| 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 (loss) 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 |
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Estimated
Fair
Value |
| September 30, 2026 |
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U.S. government agency securities(1)
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$ |
8,885 |
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$ |
- |
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$ |
(364) |
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|
$ |
8,521 |
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| U.S. treasury securities |
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1,997 |
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- |
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(21) |
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1,976 |
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| Collateralized mortgage obligations and residential mortgage-backed securities |
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115,197 |
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- |
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|
(22,622) |
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92,575 |
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| Municipal securities |
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235,209 |
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- |
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(60,120) |
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|
175,089 |
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| Collateralized debt obligations |
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2,134 |
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- |
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(426) |
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1,708 |
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| Total securities available-for-sale |
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$ |
363,422 |
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$ |
- |
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|
$ |
(83,553) |
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$ |
279,869 |
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(1) Includes securities issued or backed by the U.S. government and its agencies and U.S. government sponsored entities.
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(Dollars in thousands) |
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|
Cost
Basis |
|
Gross
Unrealized
Gains |
|
Gross
Unrealized
Losses |
|
Estimated
Fair
Value |
| December 31, 2025 |
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U.S. government agency securities(1)
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$ |
8,884 |
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$ |
- |
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|
$ |
(418) |
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$ |
8,466 |
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| Collateralized mortgage obligations and residential mortgage-backed securities |
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123,833 |
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- |
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|
(19,168) |
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|
104,665 |
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| Municipal securities |
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236,168 |
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2 |
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|
(34,956) |
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|
201,214 |
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| Collateralized debt obligations |
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2,141 |
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- |
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|
(259) |
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|
1,882 |
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| Total securities available-for-sale |
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$ |
371,026 |
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|
$ |
2 |
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|
$ |
(54,801) |
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|
$ |
316,227 |
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(1) Includes securities issued or backed by the U.S. government and its agencies and U.S. government sponsored entities.
The cost basis and estimated fair value of available-for-sale debt securities at September 30, 2026, 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 |
| September 30, 2026 |
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Cost
Basis |
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Estimated
Fair
Value |
| Due in one year or less |
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$ |
3,000 |
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$ |
2,915 |
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| Due from one to five years |
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12,407 |
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11,720 |
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| Due from five to ten years |
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54,381 |
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42,874 |
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| Due over ten years |
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178,437 |
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129,785 |
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| Collateralized mortgage obligations and residential mortgage-backed securities |
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115,197 |
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|
92,575 |
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| Total |
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$ |
363,422 |
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$ |
279,869 |
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There were no sales of available-for-sale securities for the three and nine months ended September 30, 2026 and 2025.
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, July 1, 2026 |
$ |
(41,532) |
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| Period change |
(21,988) |
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| Ending balance, September 30, 2026 |
$ |
(63,520) |
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(Dollars in thousands) |
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Unrealized loss |
| Beginning balance, July 1, 2025 |
$ |
(57,560) |
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| Period change |
8,294 |
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| Ending balance, September 30, 2025 |
$ |
(49,266) |
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(Dollars in thousands) |
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Unrealized loss |
| Beginning Balance, January 1, 2026 |
$ |
(41,662) |
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| Period change |
(21,858) |
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| Ending Balance, September 30, 2026 |
$ |
(63,520) |
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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 |
8,818 |
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| Ending balance, September 30, 2025 |
$ |
(49,266) |
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Securities with market values of approximately $274.3 million and $315.5 million were pledged as of September 30, 2026 and December 31, 2025, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.
Securities with unrealized losses not recognized in income at September 30, 2026, and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
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(Dollars in thousands) |
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Less than 12 months |
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12 months or longer |
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Total |
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Estimated
Fair
Value |
|
Unrealized
Losses |
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Estimated
Fair
Value |
|
Unrealized
Losses |
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Estimated
Fair
Value |
|
Unrealized
Losses |
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Percentage of
Total Portfolio
in Loss Position |
| September 30, 2026 |
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| U.S. government agency securities |
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$ |
- |
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$ |
- |
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$ |
8,521 |
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$ |
(364) |
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$ |
8,521 |
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$ |
(364) |
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100.0 |
% |
| U.S. government treasuries |
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1,976 |
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(21) |
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- |
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- |
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1,976 |
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(21) |
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100.0 |
% |
| Collateralized mortgage obligations and residential mortgage-backed securities |
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1,478 |
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(418) |
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91,097 |
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(22,204) |
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92,575 |
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(22,622) |
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100.0 |
% |
| Municipal securities |
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- |
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- |
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175,089 |
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(60,120) |
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175,089 |
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(60,120) |
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100.0 |
% |
| Collateralized debt obligations |
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- |
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- |
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1,708 |
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(426) |
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1,708 |
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(426) |
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100.0 |
% |
| Total |
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$ |
3,454 |
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$ |
(439) |
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$ |
276,415 |
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$ |
(83,114) |
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$ |
279,869 |
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|
$ |
(83,553) |
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|
100.0 |
% |
| Number of securities |
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1 |
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|
371 |
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|
372 |
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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, 2025 |
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| U.S. government agency securities |
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$ |
- |
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$ |
- |
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$ |
8,466 |
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$ |
(418) |
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$ |
8,466 |
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$ |
(418) |
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|
100.0 |
% |
| Collateralized mortgage obligations and residential mortgage-backed securities |
|
- |
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|
- |
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104,665 |
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(19,168) |
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104,665 |
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(19,168) |
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|
100.0 |
% |
| Municipal securities |
|
- |
|
|
- |
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200,469 |
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(34,956) |
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200,469 |
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(34,956) |
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99.6 |
% |
| Collateralized debt obligations |
|
- |
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|
- |
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|
1,882 |
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(259) |
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|
1,882 |
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(259) |
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|
100.0 |
% |
| Total |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
315,482 |
|
|
$ |
(54,801) |
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|
$ |
315,482 |
|
|
$ |
(54,801) |
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|
99.8 |
% |
| Number of securities |
|
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|
- |
|
|
|
369 |
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|
369 |
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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 $1.7 million at September 30, 2026 and a cost basis of $2.1 million and a fair value of $1.9 million at December 31, 2025, 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 September 30, 2026, and $2.0 million at December 31, 2025. 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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