3.   INVESTMENT SECURITIES AVAILABLE-FOR-SALE

The amortized cost and estimated fair value of investment securities at  September 30, 2026 and  December 31, 2025 consisted of the following, in thousands:

Unrealized losses on available-for-sale investment securities totaling $44,372,000 were recorded, net of $13,116,000 in tax benefit, as accumulated other comprehensive loss within shareholders' equity at  September 30, 2026.  No investment securities were sold during the nine months ended   September 30, 2026. During the nine months ended  September 30, 2025, the Company sold 90 available-for-sale investment securities for proceeds of $88,009,000, recognizing a $625,000 loss on sale. The loss was partially offset by a gain of $254,000 on the termination of a fair value hedge. The Company realized a gain on sale from 15 of these securities totaling $36,000 and a loss on sale of 75 securities totaling $661,000.

Unrealized losses on available-for-sale investment securities totaling $14,895,000 were recorded, net of $4,404,000 in tax benefits, as accumulated other comprehensive loss within shareholders' equity at December 31, 2025. During the twelve months ended December 31, 2025, the Company sold 135 available-for-sale investment securities for proceeds of $130,635,000 recognizing a $6,065,000 net loss on sale. The loss was partially offset by a gain of $254,000 on the termination of a fair value hedge. The Company realized a gain on sale from 15 of these securities totaling $36,000 and a loss on sale of 120 securities totaling $6,101,000.

There were no transfers of available-for-sale investment securities during the nine months ended September 30, 2026 and  December 31, 2025. There were no securities classified as held-to-maturity at  September 30, 2026 or  December 31, 2025.

Investment securities with unrealized losses at  September 30, 2026 and  December 31, 2025 are summarized and classified according to the duration of the loss period as follows:

At  September 30, 2026, the Company held 308 securities of which 196 were in a loss position for less than twelve months and 105 were in a loss position for twelve months or more. Of the 308 securities, 99 are U.S. Government-sponsored agencies collateralized by residential mortgage obligations, 54 were U.S. Government agencies collateralized by commercial mortgage obligations and 155 were obligations of states and political subdivisions. As of  September 30, 2026 and  December 31, 2025, the Company did not intend to sell, nor was it more‑likely‑than‑not required to sell, any available‑for‑sale debt securities in an unrealized loss position before recovery of their amortized cost basis. In addition, the Company expects to recover the entire amortized cost basis of these securities, as the unrealized losses are attributable primarily to changes in interest rates, and the issuers of these securities have not, to the Company’s knowledge, established any cause for default. Accordingly, there was no allowance for credit losses provided against these securities as of  September 30, 2026 and  December 31, 2025. In addition, there was no provision for credit losses recognized for the nine months ended  September 30, 2026 and 2025.

Expected maturities will differ from contractual maturities as the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

Investment securities with amortized costs totaling $439,348,000 and $400,458,000 and estimated fair values totaling $402,325,000 and $388,357,000 at  September 30, 2026 and  December 31, 2025, respectively, were pledged to secure deposits, repurchase agreements and Federal Reserve Bank Discount Window borrowings. No borrowings were outstanding on  September 30, 2026 and  December 31, 2025, at the Discount Window.