Investment Securities

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

Details of investment securities available-for-sale and held-to-maturity as of March 31, 2025 and December 31, 2024 were as follows:


	Available-for-Sale
	March 31, 2025
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	84,064	$	823	$	(1,931	)	$	82,956
Commercial		11,340		73		(159	)		11,254
Obligations of U.S. government-sponsored agencies		10,589		151		(471	)		10,269
Obligations of states and political subdivisions		1,566		—		(17	)		1,549
Corporate notes		17,759		33		(1,303	)		16,489
U.S. Treasury securities		40,023		—		(1,226	)		38,797
Total	$	165,341	$	1,080	$	(5,107	)	$	161,314


	Held-to-Maturity
	March 31, 2025
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	236	$	—	$	(8	)	$	228
Obligations of U.S. government-sponsored agencies		375		—		(21	)	$	354
Obligations of states and political subdivisions		21		—		(1	)	$	20
Total	$	632	$	—	$	(30	)	$	602


	Available-for-Sale
	December 31, 2024
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	87,703	$	347	$	(2,768	)	$	85,282
Commercial		12,105		17		(202	)		11,920
Obligations of U.S. government-sponsored agencies		11,436		18		(620	)		10,834
Obligations of states and political subdivisions		1,577		—		(28	)		1,549
Corporate notes		17,757		58		(1,871	)		15,944
U.S. Treasury securities		44,019		—		(1,660	)		42,359
Total	$	174,597	$	440	$	(7,149	)	$	167,888


	Held-to-Maturity
	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	264	$	—	$	(10	)	$	254
Obligations of U.S. government-sponsored agencies		384		—		(27	)		357
Obligations of states and political subdivisions		34		—		(3	)		31
Total	$	682	$	—	$	(40	)	$	642

The scheduled maturities of investment securities available-for-sale and held-to-maturity as of March 31, 2025 are presented in the following table:


	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(Dollars in Thousands)
Maturing within one year	$	20,278	$	20,109	$	—	$	—
Maturing after one to five years		26,668		25,527		242		237
Maturing after five to ten years		57,533		54,387		290		271
Maturing after ten years		60,862		61,291		100		94
Total	$	165,341	$	161,314	$	632	$	602

For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments.

The following tables reflect fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of March 31, 2025 and December 31, 2024.


	Available-for-Sale
	March 31, 2025
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	4,681	$	(10	)	$	26,999	$	(1,921	)
Commercial		881		(4	)		4,936		(155	)
Obligations of U.S. government-sponsored agencies		—		—			4,599		(471	)
Obligations of states and political subdivisions		—		—			1,549		(17	)
Corporate notes		—		—			14,456		(1,303	)
U.S. Treasury securities		—		—			38,797		(1,226	)
Total	$	5,562	$	(14	)	$	91,336	$	(5,093	)


	Held-to-Maturity
	March 31, 2025
	Less than 12 Months				12 Months or More
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	—	$	—	$	228	$	(8	)
Obligations of U.S. government-sponsored agencies		—		—		354		(21	)
Obligations of states and political subdivisions		—		—		20		(1	)
Total	$	—	$	—	$	602	$	(30	)


	Available-for-Sale
	December 31, 2024
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	41,417	$	(424	)	$	28,520	$	(2,344	)
Commercial		3,374		(13	)		5,331		(189	)
Obligations of U.S. government-sponsored agencies		3,823		(1	)		4,457		(619	)
Obligations of states and political subdivisions		—		—			1,549		(28	)
Corporate notes		—		—			13,886		(1,871	)
U.S. Treasury securities		—		—			42,359		(1,660	)
Total	$	48,614	$	(438	)	$	96,102	$	(6,711	)


	Held-to-Maturity
	December 31, 2024
	Less than 12 Months				12 Months or More
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	—	$	—	$	254	$	(10	)
Obligations of U.S. government-sponsored agencies		—		—		357		(27	)
Obligations of states and political subdivisions		—		—		31		(3	)
Total	$	—	$	—	$	642	$	(40	)

Available-for-Sale Considerations

For any securities classified as available-for-sale that are in an unrealized loss position as of the balance sheet date, the Company assesses whether or not it intends to sell the security, or more-likely-than-not will be required to sell the security, before recovery of its amortized cost basis which would require a write-down to fair value through net income.

As of March 31, 2025, 95 available-for-sale debt securities had been in a loss position for more than 12 months, and four available-for-sale debt securities had been in a loss position for less than 12 months. As of December 31, 2024, 97 available-for-sale debt securities had been in a loss position for more than 12 months, and 16 available-for-sale debt securities had been in a loss position for less than 12 months. As of March 31, 2025, the Company had the current intent and ability to retain its investments for a period of time that management believes to be sufficient to allow for any anticipated recovery of fair value. As of March 31, 2025 and December 31, 2024, the losses for all available-for-sale securities were considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and were not related to the creditworthiness of the issuers. Accordingly, no allowance for credit losses ("ACL") was considered necessary related to available-for-sale securities as of March 31, 2025 or December 31, 2024. Accrued interest receivable is excluded from the estimate of credit losses for available-for-sale securities. As of both March 31, 2025 and December 31, 2024, accrued interest receivable totaled $0.7 million with no related ACL and was reported in the accrued interest line on the accompanying consolidated balance sheets.

Held-to-Maturity Considerations

Each quarter, management evaluates the held-to-maturity investment portfolio on a collective basis by major security type to determine whether an ACL is needed. Qualitative factors are used in the Company’s credit loss assessments, including current and forecasted economic conditions, the characteristics of the debt issuer, and the historic ability of the issuer to make contractual principal and interest payments. Specifically, with regard to mortgage-backed securities or obligations of U.S. government sponsored agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are either backed by the full faith and credit of the U.S. government or the agency. With regard to obligations of states and political subdivisions, management considers issuer bond ratings, historical loss rates for given bond ratings, and whether the issuers continue to make timely principal and interest payments under contractual terms of the securities. Based on these evaluations, no ACL was recorded by the Company for the held-to-maturity investment portfolio as of March 31, 2025 or December 31, 2024. As of March 31, 2025 and December 31, 2024, accrued interest receivable totaled $3.0 thousand and $2.0 thousand, respectively, with no related ACL and was reported in the accrued interest line on the accompanying consolidated balance sheets.

Pledged Securities

Investment securities with a carrying value of $62.6 million and $72.1 million as of March 31, 2025 and December 31, 2024, respectively, were pledged to secure public deposits and for other purposes.