Securities AFS and securities HTM are debt securities. Securities AFS are held for indefinite periods of time and are carried at estimated fair value. As of June 30, 2026, the estimated fair value of securities AFS was $617.0 million. The net unrealized loss on securities AFS increased $2.3 million for the six months ended June 30, 2026, resulting in a net unrealized loss of $45.5 million as of June 30, 2026.

Investment activity for the six months ended June 30, 2026, included $66.9 million in maturities, principal repayments, and calls, and $2.0 million in sales, partially offset by $36.6 million of securities purchased. There were no purchases or sales of securities HTM for the same period.

The amortized cost and estimated fair value of securities AFS and securities HTM are summarized in the following tables:


	June 30, 2026
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	411,393	$	764	$	(20,350)	$	391,807
Municipal bonds	191,081		1		(24,785)		166,297

U.S. agency securities	60,038		19		(1,145)		58,912
Total Securities AFS	$	662,512	$	784	$	(46,280)	$	617,016

Securities HTM:
Mortgage-backed securities	$	117,408	$	—	$	(19,126)	$	98,282


U.S. agency securities	948		—		(73)		875
Total Securities HTM	$	118,356	$	—	$	(19,199)	$	99,157


	December 31, 2025
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	426,732	$	1,846	$	(18,549)	$	410,029
Municipal bonds	196,607		4		(25,311)		171,300

U.S. agency securities	67,146		29		(1,194)		65,981
Total Securities AFS	$	690,485	$	1,879	$	(45,054)	$	647,310

Securities HTM:
Mortgage-backed securities	$	121,677	$	—	$	(18,189)	$	103,488


U.S. agency securities	942		—		(59)		883
Total Securities HTM	$	122,619	$	—	$	(18,248)	$	104,371

The amortized cost and estimated fair value of securities AFS and securities HTM as of June 30, 2026, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to call or repay obligations with or without call or prepayment penalties.


	June 30, 2026
(in thousands)	Amortized Cost		Fair Value
Securities AFS:
Within one year	$	6,063	$	6,045
After one year but within five years	21,213		20,594
After five years but within ten years	142,900		133,404
After ten years	492,336		456,973
Total Securities AFS	$	662,512	$	617,016

Securities HTM:
Within one year	$	—	$	—
After one year but within five years	948		875
After five years but within ten years	—		—
After ten years	117,408		98,282
Total Securities HTM	$	118,356	$	99,157

The Company evaluates securities AFS for impairment when there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Due to the zero credit loss assumption and the evaluation of the considerations applied to the securities AFS, there was no ACL recorded for securities AFS as of June 30, 2026 and December 31, 2025. Also, as part of the Company’s evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, the Company considers its investment strategy, cash flow needs, liquidity position, capital adequacy, and interest rate risk position. Management does not intend to sell these securities, and it is more likely than not that the Company will not have to sell these securities before each security has recovered its amortized cost basis.

For securities AFS and securities HTM, accrued interest receivable totaled $3.0 million and $3.2 million as of June 30, 2026 and December 31, 2025, respectively, and was reported in accrued interest receivable on the accompanying consolidated balance sheets.

Information pertaining to securities AFS with gross unrealized losses as of June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is described as follows:


	June 30, 2026
	Less than twelve months				Twelve months or more
(in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	(1,729)	$	134,447	$	(18,621)	$	155,236
Municipal bonds	(77)		7,893		(24,708)		155,119

U.S. agency securities	(11)		13,987		(1,134)		32,605
Total Securities AFS	$	(1,817)	$	156,327	$	(44,463)	$	342,960








	December 31, 2025
	Less than twelve months				Twelve months or more
(in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Securities AFS:
Mortgage-backed securities	$	(313)	$	81,682	$	(18,236)	$	166,631
Municipal bonds	(14)		3,330		(25,297)		163,876

U.S. agency securities	(26)		16,972		(1,168)		36,542
Total Securities AFS	$	(353)	$	101,984	$	(44,701)	$	367,049

As of June 30, 2026, the Company held 483 securities AFS that were in unrealized loss positions. The aggregate unrealized loss of these securities AFS as of June 30, 2026, was 6.99% of the amortized cost basis of securities AFS.

Equity securities are an investment in a CRA mutual fund, consisting primarily of bonds. Equity securities are carried at fair value on the consolidated balance sheets with periodic changes in value recorded through the consolidated statements of income. As of June 30, 2026, equity securities had a fair value of $3.0 million with a recognized loss of $31,000 for the six months ended June 30, 2026. As of December 31, 2025, equity securities had a fair value of $3.0 million with a recognized gain of $94,000 for the year ended December 31, 2025.