Securities Available for Sale

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

NOTE 3 – SECURITIES AVAILABLE FOR SALE

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2024, and 2023, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). No allowance for credit losses have been recognized for the securities portfolio at December 31, 2024 or 2023.


			Gross		Gross
	Amortized		Unrealized		Unrealized
2024	Cost		Gains		Losses			Fair Value
U.S. Treasury and U.S. government sponsored entities	$	132,292	$	0	$	(17,185	)	$	115,107
State and political subdivisions		609,950		1,294		(106,364	)		504,880
Corporate bonds		17,849		172		(573	)		17,448
Mortgage-backed securities		605,350		34		(112,517	)		492,867
Collateralized mortgage obligations		142,525		85		(8,834	)		133,776
Small Business Administration		2,715		0		(240	)		2,475
Totals	$	1,510,681	$	1,585	$	(245,713	)	$	1,266,553


			Gross		Gross
	Amortized		Unrealized		Unrealized
2023	Cost		Gains		Losses			Fair Value
U.S. Treasury and U.S. government sponsored entities	$	145,439	$	113	$	(17,597	)	$	127,955
State and political subdivisions		644,880		4,792		(93,503	)		556,169
Corporate bonds		18,554		187		(466	)		18,275
Mortgage-backed securities		624,529		1		(104,144	)		520,386
Collateralized mortgage obligations		80,227		331		(6,559	)		73,999
Small Business Administration		3,212		0		(295	)		2,917
Totals	$	1,516,841	$	5,424	$	(222,564	)	$	1,299,701

The proceeds from sales of available-for-sale securities and the associated gains and losses were as follows:


		2024			2023			2022
Proceeds	$	49,728		$	85,306		$	37,190
Gross gains		17			441			6
Gross losses		(2,698	)		(939	)		(421	)

The tax provision (benefit) related to these net realized gains (losses) was $(563) thousand, $(105) thousand, and $(87) thousand, respectively.

The amortized cost and fair value of the debt securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations, with or without a call, or prepayment penalties. Securities not due at a single maturity date are shown separately.


Available for sale	December 31, 2024
	Amortized
Maturity	Cost		Fair Value
Within one year	$	2,382	$	2,377
One to five years		68,001		60,891
Five to ten years		175,756		157,992
Beyond ten years		513,952		416,175
Mortgage-backed Securities, Collateralized Mortgage Obligations and Small Business Administration		750,590		629,118
Totals	$	1,510,681	$	1,266,553

Securities with a carrying amount of $852.4 million at December 31, 2024 were pledged to secure public deposits and an unused line of credit and securities with a carrying amount of $1.1 billion at December 31, 2023, were pledged to secure public deposits and the term borrowings. Farmers Trust had securities with a carrying amount of $117 thousand in place at both year-ends 2024 and 2023, as a pledge to qualify as a fiduciary in the State of Ohio.

In each year, there were no holdings of any issuer that exceeded 10% of stockholders’ equity, except for the U.S. Government, its agencies and its sponsored entities.

The following table summarizes the investment securities with unrealized losses for which an allowance for credit losses has not been recorded at December 31, 2024 and 2023, aggregated by major security type and length of time in a continuous unrealized loss position.


2024
	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Treasury and U.S. government
sponsored entities	$	4,592	$	(320	)	$	110,515	$	(16,865	)	$	115,107	$	(17,185	)
State and political subdivisions		66,436		(4,946	)		400,911		(101,418	)		467,347		(106,364	)
Corporate bonds		4,303		(146	)		8,568		(427	)		12,871		(573	)
Mortgage-backed securities		30,143		(365	)		460,172		(112,152	)		490,315		(112,517	)
Collateralized mortgage obligations		65,046		(2,210	)		51,405		(6,624	)		116,451		(8,834	)
Small Business Administration		0		0			2,475		(240	)		2,475		(240	)
Total	$	170,520	$	(7,987	)	$	1,034,046	$	(237,726	)	$	1,204,566	$	(245,713	)


2023
	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Treasury and U.S. government
sponsored entities	$	399	$	(1	)	$	122,361	$	(17,596	)	$	122,760	$	(17,597	)
State and political subdivisions		15,852		(1,684	)		428,416		(91,819	)		444,268		(93,503	)
Corporate bonds		8,463		(284	)		3,881		(182	)		12,344		(466	)
Mortgage-backed securities		5,113		(76	)		515,259		(104,068	)		520,372		(104,144	)
Collateralized mortgage obligations		20,019		(980	)		43,808		(5,579	)		63,827		(6,559	)
Small Business Administration		0		0			2,917		(295	)		2,917		(295	)
Total	$	49,846	$	(3,025	)	$	1,116,642	$	(219,539	)	$	1,166,488	$	(222,564	)

As of December 31, 2024, the Company’s security portfolio consisted of 946 securities, 842 of which were in an unrealized loss position. The treasury, agency, mortgage-backed securities, collateralized mortgage obligations and small business administration securities that the Company owns are all issued by government sponsored entities and therefore contain no potential for credit loss. The Company does not consider any of its available-for-sale securities with unrealized losses to be attributable to credit-related factors, as the unrealized losses have occurred as a result of changes in noncredit related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. The vast majority of the Company's state and political subdivisions holdings are of high credit quality, and are rated AA or higher. In addition, management has both the ability and intent to hold the securities for a period of time sufficient to allow for the recovery in fair value. As of December 31, 2024, the Company has not recorded an allowance for credit losses on available for sale (“AFS”) securities.

At December 31, 2023, the Company’s security portfolio consisted of 978 securities, 743 of which were in an unrealized loss position. The majority of unrealized losses on the Company’s securities were related to its holdings of mortgage-backed securities and state and political subdivisions. Furthermore, the treasury, agency, mortgage-backed securities, collateralized mortgage obligations and small business administration securities that the Company owns are all issued by government sponsored entities. At December 31, 2023 the Company did not consider any of its available for sale ("AFS") securities with unrealized losses to be attributable to credit-related factors, as the unrealized losses that had occurred were a result of changes in noncredit related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. The vast majority of the Company's state and political subdivisions holdings are of high credit quality, and are rated AA or higher. In addition, management has both the ability and intent to hold the securities for a period of time sufficient to allow for the recovery in fair value. At December 31, 2023, the Company had not recorded an allowance for credit losses on AFS securities.

Equity Securities

The Company also holds equity securities which include $14.5 million in Small Business Investment Company (“SBIC”) partnership investments as well as $277 thousand in local and regional bank holdings and other miscellaneous equity funds at December 31, 2024. At December 31, 2023, the Company held $14.9 million in SBIC investments and $226 thousand in local and regional bank holdings and other miscellaneous equity funds. These investments are held at modified cost and any changes in modified cost are recognized in income in 2024 and 2023.