Debt securities have been classified in the consolidated balance sheet according to management’s intent. Debt securities at June 30, 2025 and December 31, 2024 are summarized as follows:


	June 30, 2025
	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
U.S. Treasury and other U.S. government agencies	$	4,941		—		266		4,675
U.S. Government-sponsored enterprises (GSEs)		175,934		229		15,746		160,417
Mortgage-backed securities		577,896		1,105		52,935		526,066
Asset-backed securities		49,451		74		617		48,908
Obligations of states and political subdivisions		179,553		—		25,926		153,627
	$	987,775		1,408		95,490		893,693


	December 31, 2024
	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
U.S. Treasury and other U.S. government agencies	$	4,927		—		389		4,538
U.S. Government-sponsored enterprises (GSEs)		183,912		8		21,947		161,973
Mortgage-backed securities		520,729		55		66,588		454,196
Asset-backed securities		51,110		108		401		50,817
Corporate bonds		2,500		—		104		2,396
Obligations of states and political subdivisions		184,163		—		30,190		153,973
	$	947,341		171		119,619		827,893

As of June 30, 2025 and December 31, 2024, there was no allowance for credit losses on available-for-sale securities.

Included in mortgage-backed securities are collateralized mortgage obligations totaling $164,867,000 (fair value of $148,582,000) and $146,369,000 (fair value of $126,426,000) at June 30, 2025 and December 31, 2024, respectively.

Securities carried on the balance sheet of approximately $654,205,000 (approximate market value of $586,907,000) and $581,017,000 (approximate market value of $499,585,000) were pledged to secure public deposits and for other purposes as required by law at June 30, 2025 and December 31, 2024, respectively.

At June 30, 2025, there were no holdings of securities of any one issuer, other than U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity.

The amortized cost and estimated market 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.

The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2025 and December 31, 2024.


	In Thousands, Except Number of Securities
	Less than 12 Months						12 Months or More						Total
June 30, 2025	Fair Value		Unrealized Losses		Number of Securities Included		Fair Value		Unrealized Losses		Number of Securities Included		Fair Value		Unrealized Losses
Available-for-Sale Securities:
U.S. Treasury and other U.S. government agencies	$	—	$	—		—	$	4,675	$	266		2	$	4,675	$	266
U.S. Government-sponsored enterprises (GSEs)		2,632		40		2		145,933		15,706		63		148,565		15,746
Mortgage-backed securities		85,336		766		17		336,394		52,169		212		421,730		52,935
Asset-backed securities		20,861		105		8		16,584		512		7		37,445		617
Obligations of states and political subdivisions		4,878		338		3		148,749		25,588		160		153,627		25,926
	$	113,707	$	1,249		30	$	652,335	$	94,241		444	$	766,042	$	95,490


	In Thousands, Except Number of Securities
	Less than 12 Months						12 Months or More						Total
December 31, 2024	Fair Value		Unrealized Losses		Number of Securities Included		Fair Value		Unrealized Losses		Number of Securities Included		Fair Value		Unrealized Losses
Available-for-Sale Securities:
U.S. Treasury and other U.S. government agencies	$	—	$	—		—	$	4,538	$	389		2	$	4,538	$	389
U.S. Government-sponsored enterprises (GSEs)		12,226		258		3		147,828		21,689		67		160,054		21,947
Mortgage-backed securities		90,776		2,043		24		348,035		64,545		216		438,811		66,588
Asset-backed securities		14,103		75		5		17,170		326		7		31,273		401
Corporate bonds		—		—		—		2,396		104		1		2,396		104
Obligations of states and political subdivisions		5,108		77		3		148,865		30,113		168		153,973		30,190
	$	122,213	$	2,453		35	$	668,832	$	117,166		461	$	791,045	$	119,619

The applicable date for determining when securities are in an unrealized loss position is June 30, 2025 and December 31, 2024. As such, it is possible that a security had a market value less than its amortized cost on other days during the six months ended June 30, 2025 and the twelve-month period ended December 31, 2024, but is not in the "Investments with an Unrealized Loss of less than 12 months" category above.

As shown in the tables above, at June 30, 2025 and December 31, 2024, the Company had unrealized losses of $95.5 million and $119.6 million on $766.0 million and $791.0 million, respectively, of securities in an unrealized loss position at those dates. As described in Note 1, Summary of Significant Accounting Policies to the consolidated financial statements of the Company included in the 2024 Form 10-K, for any security classified as available-for-sale that is in an unrealized loss position at the balance sheet date, the Company assesses whether or not it intends to sell the security, or more-likely-than-not will be required to sell the security, before

recovery of its amortized cost basis which would require a write-down to fair value through net income. Because the Company currently does not intend to sell those securities that have an unrealized loss at June 30, 2025, and it is not more-likely-than not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, the Company has determined that no write-down is necessary. These securities must then be evaluated for credit and non-credit related impairment. Securities with one or more of the following characteristics will be deemed to have only non-credit related impairment and will be excluded from further evaluation from credit impairment: Guaranteed by the U.S. government, insured by the FDIC, a review of market price discount to principal face value does not indicate the market's expectation of imminent principal loss, risk weighting under the FDIC’s Simplified Supervisory Formula Approach, and average credit rating. Securities that are not excluded by the aforementioned characteristics are further evaluated for credit deterioration, which would require the recognition of an allowance for credit losses. The unrealized losses associated with securities at June 30, 2025 are driven by changes in interest rates and not due to the credit quality of the securities, and accordingly, no allowance for credit losses is considered necessary related to available-for-sale securities at June 30, 2025. These securities will continue to be monitored as a part of the Company's ongoing evaluation of credit quality.

At June 30, 2025, approximately 98% of the mortgage-backed securities held by the Company were issued by U.S. government-sponsored entities and agencies. Because the decline in fair value of these securities is primarily attributable to interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities and it is not more-likely-than-not that it will be required to sell the securities before their anticipated recovery, the Company has determined no allowance for credit losses is necessary at June 30, 2025.

The Company's mortgage-backed securities portfolio includes non-agency collateralized mortgage obligations with a fair value of $10.7 million which had unrealized losses of approximately $1.3 million at June 30, 2025. These non-agency mortgage-backed securities were rated AAA at June 30, 2025. The Company monitors these securities to ensure it has adequate credit support and does not have the intent to sell these securities and it is not more-likely-than-not that it will be required to sell the securities before their anticipated recovery. The issuers continue to make timely principal and interest payments on the securities.

Unrealized losses on municipal bonds have not been recognized into income because the issuers' bonds are of high credit quality (rated A or higher) or the bonds have been refunded. Management does not intend to sell the securities and it is not more-likely-than-not that management will be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

The Company's asset-backed securities portfolio includes agency and non-agency asset backed and other amortizing debt securities with a fair value of $48.9 million which had unrealized losses of approximately $0.6 million at June 30, 2025. The Company monitors these securities to ensure it has adequate credit support and does not have the intent to sell these securities and it is not more-likely-than-not that it will be required to sell the securities before their anticipated recovery. The issuers continue to make timely principal and interest payments on the securities.