Investment Securities

6 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Note 3 – Investment Securities

The following summarizes the amortized cost and fair value of securities

available-for-sale

at June 30, 2025 and December 31, 2024 with gross unrealized gains and losses therein:


	June 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Available-for-sale
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)	$	175,736	$	743	$	(6,033	)	$	170,445
U.S. government agency securities		11,260		1		(919	)		10,341
Obligations of state and political subdivisions		43,220		1		(3,635	)		39,587
Small business association (SBA) securities		1,481		8		(1	)		1,487
U.S. treasury securities		2,905		—		(2	)		2,903

Total	$	234,602	$	753	$	(10,590	)	$	224,763


	December 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
			(In thousands)
Available -for-sale
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)	$	197,792	$	422	$	(7,669	)	$	190,545
U.S. government agency securities		11,260		17		(1,077	)		10,200
Obligations of state and political subdivisions		43,895		1		(4,166	)		39,730
Small business association (SBA) securities		1,856		5		(4	)		1,857
U.S. treasury securities		4,855		1		(17	)		4,839

Total	$	259,658	$	446	$	(12,933	)	$	247,171

The unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related securities

available-for-sale

at June 30, 2025 and December 31, 2024 are as follows:


	Less than 12 Months					More than 12 Months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(In thousands)
June 30, 2025
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)	$	41,075	$	(278	)	$	28,055	$	(5,755	)	$	69,130	$	(6,033	)
U.S. government agency securities		4,879		(60	)		5,400		(859	)		10,279		(919	)
Obligations of state and political subdivisions		2,205		(4	)		34,816		(3,631	)		37,021		(3,635	)
Small business association (SBA) securities		165		—			85		(1	)		250		(1	)
U.S. Treasuries		2,903		(2	)		—		—			2,903		(2	)

Total	$	51,227	$	(344	)	$	68,356	$	(10,246	)	$	119,583	$	(10,590	)


	Less than 12 Months					More than 12 Months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(In thousands)
December 31, 2024
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)	$	122,763	$	(1,157	)	$	29,229	$	(6,512	)	$	151,992	$	(7,669	)
U.S. government agency securities		129		—			5,183		(1,077	)		5,312		(1,077	)
Obligations of state and political subdivisions		3,664		(39	)		34,320		(4,127	)		37,984		(4,166	)
Small business association (SBA) securities		447		(1	)		449		(3	)		896		(4	)
U.S. Treasuries		2,846		(17	)		—		—			2,846		(17	)

	$	129,849	$	(1,214	)	$	69,181	$	(11,719	)	$	199,030	$	(12,933	)

The amortized cost and fair value of securities

available-for-sale

at June 30, 2025 by contractual maturity are shown below. Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties:


	Amortized
	Cost		Fair Value
	(In thousands)
Due in one year or less	$	2,122	$	2,122
Due after one year through five years		9,427		9,334
Due after five years through ten years		41,975		38,369
Due after ten years		5,342		4,493
Mortgage-backed securities (GSEs)		175,736		170,445

	$	234,602	$	224,763

Proceeds from calls and maturities of securities

available-for-sale

were not significant for the

six-month

period ended June 30, 2025 or 2024.

The Company uses a defined methodology for allowance for credit losses on its investment securities

available-for-sale.

The Company did not have an allowance for credit losses on its investment securities

available-for-sale

as of June 30, 2025 or 2024.

The Company’s securities primarily consist of the following types of instruments; U.S. guaranteed mortgage-backed securities, U.S. guaranteed agency bonds, state and political subdivision issued bonds, mortgage related securities guaranteed by the SBA and U.S. treasury notes. We believe it is reasonable to expect that the securities with a credit guarantee of the U.S. government will have a

zero-credit

loss. Therefore, no reserve was recorded for U.S. guaranteed securities or bonds at June 30, 2025. The state and political subdivision securities carry a minimum investment rating of A by either Moody’s or Standard and Poor’s. Some of the smaller municipalities also have insurance to cover the Company in the event of default. Therefore, the Company did not project a credit loss and no reserve was recorded as of June 30, 2025.

At June 30, 2025, the Company’s

available-for-sale

securities portfolio consisted of approximately 270 securities, of which 161

available-for-sale

securities were in an unrealized loss position for more than twelve months and 31

available-for-sale

securities were in an unrealized loss position for less than twelve months. The

available-for-sale

securities in an unrealized loss position for more than twelve months consisted of 106 municipal securities aggregating $34.8 million with a loss of $3.6 million, 50 mortgage-backed

securities-GSE

aggregating $28.0 million with a loss of $5.8 million, 1 agency security aggregating $5.4 million with a loss of $859 thousand and 4 SBA securities aggregating $85 thousand with a loss of $1 thousand. The Company does not intend to sell these securities, and it is not more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. Unrealized losses primarily relate to interest rate fluctuations and not credit concerns.

There are

securities pledged as of June 30, 2025, and December 31, 2024.