars in thousands)Corporate BondsCorporate CMOCorporate BondsCorporate 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,
20242023
(dollars in thousands)Corporate BondsCorporate CMOCorporate BondsCorporate CMO
Allowance for credit losses:
Beginning balance$71 $— $— $— 
Impact of ASU 2016-13 adoption— — 71 — 
Provision for credit losses— — — — 
Securities charged-off (recoveries)— — — — 
Total ending allowance balance$71 $— $71 $— 

The Company monitors the credit quality of held-to-maturity debt securities on a quarterly basis. As of June 30, 2024, there were no held-to-maturity debt securities past due or on non-accrual.