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v3.25.3

Securities | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Securities | Note 3 — Securities The following table is a summary of the amortized cost and estimated fair value, including the allowance for credit losses and gross unrealized gains and losses, of available for sale, held to maturity and securities carried at fair value through income for the dates indicated:
(Dollars in thousands) September 30, 2025 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Allowance for Credit Losses |  | Net Carrying Amount |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 324,806 |  |  | $ | 799 |  |  | $ | (33,021) |  |  | $ | 292,584 |  |  | $ | — |  |  | $ | 292,584 |  |  |
Corporate bonds | 64,104 |  |  | 148 |  |  | (2,417) |  |  | 61,835 |  |  | — |  |  | 61,835 |  |  |
U.S. treasury and government agency securities | 3,847 |  |  | 1 |  |  | (720) |  |  | 3,128 |  |  | — |  |  | 3,128 |  |  |
Commercial mortgage-backed securities | 17,047 |  |  | 20 |  |  | (1,819) |  |  | 15,248 |  |  | — |  |  | 15,248 |  |  |
Residential mortgage-backed securities | 476,073 |  |  | 4,131 |  |  | (31,136) |  |  | 449,068 |  |  | — |  |  | 449,068 |  |  |
Commercial collateralized mortgage obligations | 83,272 |  |  | 435 |  |  | (1,121) |  |  | 82,586 |  |  | — |  |  | 82,586 |  |  |
Residential collateralized mortgage obligations | 213,537 |  |  | 1,050 |  |  | (14,247) |  |  | 200,340 |  |  | — |  |  | 200,340 |  |  |
Total | $ | 1,182,686 |  |  | $ | 6,584 |  |  | $ | (84,481) |  |  | $ | 1,104,789 |  |  | $ | — |  |  | $ | 1,104,789 |  |  |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 10,602 |  |  | $ | — |  |  | $ | (584) |  |  | $ | 10,018 |  |  | $ | (43) |  |  | $ | 10,559 |  |  |
Securities carried at fair value through income: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities(1) | $ | 6,200 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,203 |  |  | $ | — |  |  | $ | 6,203 |  |  |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 299,642 |  |  | $ | 216 |  |  | $ | (43,882) |  |  | $ | 255,976 |  |  | $ | — |  |  | $ | 255,976 |  |  |
Corporate bonds | 83,041 |  |  | 445 |  |  | (5,250) |  |  | 78,236 |  |  | — |  |  | 78,236 |  |  |
U.S. treasury and government agency securities | 14,742 |  |  | 2 |  |  | (939) |  |  | 13,805 |  |  | — |  |  | 13,805 |  |  |
Commercial mortgage-backed securities | 49,943 |  |  | — |  |  | (5,659) |  |  | 44,284 |  |  | — |  |  | 44,284 |  |  |
Residential mortgage-backed securities | 598,380 |  |  | 8 |  |  | (57,554) |  |  | 540,834 |  |  | — |  |  | 540,834 |  |  |
Commercial collateralized mortgage obligations | 31,263 |  |  | — |  |  | (2,697) |  |  | 28,566 |  |  | — |  |  | 28,566 |  |  |
Residential collateralized mortgage obligations | 160,422 |  |  | 15 |  |  | (19,610) |  |  | 140,827 |  |  | — |  |  | 140,827 |  |  |
Total | $ | 1,237,433 |  |  | $ | 686 |  |  | $ | (135,591) |  |  | $ | 1,102,528 |  |  | $ | — |  |  | $ | 1,102,528 |  |  |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 11,145 |  |  | $ | — |  |  | $ | (689) |  |  | $ | 10,456 |  |  | $ | (50) |  |  | $ | 11,095 |  |  |
Securities carried at fair value through income: |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities(1) | $ | 6,515 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,512 |  |  | $ | — |  |  | $ | 6,512 |  |  |
________________________ (1)Securities carried at fair value through income have no unrealized gains or losses at the consolidated balance sheet dates as all changes in value have been recognized in the consolidated statements of income. See Note 6 — Fair Value of Financial Instruments for more information. Securities with unrealized losses at September 30, 2025, and December 31, 2024, aggregated by investment category and those individual securities that have been in a continuous unrealized loss position for less than 12 months, and for 12 months or more, were as follows.
| Less than 12 Months |  | 12 Months or More |  | Total
(Dollars in thousands) September 30, 2025 | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
Available for sale: |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 31,711 |  |  | $ | (706) |  |  | $ | 220,836 |  |  | $ | (32,315) |  |  | $ | 252,547 |  |  | $ | (33,021) |
Corporate bonds | 4,968 |  |  | (32) |  |  | 42,708 |  |  | (2,385) |  |  | 47,676 |  |  | (2,417) |
U.S. treasury and government agency securities | 118 |  |  | (1) |  |  | 2,956 |  |  | (719) |  |  | 3,074 |  |  | (720) |
Commercial mortgage-backed securities | — |  |  | — |  |  | 13,760 |  |  | (1,819) |  |  | 13,760 |  |  | (1,819) |
Residential mortgage-backed securities | — |  |  | — |  |  | 249,972 |  |  | (31,136) |  |  | 249,972 |  |  | (31,136) |
Commercial collateralized mortgage obligations | — |  |  | — |  |  | 15,131 |  |  | (1,121) |  |  | 15,131 |  |  | (1,121) |
Residential collateralized mortgage obligations | 9,116 |  |  | (10) |  |  | 95,524 |  |  | (14,237) |  |  | 104,640 |  |  | (14,247) |
Total | $ | 45,913 |  |  | $ | (749) |  |  | $ | 640,887 |  |  | $ | (83,732) |  |  | $ | 686,800 |  |  | $ | (84,481) |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | — |  |  | $ | — |  |  | $ | 10,018 |  |  | $ | (584) |  |  | $ | 10,018 |  |  | $ | (584) |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | 18,349 |  |  | $ | (346) |  |  | $ | 226,484 |  |  | $ | (43,536) |  |  | $ | 244,833 |  |  | $ | (43,882) |
Corporate bonds | 7,450 |  |  | (550) |  |  | 59,443 |  |  | (4,700) |  |  | 66,893 |  |  | (5,250) |
U.S. treasury and government agency securities | 10,062 |  |  | (52) |  |  | 3,423 |  |  | (887) |  |  | 13,485 |  |  | (939) |
Commercial mortgage-backed securities | 4,418 |  |  | (120) |  |  | 39,866 |  |  | (5,539) |  |  | 44,284 |  |  | (5,659) |
Residential mortgage-backed securities | 148,383 |  |  | (1,296) |  |  | 386,414 |  |  | (56,258) |  |  | 534,797 |  |  | (57,554) |
Commercial collateralized mortgage obligations | 13,014 |  |  | (148) |  |  | 15,552 |  |  | (2,549) |  |  | 28,566 |  |  | (2,697) |
Residential collateralized mortgage obligations | 14,884 |  |  | (291) |  |  | 109,416 |  |  | (19,319) |  |  | 124,300 |  |  | (19,610) |
Total | $ | 216,560 |  |  | $ | (2,803) |  |  | $ | 840,598 |  |  | $ | (132,788) |  |  | $ | 1,057,158 |  |  | $ | (135,591) |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | $ | — |  |  | $ | — |  |  | $ | 10,456 |  |  | $ | (689) |  |  | $ | 10,456 |  |  | $ | (689) |
At September 30, 2025, the Company had 386 individual securities that were in an unrealized loss position. Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than the cost, and (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. Management does not currently intend to sell any securities in an unrealized loss position and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, at September 30, 2025, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions. The following tables present the activity in the allowance for credit losses for held-to-maturity securities.
| Held to Maturity |  |  |  |  |
(Dollars in thousands) | Three Months Ended September 30, |  | Nine Months Ended September 30, |
Allowance for credit losses: | 2025 |  | 2024 |  | 2025 |  | 2024 |  |  |  |  |
Beginning balance | $ | 47 |  |  | $ | 57 |  |  | $ | 50 |  |  | $ | 63 |  |  |  |  |  |
Recovery for credit losses for held to maturity securities | (4) |  |  | (5) |  |  | (7) |  |  | (11) |  |  |  |  |  |
Balance at September 30, | $ | 43 |  |  | $ | 52 |  |  | $ | 43 |  |  | $ | 52 |  |  |  |  |  |
Management has made the accounting policy election to exclude accrued interest receivable on securities from the estimate of credit losses. There were no past due or nonaccrual available for sale or held to maturity securities at September 30, 2025, or December 31, 2024. Accrued interest on securities of $5.4 million and $5.3 million at September 30, 2025, and December 31, 2024, respectively, was included in accrued interest receivable and other assets on the face of the consolidated balance sheets. Proceeds from sales and calls, and related gross gains and losses of securities available for sale, are shown below.
| Nine Months Ended September 30, |
(Dollars in thousands) | 2025 |  | 2024 |  |  |  |  |
Proceeds from sales/calls | $ | 232,226 |  |  | $ | 54,984 |  |  |  |  |  |
Gross realized gains | — |  |  | 357 |  |  |  |  |  |
Gross realized losses | (14,448) |  |  | (539) |  |  |  |  |  |
The following table presents the amortized cost and fair value of securities available for sale and held to maturity at September 30, 2025, grouped by contractual maturity. Mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which do not have contractual payments due at a single maturity date, are shown separately. Actual maturities for mortgage-backed securities and collateralized mortgage obligations will differ from contractual maturities as a result of prepayments made on the underlying loans.
(Dollars in thousands) | Held to Maturity |  | Available for Sale
September 30, 2025 | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Due in one year or less | $ | — |  |  | $ | — |  |  | $ | 8,859 |  |  | $ | 8,841 |
Due after one year through five years | 5,145 |  |  | 5,028 |  |  | 33,120 |  |  | 32,258 |
Due after five years through ten years | 5,457 |  |  | 4,990 |  |  | 182,533 |  |  | 166,789 |
Due after ten years | — |  |  | — |  |  | 168,245 |  |  | 149,659 |
Commercial mortgage-backed securities | — |  |  | — |  |  | 17,047 |  |  | 15,248 |
Residential mortgage-backed securities | — |  |  | — |  |  | 476,073 |  |  | 449,068 |
Commercial collateralized mortgage obligations | — |  |  | — |  |  | 83,272 |  |  | 82,586 |
Residential collateralized mortgage obligations | — |  |  | — |  |  | 213,537 |  |  | 200,340 |
Total | $ | 10,602 |  |  | $ | 10,018 |  |  | $ | 1,182,686 |  |  | $ | 1,104,789 |
The following table presents carrying amounts of securities pledged as collateral for deposits and repurchase agreements at the periods presented.
(Dollars in thousands) | September 30, 2025 |  | December 31, 2024
Carrying value of securities pledged to secure public deposits | $ | 408,626 |  |  | $ | 504,554 |
Carrying value of securities pledged to repurchase agreements | 23,215 |  |  | 4,731 |
The Bank has entered into various fair value hedging transactions to mitigate the impact of changing interest rates on the fair values of available-for-sale securities. See Note 9 — Derivative Financial Instruments for disclosure of the gains and losses recognized on derivative instruments and the cumulative fair value hedging adjustments to the carrying amount of the hedged securities.

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