Securities

9 Months Ended

Sep. 30, 2025

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Note 6 – Securities

The following tables summarize the Bank’s holdings for securities held-to-maturity and available-for-sale as of September 30, 2025 and December 31, 2024 (dollars in thousands) are summarized below:


		September 30, 2025
	Amortized	Gross Unrealized
	Costs	Gains	(Losses)	Fair Value
Held-to-Maturity
U.S. agency obligations	$ 3,594	$ -	$ (286)	$ 3,308

Available-for-sale
U.S. agency obligations	$ 80,044	$ 475	$ (4,319)	$ 76,200
Mortgage-backed securities	65,558	69	(7,318)	58,309
Municipals	61,331	192	(8,378)	53,145
Corporates	15,501	2	(651)	14,852
	$ 222,434	$ 738	$ (20,666)	$ 202,506


		December 31, 2024
	Amortized	Gross Unrealized
	Costs	Gains	(Losses)	Fair Value
Held-to-Maturity
U.S. agency obligations	$ 3,606	$ -	$ (436)	$ 3,170

Available-for-sale
U.S. agency obligations	$ 79,976	$ -	$ (6,916)	$ 73,060
Mortgage-backed securities	69,312	9	(10,348)	58,973
Municipals	52,123	-	(10,562)	41,561
Corporates	15,510	-	(1,188)	14,322
	$ 216,921	$ 9	$ (29,014)	$ 187,916

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Note 6 – Securities (continued)

The following tables summarize the fair value of securities available-for-sale as of September 30, 2025 and as of December 31, 2024 and the corresponding amounts of unrealized losses. Management uses the valuation as of month-end in determining when securities are in an unrealized loss position (dollars in thousands):


September 30, 2025	Less than 12 months				More than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses

Available-for-sale
U.S. agency obligations	$	2,047	$	47	$	49,495	$	4,272	$	51,542	$	4,319
Mortgage-backed securities		-		-		54,238		7,318		54,238		7,318
Municipals		560		3		41,788		8,375		42,348		8,378
Corporates		-		-		13,849		651		13,849		651

	$	2,607	$	50	$	159,370	$	20,616	$	161,977	$	20,666



December 31, 2024	Less than 12 months				More than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Available-for-sale
U.S. agency obligations	$	11,455	$	324	$	61,606	$	6,592	$	73,060	$	6,916
Mortgage-backed securities		4,026		176		54,207		10,172		58,233		10,348
Municipals		1,847		31		39,714		10,531		41,561		10,562
Corporates		7,392		608		6,930		580		14,322		1,188

	$	24,720	$	1,139	$	162,457	$	27,875	$	187,176	$	29,014

As of September 30, 2025, the Company owned 109 securities that were in an unrealized loss position. Of these securities, 27 were S&P rated AAA, 71 were rated AA, 4 were rated A, 2 were rated BBB, and 5 were non-rated. As of September 30, 2025, 53 of these securities were municipal issues, 44 were backed directly or indirectly by the U.S. government, and 10 were issues of publicly traded domestic corporations, and 2 were issues of non-public financial institutions. The Company monitors its municipal and corporate securities by periodically reviewing the issuer’s cash flow and revenue streams, as well as other economic factors that could affect the issuer’s ability to service and/or repay the debt.

The Company has evaluated available-for-sale securities in an unrealized loss position for credit-related impairment at September 30, 2025, and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality; (2) unrealized losses are primarily the result of market volatility and increases in market interest rates; (3) the contractual terms of the investments do not permit the issuers to settle the securities at a price less than the par value of each investment; (4) issuers continue to make timely principal and interest payments; and (5) the Company does not intend to sell any of the investments before recovery of its amortized cost basis, nor is it likely that management will be required to sell the securities. As such, there was no allowance for credit losses on available-for-sale securities at September 30, 2025.

The Company’s held-to-maturity portfolio is covered by the explicit or implied guarantee of the United States government or one of its agencies and is rated investment grade or higher. As a result, the Company did not have an allowance for credit losses on held-to-maturity securities as of September 30, 2025 or December 31, 2024.

All held-to-maturity and available-for-sale securities were current, with no securities past due or on nonaccrual as of September 30, 2025 and December 31, 2024. Sales of available-for-sale securities totaled $4,227,000 during the three and nine months ended September 30, 2025. Sales of available-for-sale securities totaled $8,754,000 and $30,298,000 during the three and nine months ended September 30, 2024.

Note 6 – Securities (continued)

As of September 30, 2025 and December 31, 2024, the Company had approximately (market values):

$51,116,000 and $44,865,000 , respectively, of available-for-sale securities pledged as collateral for public deposits;

$34,000,000 and $37,000,000 of our available-for-sale securities as collateral with correspondent banks, including the FHLBA, for collateralized lines of credit; and

$25,000,000 and $29,000,000 of our available-for-sale securities as collateral for advances at the Federal Reserve Bank’s discount window.

The amortized costs and fair values of securities at September 30, 2025, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


Investment Portfolio in Maturities (in thousands)	September 30, 2025
	Amortized
	Costs	Fair Value
Held-to-maturity:
Due in one year or less	$ -	$ -
Due after one year through five years	399	387
Due after five years through ten years	2,018	1,896
Due after ten years	1,177	1,025
Total securities Held-to-maturity	$ 3,594	$ 3,308


	Amortized
	Costs	Fair Value
Available-for-sale:
Due in one year or less	$ 2,500	$ 2,485
Due after one year through five years	57,997	55,389
Due after five years through ten years	63,019	58,579
Due after ten years	98,918	86,053
Total securities Available-for-sale	$ 222,434	$ 202,506