
	June 30, 2026
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	79,851	$	—	$	(4,271)	$	—	$	75,580
U.S. government agency	133,067		233		(1,929)		—		131,371
Municipal	218,152		280		(13,855)		—		204,577
Mortgage-backed:
Agency residential	487,016		1,210		(11,719)		—		476,507
Agency commercial	145,487		20		(7,239)		—		138,268

Corporate	59,846		801		(1,042)		—		59,605
Total available-for-sale	$	1,123,419	$	2,544	$	(40,055)	$	—	$	1,085,908

	June 30, 2026
(dollars in thousands)	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		Allowance for Credit Losses

Held-to-maturity:
U.S. government agency	$	88,508	$	—	$	(5,690)	$	82,818	$	—
Municipal	27,237		223		(53)		27,407		—
Mortgage-backed:
Agency residential	71,168		5		(3,317)		67,856		—
Agency commercial	256,129		7		(25,743)		230,393		—
Total held-to-maturity	$	443,042	$	235	$	(34,803)	$	408,474	$	—


	December 31, 2025
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	89,796	$	—	$	(4,252)	$	—	$	85,544
U.S. government agency	42,399		146		(1,123)		—		41,422
Municipal	152,144		188		(12,062)		—		140,270
Mortgage-backed:
Agency residential	364,567		3,605		(7,377)		—		360,795
Agency commercial	127,004		107		(7,174)		—		119,937

Corporate	65,957		621		(1,445)		—		65,133
Total available-for-sale	$	841,867	$	4,667	$	(33,433)	$	—	$	813,101

	December 31, 2025
(dollars in thousands)	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		Allowance for Credit Losses

Held-to-maturity:
U.S. government agency	$	88,496	$	—	$	(4,850)	$	83,646	$	—
Municipal	28,214		353		(58)		28,509		—
Mortgage-backed:
Agency residential	75,536		23		(2,544)		73,015		—
Agency commercial	266,500		25		(24,896)		241,629		—
Total held-to-maturity	$	458,746	$	401	$	(32,348)	$	426,799	$	—

As of June 30, 2026 and December 31, 2025, the Bank had debt securities with a carrying value of $585.7 million and $412.8 million, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, available borrowing capacity, and for other purposes required or permitted by law.

The amortized cost and fair value of debt securities by contractual maturity, as of June 30, 2026, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due in 1 year or less	$	46,543	$	46,043	$	13,285	$	13,249
Due after 1 year through 5 years	167,518		155,689		68,604		65,614
Due after 5 years through 10 years	202,368		197,049		31,926		29,470
Due after 10 years	74,487		72,352		1,930		1,892

Mortgage-backed:
Agency residential	487,016		476,507		71,168		67,856
Agency commercial	145,487		138,268		256,129		230,393
Total	$	1,123,419	$	1,085,908	$	443,042	$	408,474

The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of June 30, 2026 and December 31, 2025, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position:


	June 30, 2026
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:
U.S. Treasury	$	—	$	—	$	(4,271)	$	75,580	$	(4,271)	$	75,580
U.S. government agency	(918)		80,524		(1,011)		29,291		(1,929)		109,815
Municipal	(1,347)		51,058		(12,508)		124,480		(13,855)		175,538
Mortgage-backed:
Agency residential	(4,340)		270,177		(7,379)		93,795		(11,719)		363,972
Agency commercial	(465)		46,597		(6,774)		89,172		(7,239)		135,769
Corporate	(79)		6,921		(963)		17,940		(1,042)		24,861
Total available-for-sale	$	(7,149)	$	455,277	$	(32,906)	$	430,258	$	(40,055)	$	885,535


	December 31, 2025
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:
U.S. Treasury	$	—	$	—	$	(4,252)	$	85,544	$	(4,252)	$	85,544
U.S. government agency	(18)		2,956		(1,105)		30,744		(1,123)		33,700
Municipal	(35)		4,525		(12,027)		123,881		(12,062)		128,406
Mortgage-backed:
Agency residential	(231)		45,392		(7,146)		121,114		(7,377)		166,506
Agency commercial	(7)		4,442		(7,167)		95,580		(7,174)		100,022
Corporate	(57)		8,728		(1,388)		24,932		(1,445)		33,660
Total available-for-sale	$	(348)	$	66,043	$	(33,085)	$	481,795	$	(33,433)	$	547,838

As of June 30, 2026, there were 503 debt securities in an unrealized loss position for a period of 12 months or more, and 237 debt securities in an unrealized loss position for a period of less than 12 months.

U.S. Treasury, U.S. government agency, and agency mortgage-backed securities are considered to have no risk of credit loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as prepayment and liquidity risks.

Municipal securities include general obligation bonds, which have a very low historical default rate due to issuers generally having taxing authority to service the debt, and represent approximately 71% of the total fair value of our municipal securities portfolio as of June 30, 2026. The remainder of the municipal securities are also of high credit quality with ratings of A1/A+ or better. The Company evaluates credit risk through monitoring credit ratings and reviews of available financial data. The changes in fair value in municipal securities were considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. The estimated allowance for credit losses for the municipal debt securities held-to-maturity was deemed insignificant.

Corporate securities include investment grade corporate and bank subordinated debt securities. The Company evaluates credit risk through monitoring credit ratings, reviews of available issuer financial data, and sector trends. The changes in fair value in corporate securities were considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks.

As of June 30, 2026, the Company did not intend to sell the debt securities that are in an unrealized loss position, and it was more likely than not that the Company would recover the amortized cost prior to being required to sell the debt securities.


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2026		2025		2026		2025

Proceeds from sales	$	—	$	—	$	313,077	$	—
Gross realized gains	—		—		—		—
Gross realized losses	—		—		—		—

Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the consolidated statements of income. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer.


	June 30, 2026
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,269	$	6,807
Cumulative net unrealized gains (losses)	277		(369)
Carrying value	$	3,546	$	6,438


	December 31, 2025
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,124	$	2,981
Cumulative net unrealized gains (losses)	198		(369)
Carrying value	$	3,322	$	2,612

As of June 30, 2026 and December 31, 2025, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect impairments of $0.2 million and downward adjustments based on observable price changes of an identical investment of $0.2 million. There have been no upward adjustments based on observable price changes to equity securities with no readily determinable fair value.


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2026		2025		2026		2025

Readily determinable fair value	$	191	$	23	$	79	$	31
No readily determinable fair value	—		—		—		—
Unrealized gains (losses) on equity securities	$	191	$	23	$	79	$	31