v3.26.1
INVESTMENT SECURITIES
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES
NOTE 2 – INVESTMENT SECURITIES

The amortized cost and estimated fair value of securities available-for-sale along with allowance for credit losses, gross unrealized gains and losses are summarized as follows:

(dollars in thousands)
Securities available-for-sale
Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
June 30, 2026
U.S. Treasuries$584,558 $— $1,298 $(2,409)$583,447 
State, county and municipal securities18,005 — 5 (547)17,463 
Corporate debt securities2,894 (68)— (374)2,452 
SBA pool securities11,146 — — (627)10,519 
Mortgage-backed securities1,862,905 — 9,203 (25,366)1,846,742 
Total debt securities available-for-sale$2,479,508 $(68)$10,506 $(29,323)$2,460,623 
December 31, 2025
U.S. Treasuries$653,888 $— $7,578 $(841)$660,625 
State, county and municipal securities19,493 — 6 (438)19,061 
Corporate debt securities6,395 (75)9 (454)5,875 
SBA pool securities12,795 — — (587)12,208 
Mortgage-backed securities1,500,644 — 22,594 (13,834)1,509,404 
Total debt securities available-for-sale$2,193,215 $(75)$30,187 $(16,154)$2,207,173 

The amortized cost and estimated fair value of securities held-to-maturity along with gross unrealized gains and losses are summarized as follows:

(dollars in thousands)
Securities held-to-maturity
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
June 30, 2026
State, county and municipal securities$33,284 $— $(4,766)$28,518 
Mortgage-backed securities174,871 195 (10,591)164,475 
Total debt securities held-to-maturity$208,155 $195 $(15,357)$192,993 
December 31, 2025
State, county and municipal securities$33,414 $4 $(4,145)$29,273 
Mortgage-backed securities169,828 534 (9,762)160,600 
Total debt securities held-to-maturity$203,242 $538 $(13,907)$189,873 
The amortized cost and estimated fair value of debt securities available-for-sale and held-to-maturity as of June 30, 2026, by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying these securities may be called or repaid without penalty. Therefore, these securities are not included in the maturity categories in the following maturity summary:

Available-for-SaleHeld-to-Maturity
(dollars in thousands)
Amortized
Cost		Estimated Fair ValueAmortized
Cost		Estimated Fair Value
Due in one year or less$176,703 $176,742 $— $— 
Due from one year to five years371,339 369,777 — — 
Due from five to ten years65,631 64,888 1,272 1,266 
Due after ten years2,930 2,474 32,012 27,252 
Mortgage-backed securities1,862,905 1,846,742 174,871 164,475 
$2,479,508 $2,460,623 $208,155 $192,993 

Securities with a carrying value of approximately $638.3 million and $512.0 million at June 30, 2026 and December 31, 2025, respectively, serve as collateral to secure public deposits and for other purposes required or permitted by law.

The following table shows the gross unrealized losses and estimated fair value of available-for-sale securities aggregated by category and length of time that securities have been in a continuous unrealized loss position at June 30, 2026 and December 31, 2025:

Less Than 12 Months12 Months or MoreTotal
(dollars in thousands)
Securities available-for-sale
Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses
June 30, 2026
U.S. Treasuries$203,254 $(2,409)$— $— $203,254 $(2,409)
State, county and municipal securities1,994 (12)10,926 (535)12,920 (547)
Corporate debt securities2,057 (374)— — 2,057 (374)
SBA pool securities— — 10,392 (627)10,392 (627)
Mortgage-backed securities576,485 (12,005)359,603 (13,361)936,088 (25,366)
Total debt securities available-for-sale$783,790 $(14,800)$380,921 $(14,523)$1,164,711 $(29,323)
December 31, 2025
U.S. Treasuries$— $— $56,606 $(841)$56,606 $(841)
State, county and municipal securities— — 12,803 (438)12,803 (438)
Corporate debt securities1,050 (375)2,421 (79)3,471 (454)
SBA pool securities— — 12,076 (587)12,076 (587)
Mortgage-backed securities100,144 (3,061)390,234 (10,773)490,378 (13,834)
Total debt securities available-for-sale$101,194 $(3,436)$474,140 $(12,718)$575,334 $(16,154)

As of June 30, 2026, the Company’s available-for-sale security portfolio consisted of 397 securities, 314 of which were in an unrealized loss position. At June 30, 2026, the Company held 265 mortgage-backed securities that were in an unrealized loss position, all of which were issued by U.S. government-sponsored entities and agencies. At June 30, 2026, the Company held 26 U.S. Small Business Administration (“SBA”) pool securities, 11 state, county and municipal securities, four corporate securities, and eight U.S. Treasury securities that were in an unrealized loss position.
The following table shows the gross unrealized losses and estimated fair value of held-to-maturity securities aggregated by category and length of time that securities have been in a continuous unrealized loss position at June 30, 2026 and December 31, 2025:

Less Than 12 Months12 Months or MoreTotal
(dollars in thousands)
Securities held-to-maturity
Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses
June 30, 2026
State, county and municipal securities$9,484 $(81)$19,034 $(4,685)$28,518 $(4,766)
Mortgage-backed securities60,288 (777)77,210 (9,814)137,498 (10,591)
Total debt securities held-to-maturity$69,772 $(858)$96,244 $(14,499)$166,016 $(15,357)
December 31, 2025
State, county and municipal securities$— $— $27,990 $(4,145)$27,990 $(4,145)
Mortgage-backed securities19,344 (152)83,035 (9,610)102,379 (9,762)
Total debt securities held-to-maturity$19,344 $(152)$111,025 $(13,755)$130,369 $(13,907)

As of June 30, 2026, the Company’s held-to-maturity security portfolio consisted of 66 securities, 57 of which were in an unrealized loss position. At June 30, 2026, the Company held 49 mortgage-backed securities and eight state, county and municipal securities that were in an unrealized loss position.

At June 30, 2026 and December 31, 2025, all of the Company’s mortgage-backed securities were obligations of government-sponsored agencies.

Management and the Company’s Asset and Liability Committee (the “ALCO Committee”) evaluate available-for-sale securities in an unrealized loss position on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation, to determine if credit-related impairment exists. Management first evaluates whether they intend to sell or more likely than not will be required to sell an impaired security before recovering its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in earnings with a corresponding adjustment to the security's amortized cost basis. If either of the above criteria is not met, management evaluates whether the decline in fair value is attributable to credit or resulted from other factors. The Company does not intend to sell these available-for-sale investment securities at an unrealized loss position at June 30, 2026, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity. Based on the results of management's review, at June 30, 2026, management determined that $68,000 was attributable to credit impairment and an allowance for credit losses was recorded. The remaining $29.3 million in unrealized loss was determined to be from factors other than credit.

(dollars in thousands)Three Months Ended June 30,Six Months Ended June 30,
Allowance for credit losses
2026202520262025
Beginning balance$69 $69 $75 $69 
Provision for other credit losses(1)(3)(7)(3)
Ending balance$68 $66 $68 $66 

The Company's held-to-maturity securities have no expected credit losses, and no related allowance for credit losses has been established.
The following table is a summary of sales activities in the Company's debt securities available for sale for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2026202520262025
Gross gains on sales of securities available for sale$246 $— $246 $— 
Gross losses on sales of securities available for sale(184)— (184)— 
Net realized gains on sales of securities available for sale$62 $— $62 $— 
Sales proceeds$86,167 $— $86,167 $— 

Total net gain on securities reported on the consolidated statements of income and comprehensive income is comprised of the following for the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2026202520262025
Net realized gains on sales of securities available-for-sale$62 $— $62 $— 
Net realized gains on equity securities2,367 — 2,367 — 
Unrealized holding gains on equity securities4,921 — 4,921 40 
Net realized gains on sales of other investments42 — 42 — 
Net gain on securities$7,392 $— $7,392 $40