The carrying values of investment securities as of March 31, 2026 and December 31, 2025 are summarized in the following table (dollars in thousands):


	March 31, 2026				December 31, 2025
	Amount		Percent		Amount		Percent
Securities available for sale
U.S. Treasury	$	264,428	27.59	%	$	255,527	26.74	%
U.S. Government Agency and GSE securities	4,592		0.48		4,658		0.49
State and political subdivisions	372,028		38.82		382,645		40.04
Mortgage-backed securities and collateralized mortgage obligations	317,336		33.11		312,754		32.73
Total securities available for sale	$	958,384	100.00	%	$	955,584	100.00	%

Investment securities have been classified in the consolidated balance sheets according to management’s intent. Available-for-sale securities consist of debt securities not classified as trading or held to maturity. Available-for-sale securities are stated at fair value, and unrealized holding gains and losses, net of the related deferred tax effect, are reported as a separate component of stockholders' equity. As of March 31, 2026 and December 31, 2025, all securities held were rated investment grade based upon external ratings where available and, where not available, based upon management knowledge of the local issuers and their financial situations. The Company has no securities designated as trading or held to maturity in its portfolio as of March 31, 2026 or December 31, 2025.

The carrying amount of available-for-sale securities and their approximate fair values as of March 31, 2026 and December 31, 2025, were as follows (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Allowance for Credit Losses		Estimated Fair Value
March 31, 2026
U.S. Treasury	$	264,404	$	1,081	$	(1,057)	$	—	$	264,428
U.S. Government Agency and GSE securities	4,711		—		(119)		—		4,592
State and political subdivisions	382,785		1,402		(12,159)		—		372,028
Mortgage-backed securities and collateralized mortgage obligations	317,259		1,569		(1,492)		—		317,336
Total	$	969,159	$	4,052	$	(14,827)	$	—	$	958,384
December 31, 2025
U.S. Treasury	$	253,925	$	2,316	$	(714)	$	—	$	255,527
U.S. Government Agency and GSE securities	4,687		—		(29)		—		4,658
State and political subdivisions	388,685		3,214		(9,254)		—		382,645
Mortgage-backed securities and collateralized mortgage obligations	309,998		3,258		(502)		—		312,754
Total	$	957,295	$	8,788	$	(10,499)	$	—	$	955,584

The amortized cost and estimated fair value of available-for-sale securities classified according to their contractual maturities as of March 31, 2026, were as follows (in thousands) below.


	Amortized Cost		Fair Value
Due in one year or less	$	77,313	$	76,632
Due after one year through five years	280,659		280,312
Due after five years through ten years	86,872		79,591
Due over ten years	207,056		204,513
	$	651,900	$	641,048
Mortgage-backed securities and collateralized mortgage obligations	317,259		317,336
	$	969,159	$	958,384

Expected maturities of MBS may differ from contractual maturities because the mortgages underlying the securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the above summary.

As of March 31, 2026 and December 31, 2025, investment securities with a market value of $153.29 million and $154.03 million, respectively, were pledged to collateralize other borrowings. As of March 31, 2026, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders' equity.

Sales proceeds and gross realized gains and losses on available-for-sale securities were as follows (in thousands):


	Three Months Ended March 31,
	2026		2025
Sale proceeds	$	134	$	—
Gross realized gains	—		—
Gross realized losses	(13)		—

The following table shows the Company's investments' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2026 and December 31, 2025 (in thousands):


	Less than 12 months							12 months or more							Total
March 31, 2026 Description of Securities	#	Fair Value		Unrealized Loss		%		#	Fair Value		Unrealized Loss		%		#	Fair Value		Unrealized Loss		%
U.S. Treasury	18	$	76,527	$	(525)	0.69	%	19	$	51,814	$	(532)	1.03	%	37	$	128,341	$	(1,057)	0.82	%

U.S. Government Agency and GSE securities	1	4,592		(119)		2.59		—	—		—		—		1	4,592		(119)		2.59

State and political subdivisions	413	173,209		(2,793)		1.61		346	95,158		(9,366)		9.84		759	268,367		(12,159)		4.53

Mortgage-backed securities and collateralized mortgage obligations	13	111,665		(1,228)		1.10		4	18,578		(264)		1.42		17	130,243		(1,492)		1.15

	445	$	365,993	$	(4,665)	1.27	%	369	$	165,550	$	(10,162)	6.14	%	814	$	531,543	$	(14,827)	2.79	%


	Less than 12 months							12 months or more							Total
December 31, 2025 Description of Securities	#	Fair Value		Unrealized Loss		%		#	Fair Value		Unrealized Loss		%		#	Fair Value		Unrealized Loss		%
U.S. Treasury	6	$	29,972	$	(69)	0.23	%	23	$	61,637	$	(645)	1.05	%	29	$	91,609	$	(714)	0.78	%

U.S. Government Agency and GSE securities	1	4,658		(29)		0.62		—	—		—		—		1	4,658		(29)		0.62

State and political subdivisions	78	47,697		(446)		0.94		518	159,124		(8,808)		5.54		596	206,821		(9,254)		4.47

Mortgage-backed securities and collateralized mortgage obligations	7	77,518		(382)		0.49		4	19,920		(120)		0.60		11	97,438		(502)		0.52

	92	$	159,845	$	(926)	0.58	%	545	$	240,681	$	(9,573)	3.98	%	637	$	400,526	$	(10,499)	2.62	%

The Company considered the following information in reaching the conclusion that the unrealized losses disclosed in the table above are not attributable to credit losses. None of the unrealized losses in the above table were due to the deterioration in the credit quality of any of the issues that might result in the non-collection of contractual principal and interest. The unrealized losses are due to changes in interest rates. The Company completed several balance sheet repositioning transactions related to its investment securities portfolio throughout the last four months of 2025. This consisted of the sale of lower-yielding AFS debt securities resulting in a pre-tax realized loss on the sales of $9.63 million in total for 2025. All of the proceeds from the sale of these securities were used to purchase AFS debt securities at higher yields to improve income going forward, while maintaining the liquidity provided by the investment portfolio. Management has concluded that it is more likely than not that the Company will not be required to sell these securities prior to recovery of the amortized cost basis. The securities are of high credit quality (investment grade credit ratings) and principal and interest payments are made timely with no payments past due as of March 31, 2026. The fair value is expected to recover as the securities approach maturity. The Company evaluates whether a credit loss exists by monitoring to ensure it has adequate credit support considering the nature of the investment, number and significance of investments in an unrealized loss position, collectability or delinquency issues, the underlying financial statements of the issuers, credit ratings and subsequent changes thereto, and other available relevant information. Considering the above factors, management has determined that no allowance for credit losses is necessary for the securities portfolio as of March 31, 2026.