| Securities |
Securities The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:
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(Dollars in thousands) |
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Cost
Basis |
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Gross
Unrealized
Gains |
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Gross
Unrealized
Losses |
|
Estimated
Fair
Value |
| June 30, 2025 |
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| U.S. government sponsored entities |
|
$ |
8,884 |
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$ |
- |
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|
$ |
(577) |
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|
$ |
8,307 |
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| Collateralized mortgage obligations and residential mortgage-backed securities |
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130,260 |
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- |
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|
(22,288) |
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|
107,972 |
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| Municipal securities |
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262,277 |
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- |
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|
(52,327) |
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|
209,950 |
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| Collateralized debt obligations |
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2,149 |
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- |
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(533) |
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|
1,616 |
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| Total securities available-for-sale |
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$ |
403,570 |
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$ |
- |
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$ |
(75,725) |
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$ |
327,845 |
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(Dollars in thousands) |
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|
Cost
Basis |
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Gross
Unrealized
Gains |
|
Gross
Unrealized
Losses |
|
Estimated
Fair
Value |
| December 31, 2024 |
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| U.S. government sponsored entities |
|
$ |
8,884 |
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|
$ |
- |
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|
$ |
(823) |
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|
$ |
8,061 |
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| Collateralized mortgage obligations and residential mortgage-backed securities |
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135,974 |
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- |
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|
(26,649) |
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|
109,325 |
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| Municipal securities |
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262,954 |
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- |
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|
(48,205) |
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|
214,749 |
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| Collateralized debt obligations |
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2,156 |
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- |
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|
(737) |
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|
1,419 |
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| Total securities available-for-sale |
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$ |
409,968 |
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|
$ |
- |
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|
$ |
(76,414) |
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|
$ |
333,554 |
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The cost basis and estimated fair value of available-for-sale debt securities at June 30, 2025, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily collateralized mortgage obligations and residential mortgage-backed securities, are shown separately.
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(Dollars in thousands) |
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Available-for-sale |
| June 30, 2025 |
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Cost
Basis |
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Estimated
Fair
Value |
| Due in one year or less |
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$ |
- |
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$ |
- |
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| Due from one to five years |
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12,438 |
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11,590 |
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| Due from five to ten years |
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41,642 |
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36,578 |
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| Due over ten years |
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219,230 |
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|
171,705 |
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| Collateralized mortgage obligations and residential mortgage-backed securities |
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130,260 |
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|
107,972 |
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| Total |
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$ |
403,570 |
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$ |
327,845 |
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Sales of available-for-sale securities were as follows for the quarter ended:
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Three Months Ended June 30 |
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Six Months Ended June 30 |
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2025 |
|
2024 |
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2025 |
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2024 |
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| Proceeds |
$ |
- |
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|
$ |
- |
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|
$ |
- |
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|
$ |
14,697 |
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| Gross gains |
- |
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- |
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|
- |
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- |
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| Gross losses |
- |
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- |
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- |
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(531) |
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Accumulated other comprehensive income/(loss) balances, net of tax, related to available-for-sale securities, were as follows:
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(Dollars in thousands) |
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Unrealized loss |
| Beginning balance, April 1, 2025 |
$ |
(58,244) |
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| Period change |
684 |
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| Ending balance, June 30, 2025 |
$ |
(57,560) |
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(Dollars in thousands) |
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Unrealized loss |
| Beginning balance, April 1, 2024 |
$ |
(56,313) |
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| Current period change |
(2,626) |
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| Ending balance, June 30, 2024 |
$ |
(58,939) |
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(Dollars in thousands) |
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Unrealized loss |
| Beginning Balance, January 1, 2025 |
$ |
(58,084) |
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| Period change |
524 |
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| Ending Balance, June 30, 2025 |
$ |
(57,560) |
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(Dollars in thousands) |
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Unrealized loss |
| Beginning balance, January 1, 2024 |
$ |
(51,613) |
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| Current period change |
(7,326) |
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| Ending balance, June 30, 2024 |
$ |
(58,939) |
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Securities with market values of approximately $327.1 million and $326.5 million were pledged as of June 30, 2025 and December 31, 2024, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.
Securities with unrealized losses at June 30, 2025, and December 31, 2024 not recognized in income are as follows:
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(Dollars in thousands) |
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Less than 12 months |
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12 months or longer |
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Total |
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Estimated
Fair
Value |
|
Unrealized
Losses |
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Estimated
Fair
Value |
|
Unrealized
Losses |
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Estimated
Fair
Value |
|
Unrealized
Losses |
|
Percentage of
Total Portfolio
in Loss Position |
| June 30, 2025 |
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| U.S. government sponsored entities |
|
$ |
- |
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|
$ |
- |
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|
$ |
8,307 |
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|
$ |
(577) |
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$ |
8,307 |
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$ |
(577) |
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100.0 |
% |
| Collateralized mortgage obligations and residential mortgage-backed securities |
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- |
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- |
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107,972 |
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(22,288) |
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107,972 |
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(22,288) |
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|
100.0 |
% |
| Municipal securities |
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- |
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- |
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209,950 |
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(52,327) |
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209,950 |
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(52,327) |
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100.0 |
% |
| Collateralized debt obligations |
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- |
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- |
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1,616 |
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(533) |
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1,616 |
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(533) |
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100.0 |
% |
| Total temporarily impaired |
|
$ |
- |
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$ |
- |
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|
$ |
327,845 |
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|
$ |
(75,725) |
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|
$ |
327,845 |
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|
$ |
(75,725) |
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|
100.0 |
% |
| Number of securities |
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|
|
- |
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|
|
411 |
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|
411 |
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(Dollars in thousands) |
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Less than 12 months |
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12 months or longer |
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Total |
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|
Estimated
Fair
Value |
|
Unrealized
Losses |
|
Estimated
Fair
Value |
|
Unrealized
Losses |
|
Estimated
Fair
Value |
|
Unrealized
Losses |
|
Percentage of
Total Portfolio
in Loss Position |
| December 31, 2024 |
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| U.S. government sponsored entities |
|
$ |
- |
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|
$ |
- |
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|
$ |
8,061 |
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$ |
(823) |
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$ |
8,061 |
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$ |
(823) |
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|
100.0 |
% |
| Collateralized mortgage obligations and residential mortgage-backed securities |
|
- |
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|
- |
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|
109,325 |
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|
(26,649) |
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|
109,325 |
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|
(26,649) |
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|
100.0 |
% |
| Municipal securities |
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3,310 |
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(156) |
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|
211,439 |
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(48,049) |
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|
214,749 |
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(48,205) |
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|
100.0 |
% |
| Collateralized debt obligations |
|
- |
|
|
- |
|
|
1,419 |
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|
(737) |
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|
1,419 |
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|
(737) |
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|
100.0 |
% |
| Total temporarily impaired |
|
$ |
3,310 |
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|
$ |
(156) |
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|
$ |
330,244 |
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|
$ |
(76,258) |
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|
$ |
333,554 |
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|
$ |
(76,414) |
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|
100.0 |
% |
| Number of securities |
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|
4 |
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|
409 |
|
|
|
413 |
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Unrealized losses on securities have not been recognized into income because the securities are of high credit quality or have undisrupted cash flows. Management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in securities markets. The fair values are expected to recover as the securities approach maturity.
Collateralized debt obligations with a cost basis of $2.1 million and fair value of $1.6 million at June 30, 2025 and $1.4 million million at December 31, 2024, had previously recorded impairment of $173 thousand, which will not be recoverable until maturity of the security.
Accrued interest receivable on AFS debt securities totaled $2.1 million at June 30, 2025, and $2.3 million at December 31, 2024. These amounts are excluded from the estimate of credit losses. The Company made the policy election to exclude accrued interest from the amortized cost basis of AFS debt securities and report accrued interest separately on the condensed consolidated balance sheet.
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