Investment securities have been classified in the consolidated balance sheets according to management’s intent. Investment securities at June 30, 2025 and December 31, 2024 are summarized as follows:


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(In thousands)	Cost		Gains		Losses		Value

June 30, 2025
Securities available for sale:
Agency mortgage-backed securities	$	75,848	$	28	$	6,351	$	69,525
Agency CMO		71,999		445		240		72,204
Agency notes and bonds		109,830		17		2,833		107,014
Treasury notes and bonds		8,858		—		74		8,784
Municipal obligations		154,170		253		16,361		138,062

Total securities available for sale	$	420,705	$	743	$	25,859	$	395,589

Securities held to maturity:
Other debt securities:
Corporate notes	$	7,000	$	—	$	1,757	$	5,243

Total securities held to maturity	$	7,000	$	—	$	1,757	$	5,243

December 31, 2024
Securities available for sale:
Agency mortgage-backed securities	$	76,295	$	—	$	8,354	$	67,941
Agency CMO		47,821		197		500		47,518
Agency notes and bonds		122,834		6		4,760		118,080
Treasury notes and bonds		21,803		—		254		21,549
Municipal obligations		150,182		171		16,198		134,155

Total securities available for sale	$	418,935	$	374	$	30,066	$	389,243

Securities held to maturity:
Other debt securities:
Corporate notes	$	7,000	$	—	$	2,409	$	4,591

Total securities held to maturity	$	7,000	$	—	$	2,409	$	4,591

Agency notes and bonds, agency mortgage-backed securities and agency collateralized mortgage obligations (“CMO”) include securities issued by the Government National Mortgage Association (“GNMA”), a U.S. government agency, and the Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”), the Federal Farm Credit Bank (“FFCB”) and the Federal Home Loan Bank (“FHLB”), which are government-sponsored enterprises. Corporate notes classified as held to maturity include subordinated debt obligations issued by other bank holding companies (“BHC”).

The amortized cost and fair value of debt securities as of June 30, 2025, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities and CMO may differ from contractual maturities because the mortgages underlying the obligations may be prepaid without penalty.


	Securities Available for Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value

Due in one year or less	$	74,873	$	73,633	$	—	$	—
Due after one year through five years		61,702		58,984		—		—
Due after five years through ten years		71,200		63,472		2,000		1,580
Due after ten years		65,083		57,771		5,000		3,663
		272,858		253,860		7,000		5,243
Mortgage-backed securities and CMO		147,847		141,729		—		—
	$	420,705	$	395,589	$	7,000	$	5,243

Information pertaining to investment securities with gross unrealized losses at June 30, 2025, aggregated by investment category and the length of time that individual investment securities have been in a continuous loss position, follows.


	Number of			Gross
	Investment	Fair		Unrealized
(Dollars in thousands)	Positions	Value		Losses
June 30, 2025:
Securities available for sale:
Continuous loss position less than twelve months:
Agency mortgage-backed securities	5	$	5,750	$	36
Agency CMO	7		11,319		82
Agency notes and bonds	2		1,994		7
Municipal obligations	36		19,157		593
Total less than twelve months	50		38,220		718

Continuous loss position more than twelve months:
Agency mortgage-backed securities	93		55,935		6,315
Agency CMO	20		4,718		158
Agency notes and bonds	40		103,124		2,826
Treasury notes and bonds	5		8,784		74
Municipal obligations	184		96,139		15,768
Total more than twelve months	342		268,700		25,141

Total securities available for sale	392	$	306,920	$	25,859

Securities held to maturity:
Continuous loss position more than twelve months:
Corporate notes	4	$	5,243	$	1,757
Total more than twelve months	4		5,243		1,757
Total securities held to maturity	4	$	5,243	$	1,757

Information pertaining to investment securities with gross unrealized losses at December 31, 2024, aggregated by investment category and the length of time that individual investment securities have been in a continuous position, follows.


	Number of			Gross
	Investment	Fair		Unrealized
(Dollars in thousands)	Positions	Value		Losses
December 31, 2024:
Securities available for sale:
Continuous loss position less than twelve months:
Agency mortgage-backed securities	7	$	8,008	$	93
Agency CMO	11		19,211		215
Agency notes and bonds	7		4,830		57
Municipal obligations	39		18,880		334
Total less than twelve months	64		50,929		699

Continuous loss position more than twelve months:
Agency mortgage-backed securities	93		59,933		8,261
Agency CMO	22		7,271		285
Agency notes and bonds	45		112,046		4,703
Treasury notes and bonds	8		21,549		254
Municipal obligations	196		103,201		15,864
Total more than twelve months	364		304,000		29,367

Total securities available for sale	428	$	354,929	$	30,066

Securities held to maturity:
Continuous loss position less than twelve months:
Corporate notes	4	$	4,591	$	2,409
Total less than twelve months	4		4,591		2,409


Total securities held to maturity	4	$	4,591	$	2,409

The Company has not identified any specific available for sale securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. The Company reviews its securities on a quarterly basis to assess declines in fair value for credit losses. Consideration is given to such factors as the credit rating of the borrower, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. At June 30, 2025, management concluded that in all instances, securities with fair values less than carrying value were due to fluctuations in interest rates and other factors; thus, no credit loss provision was required.

In addition, management assesses held to maturity securities for credit losses on a quarterly basis. The assessment includes review of performance metrics, identification of delinquency and evaluation of market factors. In July 2024, a BHC whose subordinated debt the Company holds and is classified as held to maturity, having an amortized cost balance of $2.0 million, announced the suspension of its quarterly dividend. Beginning with this announcement, management began performing additional research regarding the financial stability and strength of the BHC and underlying bank quarterly. Based on all analysis, management concludes the decline in fair value of all securities classified as held to maturity was due to changes in interest rates and other market factors.

At June 30, 2025, the municipal obligations and U.S. government agency debt securities, including Treasury notes and bonds, agency notes and bonds, mortgage-backed securities and CMOs classified as available for sale and in a loss position had depreciated approximately 7.8% from the amortized cost basis. All of the U.S. government agency securities and municipal obligations are issued by U.S. government agencies, government-sponsored enterprises and municipal governments, or are secured by first mortgage loans and municipal project revenues. At June 30, 2025, the corporate notes classified as held to maturity in a loss position had depreciated approximately 25.1% from the amortized cost basis. These unrealized losses related principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As the Company has the ability to hold the debt securities until maturity, or the foreseeable future if classified as available for sale, no credit loss is deemed to exist.

As of June 30, 2025 and December 31, 2024, the Company estimated expected credit losses to be immaterial based on the composition of the held to maturity securities portfolio.

While management does not anticipate any credit losses at June 30, 2025, additional deterioration in market and economic conditions may have an adverse impact on credit quality in the future.

There were no sales of available for sale securities during the three months ended June 30, 2025 or 2024. During the six months ended June 30, 2025, the Company recognized gross gains of $31,000 and gross losses of $86,000 on sales of available for sale securities. During the six months ended June 30, 2024, the Company recognized gross gains of $133,000 and gross losses of $101,000 on sales of available for sale securities.

At June 30, 2025 and December 31, 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, with an aggregate book value greater that 10% of stockholders’ equity.

Accrued interest receivable on available for sale debt securities totaled $2.2 million and $2.1 million at June 30, 2025 and December 31, 2024, respectively, and was reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses.

Accrued interest receivable on held to maturity debt securities totaled $18,000 at both June 30, 2025 and December 31, 2024, and was reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses.

In September 2018, the Company acquired 90,000 shares of common stock in another BHC, representing approximately 5% of the outstanding common stock of the entity, for a total investment of $1.9 million. During the three months ended June 30, 2025 and 2024, the Company recognized unrealized losses of $41,000 and $6,000, respectively. During the six months ended June 30, 2025 and 2024, the Company recognized unrealized losses of $23,000 and $74,000, respectively. At June 30, 2025 and December 31, 2024, the equity investment had a fair value of $864,000 and $887,000, respectively, and is included in other assets on the consolidated balance sheets.

In October 2021, the Company entered into an agreement to invest in a bank technology fund through a limited partnership and the Company entered into an agreement to participate in a second, related fund in June 2025. At both June 30, 2025 and December 31, 2024, the Company’s investment in the limited partnerships was $965,000 and is reflected in other assets on the consolidated balance sheets. The unfunded commitment related to the limited partnership investments at June 30, 2025 and December 31, 2024 was $320,000 and $380,000, respectively, and is reflected in other liabilities on the consolidated balance sheets. The Company expects to fulfill the commitment as capital calls are made through 2026. The investments are accounted for as equity securities without a readily determinable fair value, and have been recorded at cost, less any impairment, and adjustments resulting from observable price changes. There were no impairments or adjustments on equity securities without readily determinable fair values during the three and six months ended June 30, 2025 or 2024.