| Securities |
Note 3. Securities The amortized cost, gross unrealized gains and losses, and fair value of securities at December 31, 2025 and 2024 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
|
|
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Fair Value |
|
|
|
(in thousands) |
|
Available-for-Sale Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Bonds |
|
$ |
2,999 |
|
|
$ |
— |
|
|
$ |
(20 |
) |
|
$ |
2,979 |
|
Corporate Bonds |
|
|
13,501 |
|
|
|
— |
|
|
|
(738 |
) |
|
|
12,763 |
|
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations (1) |
|
|
30,839 |
|
|
|
— |
|
|
|
(4,493 |
) |
|
|
26,346 |
|
FHLMC Certificates |
|
|
7,915 |
|
|
|
— |
|
|
|
(790 |
) |
|
|
7,125 |
|
FNMA Certificates |
|
|
50,620 |
|
|
|
— |
|
|
|
(7,714 |
) |
|
|
42,906 |
|
GNMA Certificates |
|
|
76 |
|
|
|
1 |
|
|
|
— |
|
|
|
77 |
|
Total available-for-sale securities |
|
$ |
105,950 |
|
|
$ |
1 |
|
|
$ |
(13,755 |
) |
|
$ |
92,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-Maturity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bonds |
|
$ |
7,500 |
|
|
$ |
36 |
|
|
$ |
(138 |
) |
|
$ |
7,398 |
|
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations (1) |
|
|
160,786 |
|
|
|
100 |
|
|
|
(2,876 |
) |
|
|
158,010 |
|
FHLMC Certificates |
|
|
3,133 |
|
|
|
22 |
|
|
|
(119 |
) |
|
|
3,036 |
|
FNMA Certificates |
|
|
90,868 |
|
|
|
53 |
|
|
|
(1,453 |
) |
|
|
89,468 |
|
SBA Certificates |
|
|
10,931 |
|
|
|
32 |
|
|
|
— |
|
|
|
10,963 |
|
Allowance for Credit Losses |
|
|
(236 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total held-to-maturity securities |
|
$ |
272,982 |
|
|
$ |
243 |
|
|
$ |
(4,586 |
) |
|
$ |
268,875 |
|
(1)Comprised of FHLMC, FNMA and GNMA issued securities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
|
|
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Fair Value |
|
|
|
(in thousands) |
|
Available-for-Sale Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Bonds |
|
$ |
2,994 |
|
|
$ |
— |
|
|
$ |
(121 |
) |
|
$ |
2,873 |
|
Corporate Bonds |
|
|
21,762 |
|
|
|
10 |
|
|
|
(1,368 |
) |
|
|
20,404 |
|
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations (1) |
|
|
34,526 |
|
|
|
— |
|
|
|
(5,991 |
) |
|
|
28,535 |
|
FHLMC Certificates |
|
|
9,028 |
|
|
|
— |
|
|
|
(1,366 |
) |
|
|
7,662 |
|
FNMA Certificates |
|
|
56,010 |
|
|
|
— |
|
|
|
(10,602 |
) |
|
|
45,408 |
|
GNMA Certificates |
|
|
88 |
|
|
|
— |
|
|
|
— |
|
|
|
88 |
|
Total available-for-sale securities |
|
$ |
124,408 |
|
|
$ |
10 |
|
|
$ |
(19,448 |
) |
|
$ |
104,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held-to-Maturity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Agency Bonds |
|
$ |
25,000 |
|
|
$ |
— |
|
|
$ |
(40 |
) |
|
$ |
24,960 |
|
Corporate Bonds |
|
|
32,500 |
|
|
|
12 |
|
|
|
(535 |
) |
|
|
31,977 |
|
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations (1) |
|
|
186,634 |
|
|
|
— |
|
|
|
(7,052 |
) |
|
|
179,582 |
|
FHLMC Certificates |
|
|
3,229 |
|
|
|
— |
|
|
|
(223 |
) |
|
|
3,006 |
|
FNMA Certificates |
|
|
105,417 |
|
|
|
— |
|
|
|
(5,114 |
) |
|
|
100,303 |
|
SBA Certificates |
|
|
15,374 |
|
|
|
92 |
|
|
|
— |
|
|
|
15,466 |
|
Allowance for Credit Losses |
|
|
(216 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total held-to-maturity securities |
|
$ |
367,938 |
|
|
$ |
104 |
|
|
$ |
(12,964 |
) |
|
$ |
355,294 |
|
(1)Comprised of FHLMC, FNMA and GNMA issued securities. The Company’s securities portfolio had 34 and 39 available-for-sale securities and 28 and 31 held-to-maturity securities at December 31, 2025 and 2024, respectively. There were no available-for-sale and held-to-maturity securities sold during the years ended December 31, 2025 and 2024. There were four available-for-sale securities in the total amount of $8.3 million and three held-to-maturity securities in the total amount of $50.0 million that matured or were called during the year ended December 31, 2025. There was one available-for-sale security in the amount of $4.0 million and two held-to-maturity securities in the total amount of $50.0 million that matured or were called during the year ended December 31, 2024. The Company did not purchase any available-for-sale securities and held-to-maturity securities during the years ended December 31, 2025 and 2024. The following tables present the Company's securities gross unrealized losses and fair values, aggregated by the length of time the individual securities have been in a continuous unrealized loss position, at December 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
Securities With Gross Unrealized Losses |
|
|
|
Less Than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
|
Total |
|
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
|
|
|
(in thousands) |
|
Available-for-Sale Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Bonds |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,979 |
|
|
$ |
(20 |
) |
|
$ |
2,979 |
|
|
$ |
(20 |
) |
Corporate Bonds |
|
|
— |
|
|
|
— |
|
|
|
12,763 |
|
|
|
(738 |
) |
|
|
12,763 |
|
|
|
(738 |
) |
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations |
|
|
— |
|
|
|
— |
|
|
|
26,346 |
|
|
|
(4,493 |
) |
|
|
26,346 |
|
|
|
(4,493 |
) |
FHLMC Certificates |
|
|
— |
|
|
|
— |
|
|
|
7,125 |
|
|
|
(790 |
) |
|
|
7,125 |
|
|
|
(790 |
) |
FNMA Certificates |
|
|
— |
|
|
|
— |
|
|
|
42,906 |
|
|
|
(7,714 |
) |
|
|
42,906 |
|
|
|
(7,714 |
) |
Total available-for-sale securities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
92,119 |
|
|
$ |
(13,755 |
) |
|
$ |
92,119 |
|
|
$ |
(13,755 |
) |
Held-to-Maturity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Bonds |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,362 |
|
|
$ |
(138 |
) |
|
$ |
5,362 |
|
|
$ |
(138 |
) |
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations |
|
|
16,561 |
|
|
|
(50 |
) |
|
|
132,942 |
|
|
|
(2,826 |
) |
|
|
149,503 |
|
|
|
(2,876 |
) |
FHLMC Certificates |
|
|
— |
|
|
|
— |
|
|
|
616 |
|
|
|
(119 |
) |
|
|
616 |
|
|
|
(119 |
) |
FNMA Certificates |
|
|
— |
|
|
|
— |
|
|
|
85,670 |
|
|
|
(1,453 |
) |
|
|
85,670 |
|
|
|
(1,453 |
) |
Total held-to-maturity securities |
|
$ |
16,561 |
|
|
$ |
(50 |
) |
|
$ |
224,590 |
|
|
$ |
(4,536 |
) |
|
$ |
241,151 |
|
|
$ |
(4,586 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
|
|
Securities With Gross Unrealized Losses |
|
|
|
Less Than 12 Months |
|
|
12 Months or More |
|
|
Total |
|
|
Total |
|
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
|
|
|
(in thousands) |
|
Available-for-Sale Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Bonds |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,873 |
|
|
$ |
(121 |
) |
|
$ |
2,873 |
|
|
$ |
(121 |
) |
Corporate Bonds |
|
|
— |
|
|
|
— |
|
|
|
15,394 |
|
|
|
(1,368 |
) |
|
|
15,394 |
|
|
|
(1,368 |
) |
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations |
|
|
— |
|
|
|
— |
|
|
|
28,535 |
|
|
|
(5,991 |
) |
|
|
28,535 |
|
|
|
(5,991 |
) |
FHLMC Certificates |
|
|
— |
|
|
|
— |
|
|
|
7,662 |
|
|
|
(1,366 |
) |
|
|
7,662 |
|
|
|
(1,366 |
) |
FNMA Certificates |
|
|
— |
|
|
|
— |
|
|
|
45,407 |
|
|
|
(10,602 |
) |
|
|
45,407 |
|
|
|
(10,602 |
) |
Total available-for-sale securities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
99,871 |
|
|
$ |
(19,448 |
) |
|
$ |
99,871 |
|
|
$ |
(19,448 |
) |
Held-to-Maturity Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Agency Bonds |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
24,960 |
|
|
$ |
(40 |
) |
|
$ |
24,960 |
|
|
$ |
(40 |
) |
Corporate Bonds |
|
|
— |
|
|
|
— |
|
|
|
29,965 |
|
|
|
(535 |
) |
|
|
29,965 |
|
|
|
(535 |
) |
Mortgage-Backed Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations |
|
|
81,112 |
|
|
|
(1,728 |
) |
|
|
98,470 |
|
|
|
(5,324 |
) |
|
|
179,582 |
|
|
|
(7,052 |
) |
FHLMC Certificates |
|
|
— |
|
|
|
— |
|
|
|
3,006 |
|
|
|
(223 |
) |
|
|
3,006 |
|
|
|
(223 |
) |
FNMA Certificates |
|
|
4,691 |
|
|
|
(69 |
) |
|
|
95,612 |
|
|
|
(5,045 |
) |
|
|
100,303 |
|
|
|
(5,114 |
) |
Total held-to-maturity securities |
|
$ |
85,803 |
|
|
$ |
(1,797 |
) |
|
$ |
252,013 |
|
|
$ |
(11,167 |
) |
|
$ |
337,816 |
|
|
$ |
(12,964 |
) |
At December 31, 2025 and 2024, the Company had 33 and 37 available-for-sale securities and 21 and 27 held-to-maturity securities with gross unrealized loss positions, respectively. Management reviewed the financial condition of the entities that issued the securities at both December 31, 2025 and 2024. The unrealized losses related to the Company debt securities were issued by U.S. government-sponsored entities and agencies and corporate bonds. The Company does not believe that the debt securities that were in an unrealized loss position as of December 31, 2025 represents a credit loss impairment. The gross unrealized loss positions related to mortgage-backed securities and other obligations issued by the U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Total gross unrealized losses were primarily attributable to changes in interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities. Management reviewed the collectability of the corporate bonds taking into consideration of such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings, including ratings in effect as of the reporting date. Management believes the unrealized losses on the corporate bonds are primarily attributable to changes in the interest rates and not changes in the credit quality of the issuers of the corporate bonds. The following is a summary of maturities of securities at December 31, 2025. Amounts are shown by contractual maturity. Because borrowers for mortgage-backed securities have the right to prepay obligations with or without prepayment penalties, at any time, these securities are included as a total within the table.
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
Amortized |
|
|
Fair |
|
|
|
Cost |
|
|
Value |
|
|
|
(in thousands) |
|
Available-for-Sale Securities: |
|
|
|
|
|
|
U.S. Government Bonds: |
|
|
|
|
|
|
Amounts maturing: |
|
|
|
|
|
|
Three months or less |
|
$ |
2,999 |
|
|
$ |
2,979 |
|
More than three months through one year |
|
|
— |
|
|
|
— |
|
More than one year through five years |
|
|
— |
|
|
|
— |
|
More than five years through ten years |
|
|
— |
|
|
|
— |
|
|
|
|
2,999 |
|
|
|
2,979 |
|
Corporate Bonds: |
|
|
|
|
|
|
Amounts maturing: |
|
|
|
|
|
|
Three months or less |
|
$ |
— |
|
|
$ |
— |
|
More than three months through one year |
|
|
— |
|
|
|
— |
|
More than one year through five years |
|
|
1,000 |
|
|
|
492 |
|
More than five years through ten years |
|
|
12,501 |
|
|
|
12,271 |
|
|
|
|
13,501 |
|
|
|
12,763 |
|
Mortgage-Backed Securities |
|
|
89,450 |
|
|
|
76,454 |
|
Total available-for-sale securities |
|
$ |
105,950 |
|
|
$ |
92,196 |
|
Held-to-Maturity Securities: |
|
|
|
|
|
|
U.S. Agency Bonds: |
|
|
|
|
|
|
Amounts maturing: |
|
|
|
|
|
|
Three months or less |
|
$ |
— |
|
|
$ |
— |
|
More than three months through one year |
|
|
— |
|
|
|
— |
|
More than one year through five years |
|
|
— |
|
|
|
— |
|
More than five years through ten years |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Corporate Bonds: |
|
|
|
|
|
|
Amounts maturing: |
|
|
|
|
|
|
Three months or less |
|
$ |
— |
|
|
$ |
— |
|
More than three months through one year |
|
|
— |
|
|
|
— |
|
More than one year through five years |
|
|
— |
|
|
|
— |
|
More than five years through ten years |
|
|
7,500 |
|
|
|
7,398 |
|
|
|
|
7,500 |
|
|
|
7,398 |
|
Mortgage-Backed Securities |
|
|
265,718 |
|
|
|
261,477 |
|
Allowance for Credit Losses |
|
|
(236 |
) |
|
|
— |
|
Total held-to-maturity securities |
|
$ |
272,982 |
|
|
$ |
268,875 |
|
At December 31, 2025 and 2024, no securities were pledged as collateral for borrowing activities. The following table presents the activity in the allowance for credit losses for held-to-maturity securities.
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
|
(in thousands) |
|
Beginning balance |
|
$ |
216 |
|
|
$ |
398 |
|
Provision (benefit) for credit losses |
|
|
20 |
|
|
|
(182 |
) |
Allowance for credit losses |
|
$ |
236 |
|
|
$ |
216 |
|
At December 31, 2025 and 2024, the entire allowance for credit losses on securities was allocated to corporate bonds. |