
	2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale

SBA Pools	$	3,473	$	—	$	(349)	$	3,124
Federal agencies	15,000		—		(939)		14,061
State and municipal obligations	157,102		160		(25,444)		131,818
Mortgage-backed securities - government-sponsored enterprises (GSE) residential	108,586		93		(15,574)		93,105
Corporate obligations	11,500		—		(1,693)		9,807

	295,661		253		(43,999)		251,915
Held to maturity
State and municipal obligations	2,748		7		(38)		2,717
	2,748		7		(38)		2,717

Total investment securities	$	298,409	$	260	$	(44,037)	$	254,632


	2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale
U.S. treasury securities	$	3,159	$	2	$	—	$	3,161
SBA Pools	4,243		—		(543)		3,700
Federal agencies	15,000		—		(1,666)		13,334
State and municipal obligations	162,524		1		(32,166)		130,359
Mortgage-backed securities – government-sponsored enterprises (GSE) residential	119,748		5		(21,440)		98,313
Corporate obligations	11,500		—		(2,175)		9,325

	316,174		8		(57,990)		258,192
Held to maturity
State and municipal obligations	3,498		8		(85)		3,421
	3,498		8		(85)		3,421

Total investment securities	$	319,672	$	16	$	(58,075)	$	261,613

The amortized cost and fair value of investment securities at December 31, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,476	$	1,466	$	725	$	725
After one to five years	23,414		22,496		963		963
After five to ten years	48,846		44,566		450		450
After ten years	113,339		90,282		610		579
	187,075		158,810		2,748		2,717
Mortgage-backed securities –GSE residential	108,586		93,105		—		—


Totals	$	295,661	$	251,915	$	2,748	$	2,717

Investment securities with a carrying value of $114,823,000 and $109,909,000 were pledged at December 31, 2025 and 2024, respectively, to secure certain deposits and for other purposes as permitted or required by law.

Proceeds from the sale of investment securities available for sale for the years ended December 31, 2025 and 2024 were $6,766,000 and $6,908,000, respectively. Gross losses recognized on the sale of investment securities available for sale for the years ended December 31, 2025 and 2024 were $157,000 and $71,000, respectively. Gross gains on the sale of investment securities available for sale were $20,000 for the year ended December 31, 2024, while there were no gross gains during the year ended December 31, 2025.

Certain investments in debt securities are reported in the consolidated financial statements and notes at an amount less than their historical cost. Total fair value of these investments at December 31, 2025 and 2024 was $244,503,000 and $255,749,000, respectively, which is approximately 96% and 98% of the fair value of the Company’s available for sale and held to maturity investment portfolio at those dates, respectively. These declines primarily resulted from changes in market interest rates since their purchase.

The Company does not consider investment securities available for sale with unrealized losses to be experiencing credit losses at December 31, 2025 and 2024. Management considers it more likely than not that the Company will not be required to sell these investment securities before recovery of the amortized cost basis, which may be the maturity date of the securities.

Investment securities held to maturity are financial assets measured at amortized cost. Investment securities held to maturity are required to have an established allowance for credit losses that represents the portion of the amortized cost basis of a financial asset that is not expected to be collectable. The Company estimates expected credit losses on a collective basis by security type, with consideration given to historical information, credit ratings, and the statistical probability of future losses.

The Company monitors the credit quality of investment securities held to maturity using credit ratings quarterly. In the absence of credit ratings, assumptions are applied to the security to estimate total expected loss. As of December 31, 2025 and 2024, there was no allowance for credit losses recognized on the Company's investment securities held to maturity portfolio.

The following table summarizes the amortized cost of investment securities held to maturity by credit quality indicator as of December 31, 2025 and 2024:

Accrued interest receivable for held to maturity securities was $44,000 and $52,000 at December 31, 2025 and 2024, respectively. The Company has elected to exclude accrued interest receivable from the calculation of the allowance for credit losses.

The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2025 and 2024:


	2025
	Less Than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale

SBA Pools	$	89	$	—	$	2,856	$	(349)	$	2,945	$	(349)
Federal agencies	—		—		14,061		(939)		14,061		(939)
State and municipal obligations	—		—		127,699		(25,444)		127,699		(25,444)
Mortgage-backed securities – GSE residential	907		(4)		88,088		(15,570)		88,995		(15,574)
Corporate obligations	—		—		9,807		(1,693)		9,807		(1,693)
Total available-for-sale	996		(4)		242,511		(43,995)		243,507		(43,999)

Held to maturity
State and municipal obligations	—		—		996		(38)		996		(38)

Total	$	996	$	(4)	$	243,507	$	(44,033)	$	244,503	$	(44,037)


	2024
	Less Than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale

SBA Pools	$	454	$	(1)	$	2,991	$	(542)	$	3,445	$	(543)
Federal agencies	—		—		13,334		(1,666)		13,334		(1,666)
State and municipal obligations	1,578		(17)		127,705		(32,149)		129,283		(32,166)
Mortgage-backed securities – GSE residential	1,045		(10)		96,296		(21,430)		97,341		(21,440)
Corporate obligations	—		—		9,324		(2,175)		9,324		(2,175)
Total available-for-sale	3,077		(28)		249,650		(57,962)		252,727		(57,990)

Held to maturity
State and municipal obligations	1,253		(12)		1,769		(73)		3,022		(85)

Total	$	4,330	$	(40)	$	251,419	$	(58,035)	$	255,749	$	(58,075)

The unrealized losses on the Company’s investment in SBA pools and mortgage-backed securities were caused by interest rate changes and illiquidity. The Company expects to recover the amortized cost basis over the term of the securities. The decline in market value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.

The unrealized losses on the Company’s investments in securities of state, municipal, and corporate obligations were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. The Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.