The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at 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 unrealized gains and losses (in thousands):


	September 30, 2025
Available-for-Sale Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Credit Losses
Debt securities:
U.S. Treasury securities	$	9,995	$	—	$	(556)	$	9,439	$	—
U.S. Government agencies	67		—		(2)		65		—
Obligations of states and political subdivisions	181,095		12		(16,704)		164,403		—
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	69,795		134		(3,267)		66,662		—
Private label mortgage and asset backed securities	254,400		6		(22,394)		232,012		—
Corporate debt securities	461		33		—		494		—
Total available-for-sale	$	515,813	$	185	$	(42,923)	$	473,075	$	—

	September 30, 2025
Held-to-Maturity Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Credit Losses
Debt securities:
Obligations of states and political subdivisions	$	192,272	$	61	$	(14,824)	$	177,509	$	21
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	11,355		—		(1,631)		9,724		—
Private label mortgage and asset backed securities	51,813		—		(3,198)		48,615		51
Corporate debt securities	32,366		—		(1,508)		30,858		652
Total held-to-maturity	$	287,806	$	61	$	(21,161)	$	266,706	$	724


	December 31, 2024
Available-for-Sale Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Credit Losses
Debt securities:
U.S. Treasury securities	$	9,994	$	—	$	(936)	$	9,058	$	—
U.S. Government agencies	70		—		(5)		65		—
Obligations of states and political subdivisions	183,766		—		(19,126)		164,640		—
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	76,732		8		(4,438)		72,302		—
Private label mortgage and asset backed securities	265,302		6		(34,753)		230,555		—
Corporate debt securities	470		23		—		493
Total available-for-sale	$	536,334	$	37	$	(59,258)	$	477,113	$	—


	December 31, 2024
Held-to-Maturity Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Allowance for Credit Losses
Debt securities:
Obligations of states and political subdivisions	$	192,156	$	54	$	(17,392)	$	174,818	$	12
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	11,095		—		(2,100)		8,995		—
Private label mortgage and asset backed securities	53,066		—		(5,633)		47,433		8
Corporate debt securities	46,198		—		(2,876)		43,322		1,136
Total held-to-maturity	$	302,515	$	54	$	(28,001)	$	274,568	$	1,156


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Investment Securities	2025		2024		2025		2024
Proceeds from sales or calls	$	225	$	32,647	$	500	$	64,229
Gross realized gains from sales or calls	—		—		—		—
Gross realized losses from sales or calls	$	(26)	$	(1,853)	$	(41)	$	(4,199)

The provision for income taxes includes a $8,000 and $584,000 income tax benefit from security sales/calls for the three months ended September 30, 2025 and 2024, respectively. The provision for income taxes includes a $12,000 and $1,241,000 income tax benefit from security sales/calls for the nine months ended September 30, 2025 and 2024, respectively.

The amortized cost and estimated fair value of available-for-sale and held-to-maturity investment securities at September 30, 2025 by contractual maturity is shown below (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	September 30, 2025				December 31, 2024
Available-for-Sale Securities	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Within one year	$	—	$	—	$	—	$	—
After one year through five years	31,314		28,931		15,661		14,056
After five years through ten years	22,660		21,325		33,585		29,670
After ten years	137,116		123,586		144,514		129,972
	191,090		173,842		193,760		173,698
Investment securities not due at a single maturity date:

U.S. Government agencies	67		65		70		65
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	69,795		66,662		76,732		72,302
Private label mortgage and asset backed securities	254,400		232,012		265,302		230,555
Corporate debt securities	461		494		470		493
Total available-for-sale	$	515,813	$	473,075	$	536,334	$	477,113

















	September 30, 2025				December 31, 2024
Held-to-Maturity Securities	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Within one year	$	—	$	—	$	—	$	—
After one year through five years	29,153		28,659		24,535		23,368
After five years through ten years	63,796		60,326		60,369		54,685
After ten years	99,323		88,524		107,252		96,765
	192,272		177,509		192,156		174,818
Investment securities not due at a single maturity date:
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	11,355		9,724		11,095		8,995
Private label mortgage and asset backed securities	51,813		48,615		53,066		47,433
Corporate debt securities	32,366		30,858		46,198		43,322
Total held-to-maturity	$	287,806	$	266,706	$	302,515	$	274,568

At September 30, 2025 there were two issuer of private label mortgage securities in which the Company had holdings of securities in amounts greater than 10% of shareholders’ equity. Investments with these issuers were in senior tranches and/or were rated “AAA” or higher and there were no credit issues identified.

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands):


	September 30, 2025
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-Sale Securities	Value		Losses		Value		Losses		Value		Losses
Debt securities:
U.S. Treasury securities	$	—	$	—	$	9,439	$	(556)	$	9,439	$	(556)
U.S. Government agencies	—		—		65		(2)		65		(2)
Obligations of states and political subdivisions	4,066		(488)		158,345		(16,216)		162,411		(16,704)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	4,132		(63)		50,775		(3,204)		54,907		(3,267)
Private label mortgage and asset backed securities	—		—		227,330		(22,394)		227,330		(22,394)

Total available-for-sale	$	8,198	$	(551)	$	445,954	$	(42,372)	$	454,152	$	(42,923)


	December 31, 2024
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-Sale Securities	Value		Losses		Value		Losses		Value		Losses
Debt securities:
U.S. Treasury securities	$	—	$	—	$	9,058	$	(936)	$	9,058	$	(936)
U.S. Government agencies	—		—		65		(5)		65		(5)
Obligations of states and political subdivisions	1,853		(152)		162,787		(18,974)		164,640		(19,126)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	359		(4)		63,401		(4,434)		63,760		(4,438)
Private label mortgage and asset backed securities	—		—		226,070		(34,753)		226,070		(34,753)
Total available-for-sale	$	2,212	$	(156)	$	461,381	$	(59,102)	$	463,593	$	(59,258)

As of September 30, 2025, the Company had a total of 128 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting of 1 U.S. Treasury security, 38 obligations of states and political subdivisions, 36 U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations, and 53 private label mortgage and asset backed securities.

Each reporting period, the Company assesses each AFS debt security that is in an unrealized loss position to determine whether the decline in fair value below the amortized cost basis results from a credit loss or other factors. The Company did not record an ACL on any available for sale securities at September 30, 2025. As of that date, the Company considers the unrealized losses across the classes of major security-type to be related to fluctuations in market conditions, primarily interest rates, and not reflective of a deterioration in credit value. As of September 30, 2025, the Company determined that it is not more likely than not that there is an intention to sell securities or that the Company would be required to sell securities.

•Obligations of States and Political Subdivisions: The unrealized losses on investments in obligations of states and political subdivisions are caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment.

•U.S. Treasury and Government Sponsored Entities and Agencies Collateralized by Residential Mortgage Obligations: The unrealized losses on the Company’s investments in U.S. treasuries and government sponsored entities and agencies collateralized by residential mortgage obligations were caused by interest rate changes. The contractual cash flows of those investments are guaranteed or supported by an agency or sponsored entity of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment.

•Private Label Mortgage and Asset Backed Securities: The Company has invested exclusively in AA and AAA tranches of various private label mortgage and asset backed securities. Each purchase is subject to a credit and structure review prior to their purchase. Ratings are reviewed on a quarterly basis in addition to other metrics provided through third-party services. Following review of the financial metrics and ratings, management concluded that the unrealized loss position of the private label mortgage and asset backed securities related exclusively to the fluctuation in market conditions and were not reflective of any credit concerns with the tranches comprising the Company’s investments.

The Company separately evaluates its HTM debt securities for any credit losses based on probability of default and loss given default utilizing historical industry data based on investment category, while also considering reasonable and supportable forecasts. The probability of default and loss given default are incorporated into the present value of expected cash flows and compared against amortized cost.

The allowance for credit losses on HTM securities was $724,000 at September 30, 2025. The allowance for credit losses on HTM securities is driven by economic scenarios, estimated probabilities of default and loss given default. Economic scenarios are updated quarterly.


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,

Debt Securities Held-to-Maturity	2025		2024		2025		2024
Beginning ACL balance	$	786	$	1,076	$	1,156	$	1,051

(Credit) provision to credit losses	(62)		(219)		(432)		(194)
Total Ending ACL balance	$	724	$	857	$	724	$	857

During the three and nine month periods ended September 30, 2025, the credit to credit losses for held-to-maturity securities was primarily driven by the passage of time and updated expectations of improved future cash flows. Management believes that the allowance for credit losses for held-to-maturity securities at September 30, 2025 appropriately reflected expected credit losses at that date.

The Company monitors credit quality of debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. For non-rated investment securities, management receives quarterly performance updates to monitor for any credit concerns. There were no HTM securities on nonaccrual or past due over 89 days and still on accrual. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator. U.S. Government sponsored agencies are not included in the below tables as credit ratings are not applicable.


	September 30, 2025
Debt Securities Held-to-Maturity (in thousands)	AAA/AA/A		BBB		Unrated
Obligations of states and political subdivisions	$	192,272	$	—	$	—

Private label mortgage and asset backed securities	38,580		—		13,233
Corporate debt securities	—		18,348		14,018
Total debt securities held-to-maturity	$	230,852	$	18,348	$	27,251