v3.26.3
Available for Sale Securities
 9 Months Ended
Sep. 30, 2026
Available for Sale Securities [Abstract]  
Available for Sale Securities
Note 4 – Available for Sale Securities

The amortized cost, gross unrealized gains and losses, allowance of credit losses and fair value of investment securities at September 30, 2026 and December 31, 2025 were as follows (in thousands):

September 30, 2026
 
Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Allowance
for Credit
Losses

 
Fair
Value
Available-for-sale securities:
                              
U.S. agency securities
  
$
50,640
    
$
10
    
$
(3,646
)
  
$
-
    
$
47,004
  
U.S. treasury securities
    
59,248
      
-
      
(1,789
)
    
-
      
57,459
  
Obligations of state and political subdivisions
    
137,776
      
46
      
(11,729
)
    
-
      
126,093
  
Corporate obligations
    
4,830
      
191
      
(130
)
    
-
      
4,891
  
Mortgage-backed securities in government sponsored entities
    
258,155
      
36
      
(16,067
)
    
-
      
242,124
  
Total available-for-sale securities
  
$
510,649
    
$
283
    
$
(33,361
)
  
$
-
    
$
477,571
  
                                         
December 31, 2025
                                        
Available-for-sale securities:
                                        
U.S. agency securities
  
$
52,651
    
$
12
    
$
(2,908
)
  
$
-
    
$
49,755
  
U.S. treasury securities
    
84,551
      
225
      
(2,122
)
    
-
      
82,654
  
Obligations of state and political subdivisions
    
120,608
      
1,070
      
(5,792
)
    
-
      
115,886
  
Corporate obligations
    
11,304
      
405
      
(412
)
    
-
      
11,297
  
Mortgage-backed securities in government sponsored entities
    
193,405
      
1,103
      
(9,359
)
    
-
      
185,149
  
Total available-for-sale securities
  
$
462,519
    
$
2,815
    
$
(20,593
)
  
$
-
    
$
444,741
  

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time, which individual securities have been in a continuous unrealized loss position, at September 30, 2026 and December 31, 2025 (in thousands). As of September 30, 2026, the Company owned 347 securities whose fair value was less than their cost basis.

September 30, 2026
  
Less than Twelve Months

Twelve Months or Greater

Total
     
Fair
Value

Gross
Unrealized
Losses

 
Fair
Value

Gross
Unrealized
Losses

 
Fair
Value

Gross
Unrealized
Losses
   
   
U.S. agency securities
  
$
-
    
$
-
    
$
42,364
    
$
(3,646
)
  
$
42,364
    
$
(3,646
)
U.S. treasury securities
    
9,604
      
(141
)
    
47,855
      
(1,648
)
    
57,459
      
(1,789
)
Obligations of state and political subdivisions
    
53,799
      
(2,551
)
    
66,358
      
(9,178
)
    
120,157
      
(11,729
)
Corporate obligations
    
-
      
-
      
2,017
      
(130
)
    
2,017
      
(130
)
Mortgage-backed securities in government
sponsored entities
    
160,741
      
(5,391
)
    
68,481
      
(10,676
)
    
229,222
      
(16,067
)
Total securities
  
$
224,144
    
$
(8,083
)
  
$
227,075
    
$
(25,278
)
  
$
451,219
    
$
(33,361
)

December 31, 2025
  






















U.S. agency securities
  
$
-
    
$
-
    
$
45,104
    
$
(2,908
)
  
$
45,104
    
$
(2,908
)
U.S. treasury securities
    
-
      
-
      
72,784
      
(2,122
)
    
72,784
      
(2,122
)
Obligations of states and political subdivisions
    
5,642
      
(98
)
    
72,858
      
(5,694
)
    
78,500
      
(5,792
)
Corporate obligations
    
-
      
-
      
6,588
      
(412
)
    
6,588
      
(412
)
Mortgage-backed securities in government sponsored entities
    
36,858
      
(247
)
    
79,922
      
(9,112
)
    
116,780
      
(9,359
)
Total securities
  
$
42,500
    
$
(345
)
  
$
277,256
    
$
(20,248
)
  
$
319,756
    
$
(20,593
)
Allowance for Credit Losses – Available for Sale Securities

The Company measures expected credit losses on available-for-sale debt securities when the Company does not intend to sell, or when it is more likely than not that it not will be required to sell, the security before recovery of its amortized cost basis, which may be at maturity. 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 income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company 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, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to 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, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Economic forecast data is utilized to calculate the present value of expected cash flows. The Company obtains its forecast data through a subscription to a widely recognized and relied upon company who publishes various forecast scenarios. Management evaluates the various scenarios to determine a reasonable and supportable scenario, and utilizes a single scenario in the model. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

The allowance for credit losses on available-for-sale debt securities is included within available-for-sale securities on the consolidated balance sheet. Changes in the allowance for credit losses are recorded within Provision for credit losses on the consolidated statement of income. Losses are charged against the allowance when the Company believes the collectability of an available-for-sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met. There was no allowance for credit losses for available for sale securities as of September 30, 2026 and December 31, 2025.

Accrued interest receivable on available-for-sale debt securities totaled $2,556,000 and $2,399,000 at September 30, 2026 and December 31, 2025 and is included within accrued interest receivable on the consolidated balance sheet. This amount is excluded from the estimate of expected credit losses. Available-for-sale debt securities are typically classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available-for-sale debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed.

There were no sales of available for sale securities during the three and nine months ended September 30, 2026 and 2025.

The following table presents the net gains on the Company’s equity investments recognized in earnings during the three and nine month periods ended September 30, 2026 and 2025, and the portion of unrealized gains for the period that relates to equity investments held at September 30, 2026 and 2025 (in thousands):

  
Three Months Ended
September 30,

Nine Months Ended
September 30,
Equity Securities
2026
    
2025

2026
    
2025
Net gains (losses) recognized in equity securities during the period
  
$
258
    
$
34
    
$
373
    
$
56
  
Less: Net gains realized on the sale of equity securities during the period
    
-
      
-
      
-
      
-
  
Net unrealized gains (losses)
  
$
258
    
$
34
    
$
373
    
$
56
  

Investment securities with an approximate carrying value of $404.3 million and $367.9 million at September 30, 2026 and December 31, 2025, respectively, were pledged to secure public funds, certain other deposits and borrowing lines.
Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.   The amortized cost and fair value of debt securities at September 30, 2026, by contractual maturity, are shown below (in thousands):
 
 
 
   
Amortized
Cost
        
Fair Value
   
Available-for-sale debt securities:
            
Due in one year or less
  
$
55,021
    
$
54,041
  
Due after one year through five years
    
99,604
      
93,729
  
Due after five years through ten years
    
75,948
      
70,192
  
Due after ten years
    
280,076
      
259,609
  
Total
  
$
510,649
    
$
477,571