Securities

6 Months Ended

Jun. 30, 2026

Note 3: Securities

The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at June 30, 2026 and December 31, 2025:


		June 30, 2026
					Gross			Gross
		Amortized			Unrealized			Unrealized
(dollars in thousands)		Cost			Gains			Losses			Fair Value
Securities Available for Sale:
Municipal Bonds		$	263,990		$	5,633		$	(12,753)		$	256,870
Mortgage-Backed Securities			234,000			2,050			(10,720)			225,330
Corporate Securities			88,221			1,892			(1,979)			88,134
U.S. Government Agency Securities			6,919			61			(24)			6,956
Asset-Backed Securities			28,146			2			(26)			28,122
Total Securities Available for Sale		$	621,276		$	9,638		$	(25,502)		$	605,412


		December 31, 2025
					Gross			Gross
		Amortized			Unrealized			Unrealized
(dollars in thousands)		Cost			Gains			Losses			Fair Value
Securities Available for Sale:
U.S. Treasury Securities		$	155,863		$	—		$	(9,657)		$	146,206
Municipal Bonds			242,995			8,686			(12,513)			239,168
Mortgage-Backed Securities			252,291			3,442			(10,061)			245,672
Corporate Securities			93,080			1,958			(2,631)			92,407
U.S. Government Agency Securities			8,664			73			(30)			8,707
Asset-Backed Securities			44,298			20			(37)			44,281
Total Securities Available for Sale		$	797,191		$	14,179		$	(34,929)		$	776,441

Securities with a carrying value of $104.1 million and $254.3 million were pledged to secure borrowing capacity at the Federal Reserve Discount Window as of June 30, 2026 and December 31, 2025, respectively.

The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2026 and December 31, 2025:


				Less Than 12 Months						12 Months or Greater						Total
		Number of					Unrealized						Unrealized						Unrealized
(dollars in thousands, except number of holdings)		Holdings		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
June 30, 2026
Municipal Bonds		164		$	9,547		$	(54)		$	88,978		$	(12,699)		$	98,525		$	(12,753)
Mortgage-Backed Securities		115			52,004			(159)			103,944			(10,561)			155,948			(10,720)
Corporate Securities		38			12,866			(111)			33,975			(1,868)			46,841			(1,979)
U.S. Government Agency Securities		22			661			(6)			1,269			(18)			1,930			(24)
Asset-Backed Securities		7			8,002			(3)			10,917			(23)			18,919			(26)
Total Securities Available for Sale		346		$	83,080		$	(333)		$	239,083		$	(25,169)		$	322,163		$	(25,502)


				Less Than 12 Months						12 Months or Greater						Total
		Number of					Unrealized						Unrealized						Unrealized
(dollars in thousands, except number of holdings)		Holdings		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
December 31, 2025
U.S. Treasury Securities		2		$	—		$	—		$	146,206		$	(9,657)		$	146,206		$	(9,657)
Municipal Bonds		185			22,430			(354)			94,839			(12,159)			117,269			(12,513)
Mortgage-Backed Securities		108			4,701			(14)			110,265			(10,047)			114,966			(10,061)
Corporate Securities		45			10,341			(68)			39,318			(2,563)			49,659			(2,631)
U.S. Government Agency Securities		25			800			(3)			1,884			(27)			2,684			(30)
Asset-Backed Securities		7			13,024			(31)			6,150			(6)			19,174			(37)
Total Securities Available for Sale		372		$	51,296		$	(470)		$	398,662		$	(34,459)		$	449,958		$	(34,929)

At June 30, 2026 and December 31, 2025, 346 and 372 debt securities had unrealized losses with aggregate depreciation of approximately 7.3% and 7.2%, respectively, from the Company’s amortized cost. These unrealized losses have not been recognized into income because management does not intend to sell these securities, and it is not more likely than not it will be required to sell the securities before recovery of its amortized cost basis. Furthermore, the unrealized losses are primarily due to changes in interest rates and other market conditions and were not reflective of credit events. To make this determination, consideration is given to such factors as the credit rating of the issuer, level of credit enhancement, changes in credit ratings, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. As of June 30, 2026 and December 31, 2025, there was no allowance for credit losses carried on the Company’s securities portfolio.

Accrued interest receivable on securities, which is recorded within accrued interest on the balance sheet, totaled $4.7 million and $6.2 million at June 30, 2026 and December 31, 2025, respectively, and was excluded from the estimate of credit losses.

The Company has entered into fair value hedging transactions to mitigate the impact of changing interest rates on the fair value of securities within the portfolio. See Note 6 – Derivative Instruments and Hedging Activities for additional information.

There were no net realized gains or losses as a result of sales from the securities portfolio for the three months ended June 30, 2026. There was a $7.3 million net realized gain as a result of sales from the securities portfolio for the six months ended June 30, 2026, which included a net gain of $10.4 million recorded on the termination of fair value hedges on treasury and municipal securities.

The following table presents a summary of the amortized cost and estimated fair value of debt securities by the earlier of expected call date or contractual maturity as of June 30, 2026. Call date is used when a call of the debt security is expected, as determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed, U.S. government agency securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties.


(dollars in thousands)		Amortized Cost			Fair Value
June 30, 2026
Due in One Year or Less		$	39,681		$	41,668
Due After One Year Through Five Years			168,158			171,669
Due After Five Years Through 10 Years			133,781			122,384
Due After 10 Years			10,591			9,283
Subtotal			352,211			345,004
Mortgage-Backed Securities			234,000			225,330
U.S. Government Agency Securities			6,919			6,956
Asset-Backed Securities			28,146			28,122
Totals		$	621,276		$	605,412

The following table presents a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the three and six months ended June 30, 2026 and 2025:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
(dollars in thousands)		2026			2025			2026			2025
Proceeds From Sales of Securities		$	—		$	58,503		$	208,501		$	59,595
Gross Gains on Sales			—			480			6,190			484
Gross Losses on Sales			—			(6)			(9,342)			(9)