| Securities Available for Sale |
4. Securities Available for Sale The amortized cost, gross unrealized gains and losses, approximate fair value, and allowance for credit losses of investment securities held at June 30, 2026 and December 31, 2025, are as follows: | | | | | Gross | | Gross | | Allowance | | | | | | Amortized | | Unrealized | | Unrealized | | for Credit | | Fair | | | | Cost | | Gains | | Losses | | Losses | | Value | | | | $ | | $ | | $ | | $ | | $ | | June 30, 2026 | | | | | | | | | | | | | | | | | | | | | | U.S. Treasuries | | | 14,940 | | | | — | | | | (803 | ) | | | — | | | | 14,137 | | | U.S. government agencies | | | 16,400 | | | | — | | | | (439 | ) | | | — | | | | 15,961 | | | U.S. agency mortgage-backed securities | | | 33,408 | | | | 76 | | | | (1,803 | ) | | | — | | | | 31,681 | | | U.S. agency collateralized mortgage obligations | | | 102,023 | | | | — | | | | (2,547 | ) | | | — | | | | 99,476 | | | Non-agency MBS/CMO | | | 136,940 | | | | 153 | | | | (3,128 | ) | | | — | | | | 133,965 | | | Asset-backed securities | | | 47,982 | | | | 52 | | | | (396 | ) | | | — | | | | 47,638 | | | Corporate bonds | | | 44,963 | | | | 21 | | | | (1,744 | ) | | | — | | | | 43,240 | | | Obligations of states and political subdivisions | | | 189,923 | | | | — | | | | (17,344 | ) | | | — | | | | 172,579 | | | Total securities available for sale | | | 586,579 | | | | 302 | | | | (28,204 | ) | | | — | | | | 558,677 | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | | | | | | | | | | | | | U.S. Treasuries | | | 14,927 | | | | — | | | | (764 | ) | | | — | | | | 14,163 | | | U.S. government agencies | | | 16,400 | | | | — | | | | (578 | ) | | | — | | | | 15,822 | | | U.S. agency mortgage-backed securities | | | 33,286 | | | | 73 | | | | (1,746 | ) | | | — | | | | 31,613 | | | U.S. agency collateralized mortgage obligations | | | 107,592 | | | | 433 | | | | (1,633 | ) | | | — | | | | 106,392 | | | Non-agency MBS/CMO | | | 144,887 | | | | 536 | | | | (1,912 | ) | | | — | | | | 143,511 | | | Asset-backed securities | | | 51,306 | | | | 52 | | | | (396 | ) | | | — | | | | 50,962 | | | Corporate bonds | | | 47,365 | | | | 15 | | | | (2,245 | ) | | | — | | | | 45,135 | | | Obligations of states and political subdivisions | | | 191,430 | | | | — | | | | (19,560 | ) | | | — | | | | 171,870 | | | Total securities available for sale | | | 607,193 | | | | 1,109 | | | | (28,834 | ) | | | — | | | | 579,468 | | The amortized cost and fair value of debt securities available for sale at June 30, 2026, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to certain call or prepayment provisions (in thousands). | | | Amortized | | | | | | Cost | | Fair Value | | | | $ | | $ | | Due in one year or less | | | 27,648 | | | | 27,282 | | | Due after one year through five years | | | 116,784 | | | | 110,246 | | | Due after five years through ten years | | | 61,177 | | | | 53,945 | | | Due after ten years | | | 60,617 | | | | 54,444 | | | U.S. agency mortgage-backed securities | | | 33,408 | | | | 31,681 | | | U.S. agency collateralized mortgage obligations | | | 102,023 | | | | 99,476 | | | Non-agency MBS/CMO | | | 136,940 | | | | 133,965 | | | Asset-backed securities | | | 47,982 | | | | 47,638 | | | Total debt securities | | | 586,579 | | | | 558,677 | | Securities available for sale with a par value of $154,225,000 and $127,026,000 at June 30, 2026 and December 31, 2025, respectively, were pledged or restricted for public funds, borrowings, or other purposes as required by law. The fair value of these pledged securities was $139,563,000 at June 30, 2026 and $117,817,000 at December 31, 2025. Proceeds from active sales of debt securities available for sale with gains or losses, along with the associated gross realized gains and gross realized losses, are shown below. Realized gains and losses are computed on the basis of specific identification (in thousands). | | | Three Months Ended June 30, | | | Six Months Ended June 30, | | | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | | $ | | | $ | | | $ | | | $ | | | Proceeds from sales and calls with gains or losses | | | — | | | | 1,261 | | | | 17,843 | | | | 12,246 | | | Gross realized gains | | | — | | | | — | | | | — | | | | — | | | Gross realized losses | | | — | | | | (2 | ) | | | — | | | | (307 | ) | Information pertaining to securities with gross unrealized losses for which an allowance for credit losses has not been recorded at 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 (in thousands): | | | Less than 12 months | | More than 12 months | | Total | | | | | | Gross | | | | Gross | | | | Gross | | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | | | | Value | | Losses | | Value | | Losses | | Value | | Losses | | | | $ | | $ | | $ | | $ | | $ | | $ | | As of June 30, 2026 | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Treasuries | | | — | | | | — | | | | 14,137 | | | | (803 | ) | | | 14,137 | | | | (803 | ) | | U.S. government agencies | | | — | | | | — | | | | 15,961 | | | | (439 | ) | | | 15,961 | | | | (439 | ) | | U.S. agency mortgage-backed securities | | | 1,973 | | | | (21 | ) | | | 21,312 | | | | (1,782 | ) | | | 23,285 | | | | (1,803 | ) | | U.S. agency collateralized mortgage obligations | | | 58,681 | | | | (619 | ) | | | 40,244 | | | | (1,928 | ) | | | 98,925 | | | | (2,547 | ) | | Non-Agency MBS/CMO | | | 74,656 | | | | (1,194 | ) | | | 41,224 | | | | (1,934 | ) | | | 115,880 | | | | (3,128 | ) | | Asset-backed securities | | | 7,940 | | | | (48 | ) | | | 26,038 | | | | (348 | ) | | | 33,978 | | | | (396 | ) | | Corporate bonds | | | 496 | | | | — | | | | 42,123 | | | | (1,744 | ) | | | 42,619 | | | | (1,744 | ) | | Obligations of states & political subdivisions | | | 1,440 | | | | (10 | ) | | | 171,139 | | | | (17,334 | ) | | | 172,579 | | | | (17,344 | ) | | Total unrealized losses on debt securities | | | 145,186 | | | | (1,892 | ) | | | 372,178 | | | | (26,312 | ) | | | 517,364 | | | | (28,204 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2025 | | | | | | | | | | | | | | U.S. Treasuries | | | — | | | | — | | | | 14,163 | | | | (764 | ) | | | 14,163 | | | | (764 | ) | | U.S. government agencies | | | — | | | | — | | | | 15,822 | | | | (578 | ) | | | 15,822 | | | | (578 | ) | | U.S. agency mortgage-backed securities | | | — | | | | — | | | | 23,117 | | | | (1,746 | ) | | | 23,117 | | | | (1,746 | ) | | U.S. agency collateralized mortgage obligations | | | 8,963 | | | | (30 | ) | | | 61,133 | | | | (1,603 | ) | | | 70,096 | | | | (1,633 | ) | | Non-Agency MBS/CMO | | | 44,873 | | | | (326 | ) | | | 46,260 | | | | (1,586 | ) | | | 91,133 | | | | (1,912 | ) | | Asset-backed securities | | | 14,043 | | | | (110 | ) | | | 21,686 | | | | (286 | ) | | | 35,729 | | | | (396 | ) | | Corporate bonds | | | — | | | | — | | | | 44,620 | | | | (2,245 | ) | | | 44,620 | | | | (2,245 | ) | | Obligations of states & political subdivisions | | | — | | | | — | | | | 171,840 | | | | (19,560 | ) | | | 171,840 | | | | (19,560 | ) | | Total unrealized losses on debt securities | | | 67,879 | | | | (466 | ) | | | 398,641 | | | | (28,368 | ) | | | 466,520 | | | | (28,834 | ) | In the debt security portfolio, there are 293 and 288 positions carrying unrealized losses at June 30, 2026 and December 31, 2025. The Corporation evaluates fixed income positions for an allowance for credit losses at least on a quarterly basis, and more frequently when economic and market concerns warrant such evaluation. The Corporation does not intend to sell the securities in an unrealized loss position and is unlikely to be required to sell these securities before a recovery of fair value, which may be maturity. The Corporation concluded that the decline in fair value of these securities was not indicative of a credit loss. No securities in the portfolio required an allowance for credit losses to be recorded in the first six months of 2026 or 2025.
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