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Securities

9 Months Ended

Sep. 30, 2025

Note 3: Securities

The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at September 30, 2025 and December 31, 2024:


		September 30, 2025
					Gross			Gross
		Amortized			Unrealized			Unrealized
(dollars in thousands)		Cost			Gains			Losses			Fair Value
Securities Available for Sale:
U.S. Treasury Securities		$	155,902		$	—		$	(8,703)		$	147,199
Municipal Bonds			247,471			6,614			(13,538)			240,547
Mortgage-Backed Securities			267,171			2,877			(10,899)			259,149
Corporate Securities			109,613			1,791			(3,421)			107,983
U.S Government Agency Securities			9,803			73			(41)			9,835
Asset-Backed Securities			61,687			92			(19)			61,760
Total Securities Available for Sale		$	851,647		$	11,447		$	(36,621)		$	826,473


		December 31, 2024
					Gross			Gross
		Amortized			Unrealized			Unrealized
(dollars in thousands)		Cost			Gains			Losses			Fair Value
Securities Available for Sale:
U.S. Treasury Securities		$	179,835		$	3		$	(12,090)		$	167,748
Municipal Bonds			139,891			23			(17,649)			122,265
Mortgage-Backed Securities			259,833			882			(15,825)			244,890
Corporate Securities			139,161			1,041			(6,016)			134,186
U.S Government Agency Securities			22,053			85			(56)			22,082
Asset-Backed Securities			76,891			211			(26)			77,076
Total Securities Available for Sale		$	817,664		$	2,245		$	(51,662)		$	768,247

Securities with a carrying value of $264.9 million and $289.9 million were pledged to secure borrowing capacity at the Federal Reserve Discount Window as of September 30, 2025 and December 31, 2024, respectively.

The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025 and December 31, 2024:


				Less Than 12 Months						12 Months or Greater						Total
		Number of					Unrealized						Unrealized						Unrealized
(dollars in thousands, except number of holdings)		Holdings		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
September 30, 2025
U.S. Treasury Securities		2		$	—		$	—		$	147,199		$	(8,703)		$	147,199		$	(8,703)
Municipal Bonds		191			19,961			(654)			95,294			(12,884)			115,255			(13,538)
Mortgage-Backed Securities		113			10,653			(47)			115,179			(10,852)			125,832			(10,899)
Corporate Securities		51			5,366			(49)			47,728			(3,372)			53,094			(3,421)
U.S Government Agency Securities		31			1,279			(5)			2,470			(36)			3,749			(41)
Asset-Backed Securities		7			10,035			(13)			6,899			(6)			16,934			(19)
Total Securities Available for Sale		395		$	47,294		$	(768)		$	414,769		$	(35,853)		$	462,063		$	(36,621)


				Less Than 12 Months						12 Months or Greater						Total
		Number of					Unrealized						Unrealized						Unrealized
(dollars in thousands, except number of holdings)		Holdings		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
December 31, 2024
U.S. Treasury Securities		14		$	157,091		$	(12,090)		$	—		$	—		$	157,091		$	(12,090)
Municipal Bonds		236			21,329			(120)			95,774			(17,529)			117,103			(17,649)
Mortgage-Backed Securities		168			47,636			(391)			118,824			(15,434)			166,460			(15,825)
Corporate Securities		93			6,860			(75)			91,666			(5,941)			98,526			(6,016)
U.S Government Agency Securities		38			5,878			(5)			4,071			(51)			9,949			(56)
Asset-Backed Securities		7			5,735			(5)			10,161			(21)			15,896			(26)
Total Securities Available for Sale		556		$	244,529		$	(12,686)		$	320,496		$	(38,976)		$	565,025		$	(51,662)

At September 30, 2025, 395 debt securities had unrealized losses with aggregate depreciation of approximately 7.3% from the Company’s amortized cost basis. At December 31, 2024, 556 debt securities had unrealized losses with aggregate depreciation of approximately 8.4% from the Company’s amortized cost basis. These unrealized losses have not been recognized into income because management does not intend to sell these securities, and it is not more likely than not it will be required to sell the securities before recovery of its amortized cost basis. Furthermore, the unrealized losses are due to changes in interest rates and other market conditions and were not reflective of credit events. To make this determination, consideration is given to such factors as the credit rating of the issuer, level of credit enhancement, changes in credit ratings, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. As of September 30, 2025 and December 31, 2024, there was no allowance for credit losses carried on the Company’s securities portfolio.

Accrued interest receivable on securities, which is recorded within accrued interest on the balance sheet, totaled $7.0 million and $6.2 million at September 30, 2025 and December 31, 2024, respectively, and was excluded from the estimate of credit losses.

The Company has entered into a fair value hedging transaction to mitigate the impact of changing interest rates on the fair value of U.S. treasury securities and mortgage-backed securities. See Note 7 – Derivative Instruments and Hedging Activities for disclosure of the gains and losses recognized on derivative instruments and the cumulative fair value hedging adjustments to the carrying amount of the hedged securities.

The following table presents a summary of the amortized cost and estimated fair value of debt securities by the earlier of expected call date or contractual maturity as of September 30, 2025. Call date is used when a call of the debt security is expected, as determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed, U.S. government agency securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties.


(dollars in thousands)		Amortized Cost			Fair Value
September 30, 2025
Due in One Year or Less		$	42,029		$	42,814
Due After One Year Through Five Years			130,801			134,703
Due After Five Years Through 10 Years			152,428			142,107
Due After 10 Years			187,728			176,105
Subtotal			512,986			495,729
Mortgage-Backed Securities			267,171			259,149
U.S Government Agency Securities			9,803			9,835
Asset-Backed Securities			61,687			61,760
Totals		$	851,647		$	826,473

The following table presents a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the three and nine months ended September 30, 2025 and 2024:


		Three Months Ended						Nine Months Ended
		September 30,						September 30,
(dollars in thousands)		2025			2024			2025			2024
Proceeds From Sales of Securities		$	5,112		$	50,779		$	64,707		$	101,612
Gross Gains on Sales			59			488			543			1,594
Gross Losses on Sales			—			(516)			(9)			(1,209)