| Investment Securities |
Investment Securities The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at March 31, 2026 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | Amortized Cost | | Gross Unrealized | | Fair Value | | | Gains | | Losses | | | (In thousands) | | Available for sale securities: | | | | | | | | | U.S. Government and agency obligations | | | | | | | | | Less than one year | $ | 40,047 | | | $ | 18 | | | $ | (386) | | | $ | 39,679 | | | Due from one through five years | 92,809 | | | 6 | | | (949) | | | 91,866 | | | Due from five through ten years | 16,061 | | | — | | | (805) | | | 15,256 | | | Due after ten years | 1,732 | | | — | | | (113) | | | 1,619 | | | Total U.S. Government and agency obligations | 150,649 | | | 24 | | | (2,253) | | | 148,420 | | | | | | | | | | | Corporate bonds | | | | | | | | | Due from one through five years | 1,000 | | | — | | | (8) | | | 992 | | | Due from five through ten years | 7,000 | | | — | | | (478) | | | 6,522 | | | | | | | | | | | Total corporate bonds | 8,000 | | | — | | | (486) | | | 7,514 | | | | | | | | | | | Total available for sale securities | $ | 158,649 | | | $ | 24 | | | $ | (2,739) | | | $ | 155,934 | | | | | | | | | | | Held to maturity securities: | | | | | | | | | State agency and municipal obligations | | | | | | | | | | | | | | | | | Due from five through ten years | 7,114 | | | 62 | | | (242) | | | 6,934 | | | Due after ten years | 22,272 | | | 1,208 | | | (191) | | | 23,289 | | | Total held to maturity securities | $ | 29,386 | | | $ | 1,270 | | | $ | (433) | | | $ | 30,223 | | The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at December 31, 2025 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Amortized Cost | | Gross Unrealized | | Fair Value | | | Gains | | Losses | | | (In thousands) | | Available for sale securities: | | | | | | | | | U.S. Government and agency obligations | | | | | | | | | Less than one year | $ | 35,088 | | | $ | 43 | | | $ | (421) | | | $ | 34,710 | | | Due from one through five years | 97,864 | | | 127 | | | (698) | | | 97,293 | | | Due from five through ten years | 17,024 | | | — | | | (756) | | | 16,268 | | | Due after ten years | 1,754 | | | — | | | (101) | | | 1,653 | | | Total U.S. Government and agency obligations | 151,730 | | | 170 | | | (1,976) | | | 149,924 | | | Corporate bonds | | | | | | | | | | | | | | | | | Due from one through five years | 4,000 | | | 2 | | | (22) | | | 3,980 | | | Due from five through ten years | 7,000 | | | — | | | (495) | | | 6,505 | | | Due after ten years | — | | | — | | | — | | | — | | | Total corporate bonds | 11,000 | | | 2 | | | (517) | | | 10,485 | | | | | | | | | | | Total available for sale securities | $ | 162,730 | | | $ | 172 | | | $ | (2,493) | | | $ | 160,409 | | | | | | | | | | | Held to maturity securities: | | | | | | | | | State agency and municipal obligations | | | | | | | | | Less than one year | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Due from one through five years | 2,764 | | | 130 | | | — | | | 2,894 | | | Due after ten years | 26,701 | | | 1,650 | | | (200) | | | 28,151 | | | Total held to maturity securities | $ | 29,465 | | | $ | 1,780 | | | $ | (200) | | | $ | 31,045 | |
There were no sales of investment securities during the three months ended March 31, 2026. There was one sale of investment securities during the three months ended March 31, 2025.
At March 31, 2026 and December 31, 2025, $150.4 million and $151.4 million of the Company's securities, respectively, were pledged as collateral with the Federal Home Loan Bank ("FHLB").
As of March 31, 2026 and December 31, 2025, the actual durations of the Company's available for sale securities were significantly shorter than the stated maturities.
As of March 31, 2026, the Company held marketable equity securities with a fair value of $2.3 million and an amortized cost of $2.4 million. At December 31, 2025, the Company held marketable equity securities with a fair value of $2.2 million and an amortized cost of $2.3 million. These securities represent an investment in mutual funds that have an objective to make investments for Community Reinvestment Act ("CRA") purposes. The following tables provide information regarding available for sale securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2026 and December 31, 2025:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Length of Time in Continuous Unrealized Loss Position | | | | | | | | Less Than 12 Months | | 12 Months or More | | Total | | Fair Value | | Unrealized Loss | | Percent Decline from Amortized Cost | | Fair Value | | Unrealized Loss | | Percent Decline from Amortized Cost | | Fair Value | | Unrealized Loss | | Percent Decline from Amortized Cost | | (Dollars in thousands) | | | | | | | | | | | | | | | | | | | March 31, 2026 | | | | | | | | | | | | | | | | | | | U.S. Government and agency obligations | $ | 75,077 | | | $ | (698) | | | 0.92 | % | | $ | 53,314 | | | $ | (1,556) | | | 2.84 | % | | $ | 128,391 | | | $ | (2,254) | | | 3.76 | % | | Corporate bonds | — | | | — | | | — | | | 7,515 | | | (485) | | | 6.07 | | | 7,515 | | | (485) | | | 6.07 | | | Total Available for sale investment securities | $ | 75,077 | | | $ | (698) | | | 0.92 | % | | $ | 60,829 | | | $ | (2,041) | | | 3.25 | % | | $ | 135,906 | | | $ | (2,739) | | | 1.98 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Length of Time in Continuous Unrealized Loss Position | | | | | | | | Less Than 12 Months | | 12 Months or More | | Total | | Fair Value | | Unrealized Loss | | Percent Decline from Amortized Cost | | Fair Value | | Unrealized Loss | | Percent Decline from Amortized Cost | | Fair Value | | Unrealized Loss | | Percent Decline from Amortized Cost | | (Dollars in thousands) | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | | | | | | | | | | U.S. Government and agency obligations | $ | 50,496 | | | $ | (346) | | | 0.68 | % | | $ | 54,320 | | | $ | (1,630) | | | 2.91 | % | | $ | 104,816 | | | $ | (1,976) | | | 1.85 | % | | Corporate bonds | — | | | — | | | — | | | 7,483 | | | (517) | | | 6.47 | | | 7,483 | | | (517) | | | 6.47 | | | Total Available for sale investment securities | $ | 50,496 | | | $ | (346) | | | 0.68 | % | | $ | 61,803 | | | $ | (2,147) | | | 3.36 | % | | $ | 112,299 | | | $ | (2,493) | | | 2.17 | % | | | | | | | | | | | | | | | | | | |
There were twenty-six and twenty-five available for sale securities as of March 31, 2026 and December 31, 2025, respectively, in which the fair value of the security was less than the amortized cost of the security.
The U.S. Government and agency obligations owned are either direct obligations of the U.S. Government or guaranteed by the U.S. Government. Therefore, the contractual cash flows are guaranteed and as a result the unrealized losses in this portfolio are considered to be only temporarily impaired.
The corporate bonds are investments in subordinated debt of federally insured banks, the majority of which are callable after five years of origination. The Company monitors its corporate bond, state agency and municipal bond portfolios and considers them to have minimal default risk.
The Company has the intent and ability to retain its investment securities in an unrealized loss position at March 31, 2026 until the decline in value has recovered or the security has matured.
|