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Investment Securities
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
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)
March 31, 2024Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Securities Available for Sale:
U.S. treasury securities$2,296 $— $(11)$2,285 
U.S. agency securities4,433 — (394)4,039 
Asset backed securities21,526 14 (268)21,272 
State, county & municipal securities123,045 — (15,986)107,059 
Corporate debt securities53,343 — (6,535)46,808 
Mortgage-backed securities226,495 158 (25,163)201,490 
Total$431,138 $172 $(48,357)$382,953 
March 31, 2024Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Securities Held to Maturity:
U.S. treasury securities$93,728 $— $(3,995)$89,733 
U.S. agency securities16,250 — (1,502)14,748 
State, county & municipal securities136,816 175 (14,727)122,264 
Mortgage-backed securities200,363 — (28,256)172,107 
Total$447,157 $175 $(48,480)$398,852 
December 31, 2023Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Securities Available for Sale:
U.S. treasury securities$500 $— $(2)$498 
U.S. agency securities4,500 — (361)4,139 
Asset backed securities25,035 — (405)24,630 
State, county & municipal securities124,524 6 (15,494)109,036 
Corporate debt securities53,834 16 (6,460)47,390 
Mortgage-backed securities246,901 36 (25,248)221,689 
Total$455,294 $58 $(47,970)$407,382 
December 31, 2023Amortized
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 securities16,282 — (1,424)14,858 
State, county & municipal securities136,685 356 (13,859)123,182 
Mortgage-backed securities202,758 — (25,316)177,442 
Total$449,031 $356 $(43,811)$405,576 
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 March 31, 2024 and December 31, 2023, accrued interest receivable for available-for-sale and held-to-maturity securities totaled $2.1 million and $2.4 million, and $2.0 million and $1.9 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 March 31, 2024, 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 SaleHeld to Maturity
(dollars in thousands)Amortized CostFair ValueAmortized CostFair Value
Due in one year or less$2,511 $2,500 $9,823 $9,679 
Due after one year through five years18,090 16,800 93,608 89,399 
Due after five years through ten years97,783 84,148 72,591 64,113 
Due after ten years86,259 78,015 70,772 63,554 
$204,643 $181,463 $246,794 $226,745 
Mortgage-backed securities226,495 201,490 200,363 172,107 
$431,138 $382,953 $447,157 $398,852 
Proceeds from the sale of investment securities totaled $8.6 million for the three month period ended March 31, 2024 and resulted in gross realized losses of $555,000. The Company had no sales of investment securities for the three month period ended March 31, 2023.
Investment securities having a carrying value of approximately $341.8 million and $429.9 million were pledged to secure public deposits and for other purposes as of March 31, 2024 and December 31, 2023, respectively.
Information pertaining to available-for-sale securities with gross unrealized losses at March 31, 2024 and December 31, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as
follows:
Less Than 12 Months12 Months or GreaterTotal
(dollars in thousands)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
March 31, 2024
U.S. treasury securities$2,285 $(11)$— $— $2,285 $(11)
U.S. agency securities— — 4,039 (394)4,039 (394)
Asset backed securities4,285 (16)13,107 (252)17,392 (268)
State, county & municipal securities1,570 (146)105,239 (15,840)106,809 (15,986)
Corporate debt securities260 (140)46,548 (6,395)46,808 (6,535)
Mortgage-backed securities— — 193,006 (25,163)193,006 (25,163)
$8,400 $(313)$361,939 $(48,044)$370,339 $(48,357)
December 31, 2023
U.S. treasury securities$— $— $498 $(2)$498 $(2)
U.S. agency securities— — 4,139 (361)4,139 (361)
Asset backed securities6,196 (75)17,424 (330)23,620 (405)
State, county & municipal securities1,033 (138)107,443 (15,356)108,476 (15,494)
Corporate debt securities1,446 (105)45,044 (6,355)46,490 (6,460)
Mortgage-backed securities5,921 (49)212,876 (25,199)218,797 (25,248)
$14,596 $(367)$387,424 $(47,603)$402,020 $(47,970)
Information pertaining to held-to-maturity securities with gross unrealized losses at March 31, 2024 and December 31, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows:
Less Than 12 Months12 Months or GreaterTotal
(dollars in thousands)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
March 31, 2024
U.S. treasury securities$— $— $89,733 $(3,995)$89,733 $(3,995)
U.S. agency securities— — 14,748 (1,502)14,748 (1,502)
State, county & municipal securities5,756 (41)104,271 (14,686)110,027 (14,727)
Mortgage-backed securities— — 172,107 (28,256)172,107 (28,256)
$5,756 $(41)$380,859 $(48,439)$386,615 $(48,480)
December 31, 2023
U.S. treasury securities$— $— $90,094 $(3,212)$90,094 $(3,212)
U.S. agency securities— — 14,858 (1,424)14,858 (1,424)
State, county & municipal securities1,461 (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)
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 at March 31, 2024, 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 March 31, 2024, there were 261 available-for-sale securities and 150 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, U.S. Government agencies and high quality municipalities. Therefore, no allowance for credit losses was recorded as of March 31, 2024. See Note 1 for additional details on the allowance for credit losses as it relates to the securities portfolio.