| Securities Held-to-Maturity |
Note 5 — Securities Held-to-Maturity The following table summarizes the Company’s portfolio of securities held-to-maturity at June 30, 2025 and December 31, 2024. | | | | | | | | | | | | | | | | | | June 30, 2025 | | | | | | Gross | | Gross | | | | Allowance | | | Amortized | | Unrealized | | Unrealized | | Fair | | for | | | Cost | | Gains | | Losses | | Value | | Credit Loss | | | | (In Thousands) | Mortgage-backed securities – residential: | | | | | | | | | | | | | | | | Government National Mortgage Association | | $ | 380 | | $ | 3 | | $ | — | | $ | 383 | | $ | — | Federal Home Loan Mortgage Corporation | | | 729 | | | — | | | 82 | | | 647 | | | — | Federal National Mortgage Association | | | 1,533 | | | — | | | 126 | | | 1,407 | | | — | Collateralized mortgage obligations – GSE | | | 2,741 | | | — | | | 572 | | | 2,169 | | | — | Total mortgage-backed securities | | | 5,383 | | | 3 | | | 780 | | | 4,606 | | | — | Municipal Bonds | | | 9,141 | | | — | | | 2,153 | | | 6,988 | | | 126 | | | $ | 14,524 | | $ | 3 | | $ | 2,933 | | $ | 11,594 | | $ | 126 |
| | | | | | | | | | | | | | | | | | December 31, 2024 | | | | | | Gross | | Gross | | | | Allowance | | | Amortized | | Unrealized | | Unrealized | | Fair | | for | | | Cost | | Gains | | Losses | | Value | | Credit Loss | | | | (In Thousands) | Mortgage-backed securities – residential: | | | | | | | | | | | | | | | | Government National Mortgage Association | | $ | 414 | | $ | — | | $ | — | | $ | 414 | | $ | — | Federal Home Loan Mortgage Corporation | | | 775 | | | 1 | | | 110 | | | 666 | | | — | Federal National Mortgage Association | | | 1,677 | | | — | | | 177 | | | 1,500 | | | — | Collateralized mortgage obligations – GSE | | | 2,782 | | | — | | | 624 | | | 2,158 | | | — | Total mortgage-backed securities | | | 5,648 | | | 1 | | | 911 | | | 4,738 | | | — | Municipal Bonds | | | 9,094 | | | — | | | 1,974 | | | 7,120 | | | 126 | | | $ | 14,742 | | $ | 1 | | $ | 2,885 | | $ | 11,858 | | $ | 126 |
Contractual final maturities of mortgage-backed securities and municipal bonds were as follows at June 30, 2025: | | | | | | | | | June 30, 2025 | | | Amortized | | Fair | | | Cost | | Value | | | | (In Thousands) | Due within one year | | $ | 800 | | $ | 601 | Due after one but within five years | | | 1,738 | | | 1,480 | Due after five but within ten years | | | 2,630 | | | 2,134 | Due after ten years | | | 9,356 | | | 7,379 | | | $ | 14,524 | | $ | 11,594 |
The maturities shown above are based upon contractual final maturity. Actual maturities will differ from contractual maturities due to scheduled monthly repayments and due to the underlying borrowers having the right to prepay their obligations. The activity in the allowance for credit losses for debt securities held-to-maturity for the three and six months ended June 30, 2025 and 2024 was as follows: | | | | | | | Municipal Bonds | Balance – December 31, 2024 | | $ | 126 | Provision for (reversal of) credit loss | | | - | Balance – March 31, 2025 | | $ | 126 | Provision for (reversal of) credit loss | | | - | Balance – June 30, 2025 | | $ | 126 | | | | | | | | Municipal Bonds | Balance – December 31, 2023 | | $ | 136 | Provision for (reversal of) credit loss | | | (3) | Balance – March 31, 2024 | | $ | 133 | Provision for (reversal of) credit loss | | | (7) | Balance – June 30, 2024 | | $ | 126 |
The age of unrealized losses and the fair value of related securities held-to-maturity, for which an allowance for credit losses was not deemed necessary, were as follows: | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | | | | | | Gross | | | | | Gross | | | | | Gross | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | | | Value | | Losses | | Value | | Losses | | Value | | Losses | | | | (In Thousands) | June 30, 2025: | | | | | | | | | | | | | | | | | | | Mortgage-backed securities - residential: | | | | | | | | | | | | | | | | | | | Federal Home Loan Mortgage Corporation | | $ | — | | $ | — | | $ | 617 | | $ | 82 | | $ | 617 | | $ | 82 | Federal National Mortgage Association | | | — | | | — | | | 1,401 | | | 126 | | | 1,401 | | | 126 | Collateralized mortgage obligations – GSE | | | — | | | — | | | 2,169 | | | 572 | | | 2,169 | | | 572 | Total mortgage-backed securities | | $ | — | | $ | — | | $ | 4,187 | | $ | 780 | | $ | 4,187 | | $ | 780 |
| | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | | | | | | Gross | | | | | Gross | | | | | Gross | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | | | Value | | Losses | | Value | | Losses | | Value | | Losses | | | | (In Thousands) | December 31, 2024: | | | | | | | | | | | | | | | | | | | Mortgage-backed securities - residential: | | | | | | | | | | | | | | | | | | | Federal Home Loan Mortgage Corporation | | $ | — | | $ | — | | $ | 634 | | $ | 110 | | $ | 634 | | $ | 110 | Federal National Mortgage Association | | | — | | | — | | | 1,500 | | | 177 | | | 1,500 | | | 177 | Collateralized mortgage obligations – GSE | | | — | | | — | | | 2,158 | | | 624 | | | 2,158 | | | 624 | Total mortgage-backed securities | | $ | — | | $ | — | | $ | 4,292 | | $ | 911 | | $ | 4,292 | | $ | 911 |
At June 30, 2025, twelve mortgage-backed securities had unrealized losses due to interest rate volatility. Management concluded that the unrealized loss reflected above was temporary in nature since the unrealized loss was related primarily to market interest rate volatility, and was not related to the underlying credit quality of the issuers of the securities. Additionally, the Company has the ability and intent to hold the securities for the time necessary to recover the amortized cost. At December 31, 2024, there were sixteen mortgage-backed securities that had unrealized losses due to interest rate volatility. Credit Quality Indicators The held to maturity securities portfolio consists of agency mortgage-backed securities and municipal bonds. All agency mortgage-backed securities are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The seven municipal bonds in the portfolio carry no lower than A ratings from the rating agencies at June 30, 2025 and have no realized losses since they were issued. The Company regularly monitors the municipal bonds sector of the market and reviews collectability including such factors as the financial condition of the issuers as well as credit ratings in effect as of the reporting period.
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