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v3.26.1

Investment Securities | 3 Months Ended
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Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses, of investment securities are as follows:
| March 31, 2026
Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available for sale |  |  |  |  |  |  |
SBA Pools | $ | 3,320 |  |  | $ | — |  |  | $ | (372) |  |  | $ | 2,948 |
Federal agencies | 15,000 |  |  | — |  |  | (956) |  |  | 14,044 |
State and municipal obligations | 155,681 |  |  | 142 |  |  | (28,090) |  |  | 127,733 |
Mortgage-backed securities - government-sponsored enterprises (GSE) residential | 106,885 |  |  | 48 |  |  | (16,004) |  |  | 90,929 |
Corporate obligations | 11,500 |  |  | — |  |  | (1,635) |  |  | 9,865 |
| 292,386 |  |  | 190 |  |  | (47,057) |  |  | 245,519 |
Held to maturity |  |  |  |  |  |  |
State and municipal obligations | 2,353 |  |  | 7 |  |  | (58) |  |  | 2,302 |
| 2,353 |  |  | 7 |  |  | (58) |  |  | 2,302 |
Total investment securities | $ | 294,739 |  |  | $ | 197 |  |  | $ | (47,115) |  |  | $ | 247,821 |
| December 31, 2025
Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available for sale |  |  |  |  |  |  |
SBA Pools | $ | 3,473 |  |  | $ | — |  |  | $ | (349) |  |  | $ | 3,124 |
Federal agencies | 15,000 |  |  | — |  |  | (939) |  |  | 14,061 |
State and municipal obligations | 157,102 |  |  | 160 |  |  | (25,444) |  |  | 131,818 |
Mortgage-backed securities - government-sponsored enterprises (GSE) residential | 108,586 |  |  | 93 |  |  | (15,574) |  |  | 93,105 |
Corporate obligations | 11,500 |  |  | — |  |  | (1,693) |  |  | 9,807 |
| 295,661 |  |  | 253 |  |  | (43,999) |  |  | 251,915 |
Held to maturity |  |  |  |  |  |  |
State and municipal obligations | 2,748 |  |  | 7 |  |  | (38) |  |  | 2,717 |
| 2,748 |  |  | 7 |  |  | (38) |  |  | 2,717 |
Total investment securities | $ | 298,409 |  |  | $ | 260 |  |  | $ | (44,037) |  |  | $ | 254,632 |
The amortized cost and fair value of investment securities at March 31, 2026, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
| Available for Sale |  | Held to Maturity
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Within one year | $ | 1,143 |  |  | $ | 1,136 |  |  | $ | 365 |  |  | $ | 365 |
One to five years | 23,840 |  |  | 22,851 |  |  | 928 |  |  | 928 |
Five to ten years | 49,238 |  |  | 44,128 |  |  | 450 |  |  | 447 |
After ten years | 111,280 |  |  | 86,475 |  |  | 610 |  |  | 562 |
| 185,501 |  |  | 154,590 |  |  | 2,353 |  |  | 2,302 |
Mortgage-backed securities –GSE residential | 106,885 |  |  | 90,929 |  |  | — |  |  | — |
Totals | $ | 292,386 |  |  | $ | 245,519 |  |  | $ | 2,353 |  |  | $ | 2,302 |
Investment securities with a carrying value of $134,486,000 and $138,306,000 were pledged at March 31, 2026 and December 31, 2025, respectively, to secure certain deposits and for other purposes as permitted or required by law. There were no sales of securities available for sale for the three months ended March 31, 2026 or March 31, 2025. Certain investments in debt securities, as reflected in the table below, are reported in the condensed consolidated financial statements and notes at an amount less than their historical cost. Total fair value of these investments at March 31, 2026 and December 31, 2025 was $238,904,000 and $244,503,000, respectively, which is approximately 96% and 96% of the Company’s aggregated available for sale and held to maturity investment portfolio at those dates, respectively. These declines primarily resulted from changes in market interest rates since their purchase. The Company does not consider available for sale securities with unrealized losses to be experiencing credit losses at March 31, 2026. Management considers it more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost basis, which may be the maturity dates of the securities. Held to maturity securities are financial assets measured at amortized cost. Held to maturity securities are required to have an established allowance for credit losses that represents the portion of the amortized cost basis of a financial asset that is not expected to be collectable. The Company estimates expected credit losses on a collective basis by security type, with consideration given to historical information, credit ratings, and the statistical probability of future losses. The Company monitors the credit quality of investment securities held to maturity through the use of credit ratings quarterly. As of March 31, 2026, there was no allowance for credit losses recognized on the Company's securities held to maturity portfolio. The following table summarizes the amortized cost of held to maturity securities by credit quality indicator as of March 31, 2026 and December 31, 2025:
| State and municipal obligations
| March 31, 2026 |  | December 31, 2025
AA+ | $ | 175 |  |  | $ | 350 |
A+ | 190 |  |  | 375 |
Not rated | 1,988 |  |  | 2,023 |
| $ | 2,353 |  |  | $ | 2,748 |
The Company has elected to exclude accrued interest receivable from the calculation of the allowance for credit losses. The following tables show the Company’s investment securities by gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2026 and December 31, 2025:
Description of Securities | March 31, 2026
Less Than 12 Months |  | 12 Months or More |  | Total
Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Available for sale |  |  |  |  |  |  |  |  |  |  |
SBA Pools | $ | — |  |  | $ | — |  |  | $ | 2,719 |  |  | $ | (372) |  |  | $ | 2,719 |  |  | $ | (372) |
Federal agencies | — |  |  | — |  |  | 14,044 |  |  | (956) |  |  | 14,044 |  |  | (956) |
State and municipal obligations | 540 |  |  | (10) |  |  | 123,542 |  |  | (28,080) |  |  | 124,082 |  |  | (28,090) |
Mortgage-backed securities - GSE residential | 1,816 |  |  | (32) |  |  | 85,186 |  |  | (15,972) |  |  | 87,002 |  |  | (16,004) |
Corporate obligations | — |  |  | — |  |  | 9,865 |  |  | (1,635) |  |  | 9,865 |  |  | (1,635) |
Total available for sale | 2,356 |  |  | (42) |  |  | 235,356 |  |  | (47,015) |  |  | 237,712 |  |  | (47,057) |
Held to maturity |  |  |  |  |  |  |  |  |  |  |
State and municipal obligations | 277 |  |  | (3) |  |  | 915 |  |  | (55) |  |  | 1,192 |  |  | (58) |
Total | $ | 2,633 |  |  | $ | (45) |  |  | $ | 236,271 |  |  | $ | (47,070) |  |  | $ | 238,904 |  |  | $ | (47,115) |
Description of Securities | December 31, 2025
Less Than 12 Months |  | 12 Months or More |  | Total
Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Available for sale |  |  |  |  |  |  |  |  |  |  |
SBA Pools | $ | 89 |  |  | $ | — |  |  | $ | 2,856 |  |  | $ | (349) |  |  | $ | 2,945 |  |  | $ | (349) |
Federal agencies | — |  |  | — |  |  | 14,061 |  |  | (939) |  |  | 14,061 |  |  | (939) |
State and municipal obligations | — |  |  | — |  |  | 127,699 |  |  | (25,444) |  |  | 127,699 |  |  | (25,444) |
Mortgage-backed securities - GSE residential | 907 |  |  | (4) |  |  | 88,088 |  |  | (15,570) |  |  | 88,995 |  |  | (15,574) |
Corporate obligations | — |  |  | — |  |  | 9,807 |  |  | (1,693) |  |  | 9,807 |  |  | (1,693) |
Total available for sale | 996 |  |  | (4) |  |  | 242,511 |  |  | (43,995) |  |  | 243,507 |  |  | (43,999) |
Held to maturity |  |  |  |  |  |  |  |  |  |  |
State and municipal obligations | — |  |  | — |  |  | 996 |  |  | (38) |  |  | 996 |  |  | (38) |
Total | $ | 996 |  |  | $ | (4) |  |  | $ | 243,507 |  |  | $ | (44,033) |  |  | $ | 244,503 |  |  | $ | (44,037) |
Federal Agency Obligations. The unrealized losses on the Company’s investments in direct obligations of U.S. federal agencies were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. SBA Pools and Mortgage-Backed Securities - GSE Residential. The unrealized losses on the Company’s investment in mortgage-backed securities and SBA pools were caused by interest rate changes and illiquidity. The Company expects to recover the amortized cost basis over the term of the securities. The decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell the securities and it is not more likely than not the Company will be required to sell the securities before recovery of their amortized cost basis, which may be maturity. State, Municipal, and Corporate Obligations. The unrealized losses on the Company’s investments in securities of state, municipal, and corporate obligations were caused by interest rate changes. The contractual terms of those securities do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the securities and it is not more likely than not the Company will be required to sell the securities before recovery of their amortized cost basis, which may be maturity. The Company expects the fair value of the securities described above to recover as the securities approach their maturity or reset date.

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