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SECURITIES
 12 Months Ended
Dec. 31, 2025
SECURITIES [Abstract]  
SECURITIES
3.  SECURITIES

The amortized cost, related gross unrealized gains and losses, allowance for credit losses, and estimated fair value of securities available for sale at year-end follows (dollars in thousands):

   
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Allowance for Credit
Losses
    
Fair
Value
  
December 31, 2025
                              
Available for sale:
                              
State and municipal
  
$
199,417
    
$
388
    
$
(23,500
)
  
$
—
    
$
176,305
  
Residential mortgage-backed securities
    
302,711
      
130
      
(42,081
)
    
—
      
260,760
  
Commercial mortgage-backed securities
    
48,769
      
—
      
(3,983
)
    
—
      
44,786
  
Commercial collateralized mortgage obligations
    
67,708
      
77
      
(188
)
    
—
      
67,597
  
Asset-backed and other amortizing securities
    
13,972
      
—
      
(840
)
    
—
      
13,132
  
Other securities
    
5,000
      
—
      
(40
)
    
—
      
4,960
  
   
$
637,577
    
$
595
    
$
(70,632
)
  
$
—
    
$
567,540
  
December 31, 2024
                              
Available for sale:
                              
State and municipal
  
$
199,588
    
$
1
    
$
(26,292
)
  
$
—
    
$
173,297
  
Residential mortgage-backed securities
    
321,021
      
—
      
(56,925
)
    
—
      
264,096
  
Commercial mortgage-backed securities
    
46,601
      
—
      
(6,241
)
    
—
      
40,360
  
Commercial collateralized mortgage obligations
    
73,697
      
—
      
(214
)
    
—
      
73,483
  
Asset-backed and other amortizing securities
    
16,107
      
—
      
(1,526
)
    
—
      
14,581
  
Other securities
    
12,000
      
—
      
(577
)
    
—
      
11,423
  
   
$
669,014
    
$
1
    
$
(91,775
)
  
$
—
    
$
577,240
  

The amortized cost and estimated fair value of securities at December 31, 2025 are presented below by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Declining-balance securities are shown separately since they are not due at a single maturity date.

   
Available for Sale
  
   
Amortized
Cost
    
Fair
Value
  
Within 1 year
  
$
545
    
$
546
  
After 1 year through 5 years
    
10,080
      
9,985
  
After 5 years through 10 years
    
12,841
      
12,185
  
After 10 years
    
180,951
      
158,549
  
Declining-balance securities
    
433,160
      
386,275
  
   
$
637,577
    
$
567,540
  

At December 31, 2025 and 2024, there were no holdings of securities of any one issuer, other than the U.S. government, its agencies, or its sponsored enterprises, in an amount greater than 10% of stockholders’ equity.

Securities with a carrying value of approximately $413.7 million and $309.0 million at December 31, 2025 and 2024, respectively, were pledged to collateralize public deposits and for other purposes as required or permitted by law.

The Company sold $56.2 million of available for sale securities in the second quarter of 2023. This resulted in realized losses on sale of $3.4 million.

The following table segregates securities with unrealized losses at year-end, by the duration they have been in a loss position for which an allowance for credit losses has not been recorded (dollars in thousands):

   
Less than 12 Months
    
12 Months or More
    
Total
  
   
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
    
Fair
Value
    
Unrealized
Loss
  
December 31, 2025
                                    
State and municipal
  
$
205
    
$
—
    
$
165,618
    
$
23,500
    
$
165,823
    
$
23,500
  
Residential mortgage-backed securities
    
3,132
      
48
      
249,710
      
42,033
      
252,842
      
42,081
  
Commercial mortgage-backed securities
    
3,503
      
7
      
41,284
      
3,976
      
44,787
      
3,983
  
Commercial collateralized mortgage obligations
    
63,210
      
188
      
—
      
—
      
63,210
      
188
  
Asset-backed and other amortizing securities
    
—
      
—
      
13,132
      
840
      
13,132
      
840
  
Other securities
    
—
      
—
      
4,961
      
40
      
4,961
      
40
  
   
$
70,050
    
$
243
    
$
474,705
    
$
70,389
    
$
544,755
    
$
70,632
  
                                                 
December 31, 2024
                                                
State and municipal
  
$
205
    
$
1
    
$
171,306
    
$
26,291
    
$
171,511
    
$
26,292
  
Residential mortgage-backed securities
    
8
      
—
      
264,088
      
56,925
      
264,096
      
56,925
  
Commercial mortgage-backed securities
    
—
      
—
      
40,360
      
6,241
      
40,360
      
6,241
  
Commercial collateralized mortgage obligations
    
73,483
      
214
      
—
      
—
      
73,483
      
214
  
Asset-backed and other amortizing securities
    
—
      
—
      
14,581
      
1,526
      
14,581
      
1,526
  
Other securities
    
—
      
—
      
11,423
      
577
      
11,423
      
577
  
   
$
73,696
    
$
215
    
$
501,758
    
$
91,560
    
$
575,454
    
$
91,775
  
There were 131 securities with an unrealized loss at December 31, 2025, generally due to a continuation of the elevated market interest rate environment. Management evaluates AFS securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or non-credit related factors. Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for the anticipated recovery in fair value. Management does not have the intent to sell any of the securities in an unrealized loss position as there are adequate liquidity sources to meet expected and unexpected funding needs. The fair value of these securities is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of December 31, 2025, management believes the unrealized loss positions detailed in the previous table are due to non-credit related factors, including changes in interest rates and other market conditions, and therefore no ACL for AFS securities or losses have been recognized or realized in the consolidated financial statements.