SECURITIES

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

The following tables present the amortized cost and estimated fair value of securities available for sale as of March 31, 2026 and December 31, 2025 (in thousands):


	March 31, 2026
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value

Mortgage-backed securities, residential	$	290,415	$	62	$	44,795	$	—	$	245,682
Collateralized mortgage obligations	2,984		—		81		—		2,903
Obligations of states and political subdivisions	10,020		—		457		—		9,563
Corporate bonds and notes	18,750		—		1,580		—		17,170


Total	$	322,169	$	62	$	46,913	$	—	$	275,318


	December 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value

Mortgage-backed securities, residential	295,595		76		45,296		—		250,375
Collateralized mortgage obligations	2,990		—		59		—		2,931
Obligations of states and political subdivisions	10,553		—		243		—		10,310
Corporate bonds and notes	18,750		—		1,768		—		16,982

Total	$	327,888	$	76	$	47,366	$	—	$	280,598

The following tables present the amortized cost and estimated fair value of securities held to maturity as of March 31, 2026 and December 31, 2025 (in thousands):


	March 31, 2026
	Amortized Cost		Unrecognized Gains		Unrecognized Losses		Allowance for Credit Losses		Estimated Fair Value
Obligations of states and political subdivisions	$	640	$	—	$	—	$	—	$	640


	December 31, 2025
	Amortized Cost		Unrecognized Gains		Unrecognized Losses		Allowance for Credit Losses		Estimated Fair Value
Obligations of states and political subdivisions	$	640	$	—	$	—	$	—	$	640

There were no proceeds from sales and calls of securities resulting in gains or losses for the three month periods ended March 31, 2026 and 2025.

The amortized cost and estimated fair value of debt securities are shown below by contractual maturity (in thousands). Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	March 31, 2026
	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	466	$	463	$	—	$	—
After one, but within five years	2,573		2,375		160		160
After five, but within ten years	25,581		23,755		480		480
After ten years	150		140		—		—
	28,770		26,733		640		640
Mortgage-backed securities, residential	290,415		245,682		—		—
Collateralized mortgage obligations	2,984		2,903		—		—

Total	$	322,169	$	275,318	$	640	$	640

Securities pledged as of March 31, 2026 and December 31, 2025 had a carrying value of $209.0 million and $178.2 million respectively, and were pledged to secure public deposits.

The following tables summarize the investment securities available for sale with unrealized losses as of March 31, 2026 and December 31, 2025 by aggregated major security type and length of time in a continuous unrealized loss position (in thousands):


	Less than 12 months				12 months or longer				Total
March 31, 2026	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Mortgage-backed securities, residential	$	—	$	—	$	240,646	$	44,795	$	240,646	$	44,795
Collateralized mortgage obligations	2,903		81		—		—		2,903		81
Obligations of states and political subdivisions	2,537		68		7,026		389		9,563		457
Corporate bonds and notes	—		—		16,170		1,580		16,170		1,580

Total	$	5,440	$	149	$	263,842	$	46,764	$	269,282	$	46,913


	Less than 12 months				12 months or longer				Total
December 31, 2025	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Mortgage-backed securities, residential	$	—	$	—	$	245,329	$	45,296	$	245,329	$	45,296
Collateralized mortgage obligations	2,931		59		—		—		2,931		59
Obligations of states and political subdivisions	—		—		9,845		243		9,845		243
Corporate bonds and notes	984		16		15,998		1,752		16,982		1,768

Total	$	3,915	$	75	$	271,172	$	47,291	$	275,087	$	47,366

Assessment of Available for Sale Debt Securities for Credit Risk

Management assesses the decline in fair value of investment securities on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility in earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates both qualitative and quantitative factors to assess whether potential credit losses exist. The following is a discussion of the credit quality characteristics of portfolio segments carrying material unrealized losses as of March 31, 2026.

Obligations of U.S. Governmental agencies and sponsored enterprises:

As of March 31, 2026, the majority of the Corporation’s unrealized losses in available for sale investment securities related to mortgage-backed securities, issued by government-sponsored entities and agencies. Unrealized losses attributable to mortgage-backed securities were 95.5% of total unrealized losses on available for sale securities as of March 31, 2026. Declines in fair value were attributable to changes in interest rates, not credit quality. The Corporation does not have the intent, and is not likely to be required, to sell these securities prior to anticipated recovery. Due to affiliations with U.S. governmental agencies and or enterprises, the Corporation considers these obligations to carry zero loss estimates, and has not recorded an allowance for credit losses as of March 31, 2026.

Corporate bonds and notes:

The Corporation's corporate bonds and notes portfolio is comprised of subordinated debt issues of community and regional banks. Unrealized losses attributable to corporate bonds and notes were 3.4% of total unrealized losses on available for sale securities as of March 31, 2026. Management considers the credit quality of these investments on an individual basis. Management reviewed the collectability of these securities, taking into consideration such factors as the financial condition of issuers, reported regulatory capital ratios of issuers, and credit ratings when available, among other pertinent factors. All corporate bond debt securities continue to accrue interest and make payments as expected with no defaults or deferrals on the part of the issuers. The decreases in fair value were attributable to changes in interest rates. Therefore, the Corporation considers the potential credit risk of these issuers to be immaterial, and has not recorded an allowance for credit losses as of March 31, 2026.

Equity Investments

The Corporation holds a non-qualified deferred compensation plan to allow a select group of management and employees the opportunity to defer all or a portion of their annual compensation, and treats assets held under this plan as equity investments. As of both March 31, 2026 and December 31, 2025, the fair value of investments held in relation to the deferred compensation plan was $3.2 million. The Corporation also held $0.6 million of marketable securities as equity investments as of both March 31, 2026 and December 31, 2025.