| Investments |
The Company evaluated credit impairment for individual securities available for sale (AFS) whose fair value was below amortized cost with a more than inconsequential risk of default and where the Company had assessed the decline in fair value significant enough to suggest a credit event occurred. Due to the zero credit loss assumption and the considerations applied to the securities AFS, there was no ACL recorded for securities AFS as of June 30, 2025 and December 31, 2024. The Company first established an allowance for credit losses for individual securities held to maturity in 2023 and evaluated impairment for individual securities held to maturity again as of December 31, 2024 and determined an allowance for credit loss of $40,000 was appropriate. No additional impairment was recorded as of June 30, 2025. The amortized cost, fair value and allowance for credit losses related to securities at June 30, 2025 and December 31, 2024, are as follows (in thousands): | | | | | | | | | | | | | | | | | | Gross | | Gross | | | | | | Amortized | | Unrealized | | Unrealized | | Estimated | June 30, 2025 | | Cost | | Gains | | Losses | | Fair Value | Available for sale securities: | | | | | | | | | | | | | U.S. Treasuries | | $ | 156,707 | | | 113 | | $ | (5,175) | | $ | 151,645 | Mortgage-backed securities | | | 44,774 | | | 31 | | | (3,703) | | | 41,102 | Collateralized mortgage obligations | | | 66,040 | | | 2 | | | (4,251) | | | 61,791 | States and political subdivisions | | | 100,291 | | | — | | | (17,856) | | | 82,435 | Total available for sale securities | | $ | 367,812 | | $ | 146 | | $ | (30,985) | | $ | 336,973 |
| | | | | | | | | | | | | | | | | | Gross | | Gross | | | | | | Amortized | | Unrealized | | Unrealized | | Estimated | December 31, 2024 | | Cost | | Gains | | Losses | | Fair Value | Available for sale securities: | | | | | | | | | | | | | U.S. Treasuries | | $ | 124,320 | | $ | 150 | | $ | (7,425) | | $ | 117,045 | Mortgage-backed securities | | | 46,845 | | | 35 | | | (4,368) | | | 42,512 | Collateralized mortgage obligations | | | 73,857 | | | 77 | | | (5,070) | | | 68,864 | States and political subdivisions | | | 100,845 | | | — | | | (20,618) | | | 80,227 | Total available for sale securities | | $ | 345,867 | | $ | 262 | | $ | (37,481) | | $ | 308,648 |
| | | | | | | | | | | | | | | | | | | | | | | | Gross | | Gross | | | | | Allowance | | Net | | | Amortized | | Unrealized | | Unrealized | | Estimated | | for Credit | | Carrying | June 30, 2025 | | Cost | | Gains | | Losses | | Fair Value | | Losses | | Amount | Held to maturity securities: | | | | | | | | | | | | | | | | | | | U.S. Treasuries | | $ | 19,986 | | $ | 17 | | $ | (196) | | $ | 19,807 | | $ | — | | $ | 19,986 | States and political subdivisions | | | 80,910 | | | 12 | | | (10,666) | | | 70,256 | | | (40) | | | 80,870 | Total held to maturity securities | | $ | 100,896 | | $ | 29 | | $ | (10,862) | | $ | 90,063 | | $ | (40) | | $ | 100,856 |
| | | | | | | | | | | | | | | | | | | | | | | | Gross | | Gross | | | | | Allowance | | Net | | | Amortized | | Unrealized | | Unrealized | | Estimated | | for Credit | | Carrying | December 31, 2024 | | Cost | | Gains | | Losses | | Fair Value | | Losses | | Amount | Held to maturity securities: | | | | | | | | | | | | | | | | | | | U.S. Treasuries | | $ | 39,978 | | $ | 20 | | $ | (450) | | $ | 39,548 | | $ | — | | $ | 39,978 | States and political subdivisions | | | 83,218 | | | 14 | | | (11,668) | | | 71,564 | | | (40) | | | 83,178 | Total held to maturity securities | | $ | 123,196 | | $ | 34 | | $ | (12,118) | | $ | 111,112 | | $ | (40) | | $ | 123,156 |
The following table shows a rollforward of the allowance for credit losses on held-to-maturity securities for the six months ended June 30, 2025 and the year ended December 31, 2024 and the six months ended June 30, 2024 and the year ended December 31, 2023 (in thousands): | | | | | | | | | | State and political | | | subdivisions | Balance, December 31, 2024 | | $ | 40 | Provision for credit losses | | | — | Charge-offs of securities | | | — | Recoveries | | | — | Balance, June 30, 2025 | | $ | 40 | | | | |
| | | | | | State and political | | | subdivisions | Balance, December 31, 2023 | | $ | 30 | Provision for credit losses | | | — | Charge-offs of securities | | | — | Recoveries | | | — | Balance, June 30, 2024 | | $ | 30 |
The Company monitors the credit quality of the debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at June 30, 2025 and December 31, 2024, aggregated by credit quality indicators (in thousands): | | | | | | | June 30, 2025 | | December 31, 2024 | Aaa | $ | — | | $ | 39,978 | Aa1/Aa2/Aa3 | | 53,790 | | | 33,961 | A1/A2 | | 3,147 | | | 3,164 | Baa1/Baa2 | | 1,000 | | | 1,000 | Not rated | | 42,959 | | | 45,093 | Total | $ | 100,896 | | $ | 123,196 |
At June 30, 2025 and December 31, 2024, the Company had no securities held-to-maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held-to-maturity classified as nonaccrual for the six months ended June 30, 2025 and the year ended December 31, 2024. The amortized cost and fair value of debt securities at June 30, 2025, (in thousands) 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. | | | | | | | | | Amortized Cost | | Fair Value | Available for sale securities: | | | | | | | Due in one year or less | | $ | 82,331 | | $ | 82,413 | Due after one year through five years | | | 85,616 | | | 79,556 | Due after five years through ten years | | | 49,157 | | | 41,559 | Due after ten years | | | 39,894 | | | 30,552 | Mortgage-backed securities | | | 44,774 | | | 41,102 | Collaterized mortgage obligations | | | 66,040 | | | 61,791 | Total | | $ | 367,812 | | $ | 336,973 | Held to maturity securities: | | | | | | | Due in one year or less | | $ | 13,714 | | $ | 13,703 | Due after one year through five years | | | 40,395 | | | 38,498 | Due after five years through ten years | | | 28,637 | | | 25,039 | Due after ten years | | | 18,150 | | | 12,823 | Total | | $ | 100,896 | | $ | 90,063 |
Available for sale 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, are as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less Than Twelve Months | | Over Twelve Months | | Total | | | | | | Gross | | | | | Gross | | | | | Gross | | | | | | Unrealized | | | | | Unrealized | | | | | Unrealized | Available for Sale | | Fair Value | | Losses | | Fair Value | | Losses | | Fair Value | | Losses | June 30, 2025: | | | | | | | | | | | | | | | | | | | U.S. Treasuries | | $ | 47,304 | | $ | 31 | | $ | 69,371 | | | 5,145 | | | 116,675 | | $ | 5,176 | Mortgage-backed securities | | | 3,519 | | | 8 | | | 31,357 | | | 3,695 | | | 34,876 | | | 3,703 | Collateralized mortgage obligations | | | 11,358 | | | 34 | | | 49,106 | | | 4,217 | | | 60,464 | | | 4,251 | States and political subdivisions | | | 1,925 | | | 226 | | | 80,510 | | | 17,629 | | | 82,435 | | | 17,855 | Total | | $ | 64,106 | | $ | 299 | | $ | 230,344 | | $ | 30,686 | | $ | 294,450 | | $ | 30,985 |
| | | | | | | | | | | | | | | | | | | | | Less Than Twelve Months | | Over Twelve Months | | Total | | | | | | Gross | | | | | Gross | | | | | Gross | | | | | | Unrealized | | | | | Unrealized | | | | | Unrealized | Available for Sale | | Fair Value | | Losses | | Fair Value | | Losses | | Fair Value | | Losses | December 31, 2024: | | | | | | | | | | | | | | | | | | | U.S. Treasuries | | $ | — | | $ | — | | $ | 81,991 | | $ | 7,425 | | | 81,991 | | $ | 7,425 | Mortgage-backed securities | | | 3,993 | | | 20 | | | 36,388 | | | 4,348 | | | 40,381 | | | 4,368 | Collateralized mortgage obligations | | | 1,728 | | | 9 | | | 51,513 | | | 5,061 | | | 53,241 | | | 5,070 | States and political subdivisions | | | — | | | — | | | 80,087 | | | 20,618 | | | 80,087 | | | 20,618 | Total | | $ | 5,721 | | $ | 29 | | $ | 249,979 | | $ | 37,452 | | $ | 255,700 | | $ | 37,481 |
At June 30, 2025, 16 of the 23 Treasuries, 40 of the 46 mortgage-backed securities, 26 of the 27 collateralized mortgage obligations and 76 of the 76 securities issued by states and political subdivisions contained unrealized losses. There were no sales of available for sale debt securities for the six months ended June 30, 2025 and June 30, 2024. Securities with a fair value of $296,367,976 and $311,774,135 at June 30, 2025 and December 31, 2024, respectively, were pledged to secure public deposits, federal funds purchased and other balances required by law.
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