Investment and Equity Securities (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Carrying Amounts and Fair Values of Securities Available for Sale and Held to Maturity

Carrying amounts and fair values of securities available for sale and held to maturity are summarized below:

March 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale:
U.S. Treasury	$	54,994	$	—	$	3,680	$	51,314
U.S. government agencies		45,734		80		1,065		44,749
GSE - Mortgage-backed securities and CMOs		140,742		1		14,188		126,555
Asset-backed securities		29,625		343		83		29,885
State and political subdivisions		95,384		3		14,993		80,394
Corporate bonds		6,000		—		450		5,550
Total securities available for sale	$	372,479	$	427	$	34,459	$	338,447

March 31, 2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Securities held to maturity:
State and political subdivisions		13,430		—		1,167		12,263		—		13,430
Corporate bonds		15,000		—		1,680		13,320		66		14,934
Total securities held to maturity	$	28,430	$	—	$	2,847	$	25,583	$	66	$	28,364

December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale:
U.S. Treasury	$	54,984	$	—	$	3,479	$	51,505
U.S. government agencies		43,921		66		969		43,018
GSE - Mortgage-backed securities and CMOs		137,346		170		13,729		123,787
Asset-backed securities		31,469		244		200		31,513
State and political subdivisions		95,581		15		14,196		81,400
Corporate bonds		6,000		—		509		5,491
Total securities available for sale	$	369,301	$	495	$	33,082	$	336,714

December 31, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Securities held to maturity:
U.S. government agencies	$	133	$	—	$	1	$	132	$	—	$	133
State and political subdivisions		13,467		—		985		12,482		—		13,467
Corporate bonds		15,000		—		1,878		13,122		56		14,944
Total securities held to maturity	$	28,600	$	—	$	2,864	$	25,736	$	56	$	28,544

Allowance for Credit Losses on Held to Maturity Securities

The following table shows a rollforward of the allowance for credit losses on held to maturity securities for the three months ended March 31, 2024.

	State and political subdivisions		Corporate bonds		Total
	(dollars in thousands)
Balance, December 31, 2023	$	—	$	56	$	56
Provision for credit losses		—		10		10
Charge-offs of securities		—		—		—
Recoveries		—		—		—
Balance, March 31, 2024	$	—	$	66	$	66

Summary of Amortized Cost of Debt Securities Held to Maturity

The following table summarizes the credit ratings of debt securities held to maturity, presented at amortized cost, by major security type at March 31, 2024.

March 31, 2024	State and political subdivisions		Corporate bonds		Total
	(dollars in thousands)
Aaa	$	1,148	$	—	$	1,148
Aa1/Aa2/Aa3		12,282		—		12,282
A1/A2		—		—		—
BBB		—		—		—
Not rated		—		15,000		15,000
Total	$	13,430	$	15,000	$	28,430

Sales of Securities Available for Sale

Results from sales of securities available for sale for the three-month periods ended March 31, 2024 and 2023, respectively, were as follows:

	Three Months Ended March 31,
	2024		2023
	(dollars in thousands)
Gross proceeds from sales	$	—	$	6,793
Realized gains from sales	$	—	$	6
Realized losses from sales		—		57
Net realized losses	$	—	$	(51	)

Gross Unrealized Losses and Fair Value of Investments

The following table shows the gross unrealized losses and estimated fair value of available for sale securities, for which an allowance has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2024.

	Less than 12 Months						12 Months or More						Total
March 31, 2024	Number of Securities		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(dollars in thousands)
Securities available for sale:
U.S. Treasury		—	$	—	$	—		8	$	49,314	$	3,680	$	49,314	$	3,680
U.S. government agencies		12		13,721		189		22		21,535		876		35,256		1,065
GSE-Mortgage-backed securities and CMOs		14		25,610		222		59		99,703		13,966		125,313		14,188
Asset-backed securities		1		637		2		5		7,992		81		8,629		83
State and political subdivisions		1		2,230		3		61		76,748		14,990		78,978		14,993
Corporate bonds		—		—		—		3		5,550		450		5,550		450
Total securities available for sale		28	$	42,198	$	416		158	$	260,842	$	34,043	$	303,040	$	34,459

The following tables show the gross unrealized losses and estimated fair value of available for sale securities, for which an allowance has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023.

	Less than 12 Months						12 Months or More						Total
December 31, 2023	Number of Securities		Fair Value		Unrealized  Losses		Number of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(dollars in thousands)
Securities available for sale
U.S. Treasury		—	$	—	$	—		9	$	51,505	$	3,479	$	51,505	$	3,479
U.S. government agencies		12		16,865		107		18		14,705		862		31,570		969
GSE-Mortgage-backed securities and CMOs		5		7,907		103		59		100,765		13,626		108,672		13,729
Asset-backed securities		2		1,711		5		7		10,140		195		11,851		200
State and political subdivisions		2		2,496		23		60		76,352		14,173		78,848		14,196
Corporate bonds		—		—		—		3		5,491		509		5,491		509
Total securities available for sale		21	$	28,979	$	238		156	$	258,958	$	32,844	$	287,937	$	33,082

Amortized Cost and Fair Value of Available for Sale Securities Portfolio

The following tables show contractual maturities of the investment portfolio as of March 31, 2024:

	March 31, 2024
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities available for sale:
Due within twelve months		22,028		21,937		3.82	%
Due after one but within five years		46,925		42,936		2.04	%
Due after five but within ten years		64,512		56,787		2.56	%
Due after ten years		239,014		216,787		3.67	%
	$	372,479	$	338,447		3.28	%

	March 31, 2024
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities held to maturity:
Due within twelve months		380		379		2.99	%
Due after five but within ten years		18,820		16,753		4.17	%
Due after ten years		9,230		8,451		3.42	%
	$	28,430	$	25,583		3.91	%

Unrealized Gains and Losses Related to Equity Securities

The portion of unrealized gains and losses for the three months ended March 31, 2024 and 2023 related to equity securities still held at the reporting date is calculated as follows:

	Three Months Ended March 31,
	2024		2023
	(dollars in thousands)
Gross proceeds from sales	$	—	$	—
Net gains recognized during the period on equity securities	$	41	$	34
Less: Net gains (losses) recognized from equity securities sold during the period		—		—
Unrealized gains recognized during the period on equity securities still held at the reporting date	$	41	$	34