Securities (Tables)

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Carrying values of investment securities

The carrying values of investment securities at September 30, 2025 and December 31, 2024 are summarized in the following table (dollars in thousands):


	September 30, 2025				December 31, 2024
	Amount		Percent		Amount		Percent
Securities available for sale
U.S. Treasury	$	271,843	28.24	%	$	288,462	30.55	%
Other securities (FHLB, FHLMC, FNMA and SBA)	4,824		0.50		14,848		1.57
State and political subdivisions	407,046		42.28		362,736		38.42
Mortgage-backed securities and collateralized mortgage obligations (MBS and CMO)	279,050		28.98		278,090		29.46
Total securities available for sale	$	962,763	100.00	%	$	944,136	100.00	%

Carrying amount of available-for-sale securities and approximate fair values and realized gains and losses

The carrying amount of available-for-sale securities, fair values and allowance for credit losses were as follows as of September 30, 2025 and December 31, 2024 (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Allowance for Credit Losses		Estimated Fair Value
September 30, 2025
U.S. Treasury	$	271,489	$	2,088	$	(1,734)	$	—	$	271,843
Other securities (FHLB, FHLMC, FNMA and SBA)	4,842		—		(18)		—		4,824
State and political subdivisions	421,975		1,790		(16,719)		—		407,046
MBS and CMO	276,518		3,185		(653)		—		279,050
Total	$	974,824	$	7,063	$	(19,124)	$	—	$	962,763
December 31, 2024:
U.S. Treasury	$	294,210	$	215	$	(5,963)	$	—	$	288,462
Other securities (FHLB, FHLMC and FNMA)	15,010		—		(162)		—		14,848
State and political subdivisions	383,244		832		(21,340)		—		362,736
MBS and CMO	287,391		54		(9,355)		—		278,090
Total	$	979,855	$	1,101	$	(36,820)	$	—	$	944,136

Available-for-sale securities classified as per contractual maturities

The amortized cost and estimated fair value of available-for-sale securities classified according to their contractual maturities at September 30, 2025, were as follows (in thousands) below. Expected maturities of MBS may differ from contractual maturities because the mortgages underlying the securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following summary.


	Amortized Cost		Fair Value
Due in one year or less	$	61,079	$	60,432
Due after one year through five years	308,843		307,701
Due after five years through ten years	116,410		106,752
Due over ten years	211,974		208,828
	$	698,306	$	683,713
MBS and CMO	276,518		279,050
	$	974,824	$	962,763

Available-for-sale securities, continuous unrealized loss position, fair value

The following table shows the fair value, gross unrealized losses and the percentage of fair value represented by gross unrealized losses of applicable investment securities owned by the Company, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025 and December 31, 2024 (in thousands):


	Less than 12 months							12 months or more							Total
September 30, 2025 Description of Securities	#	Fair Value		Unrealized Loss		%		#	Fair Value		Unrealized Loss		%		#	Fair Value		Unrealized Loss		%
U.S. Treasury	5	$	20,354	$	(53)	0.26	%	34	$	100,324	$	(1,681)	1.68	%	39	$	120,678	$	(1,734)	1.44	%

Other securities (FHLB, FHLMC, FNMA and SBA)	1	4,824		(18)		0.37		—	—		—		—		1	4,824		(18)		0.37

State and political subdivisions	273	112,064		(2,593)		2.31		654	179,249		(14,126)		7.88		927	291,313		(16,719)		5.74

MBS and CMO	4	41,083		(468)		1.14		4	21,411		(185)		0.86		8	62,494		(653)		1.04

Total	283	$	178,325	$	(3,132)	1.76	%	692	$	300,984	$	(15,992)	5.31	%	975	$	479,309	$	(19,124)	3.99	%


	Less than 12 months							12 months or more							Total
December 31, 2024 Description of Securities	#	Fair Value		Unrealized Loss		%		#	Fair Value		Unrealized Loss		%		#	Fair Value		Unrealized Loss		%
U.S. Treasury	32	$	115,094	$	(2,555)	2.22	%	44	$	125,590	$	(3,408)	2.71	%	76	$	240,684	$	(5,963)	2.48	%

Other securities (FHLB, FHLMC and FNMA)	—	—		—		—		6	14,848		(162)		1.09		6	14,848		(162)		1.09

State and political subdivisions	369	140,021		(2,844)		2.03		663	163,330		(18,496)		11.32		1,032	303,351		(21,340)		7.03

MBS and CMO	35	225,680		(2,904)		—		18	41,222		(6,451)		15.65		53	266,902		(9,355)		3.51

Total	436	$	480,795	$	(8,303)	1.73	%	731	$	344,990	$	(28,517)	8.27	%	1,167	$	825,785	$	(36,820)	4.46	%

Schedule of Sales Proceeds and Gross Realized Gains and Losses

Sales proceeds and gross realized gains and losses on available-for-sale securities were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Sale proceeds	$	39,726	$	—	$	39,726	$	—
Gross realized gains	—		—		—		—
Gross realized losses	(4,294)		—		(4,294)		—

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

HILLS BANCORPORATION 10-Q