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Investment Securities | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Investments Securities | Investment Securities The following table shows the amortized cost, the estimated fair value and the allowance for credit losses of the held-to-maturity securities and available-for-sale securities at September 30, 2025 and December 31, 2024, by contractual maturity within each type:
| At September 30, 2025
(Dollars in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Fair Value
Securities Held-to-Maturity |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities: |  |  |  |  |  |  |  |  |
After 1 year to 5 years | $ | 649 |  |  | $ | — |  |  | $ | (8) |  |  | $ | — |  |  | $ | 641 |
After 5 years to 10 years | 11,337 |  |  | — |  |  | (304) |  |  | — |  |  | 11,033 |
Over 10 years | 114,054 |  |  | 12 |  |  | (13,836) |  |  | — |  |  | 100,230 |
| 126,040 |  |  | 12 |  |  | (14,148) |  |  | — |  |  | 111,904 |
Total | $ | 126,040 |  |  | $ | 12 |  |  | $ | (14,148) |  |  | $ | — |  |  | $ | 111,904 |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities: |  |  |  |  |  |  |  |  |
Within 1 year | $ | 1 |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
After 1 year to 5 years | 166 |  |  |  |  | (2) |  |  | — |  |  | 164 |
After 5 years to 10 years | 9,547 |  |  |  |  | (455) |  |  | — |  |  | 9,092 |
Over 10 years | 310,460 |  |  | 1,167 |  |  | (27,680) |  |  | — |  |  | 283,947 |
| 320,174 |  |  | 1,167 |  |  | (28,137) |  |  | — |  |  | 293,204 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |
After 1 year to 5 years | 89 |  |  | — |  |  | (1) |  |  | — |  |  | 88 |
Over 10 years | 1,447 |  |  | — |  |  | (86) |  |  | — |  |  | 1,361 |
| 1,536 |  |  | — |  |  | (87) |  |  | — |  |  | 1,449 |
Corporate bonds: |  |  |  |  |  |  |  |  |
Within 1 year | 7,475 |  |  | 3 |  |  | (70) |  |  | (10) |  |  | 7,398 |
After 1 year to 5 years | 69,359 |  |  | 112 |  |  | (3,621) |  |  | (7) |  |  | 65,843 |
After 5 years to 10 years | 500 |  |  | — |  |  | — |  |  | (1) |  |  | 499 |
| 77,334 |  |  | 115 |  |  | (3,691) |  |  | (18) |  |  | 73,740 |
Total | $ | 399,044 |  |  | $ | 1,282 |  |  | $ | (31,915) |  |  | $ | (18) |  |  | $ | 368,393 |
| At December 31, 2024
(Dollars in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Fair Value
Securities Held-to-Maturity |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities: |  |  |  |  |  |  |  |  |
After 1 year to 5 years | $ | 1,114 |  |  | $ | — |  |  | $ | (24) |  |  | $ | — |  |  | $ | 1,090 |
After 5 years to 10 years | 10,208 |  |  | — |  |  | (450) |  |  | — |  |  | 9,758 |
Over 10 years | 122,789 |  |  | — |  |  | (18,630) |  |  | — |  |  | 104,159 |
| 134,111 |  |  | — |  |  | (19,104) |  |  | — |  |  | 115,007 |
Total | $ | 134,111 |  |  | $ | — |  |  | $ | (19,104) |  |  | $ | — |  |  | $ | 115,007 |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |
State and political subdivisions: |  |  |  |  |  |  |  |  |
Within 1 year | $ | 1,300 |  |  | $ | — |  |  | $ | (5) |  |  | $ | — |  |  | $ | 1,295 |
| 1,300 |  |  | — |  |  | (5) |  |  | — |  |  | 1,295 |
Residential mortgage-backed securities: |  |  |  |  |  |  |  |  |
Within 1 year | 20 |  |  | — |  |  | — |  |  | — |  |  | 20 |
After 1 year to 5 years | 298 |  |  | — |  |  | (6) |  |  | — |  |  | 292 |
After 5 years to 10 years | 11,260 |  |  | — |  |  | (791) |  |  | — |  |  | 10,469 |
Over 10 years | 311,126 |  |  | 119 |  |  | (38,645) |  |  | — |  |  | 272,600 |
| 322,704 |  |  | 119 |  |  | (39,442) |  |  | — |  |  | 283,381 |
Collateralized mortgage obligations: |  |  |  |  |  |  |  |  |
After 1 year to 5 years | 155 |  |  | — |  |  | (4) |  |  | — |  |  | 151 |
Over 10 years | 1,663 |  |  | — |  |  | (129) |  |  | — |  |  | 1,534 |
| 1,818 |  |  | — |  |  | (133) |  |  | — |  |  | 1,685 |
Corporate bonds: |  |  |  |  |  |  |  |  |
Within 1 year | 5,905 |  |  | 5 |  |  | (58) |  |  | (6) |  |  | 5,846 |
After 1 year to 5 years | 10,924 |  |  | 16 |  |  | (303) |  |  | (31) |  |  | 10,606 |
After 5 years to 10 years | 60,000 |  |  | — |  |  | (4,650) |  |  | (802) |  |  | 54,548 |
| 76,829 |  |  | 21 |  |  | (5,011) |  |  | (839) |  |  | 71,000 |
Total | $ | 402,651 |  |  | $ | 140 |  |  | $ | (44,591) |  |  | $ | (839) |  |  | $ | 357,361 |
Gross unrealized gains and losses on available-for-sale securities are recognized in accumulated other comprehensive income (loss) and changes in the allowance for credit loss are recorded through provisions for credit loss expense. Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties and mortgage-backed securities typically prepay at a rate faster than contractually due. Securities with a carrying value of $449.5 million and $424.8 million at September 30, 2025 and December 31, 2024, respectively, were pledged to secure public funds deposits and contingency funding. There were no pledged securities to secure credit derivatives and interest rate swaps at September 30, 2025 or December 31, 2024. The following table presents information related to sales of securities available-for-sale during the nine months ended September 30, 2025 and 2024.
| Nine Months Ended September 30,
(Dollars in thousands) | 2025 |  | 2024
Securities available-for-sale: |  |  |
Proceeds from sales | $ | — |  |  | $ | 505 |
Gross realized gains on sales | — |  |  | 18 |
Tax expense related to net realized gains on sales | — |  |  | 4 |
At September 30, 2025 and December 31, 2024, there were no reportable investments in any single issuer representing more than 10% of shareholders’ equity. The following table shows the fair value of securities that were in an unrealized loss position for which an allowance for credit losses has not been recorded at September 30, 2025 and December 31, 2024, by the length of time those securities were in a continuous loss position.
| Less than Twelve Months |  | Twelve Months or Longer |  | Total
(Dollars in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
At September 30, 2025 |  |  |  |  |  |  |  |  |  |  |
Securities Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities | $ | 1,303 |  |  | $ | (4) |  |  | $ | 106,777 |  |  | $ | (14,144) |  |  | $ | 108,080 |  |  | $ | (14,148) |
Total | $ | 1,303 |  |  | $ | (4) |  |  | $ | 106,777 |  |  | $ | (14,144) |  |  | $ | 108,080 |  |  | $ | (14,148) |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities | $ | 5,009 |  |  | $ | (20) |  |  | $ | 206,193 |  |  | $ | (28,117) |  |  | $ | 211,202 |  |  | $ | (28,137) |
Collateralized mortgage obligations | — |  |  | — |  |  | 1,449 |  |  | (87) |  |  | 1,449 |  |  | (87) |
Corporate bonds | 501 |  |  | — |  |  | 56,921 |  |  | (3,573) |  |  | 57,422 |  |  | (3,573) |
Total | $ | 5,510 |  |  | $ | (20) |  |  | $ | 264,563 |  |  | $ | (31,777) |  |  | $ | 270,073 |  |  | $ | (31,797) |
At December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
Securities Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities | $ | 2,566 |  |  | $ | (50) |  |  | $ | 112,441 |  |  | $ | (19,054) |  |  | $ | 115,007 |  |  | $ | (19,104) |
Total | $ | 2,566 |  |  | $ | (50) |  |  | $ | 112,441 |  |  | $ | (19,054) |  |  | $ | 115,007 |  |  | $ | (19,104) |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities | $ | 65,044 |  |  | $ | (905) |  |  | $ | 205,071 |  |  | $ | (38,537) |  |  | $ | 270,115 |  |  | $ | (39,442) |
Collateralized mortgage obligations | — |  |  | — |  |  | 1,685 |  |  | (133) |  |  | 1,685 |  |  | (133) |
Total | $ | 65,044 |  |  | $ | (905) |  |  | $ | 206,756 |  |  | $ | (38,670) |  |  | $ | 271,800 |  |  | $ | (39,575) |
At September 30, 2025, the fair value of held-to-maturity securities in an unrealized loss position for which an allowance for credit losses has not been recorded was $108.1 million, including unrealized losses of $14.1 million. These holdings were comprised of 89 federal agency mortgage-backed securities, which are U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The Corporation did not recognize any credit losses on held-to-maturity debt securities for the nine months ended September 30, 2025. At September 30, 2025, the fair value of available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded was $270.1 million, including unrealized losses of $31.8 million. These holdings were comprised of: (1) 101 federal agency mortgage-backed securities, which are U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses; (2) eight investment grade corporate bonds, and (3) two collateralized mortgage obligation bonds. The Corporation does not intend to sell the securities in an unrealized loss position and is unlikely to be required to sell these securities before a recovery of fair value, which may be maturity. The Corporation concluded that the unrealized loss of these securities was not indicative of a credit loss. Accrued interest receivable on available-for-sale debt securities totaled $1.2 million at September 30, 2025 and is included within accrued interest receivable and other assets on the condensed consolidated balance sheet. This amount is excluded from the estimate of expected credit losses. The table below presents a roll forward by major security type for the nine months ended September 30, 2025 and September 30, 2024 of the allowance for credit losses on securities available-for-sale.
(Dollars in thousands) | Corporate Bonds
Nine months ended September 30, 2025 |
Securities Available-for-Sale |
Beginning balance | $ | (839) |
Additions for securities for which no previous expected credit losses were recognized | 802 |
Change in securities for which a previous expected credit loss was recognized | 19 |
Ending balance | $ | (18) |
Nine months ended September 30, 2024 |
Securities Available-for-Sale |
Beginning balance | $ | (731) |
Change in securities for which a previous expected credit loss was recognized | 89 |
Ending balance | $ | (642) |
At September 30, 2025, the fair value of available-for-sale securities in an unrealized loss position for which an allowance for credit losses has been recorded was $8.8 million, including unrealized losses of $137 thousand, and allowance for credit losses of $18 thousand. These holdings were comprised of 18 investment grade corporate bonds, all of which fluctuate in value based on changes in market conditions. For these securities, fluctuations were primarily due to changes in the interest rate environment. The Corporation does not intend to sell these securities, and it is not likely that it will be required to sell the securities before their anticipated recovery. The underlying issuers continue to make timely principal and interest payments on the securities. During the second quarter of 2025, $719 thousand of allowance credit for losses was reversed on six investment grade corporate bonds. These six investment grade corporate bonds were issued by Global Systemically Important Banks and Domestic Systemically Important Banks, which hold a significant amount of excess capital to address a systemic event. As such, these banks were excluded from the allowance for credit loss on investments as the credit risk within this portfolio is deemed to be zero. The following is a summary of unrealized and realized gains and losses on equity securities recognized in other noninterest income in the condensed consolidated statements of income during the nine months ended September 30, 2025 and 2024.
| Nine Months Ended September 30,
(Dollars in thousands) | 2025 |  | 2024
Equity Securities: |  |  |
Net gains recognized during the period | — |  |  | 68 |
Less: Net gains recognized during the period on equity securities sold during the period | — |  |  | 68 |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | — |  |  | — |

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