
(dollars in thousands)
December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available for Sale:
U.S. treasury securities	$	500	$	—	$	(2)	$	498
U.S. agency securities	4,500		—		(361)		4,139
Asset backed securities	25,035		—		(405)		24,630
State, county and municipal securities	124,524		6		(15,494)		109,036
Corporate debt securities	53,834		16		(6,460)		47,390
Mortgage-backed securities	246,901		36		(25,248)		221,689
Total	$	455,294	$	58	$	(47,970)	$	407,382

December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Held to Maturity:
U.S. treasury securities	$	93,306	$	—	$	(3,212)	$	90,094
U.S. agency securities	16,282		—		(1,424)		14,858
State, county & municipal securities	136,685		356		(13,859)		123,182
Mortgage-backed securities	202,758		—		(25,316)		177,442
Total	$	449,031	$	356	$	(43,811)	$	405,576


December 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available for Sale:
U.S. treasury securities	$	1,644	$	—	$	(22)	$	1,622
U.S. agency securities	5,035		—		(450)		4,585
Asset backed securities	31,468		—		(1,480)		29,988
State, county and municipal securities	126,119		—		(21,363)		104,756
Corporate debt securities	54,741		164		(5,320)		49,585
Mortgage-backed securities	271,199		9		(29,191)		242,017
Total	$	490,206	$	173	$	(57,826)	$	432,553


December 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Held to Maturity:
U.S. treasury securities	$	91,615	$	—	$	(4,149)	$	87,466
U.S. agency securities	16,409		—		(1,838)		14,571
State, county & municipal securities	136,138		32		(19,518)		116,652
Mortgage-backed securities	221,696		—		(29,121)		192,575
Total	$	465,858	$	32	$	(54,626)	$	411,264

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 December 31, 2023 and December 31, 2022, accrued interest receivable for available-for-sale and held-to-maturity securities totaled $2.4 million and $2.6 million, and $1.9 million and $1.9 million, respectively, and is included in the "other assets" line item on the Company's consolidated balance sheet.

The Company transferred certain agency-issued securities from the available-for-sale to held-to-maturity portfolio on January 1, 2022 and September 1, 2022, having a combined book value of approximately $511.0 million and a combined market value of approximately $477.0 million. As of the date of each transfer, the related pre-tax net unrecognized losses of approximately $34.0 million included in other comprehensive loss and remained in other comprehensive loss, to be amortized out of other comprehensive loss over the remaining term of the securities using the effective interest method. This transfer was completed after careful consideration of the Company’s intent and ability to hold these securities to maturity. Factors used in assessing the ability to hold these securities to maturity were future liquidity needs and sources of funding. The Company has had no other transfers of securities since September 1, 2022.

Information pertaining to available-for-sale securities with gross unrealized losses at December 31, 2023 and December 31, 2022 aggregated by investment category and length of time that securities have been in a continuous unrealized loss position are summarized as follows:


	Less Than 12 Months				12 Months or More				Total
(dollars in thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
December 31, 2023
U.S. treasury securities	$	—	$	—	$	498	$	(2)	$	498	$	(2)
U.S. agency securities	—		—		4,139		(361)		4,139		(361)
Asset backed securities	6,196		(75)		17,424		(330)		23,620		(405)
State, county and municipal securities	1,033		(138)		107,443		(15,356)		108,476		(15,494)
Corporate debt securities	1,446		(105)		45,044		(6,355)		46,490		(6,460)
Mortgage-backed securities	5,921		(49)		212,876		(25,199)		218,797		(25,248)
Total debt securities	$	14,596	$	(367)	$	387,424	$	(47,603)	$	402,020	$	(47,970)

December 31, 2022
U.S. treasury securities	$	1,377	$	(17)	$	245	$	(5)	$	1,622	$	(22)
U.S. agency securities	3,221		(257)		1,364		(193)		4,585		(450)
Asset backed securities	10,780		(319)		19,208		(1,161)		29,988		$	(1,480)
State, county and municipal securities	29,284		(3,629)		75,472		(17,734)		104,756		$	(21,363)
Corporate debt securities	17,258		(1,463)		30,651		(3,857)		47,909		(5,320)
Mortgage-backed securities	122,031		(7,890)		119,409		(21,301)		241,440		(29,191)
Total debt securities	$	183,951	$	(13,575)	$	246,349	$	(44,251)	$	430,300	$	(57,826)

Information pertaining to held-to-maturity securities with gross unrealized losses at December 31, 2023 and December 31, 2022 aggregated by investment category and length of time that individual securities have been in a continuous loss position is summarized as follows:


	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
December 31, 2023
U.S. treasury securities	$	—	$	—	$	90,094	$	(3,212)	$	90,094	$	(3,212)
U.S. agency securities	—		—		14,858		(1,424)		14,858		(1,424)
State, county & municipal securities	1,461		(78)		103,500		(13,781)		104,961		(13,859)
Mortgage-backed securities	—		—		177,442		(25,316)		177,442		(25,316)
	$	1,461	$	(78)	$	385,894	$	(43,733)	$	387,355	$	(43,811)

December 31, 2022
U.S. treasury securities	$	—	$	—	$	87,466	$	(4,149)	$	87,466	$	(4,149)
U.S. agency securities	—		—		14,571		(1,838)		14,571		(1,838)
State, county & municipal securities	9,858		(1,392)		105,734		(18,126)		115,592		(19,518)
Mortgage-backed securities	13,580		(729)		178,995		(28,392)		192,575		(29,121)
	$	23,438	$	(2,121)	$	386,766	$	(52,505)	$	410,204	$	(54,626)

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 at an unrealized loss position at December 31, 2023, 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 collectability 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 December 31, 2023, there were 273 available-for-sale securities and 146 held-to-maturity securities that have unrealized losses from the Company’s amortized cost basis. 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 amortized cost and fair value of investment securities as of December 31, 2023, 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	$	715	$	713	$	3,937	$	3,882
Due after one year through five years	15,714		14,697		94,194		90,873
Due after five years through ten years	102,474		88,639		76,529		68,260
Due after ten years	89,490		81,644		71,613		65,119
	$	208,393	$	185,693	$	246,273	$	228,134

Mortgage-backed securities	246,901		221,689		202,758		177,442
	$	455,294	$	407,382	$	449,031	$	405,576

The Company had no sales of investment securities in 2023. For the year ended 2022, proceeds from sales of investments available for sale were $60.9 million. Gross realized gains totaled $24,000 and gross realized losses totaled $106,000 in 2022.

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, U.S. Government agencies and high quality municipalities. Therefore, no allowance for credit losses was recorded as of December 31, 2023. See Note 1 for additional details on the allowance for credit losses as it relates to the securities portfolio.