INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

2. INVESTMENT SECURITIES

The following tables summarize the amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2025 and December 31, 2024, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss on securities available-for-sale. The Company did not record an allowance for credit losses on its securities held-to-maturity portfolio as of December 31, 2025 and December 31, 2024.

		December 31, 2025
		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
		(Dollars in thousands)
Securities available-for-sale:
Debt securities:
Government-sponsored enterprise obligations		$	18,596			$	—			$	(2,103	)		$	16,493
Corporate bonds			11,000				155				(207	)			10,948
Total debt securities			29,596				155				(2,310	)			27,441

Mortgage-backed securities:
Government-sponsored mortgage-backed securities			162,831				806				(19,936	)			143,701
U.S. government guaranteed mortgage-backed securities			5,767				—				(1,109	)			4,658
Total mortgage-backed securities			168,598				806				(21,045	)			148,359

Total securities available-for-sale			198,194				961				(23,355	)			175,800

Securities held-to-maturity:
Debt securities:
U.S. Treasury securities			5,001				—				(103	)			4,898
U.S. government guaranteed obligations			1,005				2				—				1,007
Total debt securities			6,006				2				(103	)			5,905

Mortgage-backed securities:
Government-sponsored mortgage-backed securities			182,794				219				(30,414	)			152,599
Total mortgage-backed securities			182,794				219				(30,414	)			152,599

Total securities held-to-maturity			188,800				221				(30,517	)			158,504
Total		$	386,994			$	1,182			$	(53,872	)		$	334,304

		December 31, 2024
		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
		(Dollars in thousands)
Securities available-for-sale:
Debt securities:
Government-sponsored enterprise obligations		$	19,424			$	—			$	(2,966	)		$	16,458
Corporate bonds			5,000				—				(390	)			4,610
Total debt securities			24,424				—				(3,356	)			21,068

Mortgage-backed securities:
Government-sponsored mortgage-backed securities			161,313				—				(26,535	)			134,778
U.S. government guaranteed mortgage-backed securities			6,203				—				(1,345	)			4,858
Total mortgage-backed securities			167,516				—				(27,880	)			139,636

Total securities available-for-sale			191,940				—				(31,236	)			160,704

Securities held-to-maturity:
Debt securities:
U.S. Treasury securities			5,002				—				(275	)			4,727
U.S. government guaranteed obligations			1,064				—				(3	)			1,061
Total debt securities			6,066				—				(278	)			5,788

Mortgage-backed securities:
Government-sponsored mortgage-backed securities			198,970				13				(39,165	)			159,818
Total mortgage-backed securities			198,970				13				(39,165	)			159,818

Total securities held-to-maturity			205,036				13				(39,443	)			165,606
Total		$	396,976			$	13			$	(70,679	)		$	326,310

The following table presents the unrealized gains (losses) recognized on marketable equity securities for the years indicated:


		Years Ended December 31,
		2025				2024				2023
		(Dollars in thousands)
Net gains (losses) recognized during the year on marketable equity securities		$	35			$	13			$	(1	)
Net gains (losses) recognized during the year on equity securities sold during the year			—				—				—
Unrealized gain (loss) recognized during the year on marketable equity securities still held at year end		$	35			$	13			$	(1	)

During the second quarter of 2023, $6.3 million in marketable equity securities was redeemed. As the marketable equity securities portfolio was marked to market through income monthly, the fund liquidation resulted in no gain or loss to the income statement. At December 31, 2025 and December 31, 2024, the balance of marketable equity securities was $632,000 and $397,000, respectively.

At December 31, 2025, U.S. Treasury securities with a fair value of $4.9 million, government-sponsored enterprise obligations with a fair value of $8.5 million and mortgage-backed securities with a fair value of $150.5 million were pledged to secure public deposits and for other purposes as required or permitted by law. The securities collateralizing public deposits are subject to fluctuations in fair value. We monitor the fair value of the collateral on a periodic basis, and pledge additional collateral if necessary based on changes in fair value of collateral or the balances of such deposits.

The amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2025, by final maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers have the right to call or prepay obligations.

		Available-for-Sale								Held-to-Maturity
		Amortized Cost				Fair Value				Amortized Cost				Fair Value
		(Dollars in thousands)
Debt securities:
Due in one year or less		$	—			$	—			$	5,001			$	4,898
Due after one year through five years			9,947				8,852				—				—
Due after five years through ten years			17,981				16,927				—				—
Due after ten years			1,668				1,662				1,005				1,007
Total debt securities		$	29,596			$	27,441			$	6,006			$	5,905

		Available-for-Sale								Held-to-Maturity
		Amortized Cost				Fair Value				Amortized Cost				Fair Value
		(Dollars in thousands)
Mortgage-backed securities:
Due after one year through five years		$	2,720			$	2,697			$	—			$	—
Due after five years through ten years			3,687				3,563				1,797				1,744
Due after ten years			162,191				142,099				180,997				150,855
Total mortgage-backed securities			168,598				148,359				182,794				152,599
Total securities		$	198,194			$	175,800			$	188,800			$	158,504

There were no gross realized gains or losses on sales of securities available-for-sale for the years ended December 31, 2025, 2024 and 2023.

Accrued interest receivable on securities available-for-sale guaranteed by government agencies totaled $513,000 at December 31, 2025 and $472,000 at December 31, 2024, and is excluded from the estimate of credit losses. Accrued interest receivable on debt securities available-for-sale not guaranteed by government agencies totaled $244,000 at December 31, 2025 and $123,000 at December 31, 2024, and is excluded from the estimate of credit losses. There were no allowances for credit losses established on debt securities available-for-sale during the years ended December 31, 2025 and December 31, 2024.

At December 31, 2025 and 2024, there was one available-for-sale corporate bond that was rated below investment grade by one or more ratings agencies. The Company reviewed the financial strength of the corporate bond rated below investment grade at December 31, 2025 and has concluded that the amortized cost remains supported by the expected future cash flows of the securities.

Accrued interest receivable on securities held-to-maturity totaled $393,000 at December 31, 2025 and $430,000 at December 31, 2024, and is excluded from the estimate of credit losses. There were no allowances for credit losses established on securities held-to-maturity securities during the years ended December 31, 2025 and December 31, 2024.

The following tables summarize the gross unrealized losses and fair value of the Company's securities available-for-sale and held-to-maturity, segregated by the duration of their continuous unrealized loss positions at December 31, 2025 and 2024:

		December 31, 2025
		Less Than Twelve Months														Over Twelve Months
		Number of Securities			Fair Value				Gross Unrealized Loss				Depreciation from Amortized Cost Basis (%)			Number of Securities			Fair Value				Gross Unrealized Loss				Depreciation from Amortized Cost Basis (%)
		(Dollars in thousands)
Securities available-for-sale:
Government-sponsored mortgage-backed securities		1			$	1,819			$	7			0.4	%		73			$	100,750			$	19,929			16.5	%
U.S. government guaranteed mortgage-backed securities		—				—				—			—			9				4,658				1,109			19.2
Government-sponsored enterprise obligations		1				1,662				6			0.4			5				14,831				2,097			12.4
Corporate bonds		—				—				—			—			2				4,793				207			4.1
Total securities available-for-sale		2				3,481				13						89				125,032				23,342

Securities held-to-maturity:
U.S. Treasury securities		—				—				—			—	%		1				4,898				103			2.1	%
Government-sponsored mortgage-backed securities		—				—				—			—			36				141,556				30,414			17.7
Total securities held-to-maturity		—				—				—						37				146,454				30,517

Total securities		2			$	3,481			$	13						126			$	271,486			$	53,859

		December 31, 2024
		Less Than Twelve Months																Over Twelve Months
		Number of Securities				Fair Value				Gross Unrealized Loss				Depreciation from Amortized Cost Basis (%)				Number of Securities				Fair Value				Gross Unrealized Loss				Depreciation from Amortized Cost Basis (%)
		(Dollars in thousands)
Securities available-for-sale:
Government-sponsored mortgage-backed securities			9			$	33,145			$	584				1.7	%			70			$	99,529			$	25,951				20.7	%
U.S. government guaranteed mortgage-backed securities			—				—				—				—				9				4,858				1,345				21.7
Government-sponsored enterprise obligations			3				4,452				19				0.4				3				11,988				2,947				19.7
Corporate bonds			—				—				—				—				2				4,610				390				7.8
Total securities available-for-sale			12				37,597				603								84				120,985				30,633

Securities held-to-maturity:
U.S. Treasury securities			—				—				—				—	%			1				4,727				275				5.5	%
U.S. government guaranteed obligations			1				1,061				3				0.3				—				—				—				—
Government-sponsored mortgage-backed securities			4				9,187				127				1.4				37				148,992				39,038				20.8
Total securities held-to-maturity			5				10,248				130								38				153,719				39,313

Total securities			17			$	47,845			$	733								122			$	274,704			$	69,946

The Company expects to recover its amortized cost basis on all securities in its available-for-sale and held-to-maturity portfolios. Furthermore, the Company does not intend to sell, nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of December 31, 2025, prior to this anticipated recovery. The decline in fair value on its available-for-sale and held-to-maturity portfolios is largely due to changes in interest rates and other market conditions and not due to credit quality issues. The issuers continue to make timely principal and interest payments on the securities and the fair value is expected to recover as the securities approach maturity. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s stable capital and liquidity positions as well as its historically low portfolio turnover. The following description provides the number of investment positions in an unrealized loss position:

At December 31, 2025, the Company reported gross unrealized losses on the securities available-for-sale portfolio of $23.4 million, or 11.8% of the amortized cost basis of the securities available-for-sale, compared to gross unrealized losses of $31.2 million, or 16.2% of the amortized cost basis of the securities available-for-sale at December 31, 2024. At December 31, 2025, there were 91 securities available-for-sale in which the fair value was less than the amortized cost, compared to 96 securities available-for-sale at December 31, 2024.

At December 31, 2025, the Company reported gross unrealized losses on the securities held-to-maturity portfolio of $30.5 million, or 16.2%, of the amortized cost basis of the securities held-to-maturity portfolio, compared to gross unrealized losses of $39.4 million, or 19.2% of the amortized cost basis of the securities held-to-maturity at December 31, 2024. At December 31, 2025, there 37 securities held-to-maturity in which the fair value was less than the amortized cost, compared to 43 securities held-to-maturity at December 31, 2024.