Note 6 – Securities

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


		June 30, 2025
	Amortized	Gross Unrealized
(in thousands)	Costs	Gains	(Losses)	Fair Value
Held-to-Maturity
U.S. agency obligations	$ 3,598	$ -	$ (347)	$ 3,251

Available-for-sale
U.S. agency obligations	84,033	243	(5,096)	79,180
Mortgage-backed securities	65,644	24	(8,520)	57,148
Municipals	55,141	21	(9,670)	45,492
Corporates	15,504	-	(739)	14,765
	$ 220,322	$ 288	$ (24,025)	$ 196,585


		December 31, 2024
	Amortized	Gross Unrealized
(in thousands)	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

‎

Note 6 – Securities (continued)

The following tables summarize the fair value of securities available-for-sale as of June 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 (amounts in thousands):


June 30, 2025	Less than 12 months				More than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
in thousands	Value		Losses		Value		Losses		Value		Losses

Available-for-sale
U.S. agency obligations	$	7,892	$	152	$	51,096	$	4,944	$	58,988	$	5,096
Mortgage-backed securities		2,824		53		52,593		8,467		55,417		8,520
Municipals		3,224		43		40,563		9,627		43,787		9,670
Corporates		-		-		14,765		739		14,765		739

	$	13,940	$	248	$	159,017	$	23,777	$	172,957	$	24,025



December 31, 2024	Less than 12 months				More than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
in thousands	Value		Losses		Value		Losses		Value		Losses
Available-for-sale
U.S. agency obligations	$	11,455	$	324	$	61,606	$	6,592	$	73,061	$	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	$	187,177	$	29,014

As of June 30, 2025, the Company owned 120 securities that were in an unrealized loss position. Of these securities, 26 were S&P rated AAA, 83 were rated AA, 4 were rated A, 2 were rated BBB, and 5 were non-rated. As of June 30, 2025, 56 of these securities were municipal issues, 51 were backed directly or indirectly by the U.S. government, 11 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 June 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 June 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 June 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 June 30, 2025 and December 31, 2024. There were no sales of available-for-sale securities during the three and six months ended June 30, 2025. Sales of available-for-sale securities were $8,754,000 during the three and six months ended June 30, 2024. As of June 30, 2025 and 2024, the Company had approximately (market values):

$49,360,000 and $44,865,000 , respectively, of available-for-sale securities pledged as collateral for public deposits;

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

$26,000,000 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 June 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)	June 30, 2025
	Amortized
	Costs	Fair Value
Held-to-maturity:
Due in one year or less	$ -	$ -
Due after one year through five years	399	383
Due after five years through ten years	2,019	1,866
Due after ten years	1,180	1,002

Total securities Held-to-maturity	$ 3,598	$ 3,251


	Amortized
	Costs	Fair Value
Available-for-sale:
Due in one year or less	$ 3,505	$ 3,481
Due after one year through five years	41,610	39,258
Due after five years through ten years	77,795	71,564
Due after ten years	97,412	82,282

Total securities Available-for-sale	$ 220,322	$ 196,585