INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2026

Investments, Debt and Equity Securities [Abstract]

At June 30, 2026 and December 31, 2025, all investment securities were classified as AFS. The following table summarizes amortized cost and fair value of AFS securities, the corresponding amounts of gross unrealized gains and losses recognized in AOCI and the ACL at June 30, 2026 and December 31, 2025:


	Amortized Cost		Gross Unrealized Gains		(Gross Unrealized Losses)		Allowance for Credit Losses		Fair Value
June 30, 2026
U.S. Treasury securities	$	15,012	$	—	$	806	$	—	$	14,206
U.S. Government Agencies	1,449		36		—		—		1,485

States and political subdivisions	218,855		119		14,846		—		204,128
GSE residential MBSs	235,069		901		4,607		—		231,363
GSE commercial MBSs	10,977		55		33		—		10,999
GSE residential CMOs	345,191		1,732		5,343		—		341,580

Non-agency CMOs	74,016		55		1,349		—		72,722


Asset-backed	71,892		354		721		—		71,525
Corporate debt	953		22		—		—		975
Other	298		—		—		—		298
Totals	$	973,712	$	3,274	$	27,705	$	—	$	949,281
December 31, 2025
U.S. Treasury securities	$	15,016	$	—	$	805	$	—	$	14,211
U.S. Government Agencies	1,746		50		—		—		1,796

States and political subdivisions	218,832		288		16,972		—		202,148
GSE residential MBSs	234,016		3,228		3,141		—		234,103
GSE commercial MBSs	6,081		106		16		—		6,171
GSE residential CMOs	354,954		3,425		4,376		—		354,003

Non-agency CMOs	60,693		363		1,233		—		59,823


Asset-backed	78,610		443		803		—		78,250
Corporate debt	1,947		45		—		—		1,992
Other	243		—		—		—		243
Totals	$	972,138	$	7,948	$	27,346	$	—	$	952,740

The following table summarizes investment securities with unrealized losses at June 30, 2026 and December 31, 2025, aggregated by major security type and the length of time in a continuous unrealized loss position:


	Less Than 12 Months					12 Months or More					Total
	# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses
June 30, 2026
U.S. Treasury securities	—	$	—	$	—	2	$	14,206	$	806	2	$	14,206	$	806

States and political subdivisions	4	7,071		80		40	188,089		14,766		44	195,160		14,846
GSE residential MBSs	14	106,023		2,448		8	12,289		2,159		22	118,312		4,607
GSE commercial MBS	1	5,373		6		2	1,139		27		3	6,512		33
GSE residential CMOs	18	86,665		1,175		15	49,615		4,168		33	136,280		5,343
Non-agency CMOs	13	54,384		469		4	15,650		880		17	70,034		1,349



Asset-backed	2	5,199		6		11	44,579		715		13	49,778		721

Totals	52	$	264,715	$	4,184	82	$	325,567	$	23,521	134	$	590,282	$	27,705
December 31, 2025
U.S. Treasury securities	—	$	—	$	—	2	$	14,211	$	805	2	$	14,211	$	805


States and political subdivisions	2	10,498		199		39	176,757		16,773		41	187,255		16,972
GSE residential MBSs	7	72,981		1,044		8	13,003		2,097		15	85,984		3,141
GSE commercial MBS	2	1,222		16		—	—		—		2	1,222		16
GSE residential CMOs	9	39,588		335		21	87,901		4,041		30	127,489		4,376
Non-agency CMOs	5	21,230		180		4	16,158		1,053		9	37,388		1,233



Asset-backed	2	3,890		29		9	43,168		774		11	47,058		803

Totals	27	$	149,409	$	1,803	83	$	351,198	$	25,543	110	$	500,607	$	27,346

On a quarterly basis, the Company conducts an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying issuers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. Under the CECL standard, if the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, which is limited by the amount that the fair value is less than the amortized cost basis. Any additional amount of loss would be due to non-credit factors and is recorded in AOCI, net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in AOCI, net of taxes, on the consolidated balance sheets.

The Company did not record an ACL on the AFS securities at June 30, 2026 and December 31, 2025. As of these periods, the Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily higher interest rates from the time of the security purchase, and not reflective of deterioration in credit. In addition, the Company maintains that it has the intent and ability to hold these AFS securities until the amortized cost is recovered and it is more likely than not that any of AFS securities in an unrealized loss position would not be required to be sold.

U.S. Treasury Securities. The unrealized losses presented in the table above have been caused by an increase in interest rates from the time these securities were purchased. Management considers the full faith and credit of the U.S. government in determining whether declines in fair value are due to credit factors.

States and Political Subdivisions. The unrealized losses presented in the table above have been caused by a rise in interest rates from the time these securities were purchased. Management evaluates the financial performance of the issuers, including the investment rating, the state of the issuer of the security and other credit support in determining whether declines in fair value are due to credit factors.

GSE Residential CMOs, GSE Residential MBS and GSE Commercial MBS. The unrealized losses presented in the table above have been caused by a widening of spreads and a rise in interest rates from the time these securities were purchased. The contractual terms of these securities do not permit the issuer to settle the securities at a price less than its par value basis.

Non-Agency CMOs. The unrealized losses presented in the table above were caused by a widening of spreads and a rise in interest rates from the time the securities were purchased. In determining whether declines in fair value in these investment securities are due to credit factors, management evaluates credit enhancements and other credit support, the investment rating and delinquencies.

Asset-backed. The unrealized losses presented in the table above were caused by a widening of spreads and a rise in the interest rates from the time the securities were purchased. In determining whether declines in fair value in these investment securities are due to credit factors, management evaluates credit enhancements and other credit support, the investment rating and delinquencies.

The Company does not intend to sell the aforementioned investment securities with unrealized losses and it is more likely than not that the Company will not be required to sell them before recovery of their amortized cost basis, which may be maturity. In addition, the unrealized losses are not credit related. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2026.

The following table summarizes amortized cost and fair value of investment securities by contractual maturity at June 30, 2026. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	Amortized Cost		Fair Value
Due in one year or less	$	1,108	$	1,106
Due after one year through five years	49,898		46,916
Due after five years through ten years	54,563		52,069
Due after ten years	130,998		121,001
CMOs and MBSs	665,253		656,664
Asset-backed	71,892		71,525

Totals	$	973,712	$	949,281

The following table summarizes proceeds from sales of investment securities and gross gains and gross losses for the three and six months ended June 30, 2026 and 2025:


	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Proceeds from sale of investment securities	$	—	$	—	$	—	$	—
Gross gains	57		8		57		21
Gross losses	—		—		2		—

During the three and six months ended June 30, 2026, the Company recorded a net gain of $57 thousand and $55 thousand compared to a net gain of $8 thousand and $21 thousand for the three and six months ended June 30, 2025 from mark-to-market activity on an equity security. During the three and six months ended June 30, 2026 and 2025, the Company did not sell any investment securities. Investment securities with a fair value of $648.6 million and $556.5 million at June 30, 2026 and December 31, 2025, respectively, were pledged to secure public funds and for other purposes as required or permitted by law. At June 30, 2026 and December 31, 2025, no AFS investment securities holding of any one issuer, other than the U.S. government and its agencies, amounted to greater than 10% of shareholders’ equity.