Securities

9 Months Ended

Sep. 30, 2025

Securities

Securities

Note 2:         Securities

The amortized cost and fair values, together with gross unrealized gains and losses of securities are as follows:

			Gross		Gross
			Unrealized		Unrealized
	Amortized Cost		Gains		Losses		Fair Value
Available-for-sale Securities:
September 30, 2025:
U.S. government agencies	$	12,500	$	—	$	(67)	$	12,433
Subordinated notes		25,400		—		(1,805)		23,595
State and municipal obligations		226,040		857		(9,199)		217,698
Total debt securities	$	263,940	$	857	$	(11,071)	$	253,726

			Gross		Gross
			Unrealized		Unrealized
	Amortized Cost		Gains		Losses		Fair Value
	(In thousands)
Available-for-sale Securities:
December 31, 2024:
U.S. government agencies	$	12,500	$	—	$	(246)	$	12,254
Subordinated notes		26,942		—		(2,824)		24,118
State and municipal obligations		213,319		335		(9,395)		204,259
Total debt securities	$	252,761	$	335	$	(12,465)	$	240,631

There was no allowance for credit losses at September 30, 2025 or December 31, 2024.

The amortized cost and fair value of available-for-sale securities at September 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
	Cost		Value
	(In thousands)
Under one year	$	4,202	$	4,202
One to five years		13,199		13,155
Five to ten years		30,839		28,985
Over ten years		215,700		207,384
Totals	$	263,940	$	253,726

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $125.2 million and $121.4 million at September 30, 2025 and December 31, 2024, respectively.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at September 30, 2025 was $198.0 million, which represented 78% of the Company’s available-for-sale investment portfolio. The total fair value of these investments at December 31, 2024 was $208.8 million, which represented less than 87% of the Company’s available-for-sale.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary and are a result of an increase in longer term interest rates.

The following tables show the Company’s available for sale securities and the related gross unrealized losses and fair value, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025 and December 31. 2024:

	September 30, 2025
	Less than 12 Months				12 Months or More				Total
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(In thousands)
U.S. Government agencies	$	—	$	—	$	12,433	$	(67)	$	12,433	$	(67)
Subordinated notes		—		—		23,595		(1,805)		23,595		(1,805)
State and municipal obligations		106,008		(2,925)		54,998		(6,274)		161,006		(9,199)
Total temporarily impaired securities	$	106,008	$	(2,925)	$	91,026	$	(8,146)	$	197,034	$	(11,071)

	December 31, 2024
	Less than 12 Months				12 Months or More				Total
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(In thousands)
US government agencies	$	—	$	—	$	12,254	$	(246)	$	12,254	$	(246)
Subordinated notes		—		—		24,118		(2,824)		24,118		(2,824)
State and municipal obligations		127,876		(2,478)		44,535		(6,917)		172,411		(9,395)
Total temporarily impaired securities	$	127,876	$	(2,478)	$	80,907	$	(9,987)	$	208,783	$	(12,465)

The unrealized losses on the Company’s 206 investments in available for sale securities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to require an allowance for credit losses to be recognized as of September 30, 2025 or December 31, 2024.

The Company recorded a net gain on the sale of available - for - sale securities of approximately $144,000 for the nine months ended September 30, 2025. The Company sold $140,000 in securities for a loss of $2,000 and sold $7.7 million in securities for a gain of $145,000. The Company wanted to rebalance a portion of its security portfolio during the first quarter of 2025.

The Company recorded a loss of approximately $116,000 for the nine month ended September 30, 2024. The Company sold $20.3 million in securities for a loss of $228,000 and sold $7.2 million in securities for a gain of $112,000. The Company wanted to rebalance a portion of its security portfolio during the first half of 2024.