Investment Securities

6 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Note 2 – Investment Securities

The following tables present amortized cost and fair values of investment securities available-for-sale as of the periods shown:


	June 30, 2025
(Dollars in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
United States government agency securities	$	43,874	$	33	$	(4,555)	$	39,352
United States sponsored mortgage-backed securities	188,342		366		(12,254)		176,454
United States treasury securities	56,989		—		(616)		56,373
Municipal securities	111,933		20		(16,923)		95,030
Corporate debt securities	21,884		50		(88)		21,846
Other debt securities	7,500		—		—		7,500
Investment securities available-for-sale	$	430,522	$	469	$	(34,436)	$	396,555


	December 31, 2024
(Dollars in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss		Fair Value
United States government agency securities	$	45,449	$	10	$	(5,613)	$	39,846
United States sponsored mortgage-backed securities	161,032		130		(13,582)		147,580
United States treasury securities	106,095		—		(2,120)		103,975
Municipal securities	114,845		28		(12,733)		102,140
Corporate debt securities	9,943		67		(92)		9,918
Other debt securities	7,500		—		—		7,500


Investment securities available-for-sale	$	444,864	$	235	$	(34,140)	$	410,959

The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period shown:


	June 30, 2025
(Dollars in thousands)	Amortized Cost		Fair Value
Within one year	$	59,639	$	59,023
After one year, but within five years	20,509		19,941
After five years, but within ten years	51,387		47,690
After ten years	298,987		269,901
Total available-for-sale debt securities	$	430,522	$	396,555

The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may be repaid sooner than scheduled.

Investment securities with a carrying value of $224.6 million and $247.4 million at June 30, 2025 and December 31, 2024, respectively, were pledged to secure public funds, repurchase agreements and potential borrowings at the Federal Reserve discount window.

Our investment portfolio includes securities that are in an unrealized loss position as of June 30, 2025. We evaluate available-for-sale debt securities to determine whether the unrealized loss is due to credit-related factors or non-credit-related factors. When determining the ACL on securities, we consider such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, our ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency and whether or not the financial condition of the security issuer has severely deteriorated. There was no activity in the ACL related to available-for-sale debt securities during the three and six months ended June 30, 2025 and June 30, 2024.

Although the available-for-sale debt securities in an unrealized loss position would result in a pre-tax loss of $34.4 million if sold at June 30, 2025, we have no intent to sell the applicable securities at such fair values and maintain that we have the ability to hold these securities until all principal has been recovered. It is more likely than not that we will not, for liquidity purposes, sell any securities at a loss. Declines in the fair values of these securities can be traced to general market conditions, which reflect the

prospect for the economy as a whole, rather than credit-related conditions. Therefore, we have no ACL related to these securities as of June 30, 2025.

The following tables show available-for-sale debt securities in an unrealized loss position for which an ACL has not been recorded as of June 30, 2025 and December 31, 2024, aggregated by investment category and length of time that the individual securities have been in a continuous loss position:


	June 30, 2025
(Dollars in thousands)	Less than 12 months				12 months or more
Description and number of positions	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
United States government agency securities (23)	$	5,527	$	(165)	$	30,413	$	(4,390)
United States sponsored mortgage-backed securities (74)	88,488		(1,743)		43,066		(10,511)
United States treasury securities (12)	—		—		56,373		(616)
Municipal securities (196)	10,061		(498)		84,083		(16,425)
Corporate debt securities (7)	11,515		(54)		1,966		(34)

Total	$	115,591	$	(2,460)	$	215,901	$	(31,976)


	December 31, 2024
(Dollars in thousands)	Less than 12 months				12 months or more
Description and number of positions	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
United States government agency securities (28)	$	5,956	$	(264)	$	32,854	$	(5,349)
United States sponsored mortgage-backed securities (75)	92,929		(2,291)		44,444		(11,291)
United States treasury securities (23)	—		—		103,975		(2,120)
Municipal securities (201)	17,613		(1,425)		83,592		(11,308)
Corporate debt securities (6)	990		(10)		2,818		(82)

Total	$	117,488	$	(3,990)	$	267,683	$	(30,150)

The following table summarizes investment sales, related gains and losses and unrealized holding losses for the periods shown:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2025		2024		2025		2024
Proceeds from sales of available-for-sale securities	$	28,965	$	—	$	29,480	$	24,327
Gains, gross	381		—		381		658
Losses, gross	291		—		333		—

Proceeds from sales of equity securities	$	188	$	39	$	188	$	39
Gain, gross	118		103		118		103


Unrealized holding (losses) gains on equity securities	$	(374)	$	14	$	(640)	$	(35)