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Investment Securities

9 Months Ended

Sep. 30, 2025

(4) Investment Securities

Investment securities available for sale at September 30, 2025 and December 31, 2024 are as follows:

(Dollars in thousands)
	September 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	7,986		-		443		7,543
U.S. Government sponsored enterprises		5,643		-		375		5,268
GSE - Mortgage-backed securities		231,484		228		16,629		215,083
Private label mortgage-backed securities		40,291		133		722		39,702
State and political subdivisions		129,465		-		20,193		109,272
Total	$	414,869		361		38,362		376,868

(Dollars in thousands)
	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasuries	$	7,981		-		724		7,257
U.S. Government sponsored enterprises		9,243		-		511		8,732
GSE - Mortgage-backed securities		248,837		162		23,207		225,792
Private label mortgage-backed securities		43,118		74		1,425		41,767
State and political subdivisions		129,659		-		25,204		104,455
Total	$	438,838		236		51,071		388,003

The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2025 and December 31, 2024 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	September 30, 2025
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	-		-		7,543		443		7,543		443
U.S. government sponsored enterprises		-		-		5,268		375		5,268		375
GSE -Mortgage-backed securities		11,544		130		193,761		16,499		205,305		16,629
Private label mortgage-backed securities		-		-		21,019		722		21,019		722
State and political subdivisions		-		-		109,272		20,193		109,272		20,193
Total	$	11,544		130		336,863		38,232		348,407		38,362

(Dollars in thousands)
	December 31, 2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	-		-		7,257		724		7,257		724
U.S. government sponsored enterprises		-		-		8,732		511		8,732		511
GSE -Mortgage-backed securities		20,458		669		197,497		22,538		217,955		23,207
Private label mortgage-backed securities		4,010		9		21,727		1,416		25,737		1,425
State and political subdivisions		-		-		104,455		25,204		104,455		25,204
Total	$	24,468		678		339,668		50,393		364,136		51,071

At September 30, 2025, unrealized losses in the investment securities portfolio relating to debt securities totaled $38.4 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the September 30, 2025 table above, both of the U.S. Treasury securities, all 108 of the securities issued by state and political subdivisions contained unrealized losses, all six of the securities issued by U.S. Government sponsored enterprises (“GSE”), 110 of the 117 GSE mortgage-backed securities, and 10 of the 17 private label mortgage-backed securities contained unrealized losses. The Company did not have any reserves on securities at September 30, 2025, as no credit related losses were identified in the Company’s September 30, 2025 analysis. At December 31, 2024, unrealized losses in the investment securities portfolio relating to debt securities totaled $51.1 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the December 31, 2024 table above, both of the U.S. Treasury securities, all 108 of the securities issued by state and political subdivisions contained unrealized losses, all seven of the securities issued by GSEs, 114 of the 119 GSE mortgage-backed securities, and 11 of the 16 private label mortgage-backed securities contained unrealized losses. The Company did not have any reserves on securities at December 31, 2024, as no credit related losses were identified in the Company’s December 31, 2024 analysis.

The amortized cost and estimated fair value of investment securities available for sale, other than GSE mortgage-backed securities, at September 30, 2025, are shown below by contractual maturity. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

September 30, 2025
(Dollars in thousands)
	Amortized Cost		Fair Value
Due within one year	$	4,940		4,950
Due from one to five years		44,242		41,065
Due from five to ten years		78,514		65,885
Due after ten years		55,689		49,886
Mortgage-backed securities		231,484		215,082
Total	$	414,869		376,868

No securities available for sale were sold during the three months ended September 30, 2025. During the nine months ended September 30, 2025, proceeds from sales of securities available for sale were $12.7 million and resulted in gross losses of $47,000 and gross gains of $43,000. During the three and nine months ended September 30, 2024, proceeds from sales of securities available for sale were $11.7 million and resulted in gross gains of $33,000 and gross losses of $28,000.

Securities with a fair value of approximately $36.4 million and $40.0 million at September 30, 2025 and December 31, 2024, respectively, were pledged to secure public deposits and for other purposes as required by law.