Investment in Securities (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment Securities

Investment in Securities

Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company’s investment securities available-for-sale are measured at fair value using Level 2 inputs including observable trade data, market data, etc. The market evaluation utilizes several sources which include “observable inputs” rather than “significant unobservable inputs” and therefore fall into the Level 2 category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows:

	September 30, 2024
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	216,438	$	35	$	(13,368)	$	203,105
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	225,749		548		(27,024)		199,273
Corporate bonds	118,923		17		(6,552)		112,388
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	36,496		—		(506)		35,990
Total	$	597,606	$	600	$	(47,450)	$	550,756

	December 31, 2023
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	235,297	$	4	$	(16,266)	$	219,035
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	188,307		—		(30,508)		157,799
Corporate bonds	111,109		—		(8,769)		102,340
Treasury securities	109,836		—		(1,115)		108,721
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	40,368		—		(1,146)		39,222
Total	$	684,917	$	4	$	(57,804)	$	627,117

The fair values of securities with unrealized losses are as follows:

	September 30, 2024
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
State and political subdivisions	$	4,971	$	4	$	178,533	$	13,364	$	183,504	$	13,368
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	28,995		173		144,309		26,851		173,304		27,024
Corporate bonds	25,682		324		81,671		6,228		107,353		6,552
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	—		—		35,990		506		35,990		506
Total	$	59,648	$	501	$	440,503	$	46,949	$	500,151	$	47,450

	December 31, 2023
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
State and political subdivisions	$	63,198	$	220	$	152,854	$	16,046	$	216,052	$	16,266
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	—		—		157,799		30,508		157,799		30,508
Corporate bonds	19,545		455		82,795		8,314		102,340		8,769
Treasury securities	—		—		108,721		1,115		108,721		1,115
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	—		—		39,222		1,146		39,222		1,146
Total	$	82,743	$	675	$	541,391	$	57,129	$	624,134	$	57,804

There were 244 securities, or 90.0% (226 of which for greater than 12 months), in an unrealized loss position as of September 30, 2024. The unrealized losses at September 30, 2024 were primarily attributable to changes in market interest rates after the securities were purchased. The Company does not currently intend to sell, and based on current conditions,

the Company does not believe it will be required to sell these available-for-sale securities before the recovery of the amortized cost basis, which may be the maturity dates of the securities. Therefore, the unrealized losses are recorded in accumulated other comprehensive loss. There were 275 securities, or 98.9% (210 of which for greater than 12 months), in an unrealized loss position as of December 31, 2023. At September 30, 2024 and December 31, 2023, the Company had not recorded an allowance for credit losses on securities.

The amortized cost and fair value of investment securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.

	September 30, 2024
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	35,699	$	35,639
Due after 1 year through 5 years	125,559		123,939
Due after 5 years through 10 years	200,477		182,058
Due after 10 years	235,871		209,120
Total	$	597,606	$	550,756

Proceeds from sales of investment securities classified as available-for-sale were $0 and $25.0 million for the three and nine months ended September 30, 2024, and $0 and $111.1 million for the three and nine months ended September 30, 2023, respectively. Gross realized losses were $0 and $13,000 for the three and nine months ended September 30, 2024 and $0 and $347,000 for the three and nine months ended September 30, 2023, respectively. There were no gross realized gains for the three and nine months ended September 30, 2024. Gross realized gains were $0 and $187,000 for the three and nine months ended September 30, 2023, respectively. There were no securities pledged to secure public deposits or for other purposes at September 30, 2024

Schedule of Unrealized Loss on Investments

The fair values of securities with unrealized losses are as follows:

	September 30, 2024
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
State and political subdivisions	$	4,971	$	4	$	178,533	$	13,364	$	183,504	$	13,368
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	28,995		173		144,309		26,851		173,304		27,024
Corporate bonds	25,682		324		81,671		6,228		107,353		6,552
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	—		—		35,990		506		35,990		506
Total	$	59,648	$	501	$	440,503	$	46,949	$	500,151	$	47,450

	December 31, 2023
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
State and political subdivisions	$	63,198	$	220	$	152,854	$	16,046	$	216,052	$	16,266
Mortgage-backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	—		—		157,799		30,508		157,799		30,508
Corporate bonds	19,545		455		82,795		8,314		102,340		8,769
Treasury securities	—		—		108,721		1,115		108,721		1,115
Asset backed securities issued or guaranteed by U.S. government agencies or sponsored enterprises	—		—		39,222		1,146		39,222		1,146
Total	$	82,743	$	675	$	541,391	$	57,129	$	624,134	$	57,804

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The amortized cost and fair value of investment securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.

	September 30, 2024
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	35,699	$	35,639
Due after 1 year through 5 years	125,559		123,939
Due after 5 years through 10 years	200,477		182,058
Due after 10 years	235,871		209,120
Total	$	597,606	$	550,756