Investment Securities

9 Months Ended

Sep. 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 September 30, 2025 and December 31, 2024 with gross unrealized gains and losses therein:


	September 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)	$	159,819	$	770	$	(5,323	)	$	155,266
U.S. government agency securities		11,260		—		(791	)		10,469
Obligations of state and political subdivisions		42,444		15		(2,541	)		39,918
Small business association (SBA) securities		1,344		5		(3	)		1,346
U.S. treasury securities		2,926		3		—			2,929
Total	$	217,793	$	793	$	(8,658	)	$	209,928

Note 3 – Investment Securities (continued)


	December 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			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 September 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)
September 30, 2025
Mortgage-backed securities - U.S. government sponsored enterprises (GSEs)	$	31,883	$	(121	)	$	27,639	$	(5,202	)	$	59,522	$	(5,323	)
U.S. government agency securities		4,992		(8	)		5,635		(783	)		10,627		(791	)
Obligations of state and political subdivisions		759		—			31,358		(2,541	)		32,117		(2,541	)
Small business association (SBA) securities		693		(2	)		79		(1	)		772		(3	)
U.S. Treasuries		—		—			—		—			—		—
Total	$	38,327	$	(131	)	$	64,711	$	(8,527	)	$	103,038	$	(8,658	)


	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	)

Note 3 – Investment Securities (concluded)

The amortized cost and fair value of securities available-for-sale at September 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		Fair
	Cost		Value
	(In thousands)
Due in one year or less	$	2,554	$	2,555
Due after one year through five years		10,849		10,776
Due after five years through ten years		41,234		38,397
Due after ten years		3,337		2,934
Mortgage-backed securities (GSEs)		159,819		155,266
	$	217,793	$	209,928

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 September 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 September 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 September 30, 2025.

At September 30, 2025, the Company’s available-for-sale securities portfolio consisted of approximately 268 securities, of which 151 available-for-sale securities were in an unrealized loss position for more than twelve months and 24 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 97 municipal securities aggregating $31.3 million with a loss of $2.5 million, 49 mortgage-backed securities-GSE aggregating $27.6 million with a loss of $5.2 million, 1 agency security aggregating $5.6 million with a loss of $783 thousand and 4 SBA securities aggregating $79 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.

Accrued interest receivable on investment securities represents interest earned but not yet collected on the Bank’s available-for-sale and held-to-maturity securities portfolios. Accrued interest receivable related to investments, at September 30, 2025, and December 31, 2024, was $7.6 million and $6.5 million, respectively. Accrued interest receivable is generally written off when collection of the underlying interest is deemed uncollectible, which typically occurs when the related security is placed on nonaccrual status. When a security is placed on nonaccrual, previously accrued but uncollected interest is reversed from interest income. There were no investment securities on nonaccrual status and no write-offs of accrued interest receivable for the nine-month period ended September 30, 2025 and for the year ended December 31, 2024.

There are no securities pledged as of September 30, 2025, and December 31, 2024.