SECURITIES

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Securities AFS consist of the following at December 31:


	Amortized Cost		Unrealized				Fair Value
			Gains		Losses
	(In thousands)
2025
U.S. agency	$	8,320	$	1	$	404	$	7,917
U.S. agency residential mortgage-backed	87,435		136		6,506		81,065
U.S. agency commercial mortgage-backed	8,039		—		853		7,186
Private label mortgage-backed	42,689		260		2,443		40,506
Other asset backed	30,633		31		479		30,185
Obligations of states and political subdivisions	319,402		—		39,000		280,402
Corporate	49,355		2		1,696		47,661
Trust preferred	990		—		3		987
Total	$	546,863	$	430	$	51,384	$	495,909

2024
U.S. agency	$	8,858	$	1	$	700	$	8,159
U.S. agency residential mortgage-backed	80,589		47		9,499		71,137
U.S. agency commercial mortgage-backed	12,821		—		1,180		11,641
Private label mortgage-backed	74,268		263		4,496		70,035
Other asset backed	39,232		18		734		38,516
Obligations of states and political subdivisions	330,874		14		42,097		288,791
Corporate	73,960		—		4,039		69,921
Trust preferred	986		—		4		982
Total	$	621,588	$	343	$	62,749	$	559,182

Securities HTM consist of the following at December 31:


	Carrying Value		Transferred Unrealized Loss (1)		ACL		Amortized Cost		Unrecognized				Fair Value
									Gains		Losses
	(In thousands)
2025
U.S. agency	$	22,446	$	1,220	$	—	$	23,666	$	—	$	3,833	$	19,833
U.S. agency residential mortgage-backed	92,900		7,688		—		100,588		—		19,337		81,251
U.S. agency commercial mortgage-backed	3,734		62		—		3,796		—		249		3,547
Private label mortgage-backed	7,294		80		2		7,376		—		272		7,104
Obligations of states and political subdivisions	149,915		3,717		19		153,651		36		14,278		139,409
Corporate	32,276		177		67		32,520		—		1,834		30,686
Trust preferred	958		38		4		1,000		—		—		1,000
Total	$	309,523	$	12,982	$	92	$	322,597	$	36	$	39,803	$	282,830

2024
U.S. agency	$	24,150	$	1,404	$	—	$	25,554	$	—	$	4,987	$	20,567
U.S. agency residential mortgage-backed	100,700		8,669		—		109,369		—		24,631		84,738
U.S. agency commercial mortgage-backed	4,013		107		—		4,120		—		402		3,718
Private label mortgage-backed	7,350		190		1		7,541		—		551		6,990
Obligations of states and political subdivisions	156,305		5,262		17		161,584		28		19,461		142,151
Corporate	45,964		496		111		46,571		—		3,875		42,696
Trust preferred	954		43		3		1,000		—		—		1,000
Total	$	339,436	$	16,171	$	132	$	355,739	$	28	$	53,907	$	301,860

(1)Represents the remaining unrealized loss to be accreted on securities that were transferred from AFS to HTM on April 1, 2022.

Our investments’ gross unrealized losses and fair values for securities AFS aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position, at December 31 follows:


	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
2025
U.S. agency	$	972	$	1	$	6,884	$	403	$	7,856	$	404
U.S. agency residential mortgage-backed	6,931		5		49,103		6,501		56,034		6,506
U.S. agency commercial mortgage-backed	—		—		7,186		853		7,186		853
Private label mortgage-backed	—		—		39,234		2,443		39,234		2,443
Other asset backed	1,392		3		24,417		476		25,809		479
Obligations of states and political subdivisions	156		9		280,246		38,991		280,402		39,000
Corporate	—		—		45,986		1,696		45,986		1,696
Trust preferred	—		—		987		3		987		3
Total	$	9,451	$	18	$	454,043	$	51,366	$	463,494	$	51,384

2024
U.S. agency	$	324	$	1	$	7,565	$	699	$	7,889	$	700
U.S. agency residential mortgage-backed	147		—		61,219		9,499		61,366		9,499
U.S. agency commercial mortgage-backed	—		—		11,641		1,180		11,641		1,180
Private label mortgage-backed	2,551		8		66,411		4,488		68,962		4,496
Other asset backed	3,984		19		27,052		715		31,036		734
Obligations of states and political subdivisions	221		1		288,570		42,096		288,791		42,097
Corporate	1,473		23		68,448		4,016		69,921		4,039
Trust preferred	—		—		982		4		982		4
Total	$	8,700	$	52	$	531,888	$	62,697	$	540,588	$	62,749

Securities AFS in unrealized loss positions are evaluated quarterly for impairment related to credit losses. For securities AFS in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we 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 earnings. No securities AFS met these two criteria during the periods presented. For securities AFS that do not meet this criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, adverse conditions specifically related to the security and the issuer and the impact of changes in market interest rates on the market value of the security, among other factors. If this assessment indicates that a credit loss exists, we compare 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 ACL is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income, net of applicable taxes. No ACL for securities AFS was needed at December 31, 2025 and 2024. Accrued interest receivable on securities AFS totaled $3.5 million and $3.9 million at

December 31, 2025 and 2024, respectively and is excluded from the estimate of credit losses and is included in accrued income and other assets in the Consolidated Statements of Financial Condition.

The following is a summary of securities AFS with an unrealized loss by grouping as of December 31, 2025.

U.S. agency, U.S. agency residential mortgage-backed and U.S. agency commercial mortgage backed securities — at December 31, 2025, we had 29 U.S. agency, 88 U.S. agency residential mortgage-backed and 9 U.S. agency commercial mortgage-backed securities whose fair value is less than amortized cost. These 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. The unrealized losses are largely attributed to widening spreads to Treasury bonds and/or an increase in interest rates since acquisition.

Private label mortgage backed, other asset backed and corporate securities — at December 31, 2025, we had 48 private label mortgage backed, 39 other asset backed, and 51 corporate securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and/or an increase in interest rates since acquisition.

Obligations of states and political subdivisions — at December 31, 2025, we had 288 municipal securities whose fair value is less than amortized cost. The unrealized losses are primarily due to an increase in interest rates since acquisition.

Trust preferred securities — at December 31, 2025, we had one trust preferred security whose fair value is less than amortized cost. This trust preferred security is a single issue security issued by a trust subsidiary of a bank holding company. The pricing of trust preferred securities has suffered from credit spread widening. This security is rated by a major rating agency as investment grade.

At December 31, 2025 management does not intend to liquidate any of the securities AFS discussed above and it is more likely than not that we will not be required to sell these securities AFS prior to recovery of these unrealized losses.

We recorded no credit related charges in our Consolidated Statements of Operations related to securities AFS during 2025, 2024, and 2023.

The ACL on securities HTM is a contra asset valuation account that is deducted from the carrying amount of securities HTM to present the net amount expected to be collected. Securities HTM are charged off against the ACL when deemed uncollectible. Adjustments to the ACL are reported in our Consolidated Statements of Operations in provision for credit losses. We measure expected credit losses on securities HTM on a collective basis by major security type with each type sharing similar risk characteristics and consider historical credit loss information. Accrued interest receivable on securities HTM totaled $1.5 million and $1.7 million at December 31, 2025 and 2024, respectively and is excluded from the estimate of credit losses and is included in accrued income and other assets in the Consolidated Statements of Financial Condition. With regard to U.S. Government-sponsored agency and mortgage-backed securities (residential and commercial), all these securities are issued by a U.S. government-sponsored entity and have an implicit or explicit government guarantee; therefore, no allowance for credit losses has been recorded for these securities. With regard to obligations of states and political subdivisions, private label-mortgage-backed, corporate and trust preferred securities HTM, we consider (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in our portfolio have been insignificant. During the first quarter of 2023, one corporate security (Signature Bank) defaulted resulting in a $3.0 million provision for credit losses and a corresponding full charge-off. Subsequent to this security's charge-off, a portion of its fair value had recovered and was subsequently sold during the first quarter of 2024 for $1.1 million during which period we recorded that amount as a recovery to the ACL. Despite this lone security loss, the long-term historical loss rates associated with securities having similar grades as those in our portfolio have been insignificant. Furthermore, as of December 31, 2025 and 2024, there were no past due principal and interest payments associated with these securities. At those same dates an allowance for credit losses of $92,000 and $132,000, respectively was recorded on non U.S. agency securities HTM based on applying the long-term historical credit loss rate, as published by credit rating agencies, for similarly rated securities.

On a quarterly basis, we monitor the credit quality of securities HTM through the use of credit ratings. The carrying value of securities HTM at December 31, aggregated by credit quality follow:


	Private Label Mortgage- Backed		Obligations of States and Political Subdivisions		Corporate		Trust Preferred		Carrying Value Total
	(In thousands)
2025
Credit rating:
AAA	$	7,294	$	17,357	$	—	$	—	$	24,651
AA	—		116,264		—		—		116,264
A	—		2,740		3,500		—		6,240
BBB	—		441		23,814		—		24,255
BB	—		—		1,983		—		1,983
Non-rated	—		13,113		2,979		958		17,050
Total	$	7,294	$	149,915	$	32,276	$	958	$	190,443

2024
Credit rating:
AAA	$	7,350	$	34,973	$	—	$	—	$	42,323
AA	—		101,112		—		—		101,112
A	—		3,473		5,005		—		8,478
BBB	—		652		36,045		—		36,697
BB	—		—		1,963		—		1,963
Non-rated	—		16,095		2,951		954		20,000
Total	$	7,350	$	156,305	$	45,964	$	954	$	210,573

An analysis of the ACL by security HTM type for the year ended December 31, follows:


	Private Label Mortgage- Backed		Obligations of States and Political Subdivisions		Corporate		Trust Preferred		Total
	(In thousands)
2025
Balance at beginning of period	$	1	$	17	$	111	$	3	$	132
Additions (deductions)
Provision for credit losses	1		2		(44)		1		(40)
Recoveries credited to the allowance	—		—		—		—		—
Securities HTM charged against the allowance	—		—		—		—		—
Balance at end of period	$	2	$	19	$	67	$	4	$	92

2024
Balance at beginning of period	$	4	$	33	$	116	$	4	$	157
Additions (deductions)
Provision for credit losses	(3)		(16)		(1,130)		(1)		(1,150)
Recoveries credited to the allowance	—		—		1,125		—		1,125
Securities HTM charged against the allowance	—		—		—		—		—
Balance at end of period	$	1	$	17	$	111	$	3	$	132

2023
Balance at beginning of period	$	1	$	39	$	123	$	5	$	168
Additions (deductions)
Provision for credit losses	3		(6)		2,993		(1)		2,989
Recoveries credited to the allowance	—		—		—		—		—
Securities HTM charged against the allowance	—		—		(3,000)		—		(3,000)
Balance at end of period	$	4	$	33	$	116	$	4	$	157

There were no securities HTM on nonaccrual or past due at December 31, 2025 and 2024.

The amortized cost and fair value of securities AFS and securities HTM at December 31, 2025, by contractual maturity, follow:


	Securities AFS				Securities HTM
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Maturing within one year	$	23,447	$	23,218	$	13,575	$	13,448
Maturing after one year but within five years	122,874		117,098		49,421		47,377
Maturing after five years but within ten years	44,713		40,445		83,561		75,354
Maturing after ten years	187,033		156,206		64,280		54,749
	378,067		336,967		210,837		190,928
U.S. agency residential mortgage-backed	87,435		81,065		100,588		81,251
U.S. agency commercial mortgage-backed	8,039		7,186		3,796		3,547
Private label mortgage-backed	42,689		40,506		7,376		7,104
Other asset backed	30,633		30,185		—		—
Total	$	546,863	$	495,909	$	322,597	$	282,830

The actual maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

A summary of proceeds from the sale of securities available for sale and gains and losses for the years ended December 31 follow:


			Realized
	Proceeds		Gains		Losses
	(In thousands)
2025	$	32,193	$	44	$	414
2024	39,517		14		442
2023	278		—		222

The tax benefit related to these net realized losses was $0.08 million, $0.09 million and $0.05 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Securities AFS and HTM with a fair value of $17.4 million and $13.5 million at December 31, 2025 and 2024, respectively, were pledged to secure borrowings, derivatives, public deposits and for other purposes as required by law. There were no investment obligations of state and political subdivisions that were payable from or secured by the same source of revenue or taxing authority that exceeded 10% of consolidated total shareholders’ equity at December 31, 2025 or 2024.

During the second quarter of 2024 we acquired certain securities classified as equity securities at fair value consisting of Visa Inc. Class C common stock. These securities were all sold in 2024. For the year ended December 31, 2024, we recognized a gain on these equity securities of $2.7 million that was included in net gains on equity securities at fair value in the Consolidated Statements of Operations. We had no equity securities at December 31, 2025. See note #11.