Mortgage-backed securities, as shown in the following tables, are all government sponsored enterprises. The amortized cost and fair value of securities, with gross unrealized gains and losses at September 30, 2026 and December 31, 2025, are as follows:


	(In Thousands)
	September 30, 2026
	Amortized		Gross Unrealized		Gross Unrealized			Fair
	Cost		Gains		Losses			Value
Available-for-Sale:
U.S. Treasury	$	139,923	$	-	$	(4,406	)	$	135,517
U.S. Government agencies		95,325		-		(3,387	)		91,938
Corporate bonds		500		-		-			500
Mortgage-backed securities		186,711		-		(12,711	)		174,000
State and local governments		57,099		11		(3,088	)		54,022
Total available-for-sale securities	$	479,558	$	11	$	(23,592	)	$	455,977


	(In Thousands)
	December 31, 2025
	Amortized		Gross Unrealized		Gross Unrealized			Fair
	Cost		Gains		Losses			Value
Available-for-Sale:
U.S. Treasury	$	91,988	$	157	$	(2,292	)	$	89,853
U.S. Government agencies		136,026		116		(4,181	)		131,961
Corporate bonds		-		-		-			-
Mortgage-backed securities		150,081		1,034		(7,733	)		143,382
State and local governments		59,025		71		(2,220	)		56,876
Total available-for-sale securities	$	437,120	$	1,378	$	(16,426	)	$	422,072

Information pertaining to securities with gross unrealized losses at September 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows:


	(In Thousands)
	September 30, 2026
	Less Than Twelve Months					Twelve Months & Over					Total
	Gross Unrealized			Fair		Gross Unrealized			Fair		Gross Unrealized			Fair
	Losses			Value		Losses			Value		Losses			Value
U.S. Treasury	$	(2,282	)	$	92,346	$	(2,124	)	$	43,171	$	(4,406	)	$	135,517
U.S. Government agencies		(156	)		8,964		(3,231	)		82,974		(3,387	)		91,938
Mortgage-backed securities		(4,056	)		127,049		(8,655	)		46,951		(12,711	)		174,000
State and local governments		(219	)		8,823		(2,869	)		43,598		(3,088	)		52,421
Total available-for-sale securities	$	(6,713	)	$	237,182	$	(16,879	)	$	216,694	$	(23,592	)	$	453,876


	(In Thousands)
	December 31, 2025
	Less Than Twelve Months					Twelve Months & Over					Total
	Gross Unrealized			Fair		Gross Unrealized			Fair		Gross Unrealized			Fair
	Losses			Value		Losses			Value		Losses			Value
U.S. Treasury	$	(5	)	$	7,038	$	(2,287	)	$	50,161	$	(2,292	)	$	57,199
U.S. Government agencies		-			-		(4,181	)		120,103		(4,181	)		120,103
Mortgage-backed securities		(50	)		8,214		(7,683	)		59,386		(7,733	)		67,600
State and local governments		(6	)		2,534		(2,214	)		45,202		(2,220	)		47,736
Total available-for-sale securities	$	(61	)	$	17,786	$	(16,365	)	$	274,852	$	(16,426	)	$	292,638

Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality, values have only been impacted by rate changes, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date.

Proceeds from sales of securities totaled approximately $5.4 million during the first quarter of 2026, resulting in gross losses of $347 thousand. Proceeds from sales of securities totaled approximately $1.4 million during the nine months ended September 30, 2025, resulting in no gross gains or losses. Below are the gross realized gains or losses for the three and nine months ended September 30, 2026 and September 30, 2025.


	(In Thousands)				(In Thousands)
	Three Months Ended				Nine Months Ended
	September 30, 2026		September 30, 2025		September 30, 2026			September 30, 2025
Gross realized gains	$	-	$	-	$	-		$	-
Gross realized losses		-		-		(347	)		-
Net realized losses	$	-	$	-	$	(347	)	$	-
Tax benefit related to net realized losses	$	-	$	-	$	(73	)	$	-

Net realized loss on sales and related tax benefit is reclassified out of accumulated other comprehensive loss. The net realized loss is included in net loss on sale of available-for-sale securities and the related tax benefit is included in income taxes in the condensed consolidated statements of income and comprehensive income.

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


	(In Thousands)
	Amortized
	Cost		Fair Value
One year or less	$	66,686	$	65,730
After one year through five years		197,997		189,360
After five years through ten years		28,164		26,887
After ten years		-		-
Total	$	292,847	$	281,977
Mortgage-backed securities		186,711		174,000
Total	$	479,558	$	455,977

Investments with a carrying value of $255.6 million and $238.2 million at September 30, 2026 and December 31, 2025, respectively, were pledged to secure public deposits and securities sold under repurchase agreements. Investments with a carrying value of $25.1 million and $28.3 million were pledged to the Federal Reserve's Discount Window to provide additional borrowing capacity at September 30, 2026 and December 31, 2025, respectively.

Other securities include Federal Home Loan Bank of Cincinnati and Indianapolis stock in the amount of $10.7 million as of September 30, 2026 and $13 million as of December 31, 2025.