Securities

3 Months Ended

Mar. 31, 2025

Securities

Securities

4.    Securities

The amortized cost and fair value of the Corporation’s investments are shown below. All securities are classified as available-for-sale.

	March 31, 2025
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	88,079	$	4	$	(10,184)	$	77,899
Mortgage Backed Securities - residential		614,621		132		(78,911)		535,842
Mortgage Backed Securities - commercial		14,136		1		(415)		13,722
Collateralized mortgage obligations		184,919		28		(25,651)		159,296
State and municipal obligations		390,864		186		(34,596)		356,454
Municipal taxable		41,159		29		(4,808)		36,380
Collateralized debt obligations		—		2,902		—		2,902
TOTAL	$	1,333,778	$	3,282	$	(154,565)	$	1,182,495

	December 31, 2024
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	90,649	$	3	$	(11,670)	$	78,982
Mortgage Backed Securities-residential		630,556		15		(89,251)		541,320
Mortgage Backed Securities-commercial		14,182		2		(523)		13,661
Collateralized mortgage obligations		190,552		29		(27,555)		163,026
State and municipal obligations		394,696		171		(34,539)		360,328
Municipal taxable		41,162		11		(5,396)		35,777
Collateralized debt obligations		—		2,896		—		2,896
TOTAL	$	1,361,797	$	3,127	$	(168,934)	$	1,195,990

Contractual maturities of debt securities at March 31, 2025 were as follows.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	10,832	$	10,694
Due after one but within five years		42,015		40,930
Due after five but within ten years		124,757		121,091
Due after ten years		342,498		300,920
		520,102		473,635
Mortgage-backed securities and collateralized mortgage obligations		813,676		708,860
TOTAL	$	1,333,778	$	1,182,495

There were no gross gains and losses from investment sales/calls realized by the Corporation for the three months ended March 31, 2025. Additionally, there were no gross gains and losses from investment sales/calls realized by the Corporation for the three months ended March 31, 2024.

The following tables show the securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at March 31, 2025 and December 31, 2024.

	March 31, 2025
	Less Than 12 Months				More Than 12 Months				Total
			Unrealized				Unrealized				Unrealized
(Dollar amounts in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Government agencies	$	3,238	$	(73)	$	73,657	$	(10,111)	$	76,895	$	(10,184)
Mortgage Backed Securities - Residential		34,339		(574)		476,849		(78,337)		511,188		(78,911)
Mortgage Backed Securities - Commercial		6,979		(125)		5,439		(290)		12,418		(415)
Collateralized mortgage obligations		—		—		154,849		(25,651)		154,849		(25,651)
State and municipal obligations		70,922		(854)		242,937		(33,742)		313,859		(34,596)
Municipal taxable		814		(1)		32,483		(4,807)		33,297		(4,808)
U.S. Treasury		—		—		—		—		—		—
Total temporarily impaired securities	$	116,292	$	(1,627)	$	986,214	$	(152,938)	$	1,102,506	$	(154,565)

	December 31, 2024
	Less Than 12 Months				More Than 12 Months				Total
			Unrealized				Unrealized				Unrealized
(Dollar amounts in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Government agencies	$	3,696	$	(107)	$	74,636	$	(11,563)	$	78,332	$	(11,670)
Mortgage Backed Securities - Residential		51,996		(1,113)		481,270		(88,138)		533,266		(89,251)
Mortgage Backed Securities - Commercial		6,937		(161)		5,388		(362)		12,325		(523)
Collateralized mortgage obligations		85		—		158,244		(27,555)		158,329		(27,555)
State and municipal obligations		89,321		(953)		232,247		(33,586)		321,568		(34,539)
Municipal taxable		1,587		(20)		31,918		(5,376)		33,505		(5,396)
Total temporarily impaired securities	$	153,622	$	(2,354)	$	983,703	$	(166,580)	$	1,137,325	$	(168,934)

Management evaluates securities for impairment related to credit losses at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for impairment related to credit losses by segregating the portfolio into two general segments.

In evaluating for impairment, management considers the reason for the decline, the extent of the decline, the duration of the decline and whether the Corporation intends to sell a security or is more likely than not to be required to sell a security before recovery of its amortized cost. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the security’s amortized cost is written down to fair value through income. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, 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.

Gross unrealized losses on investment securities were $154.6 million as of March 31, 2025 and $168.93 million as of December 31, 2024. Management believes these losses represent negative adjustments to market value relative to the interest rate environment reflecting the increase in market rates and not losses related to the creditworthiness of the issuer. The portfolio contains primarily government agency, agency backed mortgage backed securities (“MBS”), and collateralized mortgage obligations (“CMO”), which are issued by government sponsored enterprises and are backed by the full faith and credit of the United States government. Secondarily, the Corporation invests in municipal securities issued by state and local governments. Of these, almost half are either insured or contain state enhancements. On the remaining, credit is monitored by the investment committee. Based upon our review of the issuers, we do not believe these investments to be other than temporarily impaired. Management does not intend to sell these securities and it is not more likely than not that we will be required to sell them before their anticipated recovery.

The table below presents a rollforward of the credit losses recognized in earnings for the three month period ended March 31, 2025 and 2024:

	Three Months Ended March 31,
(Dollar amounts in thousands)	2025		2024
Beginning balance	$	2,974	$	2,974
Reductions for securities called during the period		—		—
Ending balance	$	2,974	$	2,974