Debt Securities Available for Sale

6 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Debt Securities Available for Sale

(3) Debt Securities Available for Sale:

The following tables reflect the amortized cost and fair value of debt securities available for sale as of June 30, 2025:

2025
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				(Losses)				Value

U.S. Treasuries & Govt. - sponsored agencies		$	33,717			$	0			$	(1,439	)		$	32,278
State and municipal			60,317				124				(4,369	)			56,072
Mortgage-backed - residential			45,432				27				(5,197	)			40,262
Collateralized mortgage Obligations (CMOs)			21,288				38				(1,786	)			19,540

		$	160,754			$	189			$	(12,791	)		$	148,152

The following tables reflect the amortized cost and fair value of debt securities available for sale as of December 31, 2024:

2024
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				(Losses)				Value

U.S. Treasuries & Govt. - sponsored agencies		$	39,650			$	0			$	(2,171	)		$	37,479
State and municipal			59,958				172				(3,866	)			56,264
Mortgage-backed - residential			42,520				0				(6,189	)			36,331
Collateralized mortgage Obligations (CMOs)			15,881				0				(2,220	)			13,661

		$	158,009			$	172			$	(14,446	)		$	143,735

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

(3)

Debt Securities Available for Sale (continued):

Debt securities with a carrying amount of approximately $69,249 and $67,149 at June 30, 2025 and December 31, 2024, respectively, were pledged as collateral on public deposits, debt securities sold under agreements to repurchase and for other purposes as required or permitted by law.

At June 30, 2025 and December 31, 2024, there were no holdings of debt securities of any one issuer, other than the U.S. Government and its sponsored agencies, in an amount greater than 10% of stockholders’ equity.

As of June 30, 2025 and December 31, 2024, accrued interest on debt securities available-for-sale of $661 and $629, respectively, was excluded from CECL evaluation. Accrued interest on debt securities available-for-sale is recorded within accrued interest receivable on the consolidated balance sheet.

The amortized cost and approximate fair value of debt securities at June 30, 2025 by contractual maturity are shown below. Expected maturities may differ from contractual maturities on mortgage-backed and collateralized mortgage obligation debt securities because the underlying mortgages may be called or prepaid without any penalties.

		Amortized Cost				Fair Value
Due in one year or less		$	10,935			$	10,813
Due after one year through five years			44,679				43,198
Due after five years through ten years			17,071				15,954
Due after ten years			21,349				18,385
			94,034				88,350
Mortgage-backed – residential			45,432				40,262
Collateralized mortgage obligations			21,288				19,540
		$	160,754			$	148,152

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

(3)

Debt Securities Available-for-Sale (continued):

Debt securities with unrealized losses as of June 30, 2025 not recognized in income are as follows:

2025
		Less than 12 Months								12 Months or More								Total
		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
U.S Treas. & Gov’t - sponsored agencies		$	0			$	0			$	32,278			$	1,439			$	32,278			$	1,439
State and municipal			11,118				182				35,120				4,187				46,238				4,369
Mortgage- backed – residential			2,109				40				32,487				5,157				34,596				5,197
CMOs			2,876				35				12,363				1,751				15,239				1,786
Total temporarily impaired		$	16,103			$	257			$	112,248			$	12,534			$	128,351			$	12,791

Debt securities with unrealized losses as of December 31, 2024 not recognized in income are as follows:

2024
		Less than 12 Months								12 Months or More								Total
		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
U.S Treas. & Gov’t - sponsored agencies		$	0			$	0			$	37,479			$	2,171			$	37,479			$	2,171
State and municipal			9,719				65				33,978				3,801				43,697				3,866
Mortgage- backed – residential			943				8				34,094				6,181				35,037				6,189
CMOs			961				41				12,699				2,178				13,660				2,219
Total temporarily impaired		$	11,623			$	114			$	118,250			$	14,331			$	129,873			$	14,445

At June 30, 2025 and December 31, 2024, the investment portfolio included 178 and 173 debt securities that were in an unrealized loss position, respectively. Unrealized losses have not been recognized as an allowance for credit losses because the Company does not intend to sell the securities prior to their anticipated recovery and the decline in fair value is largely due to changes in interest rates and other market conditions.

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)