v3.26.1
Available for Sale Securities
 6 Months Ended
Jun. 30, 2026
Available for Sale Securities [Abstract]  
Available for Sale Securities
Note 4 – Available for Sale Securities

The amortized cost, gross unrealized gains and losses, allowance of credit losses and fair value of investment securities at June 30, 2026 and December 31, 2025 were as follows (in thousands):

         
Gross
    
Gross
    
Allowance
        
   
Amortized
    
Unrealized
    
Unrealized
    
for Credit
    
Fair
  
June 30, 2026
  
Cost
    
Gains
    
Losses
    
Losses
    
Value
  
Available-for-sale securities:
                              
U.S. agency securities
  
$
46,011
    
$
-
    
$
(3,121
)
  
$
-
    
$
42,890
  
U.S. treasury securities
    
77,028
      
61
      
(1,805
)
    
-
      
75,284
  
Obligations of state and political subdivisions
    
137,495
      
1,089
      
(5,544
)
    
-
      
133,040
  
Corporate obligations
    
5,663
      
312
      
(106
)
    
-
      
5,869
  
Mortgage-backed securities in government sponsored entities
    
243,973
      
524
      
(10,269
)
    
-
      
234,228
  
Total available-for-sale securities
  
$
510,170
    
$
1,986
    
$
(20,845
)
  
$
-
    
$
491,311
  

December 31, 2025
                                        
Available-for-sale securities:
                                        
U.S. agency securities
  
$
52,651
    
$
12
    
$
(2,908
)
  
$
-
    
$
49,755
  
U.S. treasury securities
    
84,551
      
225
      
(2,122
)
    
-
      
82,654
  
Obligations of state and political subdivisions
    
120,608
      
1,070
      
(5,792
)
    
-
      
115,886
  
Corporate obligations
    
11,304
      
405
      
(412
)
    
-
      
11,297
  
Mortgage-backed securities in government sponsored entities
    
193,405
      
1,103
      
(9,359
)
    
-
      
185,149
  
Total available-for-sale securities
  
$
462,519
    
$
2,815
    
$
(20,593
)
  
$
-
    
$
444,741
  
The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time, which individual securities have been in a continuous unrealized loss position, at June 30, 2026 and December 31, 2025 (in thousands). As of June 30, 2026, the Company owned 276 securities whose fair value was less than their cost basis.

June 30, 2026
  
Less than Twelve Months
    
Twelve Months or Greater
    
Total
  
         
Gross
          
Gross
          
Gross
  
   
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
  
   
Value
    
Losses
    
Value
    
Losses
    
Value
    
Losses
  
U.S. agency securities
  
$
-
    
$
-
    
$
42,890
    
$
(3,121
)
  
$
42,890
    
$
(3,121
)
U.S. treasury securities
    
-
      
-
      
58,178
      
(1,805
)
    
58,178
      
(1,805
)
Obligations of state and political subdivisions
    
14,813
      
(74
)
    
70,972
      
(5,470
)
    
85,785
      
(5,544
)
Corporate obligations
    
-
      
-
      
2,041
      
(106
)
    
2,041
      
(106
)
Mortgage-backed securities in government sponsored entities
    
87,438
      
(998
)
    
71,469
      
(9,271
)
    
158,907
      
(10,269
)
Total securities
  
$
102,251
    
$
(1,072
)
  
$
245,550
    
$
(19,773
)
  
$
347,801
    
$
(20,845
)

December 31, 2025
                                                
U.S. agency securities
  
$
-
    
$
-
    
$
45,104
    
$
(2,908
)
  
$
45,104
    
$
(2,908
)
U.S. treasury securities
    
-
      
-
      
72,784
      
(2,122
)
    
72,784
      
(2,122
)
Obligations of states and political subdivisions
    
5,642
      
(98
)
    
72,858
      
(5,694
)
    
78,500
      
(5,792
)
Corporate obligations
    
-
      
-
      
6,588
      
(412
)
    
6,588
      
(412
)
Mortgage-backed securities in government sponsored entities
    
36,858
      
(247
)
    
79,922
      
(9,112
)
    
116,780
      
(9,359
)
Total securities
  
$
42,500
    
$
(345
)
  
$
277,256
    
$
(20,248
)
  
$
319,756
    
$
(20,593
)

Allowance for Credit Losses – Available for Sale Securities

The Company measures expected credit losses on available-for-sale debt securities when the Company does not intend to sell, or when it is more likely than not that it not will be required to sell, the security before recovery of its amortized cost basis, which may be maturity. 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 income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to 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, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Economic forecast data is utilized to calculate the present value of expected cash flows. The Company obtains its forecast data through a subscription to a widely recognized and relied upon company who publishes various forecast scenarios. Management evaluates the various scenarios to determine a reasonable and supportable scenario, and utilizes a single scenario in the model. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

The allowance for credit losses on available-for-sale debt securities is included within available-for-sale securities on the consolidated balance sheet. Changes in the allowance for credit losses are recorded within Provision for credit losses on the consolidated statement of income. Losses are charged against the allowance when the Company believes the collectability of an available-for-sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met. There was no allowance for credit losses for available for sale securities as of June 30, 2026 and December 31, 2025.
Accrued interest receivable on available-for-sale debt securities totaled $2,748,000 and $2,399,000 at June 30, 2026 and December 31, 2025 and is included within accrued interest receivable on the consolidated balance sheet. This amount is excluded from the estimate of expected credit losses. Available-for-sale debt securities are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available-for-sale debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed.

There were no sales of available for sale securities during the three and six months ended June 30, 2026 and 2025.

The following table presents the net gains on the Company’s equity investments recognized in earnings during the three and six month periods ended June 30, 2026 and  2025, and the portion of unrealized gains for the period that relates to equity investments held at June 30, 2026 and 2025 (in thousands):

   
Three Months Ended
    
Six Months Ended
  
   
June 30,
    
June 30,
  
Equity Securities
  
2026
    
2025
    
2026
    
2025
  
Net gains recognized in equity securities during the period
  
$
96
    
$
32
    
$
115
    
$
21
  
Less: Net gains realized on the sale of equity securities during the period
    
-
      
-
      
-
      
-
  
Net unrealized gains
 
$
96
    
$
32
    
$
115
    
$
21
  

Investment securities with an approximate carrying value of $357.0 million and $367.9 million at June 30, 2026 and December 31, 2025, respectively, were pledged to secure public funds, certain other deposits and borrowing lines.

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.   The amortized cost and fair value of debt securities at June 30, 2026, by contractual maturity, are shown below (in thousands):
 
   
Amortized
        
   
Cost
    
Fair Value
  
Available-for-sale debt securities:
            
Due in one year or less
  
$
47,089
    
$
46,488
  
Due after one year through five years
    
106,900
      
102,693
  
Due after five years through ten years
    
86,560
      
82,414
  
Due after ten years
    
269,621
      
259,716
  
Total
  
$
510,170
    
$
491,311