v3.26.3
SECURITIES
 9 Months Ended
Sep. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
Debt securities purchased with the intent and ability to hold to their maturity are classified as held-to-maturity securities. All other investment securities are classified as available-for-sale securities.
Available-for-Sale Securities

Information related to the amortized cost, fair value and allowance for credit losses of securities available-for-sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) is provided in the table below.
(dollars in thousands)Amortized
Cost		Gross Unrealized GainGross Unrealized LossesAllowance for Credit LossesFair Value
September 30, 2026
U.S. Treasury securities$29,894 $0 $(486)$0 $29,408 
U.S. government sponsored agencies128,374 0 (24,398)0 103,976 
Mortgage-backed securities: residential481,247 16 (70,150)0 411,113 
State and municipal securities530,417 4 (118,905)0 411,516 
Total$1,169,932 $20 $(213,939)$0 $956,013 
December 31, 2025
U.S. Treasury securities$10,117 $2 $0 $0 $10,119 
U.S. government sponsored agencies136,772 82 (21,164)0 115,690 
Mortgage-backed securities: residential506,734 892 (53,463)0 454,163 
State and municipal securities541,694 131 (69,735)0 472,090 
Total$1,195,317 $1,107 $(144,362)$0 $1,052,062 
Held-to-Maturity Securities
Information related to the amortized cost, fair value and allowance for credit losses of securities held-to-maturity and the related gross unrealized gains and losses is presented in the table below.
(dollars in thousands)Amortized
Cost		Gross Unrealized GainGross Unrealized LossesAllowance for Credit LossesFair Value
September 30, 2026
State and municipal securities$134,434 $0 $(31,082)$0 $103,352 
December 31, 2025
State and municipal securities$133,208 $0 $(15,698)$0 $117,510 
The Company has the current intent and ability to hold held-to-maturity securities until maturity. All of the Company's securities designated as held-to-maturity were transferred from the available-for-sale classification. The net unrealized gain or loss on the transferred securities was recorded as a component of accumulated other comprehensive income (loss) at the time of the transfer and is amortized over the remaining life of the underlying securities as an adjustment to the yield on those securities. The net amount of the unamortized unrealized loss on the transferred securities included in accumulated other comprehensive income (loss) was $15.5 million ($12.3 million, net of tax) at September 30, 2026.
Information regarding the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by maturity as of September 30, 2026 is presented below. Maturity information is based on contractual maturity for all securities other than mortgage-backed securities. Actual maturities of securities may differ from contractual maturities because borrowers may have the right to prepay the obligation without a prepayment penalty.
Available-for-SaleHeld-to-Maturity
(dollars in thousands)Amortized CostFair
Value		Amortized CostFair
Value
Due in one year or less$5,681 $5,634 $0 $0 
Due after one year through five years41,966 40,545 0 0 
Due after five years through ten years105,237 88,762 14,210 11,592 
Due after ten years535,801 409,959 120,224 91,760 
688,685 544,900 134,434 103,352 
Mortgage-backed securities481,247 411,113 0 0 
Total debt securities$1,169,932 $956,013 $134,434 $103,352 
There were no sales of available-for-sale securities during the nine months ended September 30, 2026 and 2025.
Securities with fair values of $483.3 million and $546.8 million were pledged as of September 30, 2026 and December 31, 2025, respectively, as collateral for borrowings from the Federal Home Loan Bank ("FHLB") and Federal Reserve Bank and for other purposes as permitted or required by law.
Unrealized Loss Analysis on Available-for-Sale and Held-to-Maturity Securities
Information regarding available-for-sale securities with unrealized losses as of September 30, 2026 and December 31, 2025 is presented below. The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.
Less than 12 months12 months or moreTotal
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
September 30, 2026            
U.S. Treasury securities$29,408 $486 $0 $0 $29,408 $486 
U.S. government sponsored agencies9,468 431 94,508 23,967 103,976 24,398 
Mortgage-backed securities: residential86,225 4,254 321,352 65,896 407,577 70,150 
State and municipal securities37,827 2,885 368,888 116,020 406,715 118,905 
Total available-for-sale$162,928 $8,056 $784,748 $205,883 $947,676 $213,939 
December 31, 2025
U.S. Treasury securities$5,107 $0 $0 $0 $5,107 $0 
U.S. government sponsored agencies0 0 105,609 21,164 105,609 21,164 
Mortgage-backed securities: residential14,397 106 374,383 53,357 388,780 53,463 
State and municipal securities13,807 24 440,935 69,711 454,742 69,735 
Total available-for-sale$33,311 $130 $920,927 $144,232 $954,238 $144,362 
Information regarding held-to-maturity securities with unrealized losses as of September 30, 2026 and December 31, 2025 is presented on the next page. The table divides the securities between those with unrealized losses for less than twelve months and those with unrealized losses for twelve months or more.
Less than 12 months12 months or moreTotal
(dollars in thousands)Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
September 30, 2026
State and municipal securities$0 $0 $103,352 $31,082 $103,352 $31,082 
December 31, 2025
State and municipal securities$0 $0 $117,510 $15,698 $117,510 $15,698 
The total number of securities with unrealized losses as of September 30, 2026 and December 31, 2025 is presented below.
Available-for-SaleHeld-to-Maturity
Less than
12 months		12 months
or more		TotalLess than
12 months		12 months
or more		Total
September 30, 2026    
U.S. Treasury securities6 0 6 0 0 0 
U.S. government sponsored agencies2 17 19 0 0 0 
Mortgage-backed securities: residential33 111 144 0 0 0 
State and municipal securities56 351 407 0 41 41 
Total temporarily impaired97 479 576 0 41 41 
December 31, 2025
U.S. Treasury securities1 0 1 0 0 0 
U.S. government sponsored agencies0 17 17 0 0 0 
Mortgage-backed securities: residential3 120 123 0 0 0 
State and municipal securities17 378 395 0 41 41 
Total temporarily impaired21 515 536 0 41 41 
Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for-sale debt securities in an unrealized loss position, management first assesses whether it intends to sell, or it is more likely than not that the Company will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the consolidated income statement. For available-for-sale debt securities that do not meet the above criteria and for held-to-maturity securities, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, management compares the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. For available-for-sale debt securities, any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss), net of applicable taxes.
No allowance for credit losses for available-for-sale or held-to-maturity debt securities was recorded at September 30, 2026 or December 31, 2025. Accrued interest receivable on securities totaled $7.0 million and $7.8 million at September 30, 2026 and December 31, 2025, respectively, and is excluded from the estimate of credit losses.
The U.S. Treasury, U.S. government sponsored agencies and mortgage-backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. State and municipal securities credit losses are benchmarked against highly rated municipal securities of similar duration, as published by Moody's, resulting in an immaterial allowance for credit losses.