Debt securities purchased with the intent and ability to hold to their maturity are classified as held-to-maturity securities. All other investment securities are classified as available-for-sale securities.

Information related to the amortized cost, fair value and allowance for credit losses of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) is provided in the table below.


(dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
June 30, 2025

U.S. government sponsored agencies	$	136,779	$	56	$	(23,744)	$	0	$	113,091
Mortgage-backed securities: residential	501,415		607		(62,217)		0		439,805

State and municipal securities	544,034		99		(100,072)		0		444,061
Total	$	1,182,228	$	762	$	(186,033)	$	0	$	996,957

December 31, 2024

U.S. government sponsored agencies	$	137,150	$	0	$	(27,715)	$	0	$	109,435
Mortgage-backed securities: residential	500,278		83		(77,952)		0		422,409

State and municipal securities	545,073		17		(85,508)		0		459,582
Total	$	1,182,501	$	100	$	(191,175)	$	0	$	991,426


(dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
June 30, 2025
State and municipal securities	$	132,389	$	0	$	(24,410)	$	0	$	107,979

December 31, 2024
State and municipal securities	$	131,568	$	0	$	(18,461)	$	0	$	113,107

The Company has the current intent and ability to hold held-to-maturity securities until maturity. All of the Company's securities designated as held-to-maturity were transferred from the available-for-sale classification. The net unrealized gain or loss on the transferred securities was recorded as a component of accumulated other comprehensive income (loss) at the time of the transfer and is amortized over the remaining life of the underlying securities as an adjustment to the yield on those securities. The net amount of the unamortized unrealized loss on the transferred securities included in accumulated other comprehensive income (loss) was $18.0 million ($14.2 million, net of tax) at June 30, 2025.

Information regarding the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by maturity as of June 30, 2025 is presented below. Maturity information is based on contractual maturity for all securities other than mortgage-backed securities. Actual maturities of securities may differ from contractual maturities because borrowers may have the right to prepay the obligation without a prepayment penalty.


	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	220	$	220	$	0	$	0
Due after one year through five years	11,196		10,755		0		0
Due after five years through ten years	74,553		67,673		7,277		6,417
Due after ten years	594,844		478,504		125,112		101,562
	680,813		557,152		132,389		107,979
Mortgage-backed securities	501,415		439,805		0		0
Total debt securities	$	1,182,228	$	996,957	$	132,389	$	107,979


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2025		2024		2025		2024
Sales of securities available-for-sale
Proceeds	$	0	$	0	$	0	$	7,136
Gross gains	0		0		0		0
Gross losses	0		0		0		(46)
Number of securities	0		0		0		15

In accordance with ASU No. 2017-8, purchase premiums for callable securities are amortized to the earliest call date and premiums on non-callable securities as well as discounts are recognized in interest income using the interest method over the terms of the securities or over the estimated lives of mortgage-backed securities. Gains and losses on sales are based on the amortized cost of the security sold and recorded on the trade date.

Securities with fair values of $542.8 million and $560.2 million were pledged as of June 30, 2025 and December 31, 2024, respectively, as collateral for borrowings from the Federal Home Loan Bank ("FHLB") and Federal Reserve Bank and for other purposes as permitted or required by law.

Information regarding available-for-sale securities with unrealized losses as of June 30, 2025 and December 31, 2024 is presented on the following page. The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.


	Less than 12 months				12 months or more				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2025

U.S. government sponsored agencies	$	0	$	0	$	108,036	$	23,744	$	108,036	$	23,744
Mortgage-backed securities: residential	7,337		45		382,464		62,172		389,801		62,217

State and municipal securities	18,959		497		416,644		99,575		435,603		100,072
Total available-for-sale	$	26,296	$	542	$	907,144	$	185,491	$	933,440	$	186,033

December 31, 2024

U.S. government sponsored agencies	$	0	$	0	$	109,435	$	27,715	$	109,435	$	27,715
Mortgage-backed securities: residential	23,204		249		390,483		77,703		413,687		77,952

State and municipal securities	12,928		439		443,569		85,069		456,497		85,508
Total available-for-sale	$	36,132	$	688	$	943,487	$	190,487	$	979,619	$	191,175

Information regarding held-to-maturity securities with unrealized losses as of June 30, 2025 and December 31, 2024 is presented below. The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.


	Less than 12 months				12 months or more				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2025
State and municipal securities	$	0	$	0	$	107,979	$	24,410	$	107,979	$	24,410

December 31, 2024
State and municipal securities	$	0	$	0	$	113,107	$	18,461	$	113,107	$	18,461


	Available-for-Sale			Held-to-Maturity
	Less than 12 months	12 months or more	Total	Less than 12 months	12 months or more	Total
June 30, 2025

U.S. government sponsored agencies	0	17	17	0	0	0
Mortgage-backed securities: residential	2	122	124	0	0	0

State and municipal securities	23	386	409	0	41	41
Total temporarily impaired	25	525	550	0	41	41

December 31, 2024

U.S. government sponsored agencies	0	17	17	0	0	0
Mortgage-backed securities: residential	9	124	133	0	0	0

State and municipal securities	23	392	415	0	41	41
Total temporarily impaired	32	533	565	0	41	41

Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for-sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or it is more likely than not that the Company will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the consolidated income statement. For available-for-sale debt securities that do not meet the above criteria and for held-to-maturity securities, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically

related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, management compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. For available-for-sale debt securities, any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes.

No allowance for credit losses for available-for-sale or held-to-maturity debt securities was recorded at June 30, 2025 or December 31, 2024. Accrued interest receivable on securities totaled $7.6 million and $7.5 million at June 30, 2025 and December 31, 2024, respectively, and is excluded from the estimate of credit losses.

The U.S. government sponsored agencies and mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. State and municipal securities credit losses are benchmarked against highly rated municipal securities of similar duration, as published by Moody's, resulting in an immaterial allowance for credit losses.