Securities

9 Months Ended

Sep. 30, 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.

	September 30, 2025
	Amortized		Unrealized		Unrealized
(Dollar amounts in thousands)	Cost		Gains		Losses		Fair Value
U.S. Government agencies	$	87,559	$	95	$	(8,472)	$	79,182
Mortgage Backed Securities - residential		596,918		897		(62,313)		535,502
Mortgage Backed Securities - commercial		12,821		2		(313)		12,510
Collateralized mortgage obligations		176,523		74		(22,736)		153,861
State and municipal obligations		394,013		834		(29,211)		365,636
Municipal taxable		40,200		83		(3,710)		36,573
Collateralized debt obligations		—		2,843		—		2,843
TOTAL	$	1,308,034	$	4,828	$	(126,755)	$	1,186,107

	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 September 30, 2025 were as follows.

	Available-for-Sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	11,654	$	11,621
Due after one but within five years		44,532		43,683
Due after five but within ten years		131,477		128,522
Due after ten years		334,109		300,408
		521,772		484,234
Mortgage-backed securities and collateralized mortgage obligations		786,262		701,873
TOTAL	$	1,308,034	$	1,186,107

For the three and nine months ended September 30, 2025, there were $25 thousand in gross gains realized for both periods and $1 thousand and $4 thousand in gross losses realized on sales/calls of investment securities. For the three and nine months ended September 30, 2024, there were $132 thousand and $133 thousand in gross gains and $29 thousand in gross losses realized for both periods.

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 September 30, 2025 and December 31, 2024.

	September 30, 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	$	2,970	$	(21)	$	70,049	$	(8,451)	$	73,019	$	(8,472)
Mortgage Backed Securities - Residential		10,126		(1)		462,925		(62,312)		473,051		(62,313)
Mortgage Backed Securities - Commercial		5,963		(138)		5,246		(175)		11,209		(313)
Collateralized mortgage obligations		—		—		144,998		(22,736)		144,998		(22,736)
State and municipal obligations		36,044		(358)		225,304		(28,853)		261,348		(29,211)
Municipal taxable		—		—		32,079		(3,710)		32,079		(3,710)
Total temporarily impaired securities	$	55,103	$	(518)	$	940,601	$	(126,237)	$	995,704	$	(126,755)

	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 $126.76 million as of September 30, 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 and nine month period ended September 30, 2025 and 2024:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollar amounts in thousands)	2025		2024		2025		2024
Beginning balance	$	2,974	$	2,974	$	2,974	$	2,974
Reductions for securities called during the period		—		—		—		—
Ending balance	$	2,974	$	2,974	$	2,974	$	2,974