NOTE 2 - INVESTMENT SECURITIES (Tables)

9 Months Ended

Sep. 30, 2026

INVESTMENT SECURITIES

Schedule of amortized cost and fair value of HTM and AFS investment securities

			Allowance		Gross		Gross
	Amortized		for Credit		Unrealized		Unrealized		Fair
	Cost		(Losses)		Gains		(Losses)		Value
	(dollars in thousands)
September 30, 2026:
Securities HTM:
Municipal securities	$	998,172	$	(272)	$	6,776	$	(116,564)	$	888,112
Corporate securities		30,657		(9)		94		(195)		30,547
Other securities		1,050		(1)		—		(7)		1,042
	$	1,029,879	$	(282)	$	6,870	$	(116,766)	$	919,701
Securities AFS:
U.S. treasuries and govt. sponsored agency securities	$	15,543	$	—	$	3	$	(2,190)	$	13,356
Residential mortgage-backed and related securities		117,477		—		4		(11,348)		106,133
Municipal securities		204,365		—		—		(58,163)		146,202
Asset-backed securities		3,590		—		61		—		3,651
Corporate securities		16,961		—		44		(405)		16,600
	$	357,936	$	—	$	112	$	(72,106)	$	285,942

			Allowance		Gross		Gross
	Amortized		for Credit		Unrealized		Unrealized		Fair
	Cost		(Losses)		Gains		(Losses)		Value
	(dollars in thousands)
December 31, 2025:
Securities HTM:
Municipal securities	$	918,189	$	(272)	$	26,059	$	(56,752)	$	887,224
Corporate securities		29,719		(9)		2,660		—		32,370
Other securities		1,050		(1)		—		(1)		1,048
	$	948,958	$	(282)	$	28,719	$	(56,753)	$	920,642
Securities AFS:
U.S. treasuries and govt. sponsored agency securities	$	17,775	$	—	$	4	$	(1,755)	$	16,024
Residential mortgage-backed and related securities		72,951		—		151		(4,247)		68,855
Municipal securities		203,613		—		27		(40,555)		163,085
Asset-backed securities		4,345		—		94		—		4,439
Corporate securities		28,068		—		148		(842)		27,374
	$	326,752	$	—	$	424	$	(47,399)	$	279,777

Schedule of securities have been in a continuous unrealized loss position

	Less than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(dollars in thousands)
September 30, 2026:
Securities HTM:
Municipal securities	$	529,564	$	(66,788)	$	172,388	$	(49,776)	$	701,952	$	(116,564)
Corporate securities		22,910		(195)		—		—		22,910		(195)
Other securities		1,043		(7)		—		—		1,043		(7)
	$	553,517	$	(66,990)	$	172,388	$	(49,776)	$	725,905	$	(116,766)
Securities AFS:
U.S. treasuries and govt. sponsored agency securities	$	—	$	—	$	12,876	$	(2,190)	$	12,876	$	(2,190)
Residential mortgage-backed and related securities		77,390		(6,509)		28,516		(4,839)		105,906		(11,348)
Municipal securities		5,470		(426)		140,732		(57,737)		146,202		(58,163)
Corporate securities		1,473		(21)		10,866		(384)		12,339		(405)
	$	84,333	$	(6,956)	$	192,990	$	(65,150)	$	277,323	$	(72,106)

	Less than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(dollars in thousands)
December 31, 2025:
Securities HTM:
Municipal securities	$	41,724	$	(1,329)	$	307,914	$	(55,423)	$	349,638	$	(56,752)
Other securities		549		(1)		—		—		549		(1)
	$	42,273	$	(1,330)	$	307,914	$	(55,423)	$	350,187	$	(56,753)
Securities AFS:
U.S. treasuries and govt. sponsored agency securities	$	48	$	(1)	$	13,663	$	(1,754)	$	13,711	$	(1,755)
Residential mortgage-backed and related securities		16,167		(592)		32,137		(3,655)		48,304		(4,247)
Municipal securities		636		(9)		159,146		(40,546)		159,782		(40,555)
Corporate securities		1,491		(25)		18,802		(817)		20,293		(842)
	$	18,342	$	(627)	$	223,748	$	(46,772)	$	242,090	$	(47,399)

Schedule of activity in allowance for credit losses for HTM and AFS securities by major security

	Three Months Ended
	September 30, 2026								September 30, 2025
	Securities HTM								Securities HTM
	Municipal		Corporate		Other				Municipal		Corporate		Other
	securities		securities		securities		Total		securities		securities		securities		Total
	(dollars in thousands)
Allowance for credit losses:
Beginning balance	$	272	$	9	$	1	$	282	$	254	$	8	$	1	$	263
Provision		—		—		—		—		—		—		—		—
Balance, ending	$	272	$	9	$	1	$	282	$	254	$	8	$	1	$	263
	Nine Months Ended
	September 30, 2026								September 30, 2025
	Securities HTM								Securities HTM
	Municipal			Corporate	Other				Municipal		Other		Other
	securities			securities	securities		Total		securities		securities		securities		Total
	(dollars in thousands)
Allowance for credit losses:
Beginning balance	$	272		9	$	1	$	282	$	254	$	8	$	1	$	263
Provision for credit loss expense		—		—		—		—		—		—		—		—
Balance, ending	$	272		9	$	1	$	282	$	254	$	8	$	1	$	263

Schedule of investments classified by maturity date

	Amortized Cost		Fair Value
	(dollars in thousands)
Securities HTM:
Due in one year or less	$	976	$	969
Due after one year through five years		41,183		40,679
Due after five years		987,720		878,053
	$	1,029,879	$	919,701
Securities AFS:
Due in one year or less	$	17	$	17
Due after one year through five years		22,113		20,696
Due after five years		214,739		155,445
		236,869		176,158
Residential mortgage-backed and related securities		117,477		106,133
Asset-backed securities		3,590		3,651
	$	357,936	$	285,942

Schedule of investment in callable securities

	Amortized Cost		Fair Value
	(dollars in thousands)
Securities HTM:
Municipal securities	$	175,789	$	160,951
Corporate securities		30,657		30,546
	$	206,446	$	191,497
Securities AFS:
Municipal securities	$	204,223	$	146,073
Corporate securities		15,493		15,129
	$	219,716	$	161,202

Schedule of fair value of investment securities pledged

	September 30, 2026		December 31, 2025
	(dollars in thousands)
Derivatives:
U.S. govt. sponsored agency securities	$	10,861	$	11,268
Residential mortgage-backed and related securities		19,056		36,565
Municipal securities		123,777		142,065
		153,694		189,898
Public deposits:
U.S. govt. sponsored agency securities		1,123		1,338
Residential mortgage-backed and related securities		1,656		1,985
		2,779		3,323
Other borrowings:
Municipal securities*		139,372		161,329
		139,372		161,329
Total investments pledged:
U.S. govt. sponsored agency securities		11,984		12,606
Residential mortgage-backed and related securities		20,712		38,550
Municipal securities		263,149		303,394
	$	295,845	$	354,550

* Municipal securities with an amortized cost of $167.9 million and $176.6 million were pledged on secured borrowings as of September 30, 2026 and December 31, 2025, respectively.