
	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale
U.S. Treasury and federal agencies	$	2,258	—		$	(457)	$	1,801
State and municipal	243,521		—		(41,687)		201,834
U.S. government agency mortgage-backed securities	17,984		—		(3,441)		14,543
Private labeled mortgage–backed pools	—		—		—		—
Corporate notes	18,259		—		(2,760)		15,499
Total available for sale investment securities	$	282,022	$	—	$	(48,345)	$	233,677


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity
U.S. Treasury and federal agencies	$	278,383	$	—	$	(39,253)	$	239,130
State and municipal	1,048,862		958		(183,114)		$	866,706
U.S. government agency mortgage-backed securities	349,726		—		(54,904)		294,822
Private labeled mortgage–backed pools	29,278		—		(3,958)		$	25,320
Corporate notes	161,599		—		(21,309)		$	140,290
Total held to maturity investment securities	$	1,867,848	$	958	$	(302,538)	$	1,566,268
Less: Allowance for credit losses	(158)
Held to maturity securities, net of allowance for credit losses	$	1,867,690


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale
U.S. Treasury and federal agencies	$	72,938	$	—	$	(8,561)	$	64,377
State and municipal	353,299		—		(49,269)		304,030
U.S. government agency mortgage-backed securities	165,061		—		(24,184)		140,877
Corporate notes	43,317		455		(5,805)		37,967
Total available for sale investment securities	$	634,615	$	455	$	(87,819)	$	547,251


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity
U.S. Treasury and federal agencies	$	287,259	$	—	$	(41,299)	$	245,960
State and municipal	1,088,499		1,185		(150,323)		939,361
U.S. government agency mortgage-backed securities	374,974		—		(56,467)		318,507
Private labeled mortgage–backed pools	32,329		—		(4,595)		27,734
Corporate notes	162,734		—		(25,538)		137,196
Total held to maturity investment securities	$	1,945,795	$	1,185	$	(278,222)	$	1,668,758
Less: Allowance for credit losses	(157)
Held to maturity securities, net of allowance for credit losses	$	1,945,638

The amortized cost and fair value of securities available for sale and held to maturity at December 31, 2024 and December 31, 2023, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	December 31, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale
Within one year	$	—	$	—	$	5,505	$	5,408
One to five years	—		—		100,301		89,650
Five to ten years	173,533		141,915		167,764		141,203
After ten years	90,505		77,219		195,984		170,113
	264,038		219,134		469,554		406,374
U.S. government agency mortgage-backed securities	17,984		14,543		165,061		140,877

Total available for sale investment securities	$	282,022	$	233,677	$	634,615	$	547,251
Held to maturity
Within one year	$	59,129	$	58,304	$	33,483	$	33,169
One to five years	298,362		278,007		225,957		216,354
Five to ten years	366,493		312,748		350,843		304,067
After ten years	764,860		597,067		928,209		768,927
	1,488,844		1,246,126		1,538,492		1,322,517
U.S. government agency mortgage-backed securities	349,726		294,822		374,974		318,507
Private labeled mortgage–backed pools	29,278		25,320		32,329		27,734
Total held to maturity investment securities	$	1,867,848	$	1,566,268	$	1,945,795	$	1,668,758


	December 31, 2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for Sale Investment Securities
U.S. Treasury and federal agencies	$	—	$	—	$	1,801	$	(457)	$	1,801	$	(457)
State and municipal	—		—		201,834		(41,687)		201,834		(41,687)
U.S. government agency mortgage-backed securities	—		—		14,543		(3,441)		14,543		(3,441)

Corporate notes	—		—		15,499		(2,760)		15,499		(2,760)
Total available for sale investment securities	$	—	$	—	$	233,677	$	(48,345)	$	233,677	$	(48,345)


	December 31, 2023
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for Sale Investment Securities
U.S. Treasury and federal agencies	$	—	$	—	$	64,377	$	(8,561)	$	64,377	$	(8,561)
State and municipal	2,387		(236)		301,643		(49,033)		304,030		(49,269)
U.S. government agency mortgage-backed securities	—		—		140,869		(24,184)		140,869		(24,184)
Corporate notes	—		—		36,359		(5,805)		36,359		(5,805)
Total available for sale investment securities	$	2,387	$	(236)	$	543,248	$	(87,583)	$	545,635	$	(87,819)

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. As of December 31, 2024 and 2023, the Company had 2,115 and 2,290 securities, respectively, with market values below their cost basis. The total fair value of these investments at December 31, 2024 and 2023 was $1.8 billion and $2.1 billion, which is approximately 86% and 85%, respectively, of the Company's available for sale and held to maturity securities portfolio. These declines resulted primarily from fluctuations in market interest rates after purchase. Management believes the declines in fair value for these securities are temporary.

The allowance for credit losses for held to maturity securities is a contra asset valuation account that is deducted from the carrying amount of held to maturity securities to present the net amount expected to be collected. Held to maturity securities are charged off against the allowance for credit loss when deemed uncollectible. Adjustments to the allowance for credit loss are reported in our Consolidated Statements of Income in credit loss expense. We measure expected credit losses on held to maturity securities on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. With regard to U.S. Government–sponsored treasuries, agency and mortgage–backed securities, all these securities are issued by a U.S. government–sponsored entity and have an implicit or explicit government guarantee; therefore, no allowance for credit losses has been recorded for these securities. With regard to obligations of states and municipal, private label mortgage–backed and corporate note held to maturity securities, we consider (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and

interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in our portfolio have been insignificant. As of December 31, 2024, there were no past due principal and interest payments associated with these securities. An allowance for credit loss of $158 thousand and $157 thousand was recorded on these securities based on applying the long–term historical rating agency credit loss rate for similarly rated securities at December 31, 2024 and December 31, 2023.

On a quarterly basis, the Company refreshes the credit quality indicator of each held-to-maturity security. The Company applies ratings derived from Nationally Recognized Statistical Rating Organizations ("NRSRO"), specifically Moody's and Standard & Poor's. For state and municipal securities where no rating is available from the NRSROs, a consistent internally-assigned rating methodology is applied. The amortized cost of these securities in the following tables subject to this methodology totaled $125.0 million as of December 31, 2024, and $143.7 million as of December 31, 2023.


December 31, 2024	AAA	AA	A	BBB	BB	Not Rated	Total
U.S. Treasury and federal agencies	—	278,383	—	—	—	—	278,383
State and municipal	273,629	698,428	66,079	10,726	—	—	1,048,862
U.S. government agency mortgage-backed securities	349,726	—	—	—	—	—	349,726
Private labeled mortgage-backed pools	29,278	—	—	—	—	—	29,278
Corporate notes	—	6,176	11,549	75,603	4,543	63,728	161,599
Total	652,633	982,987	77,628	86,329	4,543	63,728	1,867,848

December 31, 2023	AAA	AA	A	BBB	BB	Not Rated	Total
U.S. Treasury and federal agencies	—	287,259	—	—	—	—	287,259
State and municipal	285,748	730,907	69,658	2,186	—	—	1,088,499
U.S. government agency mortgage-backed securities	374,974	—	—	—	—	—	374,974
Private labeled mortgage-backed pools	32,329	—	—	—	—	—	32,329
Corporate notes	—	4,260	11,831	78,197	4,556	63,890	162,734
Total	693,051	1,022,426	81,489	80,383	4,556	63,890	1,945,795

The U.S. government sponsored entities and agencies and mortgage–backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses.

Based on an evaluation of available evidence, management believes the unrealized losses on available for sale state and municipal securities, private labeled mortgage–backed pools and corporate notes were due to changes in interest rates. Due to the contractual terms, the issuers of state and municipal securities are not allowed to settle for less than the amortized cost of the security. In addition, the Company does not intend to sell these securities prior to the recovery of the amortized cost, which may not occur until maturity. No allowance for credit losses was recognized for available for sale debt securities at December 31, 2024 and December 31, 2023.