INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

At March 31, 2026 and December 31, 2025, all investment securities were classified as AFS. The following table summarizes amortized cost and fair value of AFS securities, the corresponding amounts of gross unrealized gains and losses recognized in AOCI and the ACL at March 31, 2026 and December 31, 2025:


	Amortized Cost		Gross Unrealized Gains		(Gross Unrealized Losses)		Allowance for Credit Losses		Fair Value
March 31, 2026
U.S. Treasury securities	$	15,014	$	—	$	817	$	—	$	14,197
U.S. Government Agencies	1,613		46		—		—		1,659

States and political subdivisions	219,408		162		19,222		—		200,348
GSE residential MBSs	239,118		2,051		4,168		—		237,001
GSE commercial MBSs	5,691		84		22		—		5,753
GSE residential CMOs	348,774		2,254		4,952		—		346,076

Non-agency CMOs	65,215		76		1,258		—		64,033


Asset-backed	76,197		289		758		—		75,728
Corporate debt	1,950		33		—		—		1,983
Other	240		—		—		—		240
Totals	$	973,220	$	4,995	$	31,197	$	—	$	947,018
December 31, 2025
U.S. Treasury securities	$	15,016	$	—	$	805	$	—	$	14,211
U.S. Government Agencies	1,746		50		—		—		1,796

States and political subdivisions	218,832		288		16,972		—		202,148
GSE residential MBSs	234,016		3,228		3,141		—		234,103
GSE commercial MBSs	6,081		106		16		—		6,171
GSE residential CMOs	354,954		3,425		4,376		—		354,003

Non-agency CMOs	60,693		363		1,233		—		59,823


Asset-backed	78,610		443		803		—		78,250
Corporate debt	1,947		45		—		—		1,992
Other	243		—		—		—		243
Totals	$	972,138	$	7,948	$	27,346	$	—	$	952,740

The following table summarizes investment securities with unrealized losses at March 31, 2026 and December 31, 2025, aggregated by major security type and the length of time in a continuous unrealized loss position:


	Less Than 12 Months					12 Months or More					Total
	# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses
March 31, 2026
U.S. Treasury securities	—	$	—	$	—	2	$	14,197	$	817	2	$	14,197	$	817

States and political subdivisions	7	14,610		380		39	174,206		18,842		46	188,816		19,222
GSE residential MBSs	9	93,841		2,028		8	12,615		2,140		17	106,456		4,168
GSE commercial MBS	1	647		20		1	567		2		2	1,214		22
GSE residential CMOs	17	78,736		808		15	51,266		4,144		32	130,002		4,952
Non-agency CMOs	9	39,301		232		4	15,926		1,026		13	55,227		1,258



Asset-backed	3	16,012		34		11	45,909		724		14	61,921		758

Totals	46	$	243,147	$	3,502	80	$	314,686	$	27,695	126	$	557,833	$	31,197
December 31, 2025
U.S. Treasury securities	—	$	—	$	—	2	$	14,211	$	805	2	$	14,211	$	805


States and political subdivisions	2	10,498		199		39	176,757		16,773		41	187,255		16,972
GSE residential MBSs	7	72,981		1,044		8	13,003		2,097		15	85,984		3,141
GSE commercial MBS	2	1,222		16		—	—		—		2	1,222		16
GSE residential CMOs	9	39,588		335		21	87,901		4,041		30	127,489		4,376
Non-agency CMOs	5	21,230		180		4	16,158		1,053		9	37,388		1,233



Asset-backed	2	3,890		29		9	43,168		774		11	47,058		803

Totals	27	$	149,409	$	1,803	83	$	351,198	$	25,543	110	$	500,607	$	27,346

On a quarterly basis, the Company conducts an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying issuers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. Under the CECL standard, if the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, which is limited by the amount that the fair value is less than the amortized cost basis. Any additional amount of loss would be due to non-credit factors and is recorded in AOCI, net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in AOCI, net of taxes, on the consolidated balance sheets.

The Company did not record an ACL on the AFS securities at March 31, 2026 and December 31, 2025. As of these periods, the Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily higher interest rates from the time of the security purchase, and not reflective of deterioration in credit. In addition, the Company maintains that it has the intent and ability to hold these AFS securities until the amortized cost is recovered and it is more likely than not that any of AFS securities in an unrealized loss position would not be required to be sold.

U.S. Treasury Securities. The unrealized losses presented in the table above have been caused by an increase in interest rates from the time these securities were purchased. Management considers the full faith and credit of the U.S. government in determining whether declines in fair value are due to credit factors.

States and Political Subdivisions. The unrealized losses presented in the table above have been caused by a rise in interest rates from the time these securities were purchased. Management evaluates the financial performance of the issuers, including the investment rating, the state of the issuer of the security and other credit support in determining whether declines in fair value are due to credit factors.

GSE Residential CMOs, GSE Residential MBS and GSE Commercial MBS. The unrealized losses presented in the table above have been caused by a widening of spreads and a rise in interest rates from the time these securities were purchased. The contractual terms of these securities do not permit the issuer to settle the securities at a price less than its par value basis.

Non-Agency CMOs. The unrealized losses presented in the table above were caused by a widening of spreads and a rise in interest rates from the time the securities were purchased. Management considers the investment rating and other credit support in its evaluation, including delinquencies and credit enhancements, in determining whether declines in fair value are due to credit factors.

Asset-backed. The unrealized losses presented in the table above were caused by a widening of spreads and a rise in the interest rates from the time the securities were purchased. Management considers the investment rating and other credit support, in its evaluation, including delinquencies and credit enhancements, in determining whether declines in fair value are due to credit factors.

The Company does not intend to sell the aforementioned investment securities with unrealized losses and it is more likely than not that the Company will not be required to sell them before recovery of their amortized cost basis, which may be maturity. In addition, the unrealized losses are not credit related. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2026.

The following table summarizes amortized cost and fair value of investment securities by contractual maturity at March 31, 2026. Expected maturities may differ from contractual maturities if issuers 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.


	Amortized Cost		Fair Value
Due in one year or less	$	1,107	$	1,106
Due after one year through five years	42,775		40,792
Due after five years through ten years	62,987		59,724
Due after ten years	131,356		116,805
CMOs and MBSs	658,798		652,863
Asset-backed	76,197		75,728

Totals	$	973,220	$	947,018

The following table summarizes proceeds from sales of investment securities and gross gains and gross losses for the three months ended March 31, 2026 and 2025:


	Three months ended March 31,
		2026		2025
Proceeds from sale of investment securities		$	—	$	—
Gross gains		—		13
Gross losses		2		—

During the three months ended March 31, 2026, the Company recorded a loss of $2 thousand compared to a gain of $13 thousand for the three months ended March 31, 2025 from mark-to-market activity on an equity security. During the three months ended March 31, 2026 and 2025, the Company did not sell any investment securities. Investment securities with a fair value of $665.6 million and $556.5 million at March 31, 2026 and December 31, 2025, respectively, were pledged to secure public funds and for other purposes as required or permitted by law. At March 31, 2026 and December 31, 2025, no AFS investment securities holding of any one issuer, other than the U.S. government and its agencies, amounted to greater than 10% of shareholders’ equity.