Securities

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

The amortized cost, unrealized gross gains and losses recognized in accumulated other comprehensive income (loss), and fair value of securities available-for-sale were as follows:


Securities Available-for-Sale:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

March 31, 2026
U.S. Treasury	$	135,400	$	11	$	—	$	135,411
Obligations of State and Political Subdivisions	603,340		484		(117,289)		486,535
MBS/CMO	819,691		2,684		(81,447)		740,928
US Gov’t Sponsored Entities & Agencies	329,271		1,026		(26,241)		304,056
Total	$	1,887,702	$	4,205	$	(224,977)	$	1,666,930

December 31, 2025
U.S. Treasury	$	152,026	$	64	$	—	$	152,090
Obligations of State and Political Subdivisions	603,528		822		(106,744)		497,606
MBS/CMO	795,574		4,714		(80,746)		719,542
US Gov’t Sponsored Entities & Agencies	314,604		853		(27,301)		288,156
Total	$	1,865,732	$	6,453	$	(214,791)	$	1,657,394

All mortgage-backed securities in the above table (identified above and throughout this Note 4 as “MBS/CMO”) are residential and multi-family mortgage-backed securities and guaranteed by government sponsored entities. The US Gov’t Sponsored Entities & Agencies in the above table include securities that have underlying collateral of equipment, machinery and commercial real estate.

The amortized cost and fair value of securities available-for-sale at March 31, 2026 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Mortgage-backed securities are not due at a single maturity date and are shown separately.


Securities Available-for-Sale:	Amortized Cost		Fair Value

Due in one year or less	$	136,859	$	136,873
Due after one year through five years	11,700		11,526
Due after five years through ten years	65,833		58,400
Due after ten years	524,348		415,147
MBS/CMO	819,691		740,928
US Gov’t Sponsored Entities & Agencies	329,271		304,056
Total	$	1,887,702	$	1,666,930

During the first quarter of 2025, the Company sold approximately $204.9 million in securities that were acquired as part of the February 1, 2025 Heartland acquisition. As the Company had recorded the securities at fair value at the time of closing, no gain or loss was incurred on such sale.

Proceeds from the sales of securities are summarized below:


	Three Months Ended		Three Months Ended
	March 31, 2026		March 31, 2025

Proceeds from Sales	$	—	$	205,376
Gross Gains on Sales	—		—
Gross Losses on Sales	—		—
Income Taxes on Net Gains (Losses)	—		—

The carrying value of securities pledged to secure repurchase agreements, public and trust deposits, and for other purposes as required by law was $956,769 and $1,034,917 as of March 31, 2026 and December 31, 2025, respectively.

At March 31, 2026 and December 31, 2025, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity.

Below is a summary of securities with unrealized losses as of March 31, 2026 and December 31, 2025, presented by length of time the securities have been in a continuous unrealized loss position:


	Less than 12 Months				12 Months or More				Total
March 31, 2026	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss


Obligations of State and Political Subdivisions	$	7,817	$	(126)	$	448,682	$	(117,163)	$	456,499	$	(117,289)
MBS/CMO	97,046		(1,282)		448,074		(80,165)		545,120		(81,447)
US Gov’t Sponsored Entities & Agencies	54,157		(406)		137,296		(25,835)		191,453		(26,241)
Total	$	159,020	$	(1,814)	$	1,034,052	$	(223,163)	$	1,193,072	$	(224,977)


	Less than 12 Months				12 Months or More				Total
December 31, 2025	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss


Obligations of State and Political Subdivisions	$	3,054	$	(29)	$	461,657	$	(106,715)	$	464,711	$	(106,744)
MBS/CMO	38,024		(420)		463,315		(80,326)		501,339		(80,746)
US Gov’t Sponsored Entities & Agencies	6,793		(40)		171,247		(27,261)		178,040		(27,301)
Total	$	47,871	$	(489)	$	1,096,219	$	(214,302)	$	1,144,090	$	(214,791)

Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. This evaluation process is applied to all types of securities held by the Company: obligations of state and political subdivisions, MBS/CMO and US gov’t sponsored entities and agencies. For available-for-sale debt securities in an unrealized loss position, the Company assesses whether we intend to sell, or it is more likely than not that we 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 reduced to fair value through income. For available-for-sale debt securities that do not meet the criteria, the Company 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, we compare 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. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. Unrealized losses at March 31, 2026 and December 31, 2025 are considered temporary and the result of fair value adjustments caused by market interest rate fluctuations. There was no allowance for credit losses for available-for-sale debt securities at March 31, 2026 or December 31, 2025.

Although management has the ability to sell these securities if the need arises, their designation as available-for-sale should not necessarily be interpreted as an indication that management anticipates such sales.

Accrued interest receivable on available-for-sale debt securities totaled $8,531 at March 31, 2026 and $9,239 at December 31, 2025. Accrued interest receivable is excluded from the estimate of credit losses.

The Company’s equity securities are listed as Other Investments on the Consolidated Balance Sheets and consist of one non-controlling investment in a single banking organization at March 31, 2026 and December 31, 2025. The original investment totaled $1,350 and other-than-temporary impairment was previously recorded totaling $997. The Company’s equity securities are considered not to have readily determinable fair value and are carried at cost and evaluated for impairment. At March 31, 2026, there was no additional impairment recognized through earnings.