
	March 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale
U.S. Treasury, federal agencies, and government sponsored agencies	$	2,258	$	—	$	(408)	$	1,850
State and municipal	243,099		—		(43,670)		199,429
U.S. government agency mortgage-backed securities	17,394		—		(2,932)		14,462

Corporate notes	18,258		—		(2,568)		15,690
Total available for sale investment securities	$	281,009	$	—	$	(49,578)	$	231,431


	March 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity
U.S. Treasury, federal agencies, and government sponsored agencies	$	275,854	$	—	$	(34,442)	$	241,412
State and municipal	1,039,749		880		(191,006)		849,623
U.S. government agency mortgage-backed securities	343,057		—		(47,415)		295,642
Private labeled mortgage–backed pools	28,558		—		(3,489)		25,069
Corporate notes	156,773		—		(18,392)		138,381
Total held to maturity investment securities	$	1,843,991	$	880	$	(294,744)	$	1,550,127
Less: Allowance for credit losses	(140)
Held to maturity securities, net of allowance for credit losses	$	1,843,851


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale
U.S. Treasury, federal agencies, and government sponsored 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
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, federal agencies, and government sponsored 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

The amortized cost and fair value of securities available for sale and held to maturity at March 31, 2025 and December 31, 2024, 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.


	March 31, 2025				December 31, 2024
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale
Within one year	$	—	$	—	$	—	$	—
One to five years	190		164		—		—
Five to ten years	183,815		149,725		173,533		141,915
After ten years	79,610		67,080		90,505		77,219
	263,615		216,969		264,038		219,134
U.S. government agency mortgage-backed securities	17,394		14,462		17,984		14,543

Total available for sale investment securities	$	281,009	$	231,431	$	282,022	$	233,677
Held to maturity
Within one year	$	53,179	$	52,656	$	59,129	$	58,304
One to five years	290,483		274,198		298,362		278,007
Five to ten years	369,687		316,976		366,493		312,748
After ten years	759,027		585,586		764,860		597,067
	1,472,376		1,229,416		1,488,844		1,246,126
U.S. government agency mortgage-backed securities	343,057		295,642		349,726		294,822
Private labeled mortgage-backed pools	28,558		25,069		29,278		25,320
Total held to maturity investment securities	$	1,843,991	$	1,550,127	$	1,867,848	$	1,566,268


	March 31, 2025
	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, federal agencies, and government sponsored agencies	$	—	$	—	$	1,850	$	(408)	$	1,850	$	(408)
State and municipal	—		—		199,429		(43,670)		199,429		(43,670)
U.S. government agency mortgage-backed securities	—		—		14,462		(2,932)		14,462		(2,932)

Corporate notes	—		—		15,690		(2,568)		15,690		(2,568)
Total available for sale investment securities	$	—	$	—	$	231,431	$	(49,578)	$	231,431	$	(49,578)


	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, federal agencies, and government sponsored 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)

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. As of March 31, 2025 and December 31, 2024, the Company had 2,082 and 2,115 securities, respectively, with market values below their cost basis. The total fair value of these investments at March 31, 2025 and December 31, 2024 remained consistent at $1.8 billion, which is approximately 86.0% of the Company's available for sale and held to maturity securities portfolio.

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 Condensed 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 March 31, 2025 and December 31, 2024, there were no past due principal and interest payments associated with these securities. An allowance for credit loss of $140 thousand and $158 thousand was recorded on these securities based on applying the long-term historical rating agency credit loss rate for similarly rated securities at March 31, 2025 and December 31, 2024, respectively.

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 $119.1 million as of March 31, 2025, and $125.0 million as of December 31, 2024.


March 31, 2025	AAA		AA		A		BBB		BB		Not Rated		Total
U.S. Treasury, federal agencies, and government sponsored agencies	$	—	$	275,854	$	—	$	—	$	—	$	—	$	275,854
State and municipal	271,635		694,742		68,297		3,204		—		1,871		1,039,749
U.S. government agency mortgage-backed securities	343,057		—		—		—		—		—		343,057
Private labeled mortgage-backed pools	28,558		—		—		—		—		—		28,558
Corporate notes	—		6,167		11,478		75,439		—		63,689		156,773
Total	$	643,250	$	976,763	$	79,775	$	78,643	$	—	$	65,560	$	1,843,991

December 31, 2024	AAA		AA		A		BBB		BB		Not Rated		Total
U.S. Treasury, federal agencies, and government sponsored 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

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 March 31, 2025 and December 31, 2024.

During the three months ended March 31, 2025, the Company transferred and sold one corporate debt security classified as held-to-maturity as a result of a significant downgrade in the published credit rating in February 2025. The net carrying amount and fair value of the transferred and sold security at the time of transfer was $4.6 million and $4.1 million, respectively, and resulted in a realized loss of $0.4 million upon sale that was recorded in losses on sale of investment securities within the condensed consolidated statement of income for the three months ended March 31, 2025.


	March 31, 2025				December 31, 2024
	Fair Value		Amortized Cost		Fair Value		Amortized Cost
Pledge securities for borrowing availability at the Federal Reserve	$	832,429	$	1,026,315	$	851,384	$	1,032,916
Pledge securities for FHLB borrowings	$	280,180	$	327,837	$	279,136	$	333,613