4.    SECURITIES

The amortized cost and fair value of debt securities available-for-sale along with gross unrealized gains and losses as of the dates indicated are summarized as follows (in thousands):

Accrued interest receivable on available-for-sale securities totaled $1.34 million and $620 thousand at December 31, 2025 and December 31, 2024, respectively and is included in Accrued Interest Receivable on the Consolidated Balance Sheets. These amounts were excluded from the estimate of credit losses.

The deferred tax asset for the net unrealized loss on securities available for sale was $302 thousand as of   December 31, 2025 and $1.19 million as of December 31, 2024.  The deferred tax asset is included in net deferred tax asset on the Consolidated Balance Sheets.  

The amortized cost and estimated fair value of debt securities available-for-sale at December 31, 2025, by expected maturity for mortgage-backed securities and debt securities with call features and by contractual maturity for all other securities, 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 (in thousands).

The following tables show the Company's debt securities available-for-sale 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, as of  December 31, 2025 and December 31, 2024 (in thousands):

At December 31, 2025, the $121 thousand unrealized loss (less than 12 months) was attributed to 87 different securities. The $2.84 million unrealized loss (12 months or more) was attributed to 157 securities. At December 31, 2024, the $471 thousand unrealized loss (less than 12 months) was attributed to 42 different securities. The $5.18 million unrealized loss (12 months or more) was attributed to 192 securities. None of the unrealized losses are individually significant. Management believes, based upon an evaluation of the issuers of the debt securities, that the unrealized losses on debt securities were the result of fluctuations in market interest rates subsequent to purchase and not a result of credit risk. Management has the intent and ability to hold investments and does not believe it will have to sell the securities until the earlier of maturity or market price recovery.

The Company considers payment history, risk ratings from external parties, financial statements for municipal and corporate securities, public statements from issuers and other available credible published sources in evaluating credit risk. No credit risk was found and no Allowance for Credit Loss on securities available for sale was recorded as of  December 31, 2025 and December 31, 2024. The unrealized losses are attributed to noncredit-related factors, including changes in interest rates and other market conditions.

During the year ended December 31, 2025, the Company sold available-for-sale securities with a total book value of $48.648 million and proceeds of $48.641 million, resulting in a gross pre-tax loss of $8 thousand. The Company did not sell or recognize any gain or loss for any securities for the year-ended December 31, 2024.  

Securities with a carrying value of $132.90 million and $73.59 million at  December 31, 2025 and December 31, 2024, respectively, were pledged to secure public deposits and for other purposes as required by law.

As of  December 31, 2025 and December 31, 2024, the Company had $613 thousand and $268 thousand, respectively, in marketable equity securities recorded at fair value. The following is a summary of unrealized and realized gains and losses recognized in net income on marketable equity securities during the years ended  December 31, 2025 and 2024 (in thousands):

Restricted Investments in Bank and Other Stock

Restricted investments in bank stock represent required investments in the common stock of correspondent banks and consist of common stock of the Federal Home Loan Bank of Pittsburgh (FHLB) of $2.44 million and $2.25 million at  December 31, 2025 and December 31, 2024, respectively, and other correspondent banks of $45 thousand at  December 31, 2025 and December 31, 2024. Also included as of December 31, 2025 is other restricted stock of $228 thousand.  As a member of the FHLB, the Bank is required to maintain an investment in FHLB stock based on mortgage loans, advances and other criteria. As no active market exists for this stock, it is carried at cost. All FHLB stock is pledged as collateral for FHLB advances. The Company evaluated its holding of FHLB stock for impairment and deemed the stock to not be impaired at  December 31, 2025 and December 31, 2024. In making this determination, management concluded that recovery of total outstanding par value, which equals the carrying value, is expected. The decision was based upon review of financial information the FHLB has made publicly available.