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Securities | 12 Months Ended
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Dec. 31, 2024
Fair Value Disclosures [Abstract] |
Securities | Securities The carrying amount of available-for-sale securities and their approximate fair values at December 31, 2024, and December 31, 2023, are summarized as follows (in thousands):
| December 31, 2024
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities Available-for-Sale |  |  |  |  |  |  |
U.S. Treasuries and government agencies | $ | 165,619 |  |  | $ | — |  |  | $ | 16,492 |  |  | $ | 149,127 |
Obligations of states and municipalities | 777,181 |  |  | 846 |  |  | 79,303 |  |  | 698,724 |
Residential mortgage backed — agency | 57,244 |  |  | 121 |  |  | 4,179 |  |  | 53,186 |
Residential mortgage backed — non-agency | 259,964 |  |  | 44 |  |  | 12,132 |  |  | 247,876 |
Commercial mortgage backed — agency | 33,791 |  |  | 27 |  |  | 747 |  |  | 33,071 |
Commercial mortgage backed — non-agency | 158,621 |  |  | 2 |  |  | 4,112 |  |  | 154,511 |
Asset-backed | 64,308 |  |  | 316 |  |  | 568 |  |  | 64,056 |
Other | 32,861 |  |  | 302 |  |  | 1,343 |  |  | 31,820 |
Total | $ | 1,549,589 |  |  | $ | 1,658 |  |  | $ | 118,876 |  |  | $ | 1,432,371 |
| December 31, 2023
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities Available-for-Sale |  |  |  |  |  |  |
U.S. Treasuries and government agencies | $ | 197,026 |  |  | $ | — |  |  | $ | 17,955 |  |  | $ | 179,071 |
Obligations of states and municipalities | 535,229 |  |  | 21 |  |  | 72,047 |  |  | 463,203 |
Residential mortgage backed — agency | 47,074 |  |  | — |  |  | 4,836 |  |  | 42,238 |
Residential mortgage backed — non-agency | 284,826 |  |  | 17 |  |  | 18,812 |  |  | 266,031 |
Commercial mortgage backed — agency | 36,151 |  |  | 28 |  |  | 1,294 |  |  | 34,885 |
Commercial mortgage backed — non-agency | 183,454 |  |  | — |  |  | 6,393 |  |  | 177,061 |
Asset-backed | 79,315 |  |  | 23 |  |  | 1,402 |  |  | 77,936 |
Other | 9,500 |  |  | — |  |  | 1,486 |  |  | 8,014 |
Total | $ | 1,372,575 |  |  | $ | 89 |  |  | $ | 124,225 |  |  | $ | 1,248,439 |
At December 31, 2024, and December 31, 2023, securities with amortized costs of $1.2 billion and $826.5 million, respectively, and with estimated fair values of $1.1 billion and $742.5 million, respectively, were pledged to serve as collateral for secured borrowings, derivative exposures, or to secure public deposits as required or permitted by law. The proceeds from sales, calls and maturities, and principal payments received of debt securities available-for-sale, and the related gross gains and losses realized for the years ended December 31, 2024, December 31, 2023, and December 31, 2022, were as follows (in thousands):
| Proceeds from |  | Gross realized
For the year ended December 31, | Sales |  | Calls and maturities |  | Principal Payments |  | Gains |  | Losses
2024 | $ | 372,370 |  |  | $ | 46,434 |  |  | $ | 211,443 |  |  | $ | 3,381 |  |  | $ | 2,024 |
2023 | 77,780 |  |  | 1,797 |  |  | 110,228 |  |  | 772 |  |  | 884 |
2022 | 195,907 |  |  | 59,352 |  |  | 154,244 |  |  | 1,512 |  |  | 1,966 |
The tax benefit (provision) related to these net realized gains and losses for 2024, 2023, and 2022 was $(312.1) thousand, $23.5 thousand, and $95.3 thousand, respectively. The maturities of securities available-for-sale at December 31, 2024, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties).
| December 31, 2024
| Amortized Cost
| One Year or Less |  | One to Five Years |  | Five to Ten Years |  | After Ten Years |  | Total
Securities Available-for-Sale |  |  |  |  |  |  |  |  |
U.S. Treasuries and government agencies | $ | 5,110 |  |  | $ | 160,509 |  |  | $ | — |  |  | $ | — |  |  | $ | 165,619 |
Obligations of states and municipalities | — |  |  | 154,071 |  |  | 369,063 |  |  | 254,047 |  |  | 777,181 |
Residential mortgage backed - agency | — |  |  | 18,778 |  |  | 28,045 |  |  | 10,421 |  |  | 57,244 |
Residential mortgage backed - non-agency | 21,789 |  |  | 80,363 |  |  | 128,978 |  |  | 28,834 |  |  | 259,964 |
Commercial mortgage backed - agency | 94 |  |  | 26,500 |  |  | 7,197 |  |  | — |  |  | 33,791 |
Commercial mortgage backed - non-agency | 86,629 |  |  | 47,211 |  |  | 24,781 |  |  | — |  |  | 158,621 |
Asset-backed | 9,070 |  |  | 30,463 |  |  | 24,775 |  |  | — |  |  | 64,308 |
Other | — |  |  | 2,752 |  |  | 15,688 |  |  | 14,421 |  |  | 32,861 |
Total | $ | 122,692 |  |  | $ | 520,647 |  |  | $ | 598,527 |  |  | $ | 307,723 |  |  | $ | 1,549,589 |
| December 31, 2024
| Fair Value
| One Year or Less |  | One to Five Years |  | Five to Ten Years |  | After Ten Years |  | Total
Securities Available-for-Sale |  |  |  |  |  |  |  |  |
U.S. Treasuries and government agencies | $ | 4,924 |  |  | $ | 144,203 |  |  | $ | — |  |  | $ | — |  |  | $ | 149,127 |
Obligations of states and municipalities | — |  |  | 147,857 |  |  | 328,969 |  |  | 221,898 |  |  | 698,724 |
Residential mortgage backed - agency | — |  |  | 18,440 |  |  | 24,214 |  |  | 10,532 |  |  | 53,186 |
Residential mortgage backed - non-agency | 21,688 |  |  | 75,622 |  |  | 122,710 |  |  | 27,856 |  |  | 247,876 |
Commercial mortgage backed - agency | 94 |  |  | 25,936 |  |  | 7,041 |  |  | — |  |  | 33,071 |
Commercial mortgage backed - non-agency | 85,667 |  |  | 45,408 |  |  | 23,436 |  |  | — |  |  | 154,511 |
Asset-backed | 9,062 |  |  | 30,361 |  |  | 24,633 |  |  | — |  |  | 64,056 |
Other | — |  |  | 2,881 |  |  | 14,601 |  |  | 14,338 |  |  | 31,820 |
Total | $ | 121,435 |  |  | $ | 490,708 |  |  | $ | 545,604 |  |  | $ | 274,624 |  |  | $ | 1,432,371 |
At year-end 2024 and 2023, there were no holdings of securities of any one issuer, other than U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2024, and December 31, 2023. Available-for-sale securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands):
| December 31, 2024
| Less Than Twelve Months |  | More Than Twelve Months |  |
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Total Unrealized Losses
Securities Available-for-Sale |  |  |  |  |  |  |  |  |
U.S. Treasuries and government agencies | $ | — |  |  | $ | — |  |  | $ | 149,127 |  |  | $ | 16,492 |  |  | $ | 16,492 |
Obligations of states and municipalities | 181,027 |  |  | 5,338 |  |  | 433,488 |  |  | 73,965 |  |  | 79,303 |
Residential mortgage backed - agency | 203 |  |  | 2 |  |  | 42,233 |  |  | 4,177 |  |  | 4,179 |
Residential mortgage backed - non-agency | 110,191 |  |  | 1,911 |  |  | 134,727 |  |  | 10,221 |  |  | 12,132 |
Commercial mortgage backed - agency | 3,412 |  |  | 29 |  |  | 28,885 |  |  | 718 |  |  | 747 |
Commercial mortgage backed - non-agency | 30,064 |  |  | 523 |  |  | 108,761 |  |  | 3,589 |  |  | 4,112 |
Asset-backed | 4,140 |  |  | 4 |  |  | 29,243 |  |  | 564 |  |  | 568 |
Other | 15,123 |  |  | 138 |  |  | 8,295 |  |  | 1,205 |  |  | 1,343 |
Total | $ | 344,160 |  |  | $ | 7,945 |  |  | $ | 934,759 |  |  | $ | 110,931 |  |  | $ | 118,876 |
| December 31, 2023
| Less Than Twelve Months |  | More Than Twelve Months |  |
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Total Unrealized Losses
Securities Available-for-Sale |  |  |  |  |  |  |  |  |
U.S. Treasuries and government agencies | $ | — |  |  | $ | — |  |  | $ | 179,071 |  |  | $ | 17,955 |  |  | $ | 17,955 |
Obligations of states and municipalities | 501 |  |  | 14 |  |  | 458,113 |  |  | 72,033 |  |  | 72,047 |
Residential mortgage backed - agency | 36 |  |  | — |  |  | 42,203 |  |  | 4,836 |  |  | 4,836 |
Residential mortgage backed - non-agency | 632 |  |  | 2 |  |  | 263,184 |  |  | 18,810 |  |  | 18,812 |
Commercial mortgage backed - agency | — |  |  | — |  |  | 34,080 |  |  | 1,294 |  |  | 1,294 |
Commercial mortgage backed - non-agency | 23,437 |  |  | 254 |  |  | 153,625 |  |  | 6,139 |  |  | 6,393 |
Asset-backed | 3,721 |  |  | 9 |  |  | 56,106 |  |  | 1,393 |  |  | 1,402 |
Other | — |  |  | — |  |  | 8,014 |  |  | 1,486 |  |  | 1,486 |
Total | $ | 28,327 |  |  | $ | 279 |  |  | $ | 1,194,396 |  |  | $ | 123,946 |  |  | $ | 124,225 |
The Company is required to conduct an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor. This includes, but is not limited to, an evaluation of the type of security, length of time, and extent to which the fair value has been less than cost and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis under the CECL standard, and declines due to non-credit factors are recorded in accumulated other comprehensive income (“AOCI”), net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in accumulated other comprehensive income, net of taxes, in the consolidated statements of financial condition. Prior to implementation of the CECL standard, unrealized losses caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment (“OTTI”) approach. The Company did not record an ACL on the AFS securities as of December 31, 2024 and as of December 31, 2023. The Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. The Company had 462 securities in an unrealized loss position as of December 31, 2024. The Company has evaluated AFS securities in an unrealized loss position for credit-related impairment at December 31, 2024, and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no ACL on AFS securities at December 31, 2024 and at December 31, 2023. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At December 31, 2024, the unrealized losses associated with 11 U.S. Treasuries and Government Agency securities, 15 Residential Mortgage Backed – Agency securities, and 14 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at December 31, 2024. Securities of U.S. States and Municipalities At December 31, 2024, the unrealized losses associated with 292 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These investments are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at December 31, 2024. Residential & Commercial Mortgage Backed – Non-Agency Securities At December 31, 2024, the unrealized losses associated with 78 Residential Mortgage Backed – Non-Agency securities and 27 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at December 31, 2024. Asset-Backed Securities At December 31, 2024, the unrealized losses associated with 16 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at December 31, 2024. Other Securities At December 31, 2024, the unrealized losses associated with 9 securities were primarily driven by interest rates and not the credit quality of the securities. These investments are underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at December 31, 2024. Restricted stock, at cost The Company’s investment in FHLB stock totaled $18.2 million and $5.9 million at December 31, 2024, and 2023, respectively. The Company’s investment in Federal Reserve Bank stock totaled $14.8 million and $— at December 31, 2024, and 2023, respectively. FHLB and Federal Reserve stock are generally viewed as long-term investments and as restricted investment securities, which are carried at cost, because there is no market for the stocks other than member institutions. Therefore, when evaluating FHLB and Federal Reserve stock for impairment, their values are based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider these investments to be impaired at December 31, 2024, and no impairment has been recognized. FHLB stock and Federal Reserve stock are included in a separate line item, Restricted stock, at cost, on the Consolidated Balance Sheets and are not part of the Company’s AFS investment securities portfolio. The Company’s Restricted stock line item on the Consolidated Balance Sheets also includes an investment in Community Bankers’ Bank, totaling $111 thousand at December 31, 2024, and $50 thousand December 31, 2023, which is carried at cost and is not impaired at December 31, 2024. The Company also has other restricted investments including Independent Community Bankcorp, Inc. and WV Bankers Title which are included in restricted stock on the Consolidated Balance Sheets as of December 31, 2024.

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