INVESTMENTS (Tables)
|
3 Months Ended |
Mar. 31, 2026 |
|---|
| Amortized Cost and Fair Value of Securities Available-for-Sale |
The amortized cost and fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are listed below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Allowance
for Credit
Losses |
|
|
Fair
Value |
|
March 31, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government-sponsored entities |
|
$ |
25,676 |
|
|
$ |
203 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
25,879 |
|
U.S. Treasury securities |
|
|
38,665 |
|
|
|
66 |
|
|
|
— |
|
|
|
— |
|
|
|
38,731 |
|
Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-sponsored residential mortgage-backed securities |
|
|
862,036 |
|
|
|
5,282 |
|
|
|
(4,250 |
) |
|
|
— |
|
|
|
863,068 |
|
Private label residential mortgage-backed securities |
|
|
4,298 |
|
|
|
— |
|
|
|
(95 |
) |
|
|
— |
|
|
|
4,203 |
|
Corporate |
|
|
93,044 |
|
|
|
641 |
|
|
|
(1,325 |
) |
|
|
— |
|
|
|
92,360 |
|
Small Business Administration loan pools |
|
|
77,400 |
|
|
|
126 |
|
|
|
(191 |
) |
|
|
— |
|
|
|
77,335 |
|
State and political subdivisions |
|
|
24,036 |
|
|
|
27 |
|
|
|
(477 |
) |
|
|
— |
|
|
|
23,586 |
|
|
|
$ |
1,125,155 |
|
|
$ |
6,345 |
|
|
$ |
(6,338 |
) |
|
$ |
— |
|
|
$ |
1,125,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Allowance
for Credit
Losses |
|
|
Fair
Value |
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government-sponsored entities |
|
$ |
25,960 |
|
|
$ |
338 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
26,298 |
|
U.S. Treasury securities |
|
|
35,134 |
|
|
|
116 |
|
|
|
— |
|
|
|
— |
|
|
|
35,250 |
|
Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-sponsored residential mortgage-backed securities |
|
|
763,827 |
|
|
|
9,598 |
|
|
|
(1,280 |
) |
|
|
— |
|
|
|
772,145 |
|
Private label residential mortgage-backed securities |
|
|
4,441 |
|
|
|
— |
|
|
|
(115 |
) |
|
|
— |
|
|
|
4,326 |
|
Corporate |
|
|
92,142 |
|
|
|
734 |
|
|
|
(1,078 |
) |
|
|
— |
|
|
|
91,798 |
|
Small Business Administration loan pools |
|
|
80,199 |
|
|
|
130 |
|
|
|
(124 |
) |
|
|
— |
|
|
|
80,205 |
|
State and political subdivisions |
|
|
20,767 |
|
|
|
70 |
|
|
|
(291 |
) |
|
|
— |
|
|
|
20,546 |
|
|
|
$ |
1,022,470 |
|
|
$ |
10,986 |
|
|
$ |
(2,888 |
) |
|
$ |
— |
|
|
$ |
1,030,568 |
|
|
| Amortized Cost and Fair Value of Securities Held-to-Maturity |
The amortized cost and fair value of held-to-maturity securities and the related gross unrecognized gains and losses are listed in the following tables.
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|
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|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost |
|
|
Gross
Unrecognized
Gains |
|
|
Gross
Unrecognized
Losses |
|
|
Allowance
for Credit
Losses |
|
|
Fair
Value |
|
March 31, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-sponsored residential mortgage-backed securities |
|
$ |
3,974 |
|
|
$ |
88 |
|
|
$ |
(9 |
) |
|
$ |
— |
|
|
$ |
4,053 |
|
State and political subdivisions |
|
|
1,280 |
|
|
|
16 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
1,293 |
|
|
|
$ |
5,254 |
|
|
$ |
104 |
|
|
$ |
(12 |
) |
|
$ |
— |
|
|
$ |
5,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost |
|
|
Gross
Unrecognized
Gains |
|
|
Gross
Unrecognized
Losses |
|
|
Allowance
for Credit
Losses |
|
|
Fair
Value |
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-maturity securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-sponsored residential mortgage-backed securities |
|
$ |
3,967 |
|
|
$ |
131 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,098 |
|
State and political subdivisions |
|
|
1,281 |
|
|
|
30 |
|
|
|
— |
|
|
|
— |
|
|
|
1,311 |
|
|
|
$ |
5,248 |
|
|
$ |
161 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,409 |
|
|
| Fair Value and Amortized Cost of Debt Securities by Contractual Maturity |
The fair value and amortized cost of debt securities at March 31, 2026, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-Sale |
|
|
Held-to-Maturity |
|
|
|
Amortized
Cost |
|
|
Fair
Value |
|
|
Amortized
Cost |
|
|
Fair
Value |
|
Within one year |
|
$ |
58,190 |
|
|
$ |
58,262 |
|
|
$ |
— |
|
|
$ |
— |
|
One to five years |
|
|
32,790 |
|
|
|
33,020 |
|
|
|
— |
|
|
|
— |
|
Five to ten years |
|
|
82,171 |
|
|
|
81,251 |
|
|
|
170 |
|
|
|
167 |
|
After ten years |
|
|
8,270 |
|
|
|
8,023 |
|
|
|
1,110 |
|
|
|
1,126 |
|
Small Business Administration loan pools |
|
|
77,400 |
|
|
|
77,335 |
|
|
|
— |
|
|
|
— |
|
Mortgage-backed securities |
|
|
866,334 |
|
|
|
867,271 |
|
|
|
3,974 |
|
|
|
4,053 |
|
Total debt securities |
|
$ |
1,125,155 |
|
|
$ |
1,125,162 |
|
|
$ |
5,254 |
|
|
$ |
5,346 |
|
|
| Carrying Value of Securities Pledged as Collateral to Secure Public Fund Deposits |
The following table shows the carrying value and fair value of securities pledged as collateral to secure public fund deposits; borrowings from the Federal Home Loan Bank and Federal Reserve Bank; and retail repurchase obligations at March 31, 2026, and December 31, 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
|
|
Book
Value |
|
|
Fair
Value |
|
|
Book Value |
|
|
Fair
Value |
|
Public fund deposits |
|
$ |
728,693 |
|
|
$ |
730,822 |
|
|
$ |
785,200 |
|
|
$ |
793,014 |
|
Federal Reserve Bank borrowings |
|
|
501 |
|
|
|
508 |
|
|
|
2,002 |
|
|
|
2,042 |
|
Retail repurchase agreements |
|
|
39,385 |
|
|
|
39,826 |
|
|
|
40,898 |
|
|
|
41,481 |
|
Total securities pledged |
|
$ |
768,579 |
|
|
$ |
771,156 |
|
|
$ |
828,100 |
|
|
$ |
836,537 |
|
|
| Summary of Gross Unrealized or Unrecognized Losses and Fair Value of Securities |
The following tables show gross unrealized or unrecognized losses and fair value, aggregated by investment category, and length of time that individual securities have been in a continuous loss position at March 31, 2026, and December 31, 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less Than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
|
Fair
Value |
|
|
Unrealized
Loss |
|
March 31, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government-sponsored entities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
U.S. Treasury securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-sponsored residential mortgage-backed securities |
|
|
400,818 |
|
|
|
(3,399 |
) |
|
|
27,554 |
|
|
|
(851 |
) |
|
|
428,372 |
|
|
|
(4,250 |
) |
Private label residential mortgage-backed securities |
|
|
— |
|
|
|
— |
|
|
|
4,203 |
|
|
|
(95 |
) |
|
|
4,203 |
|
|
|
(95 |
) |
Corporate |
|
|
20,064 |
|
|
|
(128 |
) |
|
|
24,037 |
|
|
|
(1,197 |
) |
|
|
44,101 |
|
|
|
(1,325 |
) |
Small Business Administration loan pools |
|
|
46,696 |
|
|
|
(133 |
) |
|
|
7,443 |
|
|
|
(58 |
) |
|
|
54,139 |
|
|
|
(191 |
) |
State and political subdivisions |
|
|
10,201 |
|
|
|
(266 |
) |
|
|
6,995 |
|
|
|
(211 |
) |
|
|
17,196 |
|
|
|
(477 |
) |
Total |
|
$ |
477,779 |
|
|
$ |
(3,926 |
) |
|
$ |
70,232 |
|
|
$ |
(2,412 |
) |
|
$ |
548,011 |
|
|
$ |
(6,338 |
) |
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government-sponsored entities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
U.S. Treasury securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government-sponsored residential mortgage-backed securities |
|
|
129,917 |
|
|
|
(519 |
) |
|
|
28,089 |
|
|
|
(761 |
) |
|
|
158,006 |
|
|
|
(1,280 |
) |
Private label residential mortgage-backed securities |
|
|
— |
|
|
|
— |
|
|
|
4,326 |
|
|
|
(115 |
) |
|
|
4,326 |
|
|
|
(115 |
) |
Corporate |
|
|
11,837 |
|
|
|
(73 |
) |
|
|
24,225 |
|
|
|
(1,005 |
) |
|
|
36,062 |
|
|
|
(1,078 |
) |
Small Business Administration loan pools |
|
|
23,308 |
|
|
|
(52 |
) |
|
|
8,629 |
|
|
|
(72 |
) |
|
|
31,937 |
|
|
|
(124 |
) |
State and political subdivisions |
|
|
2,807 |
|
|
|
(109 |
) |
|
|
9,460 |
|
|
|
(182 |
) |
|
|
12,267 |
|
|
|
(291 |
) |
Total |
|
$ |
167,869 |
|
|
$ |
(753 |
) |
|
$ |
74,729 |
|
|
$ |
(2,135 |
) |
|
$ |
242,598 |
|
|
$ |
(2,888 |
) |
|
| Summary of Proceeds from Sales and Associated Gains and Losses |
The proceeds from sales and the associated gains and losses on available-for-sale securities reclassified from other comprehensive income to income are listed below.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2026 |
|
|
2025 |
|
Proceeds |
|
$ |
77,420 |
|
|
$ |
640 |
|
Gross gain |
|
|
— |
|
|
|
13 |
|
Gross losses |
|
|
— |
|
|
|
— |
|
Income tax expense/(benefit) |
|
|
— |
|
|
|
3 |
|
|
| Summary of Various Investment Balances and Method of Accounting |
The Company also invests in several other investments, including investments in stocks and partnerships, which are included in other assets. The following table shows the various investment balances and method of accounting at March 31, 2026, and December 31, 2025.
|
|
|
|
|
|
|
|
|
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
Investments in stocks |
|
|
|
|
|
|
Accounted for at fair value through net income |
|
$ |
1,404 |
|
|
$ |
1,182 |
|
Accounted for at amortized cost assessed for impairment |
|
|
3,053 |
|
|
|
2,362 |
|
Total investments in stocks |
|
|
4,457 |
|
|
|
3,544 |
|
Investments in partnerships |
|
|
|
|
|
|
Accounted for under the equity method |
|
|
3,037 |
|
|
|
3,037 |
|
Accounted for under the hypothetical liquidation book value |
|
|
1,240 |
|
|
|
1,306 |
|
Accounted for under proportional amortization |
|
|
25,001 |
|
|
|
26,299 |
|
Total investments in partnerships |
|
|
29,278 |
|
|
|
30,642 |
|
Total other investments |
|
$ |
33,735 |
|
|
$ |
34,186 |
|
|
| Impact of Tax Credit Investments |
The following table discloses the financial statement impact of tax credit investments for the three month period ended March 31, 2026, and 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Credits Recognized During Period (a) |
|
|
Other Income Tax Benefits (a) |
|
|
Total Tax Benefits |
|
|
Investment Amortization Included in Income Tax Expense |
|
March 31, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
Investments and tax credit structures: |
|
|
|
|
|
|
|
|
|
|
|
|
Included in proportional amortization |
|
$ |
(1,197 |
) |
|
$ |
(138 |
) |
|
$ |
(1,335 |
) |
|
$ |
1,199 |
|
Not included in proportional amortization |
|
$ |
— |
|
|
$ |
44 |
|
|
$ |
44 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
Investments and tax credit structures: |
|
|
|
|
|
|
|
|
|
|
|
|
Included in proportional amortization |
|
$ |
(619 |
) |
|
$ |
(258 |
) |
|
$ |
(877 |
) |
|
$ |
761 |
|
Not included in proportional amortization |
|
$ |
— |
|
|
$ |
62 |
|
|
$ |
62 |
|
|
$ |
— |
|
(a) Reported in income tax expense on statements of income and reported in net change in other assets on statements of cash flows. |
|
|