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INVESTMENT SECURITIES | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES The following tables present the amortized cost, fair value and related ACL on available-for-sale ("AFS") and held-to-maturity ("HTM") investment securities as of September 30, 2025 and December 31, 2024 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses:
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | ACL
(dollars in thousands) |  |  |  |  |
September 30, 2025 |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 141,949 |  |  | $ | 78 |  |  | $ | (25,780) |  |  | $ | 116,247 |  |  | $ | — |
U.S. Treasury and other government-sponsored entities and agencies |  | 101,244 |  |  | 1,056 |  |  | (1,539) |  |  | 100,761 |  |  | — |
Collateralized loan obligations |  | 40,973 |  |  | 48 |  |  | (118) |  |  | 40,903 |  |  | — |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 454,994 |  |  | 2,466 |  |  | (40,905) |  |  | 416,555 |  |  | — |
Residential - Non-government agencies |  | 16,479 |  |  | 205 |  |  | (721) |  |  | 15,963 |  |  | — |
Commercial - U.S. government-sponsored entities and agencies |  | 79,722 |  |  | 360 |  |  | (11,828) |  |  | 68,254 |  |  | — |
Total available-for-sale investment securities |  | $ | 835,361 |  |  | $ | 4,213 |  |  | $ | (80,891) |  |  | $ | 758,683 |  |  | $ | — |
|  | Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  | Fair Value |  | ACL
(dollars in thousands) |  |  |  |  |
September 30, 2025 |  |  |  |  |
Held-to-maturity: |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 41,956 |  |  | $ | — |  |  | $ | (8,416) |  |  | $ | 33,540 |  |  | $ | — |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 528,930 |  |  | 137 |  |  | (61,748) |  |  | 467,319 |  |  | — |
Total held-to-maturity investment securities |  | $ | 570,886 |  |  | $ | 137 |  |  | $ | (70,164) |  |  | $ | 500,859 |  |  | $ | — |
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | ACL
(dollars in thousands) |  |  |  |  |
December 31, 2024 |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 147,014 |  |  | $ | 2 |  |  | $ | (30,183) |  |  | $ | 116,833 |  |  | $ | — |
U.S. Treasury and other government-sponsored entities and agencies |  | 83,861 |  |  | 81 |  |  | (2,742) |  |  | 81,200 |  |  | — |
Collateralized loan obligations |  | 31,254 |  |  | — |  |  | (114) |  |  | 31,140 |  |  | — |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 472,476 |  |  | 42 |  |  | (58,047) |  |  | 414,471 |  |  | — |
Residential - Non-government agencies |  | 17,836 |  |  | 151 |  |  | (1,061) |  |  | 16,926 |  |  | — |
Commercial - U.S. government-sponsored entities and agencies |  | 81,400 |  |  | 76 |  |  | (14,315) |  |  | 67,161 |  |  | — |
Commercial - Non-government agencies |  | 9,933 |  |  | — |  |  | (6) |  |  | 9,927 |  |  | — |
Total available-for-sale investment securities |  | $ | 843,774 |  |  | $ | 352 |  |  | $ | (106,468) |  |  | $ | 737,658 |  |  | $ | — |
|  | Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  | Fair Value |  | ACL
(dollars in thousands) |  |  |  |  |
December 31, 2024 |  |  |  |  |
Held-to-maturity: |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 42,016 |  |  | $ | — |  |  | $ | (8,884) |  |  | $ | 33,132 |  |  | $ | — |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 554,914 |  |  | — |  |  | (81,365) |  |  | 473,549 |  |  | — |
Total held-to-maturity investment securities |  | $ | 596,930 |  |  | $ | — |  |  | $ | (90,249) |  |  | $ | 506,681 |  |  | $ | — |
The Company did not transfer any investment securities that were classified as AFS to HTM during the three and nine months ended September 30, 2025 and 2024. During the three and nine months ended September 30, 2025, the Company recorded amortization of unrecognized losses on investment securities transferred from AFS to HTM totaling $1.8 million and $5.1 million, respectively. During the three and nine months ended September 30, 2024, the Company recorded $1.9 million and $5.4 million, respectively, in amortization of unrecognized losses related to such transfers. The Company elected to not estimate credit losses on accrued interest receivable, as any uncollectible accrued interest receivable is written off in a timely manner. Accrued interest receivable on investment securities is reported together with accrued interest receivable on loans and other assets in the consolidated balance sheets. As of September 30, 2025 and December 31, 2024, accrued interest receivable on investment securities totaled $5.0 million and $4.8 million, respectively. The amortized cost, estimated fair value and weighted average yield of the Company's AFS and HTM investment securities as of September 30, 2025, are presented below, grouped by contractual maturity. Expected maturities may differ from contractual maturities due to the issuer's option to call or prepay obligations, with or without penalties. Securities that are not due at a single maturity date, such as mortgage-backed securities and other asset-backed investments, are presented separately.
(dollars in thousands) |  | Amortized Cost |  | Fair Value |  | Weighted Average Yield (1)
September 30, 2025 |  |  |
Available-for-sale: |  |  |  |  |  |
Debt securities: |  |  |  |  |  |
Due in one year or less |  | $ | 3,992 |  |  | $ | 4,062 |  |  | 5.87 | %
Due after one year through five years |  | 39,214 |  |  | 39,312 |  |  | 4.13 |
Due after five years through ten years |  | 62,232 |  |  | 61,107 |  |  | 3.69 |
Due after ten years |  | 137,755 |  |  | 112,527 |  |  | 2.83 |
Collateralized loan obligations |  | 40,973 |  |  | 40,903 |  |  | 5.78 |
Mortgage-backed securities: |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 454,994 |  |  | 416,555 |  |  | 2.99 |
Residential - Non-government agencies |  | 16,479 |  |  | 15,963 |  |  | 4.46 |
Commercial - U.S. government-sponsored entities and agencies |  | 79,722 |  |  | 68,254 |  |  | 2.74 |
Total available-for-sale securities |  | $ | 835,361 |  |  | $ | 758,683 |  |  | 3.26 | %
(dollars in thousands) |  | Amortized Cost |  | Fair Value |  | Weighted Average Yield (1)
September 30, 2025 |  |  |
Held-to-maturity: |  |  |  |  |  |
Debt securities: |  |  |  |  |  |
Due after ten years |  | $ | 41,956 |  |  | $ | 33,540 |  |  | 2.26 | %
Mortgage-backed securities: |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 528,930 |  |  | 467,319 |  |  | 1.86 |
Total held-to-maturity securities |  | $ | 570,886 |  |  | $ | 500,859 |  |  | 1.89 | %
(1)Weighted-average yields are computed on an annual basis, and yields on tax-exempt obligations are computed on a taxable-equivalent basis using a federal statutory tax rate of 21%. During the three and nine months ended September 30, 2025, the Company sold five AFS debt securities issued by state and political subdivisions. The investment securities had a cost basis of $1.5 million and were sold at a gross loss of $30 thousand. Investment securities with carrying values totaling $747.7 million and $756.0 million as of September 30, 2025 and December 31, 2024, respectively, were pledged to secure public deposits, borrowings from the Federal Reserve Bank and other financial obligations. As of September 30, 2025 and December 31, 2024, the Company did not hold investment securities of any one issuer, other than the U.S. Government and its agencies, that exceeded 10% of shareholders' equity. Th e following tables summarize AFS and HTM investment securities that were in a loss position as of the dates presented. The data is aggregated by major security type and the length of time the securities have been in a continuous loss position. There were a total of 183 and 218 AFS investment securities that were in an unrealized loss position, without an ACL, as of September 30, 2025 and December 31, 2024, respectively. There were a total of 81 and 83 HTM investment securities that were in an unrecognized loss position, without an ACL, as of September 30, 2025 and December 31, 2024, respectively.
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(dollars in thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
September 30, 2025 |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | — |  |  | $ | — |  |  | $ | 107,238 |  |  | $ | (25,780) |  |  | $ | 107,238 |  |  | $ | (25,780) |
U.S. Treasury and other government-sponsored entities and agencies |  | 21,728 |  |  | (81) |  |  | 12,189 |  |  | (1,458) |  |  | 33,917 |  |  | (1,539) |
Collateralized loan obligations |  | 31,084 |  |  | (118) |  |  | — |  |  | — |  |  | 31,084 |  |  | (118) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | — |  |  | — |  |  | 266,084 |  |  | (40,905) |  |  | 266,084 |  |  | (40,905) |
Residential - Non-government agencies |  | 4,860 |  |  | (1) |  |  | 7,194 |  |  | (720) |  |  | 12,054 |  |  | (721) |
Commercial - U.S. government-sponsored entities and agencies |  | — |  |  | — |  |  | 49,636 |  |  | (11,828) |  |  | 49,636 |  |  | (11,828) |
Total |  | $ | 57,672 |  |  | $ | (200) |  |  | $ | 442,341 |  |  | $ | (80,691) |  |  | $ | 500,013 |  |  | $ | (80,891) |
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(dollars in thousands) |  | Fair Value |  | Unrecognized Losses |  | Fair Value |  | Unrecognized Losses |  | Fair Value |  | Unrecognized Losses
September 30, 2025 |  |  |  |  |  |
Held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | — |  |  | $ | — |  |  | $ | 33,540 |  |  | $ | (8,416) |  |  | $ | 33,540 |  |  | $ | (8,416) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | — |  |  | — |  |  | 456,209 |  |  | (61,748) |  |  | 456,209 |  |  | (61,748) |
Total |  | $ | — |  |  | $ | — |  |  | $ | 489,749 |  |  | $ | (70,164) |  |  | $ | 489,749 |  |  | $ | (70,164) |
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(dollars in thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
December 31, 2024 |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 4,967 |  |  | $ | (85) |  |  | $ | 107,267 |  |  | $ | (30,098) |  |  | $ | 112,234 |  |  | $ | (30,183) |
U.S. Treasury and other government-sponsored entities and agencies |  | 56,139 |  |  | (803) |  |  | 12,971 |  |  | (1,939) |  |  | 69,110 |  |  | (2,742) |
Collateralized loan obligations |  | 31,140 |  |  | (114) |  |  | — |  |  | — |  |  | 31,140 |  |  | (114) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 135,224 |  |  | (2,254) |  |  | 260,575 |  |  | (55,793) |  |  | 395,799 |  |  | (58,047) |
Residential - Non-government agencies |  | 5,270 |  |  | (100) |  |  | 7,606 |  |  | (961) |  |  | 12,876 |  |  | (1,061) |
Commercial - U.S. government-sponsored entities and agencies |  | 12,469 |  |  | (90) |  |  | 48,304 |  |  | (14,225) |  |  | 60,773 |  |  | (14,315) |
Commercial - Non-government agencies |  | 9,927 |  |  | (6) |  |  | — |  |  | — |  |  | 9,927 |  |  | (6) |
Total |  | $ | 255,136 |  |  | $ | (3,452) |  |  | $ | 436,723 |  |  | $ | (103,016) |  |  | $ | 691,859 |  |  | $ | (106,468) |
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(dollars in thousands) |  | Fair Value |  | Unrecognized Losses |  | Fair Value |  | Unrecognized Losses |  | Fair Value |  | Unrecognized Losses
December 31, 2024 |  |  |  |  |  |
Held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | — |  |  | $ | — |  |  | $ | 33,132 |  |  | $ | (8,884) |  |  | $ | 33,132 |  |  | $ | (8,884) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 7,470 |  |  | (19) |  |  | 466,079 |  |  | (81,346) |  |  | 473,549 |  |  | (81,365) |
Total |  | $ | 7,470 |  |  | $ | (19) |  |  | $ | 499,211 |  |  | $ | (90,230) |  |  | $ | 506,681 |  |  | $ | (90,249) |
Investment securities in an unrealized or unrecognized loss position are evaluated at least quarterly to determine whether a credit loss exists. This evaluation includes a review of changes in the investment securities' credit ratings issued by major rating agencies and assessments of the issuers' financial condition. For mortgage-related securities, the Company also considers delinquency and loss data related to the underlying collateral, changes in subordination levels for the Company's position within the repayment structure, and remaining credit enhancement relative to projected credit losses. The Company has reviewed its AFS and HTM investment securities that are in an unrealized or unrecognized loss position and determined that the losses are not related to credit quality, but are primarily attributable to changes in interest rates and volatility in the financial markets since the time of purchase. All of the investment securities in a loss position continue to be rated investment grade by one or more major rating agencies. As of September 30, 2025 and December 31, 2024, the Company does not intend to sell the AFS and HTM securities in a loss position and it is unlikely to be required to sell these securities before recovery of its amortized cost basis, which may occur at maturity. Accordingly, the Company has not recorded an ACL on these securities.

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