Investments

3 Months Ended

Mar. 31, 2025

Investments

Investments

4. Investments:

The Company evaluated credit impairment for individual securities available for sale (AFS) whose fair value was below amortized cost with a more than inconsequential risk of default and where the Company had assessed the decline in fair value significant enough to suggest a credit event occurred.  Due to the zero credit loss assumption and the considerations applied to the securities AFS, there was no ACL recorded for securities AFS as of March 31, 2025 and December 31, 2024. The Company first established an allowance for credit losses for individual securities held to maturity in 2023 and evaluated impairment for individual securities held to maturity again as of December 31, 2024 and determined an allowance for credit loss of $40,000 was appropriate. No additional impairment was recorded as of March 31, 2025.

The amortized cost, fair value and allowance for credit losses related to securities at March 31, 2025 and December 31, 2024, are as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
March 31, 2025	Cost		Gains		Losses		Fair Value
Available for sale securities:
U.S. Treasuries	$	188,440	$	164	$	(6,074)	$	182,530
Mortgage-backed securities		45,782		32		(3,918)		41,896
Collateralized mortgage obligations		68,290		55		(4,510)		63,835
States and political subdivisions		100,739		—		(18,778)		81,961
Total available for sale securities	$	403,251	$	251	$	(33,280)	$	370,222

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
December 31, 2024	Cost		Gains		Losses		Fair Value
Available for sale securities:
U.S. Treasuries	$	124,320	$	150	$	(7,425)	$	117,045
Mortgage-backed securities		46,845		35		(4,368)		42,512
Collateralized mortgage obligations		73,857		77		(5,070)		68,864
States and political subdivisions		100,845		—		(20,618)		80,227
Total available for sale securities	$	345,867	$	262	$	(37,481)	$	308,648

			Gross		Gross				Allowance		Net
	Amortized		Unrealized		Unrealized		Estimated		for Credit		Carrying
March 31, 2025	Cost		Gains		Losses		Fair Value		Losses		Amount
Held to maturity securities:
U.S. Treasuries	$	29,982	$	24	$	(298)	$	29,708	$	—	$	29,982
States and political subdivisions		82,646		13		(10,451)		72,208		(40)		82,606
Total held to maturity securities	$	112,628	$	37	$	(10,749)	$	101,916	$	(40)	$	112,588

			Gross		Gross				Allowance		Net
	Amortized		Unrealized		Unrealized		Estimated		for Credit		Carrying
December 31, 2024	Cost		Gains		Losses		Fair Value		Losses		Amount
Held to maturity securities:
U.S. Treasuries	$	39,978	$	20	$	(450)	$	39,548	$	—	$	39,978
States and political subdivisions		83,218		14		(11,668)		71,564		(40)		83,178
Total held to maturity securities	$	123,196	$	34	$	(12,118)	$	111,112	$	(40)	$	123,156

The following table shows a rollforward of the allowance for credit losses on held-to-maturity securities for the three months ended March 31, 2025 and the year ended December 31, 2024 (in thousands):

	State and political
	subdivisions
Balance, December 31, 2023	$	30
Provision for credit losses		—
Charge-offs of securities		—
Recoveries		—
Balance, March 31, 2024	$	30
Balance, December 31, 2024	$	40
Provision for credit losses		—
Charge-offs of securities		—
Recoveries		—
Balance, March 31, 2025	$	40

The Company monitors the credit quality of the debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at March 31, 2025 and December 31, 2024, aggregated by credit quality indicators (in thousands):

	March 31, 2025		December 31, 2024
Aaa	$	29,982	$	39,978
Aa1/Aa2/Aa3		33,881		33,961
A1/A2		3,156		3,164
Baa1/Baa2		1,000		1,000
Not rated		44,609		45,093
Total	$	112,628	$	123,196

At March 31, 2025 and December 31, 2024, the Company had no securities held-to-maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held-to-maturity classified as nonaccrual for the three months ended March 31, 2025 and the year ended December 31, 2024.

The amortized cost and fair value of debt securities at March 31, 2025, (in thousands) by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
Available for sale securities:
Due in one year or less	$	104,112	$	104,143
Due after one year through five years		91,944		85,391
Due after five years through ten years		51,813		43,445
Due after ten years		41,310		31,512
Mortgage-backed securities		45,782		41,896
Collaterized mortgage obligations		68,290		63,835
Total	$	403,251	$	370,222
Held to maturity securities:
Due in one year or less	$	23,446	$	23,403
Due after one year through five years		41,711		39,505
Due after five years through ten years		29,311		25,464
Due after ten years		18,160		13,544
Total	$	112,628	$	101,916

Available for sale securities with gross unrealized losses at March 31, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows (in thousands):

	Less Than Twelve Months				Over Twelve Months				Total
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
Available for Sale	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
March 31, 2025:
U.S. Treasuries	$	69,179	$	41	$	73,438	$	6,033	$	142,617	$	6,074
Mortgage-backed securities		3,733		20		36,132		3,898		39,865		3,918
Collateralized mortgage obligations		5,462		11		49,022		4,499		54,484		4,510
States and political subdivisions		—		—		81,821		18,778		81,821		18,778
Total	$	78,374	$	72	$	240,413	$	33,208	$	318,787	$	33,280

	Less Than Twelve Months				Over Twelve Months				Total
			Gross				Gross				Gross
			Unrealized				Unrealized				Unrealized
Available for Sale	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
December 31, 2024:
U.S. Treasuries	$	—	$	—	$	81,991	$	7,425	$	81,991	$	7,425
Mortgage-backed securities		3,993		20		36,388		4,348		40,381		4,368
Collateralized mortgage obligations		1,728		9		51,513		5,061		53,241		5,070
States and political subdivisions		—		—		80,087		20,618		80,087		20,618
Total	$	5,721	$	29	$	249,979	$	37,452	$	255,700	$	37,481

At March 31, 2025, 21 of the 29 Treasuries, 41 of the 46 mortgage-backed securities, 24 of the 28 collateralized mortgage obligations and 74 of the 75 securities issued by states and political subdivisions contained unrealized losses.

There were no sales of available for sale debt securities for the three months ended March 31, 2025 and March 31, 2024.

Securities with a fair value of $334,977,093 and $311,774,135 at March 31, 2025 and December 31, 2024, respectively, were pledged to secure public deposits, federal funds purchased and other balances required by law.