v3.25.2
Investment Securities
 6 Months Ended
Jun. 30, 2025
Investment Securities [Abstract]  
Investment Securities


‎

NOTE 2 – INVESTMENT SECURITIES

The Company did not hold securities classified as trading or held-to-maturity at June 30, 2025 or December 31, 2024. The amortized cost and estimated fair value of available-for-sale investment securities at June 30, 2025 and December 31, 2024 consisted of the following:

June 30, 2025

(In thousands)

Amortized Cost

Gross Unrealized Gains

Gross Unrealized Losses

Estimated Fair Value

Available-for-sale securities

U.S. agencies

$

526

$

–

$

(26)

$

500

Commercial mortgage-backed securities

5,075

4

(229)

4,850

Residential mortgage-backed securities

345,909

–

(63,025)

282,884

U.S. states and political subdivisions

4,706

31

(163)

4,574

Total available-for-sale securities

$

356,216

$

35

$

(63,443)

$

292,808

December 31, 2024

(In thousands)

Amortized Cost

Gross Unrealized Gains

Gross Unrealized Losses

Estimated Fair Value

Available-for-sale securities

U.S. agencies

$

578

$

–

$

(40)

$

538

Commercial mortgage-backed securities

3,161

–

(298)

2,863

Residential mortgage-backed securities

360,713

–

(72,252)

288,461

U.S. states and political subdivisions

4,703

57

(66)

4,694

Total available-for-sale securities

$

369,155

$

57

$

(72,656)

$

296,556

Net unrealized losses on available-for-sale investment securities totaling $45.2 million were recorded as accumulated other comprehensive income, net of tax of $18.2 million, within shareholders' equity at June 30, 2025. Net unrealized losses on available-for-sale investment securities totaling $51.3 million were recorded as accumulated other comprehensive income, net of tax of $21.3 million, within shareholders' equity at December 31, 2024.

There were no sales or calls of investment securities during the three and six months ended June 30, 2025 or June 30, 2024. Therefore, there were no realized gains or losses. There were no transfers between investment categories during the three and six months ended June 30, 2025 or June 30, 2024.


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Investment securities with unrealized losses at June 30, 2025 and December 31, 2024 are summarized and classified according to the duration of the loss period as follows: (in thousands)

Less than 12 Months

12 Months or More

Total

June 30, 2025

Fair Value

Unrealized Losses

Fair Value

Unrealized Losses

Fair Value

Unrealized Losses

U.S. agencies

$

–

$

–

$

500

$

(26)

$

500

$

(26)

Commercial mortgage-backed securities

2,919

(38)

1,191

(191)

4,110

(229)

Residential mortgage-backed securities

2,479

(12)

280,405

(63,013)

282,884

(63,025)

U.S. states and political subdivisions

3,548

(163)

–

–

3,548

(163)

Total available-for-sale

$

8,946

$

(213)

$

282,096

$

(63,230)

$

291,042

$

(63,443)

Less than 12 Months

12 Months or More

Total

December 31, 2024

Fair Value

Unrealized Losses

Fair Value

Unrealized Losses

Fair Value

Unrealized Losses

U.S. agencies

$

–

$

–

$

538

$

(40)

$

538

$

(40)

Commercial mortgage-backed securities

1,691

(54)

1,172

(244)

2,863

(298)

Residential mortgage-backed securities

2,460

(46)

286,001

(72,206)

288,461

(72,252)

U.S. states and political subdivisions

2,637

(66)

–

–

2,637

(66)

Total available-for-sale

$

6,788

$

(166)

$

287,711

$

(72,490)

$

294,499

$

(72,656)

At June 30, 2025, the Company held 26 securities available-for-sale which were in a loss position for greater than 12 months. Management believes the unrealized losses on the Company’s investment securities were caused by interest rate changes. The contractual cash flows of those investments are guaranteed or supported by an agency or sponsored entity of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment. As of June 30, 2025, the Company did not intend to sell and does not believe it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. No credit impairment was recorded for those securities in an unrealized loss position for the three and six months ended June 30, 2025 or June 30, 2024, and there was no allowance for credit losses on securities available-for-sale recorded as of June 30, 2025 or December 31, 2024.

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

Available-for-sale

Amortized Cost

Fair Value

Due in one year or less

$

–

$

–

Due after one year through five years

–

–

Due after five years through 10 years

526

500

Due after 10 years

4,706

4,574

5,232

5,074

Investment securities not due at a single maturity date: mortgage-backed securities

350,984

287,734

$

356,216

$

292,808

Investment securities with fair values of $23.7 million and $15.5 million were pledged at June 30, 2025 and December 31, 2024, respectively, toward certain letters of credit. No investment securities were pledged to secure public deposits at June 30, 2025 or December 31, 2024.