The amortized cost and fair value of AFS securities, with gross unrealized gains and losses, are as follows as of the dates indicated:


	June 30, 2026								December 31, 2025
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury	$	100,032	$	—	$	872	$	99,160	$	200,327	$	—	$	2,793	$	197,534
States and political subdivisions	64,109		19		2,972		61,156		71,857		45		2,697		69,205
Auction rate money market preferred	3,200		—		781		2,419		3,200		—		787		2,413
Agency mortgage-backed securities	20,743		—		1,216		19,527		23,373		—		1,121		22,252
Agency collateralized mortgage obligations	27,541		—		1,740		25,801		30,312		—		1,518		28,794
Agency commercial mortgage-backed securities	228,036		267		3,188		225,115		172,170		1,149		1,647		171,672
Corporate	6,450		—		339		6,111		6,450		—		529		5,921
Total	$	450,111	$	286	$	11,108	$	439,289	$	507,689	$	1,194	$	11,092	$	497,791

We made an accounting policy election to exclude accrued interest receivable on AFS securities from the amortized cost basis of AFS securities, as displayed above. Accrued interest receivable on AFS securities was $1.6 million and $1.7 million at June 30, 2026 and December 31, 2025, respectively, which is included in other assets on the consolidated balance sheets. Additional policy information related to AFS securities are discussed in detail in Note 1, Significant Accounting Policies in the consolidated financial statements included within the 2025 Annual Report on Form 10-K.

The amortized cost and fair value of AFS securities by contractual maturity as of June 30, 2026 are as follows:


	Maturing								Securities with Variable Monthly Payments or Noncontractual Maturities
(dollars in thousands)	Due in One Year or Less		After One Year But Within Five Years		After Five Years But Within Ten Years		After Ten Years				Total
U.S. Treasury	$	100,032	$	—	$	—	$	—	$	—	$	100,032
States and political subdivisions	8,780		15,497		20,571		19,261		—		64,109
Auction rate money market preferred	—		—		—		—		3,200		3,200
Agency mortgage-backed securities	—		—		—		—		20,743		20,743
Agency collateralized mortgage obligations	—		—		—		—		27,541		27,541
Agency commercial mortgage-backed securities	6,871		148,499		72,666		—		—		228,036
Corporate	—		2,500		3,950		—		—		6,450
Total amortized cost	$	115,683	$	166,496	$	97,187	$	19,261	$	51,484	$	450,111
Fair value	$	114,739	$	163,871	$	95,248	$	17,684	$	47,747	$	439,289

The information in the following tables pertains to AFS securities with gross unrealized losses as of June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position for which an allowance for credit losses has not been recorded.


	June 30, 2026
	Less Than Twelve Months				Twelve Months or More
(dollars in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
U.S. Treasury	$	—	$	—	$	872	$	99,160	$	872
States and political subdivisions	130		10,989		2,842		27,884		2,972
Auction rate money market preferred	—		—		781		2,419		781
Agency mortgage-backed securities	—		—		1,216		19,527		1,216
Agency collateralized mortgage obligations	—		—		1,740		25,801		1,740
Agency commercial mortgage-backed securities	1,232		110,180		1,956		82,866		3,188
Corporate	—		—		339		6,111		339
Total	$	1,362	$	121,169	$	9,746	$	263,768	$	11,108
Number of securities in an unrealized loss position:			36				140		176


	December 31, 2025
	Less Than Twelve Months				Twelve Months or More
(dollars in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
U.S. Treasury	$	—	$	—	$	2,793	$	197,534	$	2,793
States and political subdivisions	993		13,446		1,704		24,823		2,697
Auction rate money market preferred	—		—		787		2,413		787
Agency mortgage-backed securities	—		—		1,121		22,252		1,121
Agency collateralized mortgage obligations	—		—		1,518		28,794		1,518
Agency commercial mortgage-backed securities	39		9,042		1,608		91,222		1,647
Corporate	—		—		529		5,921		529
Total	$	1,032	$	22,488	$	10,060	$	372,959	$	11,092
Number of securities in an unrealized loss position:			38				138		176

As of June 30, 2026, no ACL has been recognized on AFS securities in an unrealized loss position, as management does not believe any of the securities are impaired due to reasons of credit quality. This is based on our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our AFS securities and consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. Management does not currently intend to sell any of the securities classified as AFS in the table above, and believes it is more likely than not that we will not have to sell any such securities before a recovery of cost. Unrealized losses are generally due to a continued elevated market interest rate environment compared to the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their respective maturity date or repricing date, or if the market yields for such investments decline.