Mortgage-backed securities, as shown in the following tables, are all government sponsored enterprises. The amortized cost and fair value of securities, with gross unrealized gains and losses at June 30, 2025 and December 31, 2024, are as follows:


	(In Thousands)
	June 30, 2025
	Amortized		Gross Unrealized		Gross Unrealized			Fair
	Cost		Gains		Losses			Value
Available-for-Sale:
U.S. Treasury	$	99,030	$	28	$	(3,668	)	$	95,390
U.S. Government agencies		144,382		20		(6,736	)		137,666
Mortgage-backed securities		147,570		39		(10,656	)		136,953
State and local governments		64,435		28		(3,370	)		61,093
Total available-for-sale securities	$	455,417	$	115	$	(24,430	)	$	431,102


	(In Thousands)
	December 31, 2024
	Amortized		Gross Unrealized		Gross Unrealized			Fair
	Cost		Gains		Losses			Value
Available-for-Sale:
U.S. Treasury	$	111,397	$	17	$	(5,415	)	$	105,999
U.S. Government agencies		144,660		-		(9,494	)		135,166
Mortgage-backed securities		133,268		17		(12,654	)		120,631
State and local governments		69,159		28		(4,427	)		64,760
Total available-for-sale securities	$	458,484	$	62	$	(31,990	)	$	426,556

Investment securities will at times depreciate to an unrealized loss position. The Company utilizes the following criteria to assess whether the unrealized loss requires an allowance for credit losses on investment securities. With the exception of the fourth factor, no one item by itself will necessarily signal that an allowance for credit losses on investment securities should be established.

If the unrealized loss is determined to be the result of credit quality factors, the present value of the cash flows expected to be collected is compared to the amortized cost basis. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Adjustments to the allowance are recorded in the Company's consolidated statement of income as a component of the provision for credit losses. The Company did not record an allowance for credit losses on its investment securities available for sale as the unrealized losses were attributable to changes in interest rates, not credit quality.

Information pertaining to securities with gross unrealized losses at June 30, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows:


	(In Thousands)
	June 30, 2025
	Less Than Twelve Months					Twelve Months & Over					Total
	Gross Unrealized			Fair		Gross Unrealized			Fair		Gross Unrealized			Fair
	Losses			Value		Losses			Value		Losses			Value
U.S. Treasury	$	(133	)	$	27,970	$	(3,535	)	$	63,088	$	(3,668	)	$	91,058
U.S. Government agencies		(19	)		7,726		(6,717	)		126,054		(6,736	)		133,780
Mortgage-backed securities		(683	)		63,251		(9,973	)		63,996		(10,656	)		127,247
State and local governments		(107	)		5,753		(3,263	)		51,195		(3,370	)		56,948
Total available-for-sale securities	$	(942	)	$	104,700	$	(23,488	)	$	304,333	$	(24,430	)	$	409,033


	(In Thousands)
	December 31, 2024
	Less Than Twelve Months					Twelve Months & Over					Total
	Gross Unrealized			Fair		Gross Unrealized			Fair		Gross Unrealized			Fair
	Losses			Value		Losses			Value		Losses			Value
U.S. Treasury	$	(467	)	$	31,533	$	(4,948	)	$	62,151	$	(5,415	)	$	93,684
U.S. Government agencies		-			-		(9,494	)		131,335		(9,494	)		131,335
Mortgage-backed securities		(668	)		51,236		(11,986	)		66,877		(12,654	)		118,113
State and local governments		(224	)		8,631		(4,203	)		53,091		(4,427	)		61,722
Total available-for-sale securities	$	(1,359	)	$	91,400	$	(30,631	)	$	313,454	$	(31,990	)	$	404,854

Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality, values have only been impacted by changes in interest rates since the securities were purchased, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date.

There were no gross realized gains or losses for the three and six months ended June 30, 2025 and June 30, 2024.

Net realized gains (losses) on sales and related tax expense (benefit) is a reclassification out of accumulated other comprehensive income (loss). The net realized gains (losses) are included in net gain (loss) on sale of available-for-sale securities and the related tax expense (benefit) is included in income taxes in the condensed consolidated statements of income and comprehensive income.

The amortized cost and fair value of debt securities at June 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	(In Thousands)
	Amortized
	Cost		Fair Value
One year or less	$	63,149	$	62,185
After one year through five years		224,876		212,978
After five years through ten years		19,822		18,986
After ten years		-		-
Total	$	307,847	$	294,149
Mortgage-backed securities		147,570		136,953
Total	$	455,417	$	431,102

Investments with a carrying value of $239.1 million and $221.9 million at June 30, 2025 and December 31, 2024, respectively, were pledged to secure public deposits and securities sold under repurchase agreements. Investments with a carrying value of $29.0 million and $29.9 million were pledged to the Federal Reserve's Discount Window to provide additional borrowing capacity at June 30, 2025 and December 31, 2024, respectively.

Other securities include Federal Home Loan Bank of Cincinnati and Indianapolis stock in the amount of $14.0 million as of June 30, 2025 and $14.4 million as of December 31, 2024.