INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

Note 3—INVESTMENT SECURITIES

The amortized cost and estimated fair values of investment securities are summarized below:

AVAILABLE-FOR-SALE:

(Dollars in thousands)		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
December 31, 2025
US Treasury securities		$	25,804			$	7			$	(1,717	)		$	24,093
Government Sponsored Enterprises			2,500				—				(244	)			2,256
Mortgage-backed securities			262,096				694				(10,604	)			252,185
Small Business Administration pools			8,858				17				(207	)			8,668
Corporate and other securities			7,507				—				(601	)			6,907
Total		$	306,765			$	718			$	(13,373	)		$	294,109

(Dollars in thousands)		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
December 31, 2024
US Treasury securities		$	15,822			$	—			$	(2,582	)		$	13,240
Government Sponsored Enterprises			2,500				—				(390	)			2,110
Mortgage-backed securities			260,023				40				(15,859	)			244,204
Small Business Administration pools			12,437				15				(373	)			12,079
Corporate and other securities			8,755				—				(806	)			7,949
Total		$	299,537			$	55			$	(20,010	)		$	279,582

HELD-TO-MATURITY:

Schedule of Amortized Cost and Estimated Fair Values of Investment Securities Held-To-Maturity

(Dollars in thousands)		Amortized Cost Net of Allowance for Credit Losses				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
December 31, 2025
Mortgage-backed securities		$	93,066			$	—			$	(4,921	)		$	88,153
State and local government			102,050				140				(1,779	)			100,410
Total		$	195,116			$	140			$	(6,700	)		$	188,563

(Dollars in thousands)		Amortized Cost Net of Allowance for Credit Losses				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
December 31, 2024
Mortgage-backed securities		$	105,563				—			$	(8,645	)		$	96,918
State and local government			103,850				—				(4,728	)			99,122
Total		$	209,413			$	—			$	(13,373	)		$	196,040

On June 1, 2022, the Company reclassified $224.5 million in investments to held-to-maturity (HTM) from available-for-sale (AFS). These securities were transferred at fair value at the time of the transfer, which became the new cost basis for the securities held to maturity. The pretax unrealized net holding loss on the available for sale securities on the date of transfer totaled approximately $16.7 million, and continued to be reported as a component of accumulated other comprehensive loss. This net unrealized loss is being amortized to interest income over the remaining life of the securities as a yield adjustment. There were no gains or losses recognized as a result of this transfer. The remaining pretax unrealized net holding loss on these investments was $10.6 million ($8.4 million net of tax) at December 31, 2025, $12.3 million ($9.7 million net of tax) at December 31, 2024 and $14.0 million ($11.1 million net of tax) at December 31, 2023.

During the year ended December 31, 2023, the Company sold $39.9 million of book value US Treasury securities from the available-for-sale investment securities portfolio. This sale created a one-time pre-tax loss of $1.2 million and provided additional liquidity to pay down borrowings and fund loan growth. During the years ended December 31, 2025 and 2024, respectively, the Company sold no investment securities. The tax benefit applicable to the net realized loss was approximately $0, $0, and $262 for 2025, 2024 and 2023, respectively.

The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at December 31, 2025 and December 31, 2024.


(Dollars in thousands)		Less than 12 months								12 months or more								Total
December 31, 2025		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
Available-for-sale securities:		Value				Loss				Value				Loss				Value				Loss
US Treasury Securities		$	—			$	—			$	14,134			$	1,717			$	14,134			$	1,717
Government Sponsored Enterprise			—				—				2,256				244				2,256				244
Mortgage-backed securities			454				—				189,625				10,604				190,079				10,604
Small Business Administration pools			317				3				6,342				204				6,659				207
Corporate and other securities			—				—				6,893				601				6,893				601
Total		$	771			$	3			$	219,250			$	13,370			$	220,021			$	13,373

(Dollars in thousands)		Less than 12 months								12 months or more								Total
December 31, 2024		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
Available-for-sale securities:		Value				Loss				Value				Loss				Value				Loss
US Treasury Securities		$	—			$	—			$	13,240			$	2,582			$	13,240			$	2,582
Government Sponsored Enterprise			—				—				2,110				390				2,110				390
Mortgage-backed securities			14,310				150				216,452				15,709				230,762				15,859
Small Business Administration pools			1,279				2				8,554				371				9,833				373
Corporate and other securities			1,488				263				6,449				543				7,937				806
Total		$	17,077			$	415			$	246,805			$	19,595			$	263,882			$	20,010


(Dollars in thousands)		Less than 12 months								12 months or more								Total
December 31, 2025		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
Held-to-maturity securities:		Value				Loss				Value				Loss				Value				Loss
Mortgage-backed securities			—				—				88,153				4,921				88,153				4,921
State and local government			10,643				14				68,752				1,765				79,395				1,779
Total		$	10,643			$	14			$	156,905			$	6,686			$	167,548			$	6,700

(Dollars in thousands)		Less than 12 months								12 months or more								Total
December 31, 2024		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
Held-to-maturity securities:		Value				Loss				Value				Loss				Value				Loss
Mortgage-backed securities			—				—				96,918				8,645				96,918				8,645
State and local government			21,376				436				76,104				4,292				97,480				4,728
Total		$	21,376			$	436			$	173,022			$	12,937			$	194,398			$	13,373

The amortized cost and fair value of investment securities at December 31, 2025, by expected maturity, follow. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. Mortgage-backed securities are included in the year corresponding with the remaining expected life.

AVAILABLE-FOR-SALE:

(Dollars in thousands)		Available-for-sale
		Amortized Cost				Fair Value
Due in one year or less		$	12,338			$	12,320
Due after one year through five years			17,759				17,024
Due after five years through ten years			24,271				22,217
Due after ten years			252,383				242,535
		$	306,765			$	294,109

HELD-TO-MATURITY:

(Dollars in thousands)		Held-to-maturity
		Amortized Cost				Fair Value
Due in one year or less		$	5,616			$	5,610
Due after one year through five years			64,925				64,120
Due after five years through ten years			53,673				52,898
Due after ten years			70,921				65,954
Allowance for Credit Losses on Held-to-Maturity Securities			(19	)			(19	)
		$	195,116			$	188,563

Securities with an amortized cost of $373.6 million and fair value of $359.6 million at December 31, 2025 were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase. Securities with an amortized cost of $388.5 million and fair value of $363.8 million at December 31, 2024 were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase.

Allowance for Credit Losses on Held-to-Maturity Securities

Expected credit losses on held-to-maturity debt securities are evaluated by major security type. The held-to-maturity portfolio consists of mortgage-backed and municipal securities. Securities are generally rated BBB- or higher. Municipal securities are analyzed individually to establish a CECL reserve.

All mortgage-backed securities (“MBS”) held by the Company are issued by government-sponsored corporations. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. As a result, no allowance for credit losses was recorded on held-to-maturity MBS at the adoption of CECL at December 31, 2024 or December 31, 2025.

The following table shows a roll forward of the allowance for credit losses on held to maturity securities for the years ended December 31, 2025 and 2024.

		State and
		local
(Dollars in thousands)		government
Allowance for Credit Losses on Held-to-Maturity Securities:

Beginning balance, December 31, 2023		$	(30	)
Release of credit losses			7
Ending balance, December 31, 2024		$	(23	)

		State and
		local
(Dollars in thousands)		government
Allowance for Credit Losses on Held-to-Maturity Securities:

Beginning balance, December 31, 2024		$	(23	)
Release of credit losses			4
Ending balance, December 31, 2025		$	(19	)

For the years ended December 31, 2025 and 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 at December 31, 2025 or 2024.

Allowance for Credit Losses on Available-for-Sale Securities

For available-for-sale securities, management evaluates all investments in an unrealized loss position on a quarterly basis, or more frequently when economic or market conditions warrant such evaluation. If the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security, the security is written down to fair value and the entire loss is recorded in earnings.

Changes in the allowance for credit loss are recorded as provision for (or release of) credit loss expense. Losses are charged against the allowance for credit loss when management believes an available-for-sale security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met. At December 31, 2025 and December 31, 2024, there was no allowance for credit loss related to the available-for-sale securities portfolio.