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Note 2 - Investments

9 Months Ended

Sep. 30, 2025

NOTE 2 – INVESTMENTS

The following tables present the amortized costs, unrealized gains, unrealized losses, estimated fair values of securities available-for-sale and held-to-maturity, and the ACL on securities available-for-sale and held-to-maturity at September 30, 2025 and December 31, 2024:

	September 30, 2025
								Estimated
	Amortized		Unrealized		Unrealized			Fair
SECURITIES AVAILABLE-FOR-SALE	Cost		Gains		Losses			Values		ACL
U.S. agency securities	$	20,260	$	31	$	(2,303	)	$	17,988	$	—
Corporate securities		16,000		7		(556	)		15,451		—
Municipal bonds		81,925		5		(11,225	)		70,705		—
Mortgage-backed securities		205,937		865		(9,580	)		197,222		—
Asset-backed securities		11,030		—		(701	)		10,329		—
Total securities available-for-sale		335,152		908		(24,365	)		311,695		—

SECURITIES HELD-TO-MATURITY
Corporate securities		29,336		404		(82	)		29,658		220
Municipal bonds		2,270		214		—			2,484		—
Total securities held-to-maturity		31,606		618		(82	)		32,142		220

Total securities	$	366,758	$	1,526	$	(24,447	)	$	343,837	$	220

	December 31, 2024
								Estimated
	Amortized		Unrealized		Unrealized			Fair
SECURITIES AVAILABLE-FOR-SALE	Cost		Gains		Losses			Values		ACL
U.S. agency securities	$	20,247	$	45	$	(3,154	)	$	17,138	$	—
Corporate securities		16,000		8		(882	)		15,126		—
Municipal bonds		82,774		—		(12,430	)		70,344		—
Mortgage-backed securities		178,740		415		(11,969	)		167,186		—
Asset-backed securities		12,511		3		(1,133	)		11,381		—
Total securities available-for-sale		310,272		471		(29,568	)		281,175		—

SECURITIES HELD-TO-MATURITY
Corporate securities		8,500		—		(356	)		8,144		45
Total securities held-to-maturity		8,500		—		(356	)		8,144		45

Total securities	$	318,772	$	471	$	(29,924	)	$	289,319	$	45

The following tables present the activity in the ACL on securities held-to-maturity by major security type for the three and nine months ended September 30, 2025 and 2024:

SECURITIES HELD-TO-MATURITY	For the Three Months Ended September 30,
Corporate Securities	2025		2024
Beginning ACL balance	$	220	$	45
Provision for credit losses		—		—
Total ending ACL balance	$	220	$	45

SECURITIES HELD-TO-MATURITY	For the Nine Months Ended September 30,
Corporate Securities	2025		2024
Beginning ACL balance	$	45	$	45
Provision for credit losses		175		—
Total ending ACL balance	$	220	$	45

Management measures expected credit losses on held-to-maturity debt securities on an individual basis. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The increase in provision during the periods was attributable to increased securities balances. Accrued interest receivable totaled $609,000 and $116,000 on held-to-maturity debt securities and $1.7 million and $1.2 million on available-for-sale debt securities as of September 30, 2025 and December 31, 2024, respectively. Accrued interest receivable on securities is reported in “Accrued interest receivable” on the Consolidated Balance Sheets and is excluded from the calculation of the ACL.

The Company monitors the credit quality of debt securities held-to-maturity quarterly using credit rating, material event notices, and changes in market value. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator:

	September 30,		December 31,
Corporate securities	2025		2024
BBB/BBB-	$	29,336	$	8,500
Municipal bonds
AA		2,270		—
Total	$	31,606	$	8,500

At September 30, 2025 and December 31, 2024, there were no debt securities held-to-maturity that were classified as either nonaccrual or 90 days or more past due and still accruing interest.

The following table presents, as of September 30, 2025, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law:

	September 30, 2025
Purpose or beneficiary	Carrying Value		Amortized Cost		Fair Value
State and local government public deposits	$	22,377	$	25,939	$	22,377

Investment securities that were in an unrealized loss position at the dates indicated are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position.

	September 30, 2025
	Less than 12 Months					12 Months or Longer					Total
SECURITIES AVAILABLE-FOR-SALE	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. agency securities	$	—	$	—		$	15,957	$	(2,303	)	$	15,957	$	(2,303	)
Corporate securities		5,997		(3	)		5,447		(553	)		11,444		(556	)
Municipal bonds		487		—			69,387		(11,225	)		69,874		(11,225	)
Mortgage-backed securities		50,987		(508	)		62,610		(9,072	)		113,597		(9,580	)
Asset-backed securities		3,713		(18	)		6,616		(683	)		10,329		(701	)
Total securities available-for-sale		61,184		(529	)		160,017		(23,836	)		221,201		(24,365	)

SECURITIES HELD-TO-MATURITY
Corporate securities		5,594		(22	)		940		(60	)		6,534		(82	)
Total securities held-to-maturity		5,594		(22	)		940		(60	)		6,534		(82	)

Total securities	$	66,778	$	(551	)	$	160,957	$	(23,896	)	$	227,735	$	(24,447	)

	December 31, 2024
	Less than 12 Months					12 Months or Longer					Total
SECURITIES AVAILABLE-FOR-SALE	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. agency securities	$	—	$	—		$	15,093	$	(3,154	)	$	15,093	$	(3,154	)
Corporate securities		6,781		(219	)		5,337		(663	)		12,118		(882	)
Municipal bonds		1,677		(10	)		68,667		(12,420	)		70,344		(12,430	)
Mortgage-backed securities		31,093		(241	)		63,934		(11,728	)		95,027		(11,969	)
Asset-backed securities		3,638		(41	)		7,190		(1,092	)		10,828		(1,133	)
Total securities available-for-sale		43,189		(511	)		160,221		(29,057	)		203,410		(29,568	)

SECURITIES HELD-TO-MATURITY
Corporate securities		—		—			8,144		(356	)		8,144		(356	)
Total securities held-to-maturity		—		—			8,144		(356	)		8,144		(356	)

Total securities	$	43,189	$	(511	)	$	168,365	$	(29,413	)	$	211,554	$	(29,924	)

There were five held-to-maturity debt securities in an unrealized loss position of less than one year and one held-to-maturity debt securities in an unrealized loss position of more than one year at September 30, 2025, compared to no held-to-maturity debt securities in an unrealized loss position of less than one year and seven held-to-maturity debt securities in an unrealized loss position of more than one year at December 31, 2024.

There were 20 available-for-sale securities in an unrealized loss position of less than one year, and 121 available-for-sale securities in an unrealized loss position of more than one year at September 30, 2025, compared to 22 available-for-sale securities in an unrealized loss position of less than one year and 121 available-for-sale securities in an unrealized loss position of more than one year at December 31, 2024. The unrealized losses associated with these securities are believed to be caused by changing market conditions and considered to be temporary, and the Company does not intend and is not likely to be required to sell these securities prior to maturity. Management monitors the published credit ratings of the issuers of the debt securities for material ratings or outlook changes. Substantially all the Company’s municipal bond portfolio is comprised of obligations of states and political subdivisions located within the Company’s geographic footprint that are monitored through quarterly or annual financial review utilizing published credit ratings. All the municipal bond securities are investment grade.

All of the available-for-sale mortgage-backed securities and asset-backed securities in an unrealized loss position are issued or guaranteed by government-sponsored enterprises, and the available-for-sale corporate securities are all investment grade and monitored for rating or outlook changes. Based on the Company’s evaluation of these securities, no credit impairment was recorded for the nine months ended September 30, 2025, or for the year ended December 31, 2024.

The contractual maturities of securities available-for-sale and held-to-maturity at the dates indicated are listed below. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay the obligations; therefore, these securities are classified separately with no specific maturity date.

	September 30, 2025				December 31, 2024
SECURITIES AVAILABLE-FOR-SALE	Amortized		Fair		Amortized		Fair
U.S. agency securities	Cost		Value		Cost		Value
Due after one year through five years	$	4,972	$	4,762	$	4,962	$	4,575
Due after five years through ten years		15,288		13,226		10,975		9,193
Due after ten years		—		—		4,310		3,370
Subtotal		20,260		17,988		20,247		17,138
Corporate securities
Due after one year through five years		14,000		13,934		11,000		10,766
Due after five years through ten years		2,000		1,517		3,000		2,918
Due after ten years		—		—		2,000		1,442
Subtotal		16,000		15,451		16,000		15,126
Municipal bonds
Due after one year through five years		2,147		2,150		2,186		2,168
Due after five years through ten years		4,121		3,785		4,158		3,728
Due after ten years		75,657		64,770		76,430		64,448
Subtotal		81,925		70,705		82,774		70,344
Mortgage-backed securities
Federal National Mortgage Association (“FNMA”)		86,824		79,479		90,771		80,677
Federal Home Loan Mortgage Corporation (“FHLMC”)		46,537		45,823		48,765		47,773
Government National Mortgage Association (“GNMA”)		72,576		71,920		39,204		38,736
Subtotal		205,937		197,222		178,740		167,186
Asset-backed securities
Due within one year		130		129		203		200
Due after one year through five years		744		728		1,073		1,037
Due after five years through ten years		2,599		2,446		2,867		2,648
Due after ten years		7,557		7,026		8,368		7,496
Subtotal		11,030		10,329		12,511		11,381
Total securities available-for-sale		335,152		311,695		310,272		281,175

SECURITIES HELD-TO-MATURITY
Corporate securities
Due after one year through five years		3,500		3,488		—		—
Due after five years through ten years		25,836		26,170		8,500		8,144
Subtotal		29,336		29,658		8,500		8,144
Municipal bonds
Due after five years through ten years		2,270		2,484		—		—
Subtotal		2,270		2,484		—		—
Total securities held-to-maturity		31,606		32,142		8,500		8,144
Total securities	$	366,758	$	343,837	$	318,772	$	289,319

The proceeds and resulting gains and losses from sales of securities available-for-sale for the three and nine months ended September 30, 2025 and 2024:

For the Three Months Ended September 30, 2025

Gross

Proceeds

Gains

(Losses)

Securities available-for-sale

—

	For the Three Months Ended September 30, 2024
			Gross		Gross
	Proceeds		Gains		(Losses)
Securities available-for-sale	$	3,448	$	11	$	—

For the Nine Months Ended September 30, 2025

Gross

Proceeds

Gains

(Losses)

Securities available-for-sale

—

	For the Nine Months Ended September 30, 2024
			Gross		Gross
	Proceeds		Gains		(Losses)
Securities available-for-sale	$	101,907	$	215	$	(8,051	)