Securities

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Securities –

The amortized cost and fair values of securities available for sale as of September 30, 2025, and December 31, 2024 are summarized as follows:


	September 30, 2025
	(Dollars in thousands)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury Securities	$	17,586	$	-	$	432	$	17,154
U.S. Government Agencies	10,094		-		273		9,821
Corporate Securities	42,449		250		2,133		40,566
Mortgage-Backed Securities	662,166		3,417		29,885		635,698
Municipal Securities	299,829		428		17,558		282,699
Total Securities Available for Sale	$	1,032,124	$	4,095	$	50,281	$	985,938


	December 31, 2024
	(Dollars in thousands)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury Securities	$	17,631	$	-	$	956	$	16,675
U.S. Government Agencies	10,164		-		576		9,588
Corporate Securities	47,855		348		3,038		45,165
Mortgage-Backed Securities	584,321		542		47,125		537,738
Municipal Securities	313,452		23		29,092		284,383
Total Securities Available for Sale	$	973,423	$	913	$	80,787	$	893,549

The following tables present a summary of securities with gross unrealized losses and fair values at September 30, 2025, and December 31, 2024, aggregated by investment category and length of time in a continued unrealized loss position. Due to the nature of these investments and current prevailing market prices, these unrealized losses are considered non-credit related.


	September 30, 2025
	Less Than 12 Months				12 Months or Greater				Total
	(Dollars in thousands)
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Treasury Securities	$	-	$	-	$	17,154	$	432	$	17,154	$	432
U.S. Government Agencies	-		-		9,821		273		9,821		273
Corporate Securities	4,014		63		28,086		2,070		32,100		2,133
Mortgage-Backed Securities	79,652		1,140		316,042		28,745		395,694		29,885
Municipal Securities	11,960		116		216,466		17,442		228,426		17,558
Total Securities Available for Sale	$	95,626	$	1,319	$	587,569	$	48,962	$	683,195	$	50,281


	December 31, 2024
	Less Than 12 Months				12 Months or Greater				Total
	(Dollars in thousands)
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Treasury Securities	$	-	$	-	$	16,675	$	956	$	16,675	$	956
U.S. Government Agencies	-		-		9,588		576		9,588		576
Corporate Securities	4,262		132		28,894		2,906		33,156		3,038
Mortgage-Backed Securities	151,443		3,618		341,347		43,507		492,790		47,125
Municipal Securities	33,240		686		240,768		28,406		274,008		29,092
Total Securities Available for Sale	$	188,945	$	4,436	$	637,272	$	76,351	$	826,217	$	80,787

As of September 30, 2025, and December 31, 2024, respectively, no allowance for credit losses was recognized on available for sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to credit quality. This determination is based on the Company’s analysis of the underlying risk characteristics including credit ratings, historical loss experience, and other qualitative factors. Further, the securities continue to make principal and interest payments under their contractual terms and management does not have the intent to sell any of the securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of amortized cost basis. Therefore, the Company has determined the unrealized losses are due to changes in market interest rates compared to rates when the securities were acquired.

The amortized cost and fair values of securities available for sale as of September 30, 2025, by contractual maturity are shown below. Actual maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties.


	Amortized Cost		Fair Value
	(Dollars in thousands)
Less Than One Year	$	48,410	$	47,718
One to Five Years	183,316		175,331
Over Five to Ten Years	336,520		321,112
Over Ten Years	463,878		441,777
Total Securities Available for Sale	$	1,032,124	$	985,938

Securities available for sale with a fair value of $388.0 million and $385.4 million, were pledged as collateral on public deposits and for other purposes as required or permitted by law as of September 30, 2025, and December 31, 2024, respectively.

At September 30, 2025, and December 31, 2024, accrued interest receivable on securities was $4.4 million and $4.9 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

Business First Bancshares, Inc. 10-Q