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Investments
 9 Months Ended
Sep. 30, 2025
Investments [Abstract]  
Investments


‎

Note 4. Investments

Available for Sale (AFS) Securities

The amortized cost and estimated fair value of AFS securities as of September 30, 2025 and December 31, 2024 are as follows:

(Dollars in thousands)

Gross

Gross

Amortized

unrealized

unrealized

Fair

September 30, 2025

cost

gains

losses

Value

U.S. Treasury

$

35,958

$

—

$

(2,891)

$

33,067

Municipal

154,608

—

(17,910)

136,698

Corporate

21,482

2

(1,253)

20,231

Agency MBS & CMO

138,466

112

(6,202)

132,376

Non-Agency MBS & CMO

120,797

293

(2,320)

118,770

Asset-backed

28,398

101

(356)

28,143

Total

$

499,709

$

508

$

(30,932)

$

469,285

(Dollars in thousands)

Gross

Gross

Amortized

unrealized

unrealized

Fair

December 31, 2024

cost

gains

losses

value

U.S. Treasury

$

36,192

$

—

$

(4,395)

$

31,797

Municipal

156,528

37

(22,973)

133,592

Corporate

26,356

1

(2,133)

24,224

Agency MBS & CMO

149,003

15

(10,276)

138,742

Non-Agency MBS & CMO

154,554

45

(5,429)

149,170

Asset-backed

31,420

163

(504)

31,079

Total

$

554,053

$

261

$

(45,710)

$

508,604

At September 30, 2025 and December 31, 2024, the fair value of debt securities pledged to secure public deposits, trust deposits, FHLB borrowing commitments and Federal Reserve Bank discount window availability totaled $386.9 million and $207.2 million, respectively. The Bank has no investment in a single obligor that exceeds 10% of shareholders’ equity, except for securities issued by the U.S. Treasury and U.S. government sponsored entities.

The amortized cost and estimated fair value of debt securities at September 30, 2025, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities. Securities not due at a single maturity date are presented separately.

(Dollars in thousands)

Amortized
‎cost

Fair
‎value

Due in one year or less

$

—

$

—

Due after one year through five years

48,468

45,527

Due after five years through ten years

94,543

84,340

Due after ten years

69,037

60,129

212,048

189,996

MBS, CMO & ABS

287,661

279,289

$

499,709

$

469,285

Credit Impairment:

The debt securities portfolio contained 484 securities having a fair value of $410.8 million, with $30.9 million in unrealized losses at September 30, 2025, an improvement of $14.8 million from the prior year-end.

AFS securities in an unrealized loss position are evaluated for credit impairment at least quarterly. For these securities, the Bank considers: (1) the extent to which the fair value is less than amortized cost; (2) adverse conditions specifically related to the security, industry or geographic area; (3) the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future; (4) failure of the issuer of the security to make scheduled interest or principal payments; and (5) any changes to the rating of the security by a rating agency. In addition, the Bank

considers whether it intends to sell these securities or whether it will be forced to sell these securities before the earlier of amortized cost recovery or maturity. The Bank does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost. The unrealized losses identified on debt securities and subject to evaluation at September 30, 2025 and December 31, 2024, were determined not to be attributable to credit related factors; therefore, the Bank does not have an allowance for credit loss for these investments.

The following table summarizes debt securities in the AFS portfolio in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category, length of time that individual securities have been in continuous unrealized loss position and the number of securities in each category as of September 30, 2025 and December 31, 2024:

September 30, 2025

Less than 12 months

12 months or more

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in thousands)

Value

Losses

Count

Value

Losses

Count

Value

Losses

Count

U.S. Treasury

$

—

$

—

—

$

33,067 

$

(2,891)

13 

$

33,067 

$

(2,891)

13 

Municipal

791 

(80)

2 

135,907 

(17,830)

163 

136,698 

(17,910)

165 

Corporate

—

—

—

18,988 

(1,253)

40 

18,988 

(1,253)

40 

Agency MBS & CMO

2,673 

(8)

15 

120,007 

(6,194)

170 

122,680 

(6,202)

185 

Non-Agency MBS & CMO

2,445 

(4)

3 

79,608 

(2,316)

43 

82,053 

(2,320)

46 

Asset-backed

1,785 

(17)

4 

15,533 

(339)

31 

17,318 

(356)

35 

Total unrealized losses

$

7,694 

$

(109)

24 

$

403,110 

$

(30,823)

460 

$

410,804 

$

(30,932)

484 

December 31, 2024

Less than 12 months

12 months or more

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(Dollars in thousands)

Value

Losses

Count

Value

Losses

Count

Value

Losses

Count

U.S. Treasury

$

—

$

—

—

$

31,797 

$

(4,395)

13 

$

31,797 

$

(4,395)

13 

Municipal

—

—

—

132,550 

(22,973)

164 

132,550 

(22,973)

164 

Corporate

—

—

—

23,237 

(2,133)

50 

23,237 

(2,133)

50 

Agency MBS & CMO

54,388 

(2,250)

15 

82,110 

(8,026)

183 

136,498 

(10,276)

198 

Non-Agency MBS & CMO

79,422 

(2,974)

26 

53,615 

(2,455)

50 

133,037 

(5,429)

76 

Asset-backed

733 

(1)

3 

19,061 

(503)

34 

19,794 

(504)

37 

Total unrealized losses

$

134,543 

$

(5,225)

44 

$

342,370 

$

(40,485)

494 

$

476,913 

$

(45,710)

538