Investment Securities

3 Months Ended

Mar. 31, 2026

Investment Securities

Investment Securities

Note 2— Investment Securities

Available-for-Sale

Each of the securities in the Company’s available-for-sale investment portfolio is either covered by the explicit or implied guarantee of the United States government or one of its agencies or rated investment grade or higher. All available-for-sale securities were current with no securities past due or on nonaccrual as of March 31, 2026 or December 31, 2025.

The following tables summarize the amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses at March 31, 2026 and December 31, 2025.


		March 31, 2026
					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
(Dollars in thousands)		Cost			Gains			(Losses)			Value
Available-for-sale
U.S. Treasuries		$	8,999		$	—		$	(42)		$	8,957
U.S. government and federal agencies			4,986			—			(172)			4,814
Corporate bonds			3,000			—			(177)			2,823
U.S. agency collateralized mortgage obligations			30,261			2			(5,491)			24,772
Tax-exempt municipal			1,378			—			(175)			1,203
U.S. agency mortgage-backed			87,122			53			(3,578)			83,597
Total Available-for-sale Securities		$	135,746		$	55		$	(9,635)		$	126,166


		December 31, 2025
					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
(Dollars in thousands)		Cost			Gains			(Losses)			Value
Available-for-sale
U.S. Treasuries		$	13,244		$	—		$	(112)		$	13,132
U.S. government and federal agencies			6,976			2			(158)			6,820
Corporate bonds			3,000			—			(180)			2,820
U.S. agency collateralized mortgage obligations			31,019			7			(5,333)			25,693
Tax-exempt municipal			1,378			—			(142)			1,236
U.S. agency mortgage-backed			77,306			136			(3,291)			74,151
Total Available-for-sale Securities		$	132,923		$	145		$	(9,216)		$	123,852

The Company did not sell or recognize any gain or loss for any securities for the three months ended March 31, 2026 and 2025.

Available-for-sale securities having a market value of $52.8 million and $54.8 million at March 31, 2026 and December 31, 2025, respectively, were pledged to secure public deposits. These securities had an amortized cost of $56.7 million and $58.6 million at March 31, 2026 and December 31, 2025, respectively.

The following tables summarize the fair value of securities available-for-sale at March 31, 2026 and December 31, 2025 and the corresponding amounts of gross unrealized losses. Management uses the valuations as of month-end in determining when securities are

in an unrealized loss position. Therefore, a security’s market value could have exceeded its amortized cost on other days during the prior twelve-month period.


		March 31, 2026
		Less than 12 Months						12 Months or Longer						Total
					Gross						Gross						Gross
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
(Dollars in thousands)		Value			Losses			Value			Losses			Value			Losses
Available-for-sale
U.S. Treasuries		$	—		$	—		$	8,957		$	(42)		$	8,957		$	(42)
U.S. government and federal agencies			985			(1)			3,829			(171)			4,814			(172)
Corporate bonds			—			—			2,823			(177)			2,823			(177)
U.S. agency collateralized mortgage obligations			—			—			24,063			(5,491)			24,063			(5,491)
Tax-exempt municipal			—			—			1,203			(175)			1,203			(175)
U.S. agency mortgage-backed			33,425			(269)			42,982			(3,309)			76,407			(3,578)
Total Available-for-sale Securities		$	34,410		$	(270)		$	83,857		$	(9,365)		$	118,267		$	(9,635)


		December 31, 2025
		Less than 12 Months						12 Months or Longer						Total
					Gross						Gross						Gross
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
(Dollars in thousands)		Value			Losses			Value			Losses			Value			Losses
Available-for-sale
U.S. Treasuries		$	—		$	—		$	13,132		$	(112)		$	13,132		$	(112)
U.S. government and federal agencies			—			—			5,838			(158)			5,838			(158)
Corporate bonds			—			—			2,820			(180)			2,820			(180)
U.S. agency collateralized mortgage obligations			—			—			24,930			(5,333)			24,930			(5,333)
Tax-exempt municipal			—			—			1,236			(142)			1,236			(142)
U.S. agency mortgage-backed			11,214			(28)			46,318			(3,263)			57,532			(3,291)
Total Available-for-sale Securities		$	11,214		$	(28)		$	94,274		$	(9,188)		$	105,488		$	(9,216)

The Company had 144 and 137 securities in an unrealized loss position as of March 31, 2026 and December 31, 2025, respectively. The Company has evaluated available-for-sale securities in an unrealized loss position for credit related impairment at March 31, 2026 and December 31, 2025 and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no allowance for credit losses on available-for-sale securities at March 31, 2026.

The table below summarizes the contractual maturities of our available-for-sale investment securities as March 31, 2026. Issuers may have the right to call or prepay certain obligations, and as such, the expected maturities of our securities may occur sooner than the scheduled contractual maturities presented below.


		March 31, 2026
		Amortized			Fair
(Dollars in thousands)		Cost			Value
Available-for-sale
Due in one year or less		$	10,999		$	10,954
Due after one year through five years			26,630			25,847
Due after five years through ten years			46,277			45,152
Due after ten years			51,840			44,213
Total Available-for-sale Securities		$	135,746		$	126,166

In the prevailing rate environments as of both March 31, 2026 and December 31, 2025, the Company’s available-for-sale investment portfolio had an estimated weighted average remaining life of approximately 3.2 years and 3.1 years, respectively.

Held-to-Maturity

Each of the securities in the Company’s held-to-maturity investment portfolio is either covered by the explicit or implied guarantee of the United States government or one of its agencies or rated investment grade or higher. All held-to-maturity securities were current with no securities past due or on nonaccrual as of March 31, 2026 or December 31, 2025.

The following tables summarize the amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrealized losses at March 31, 2026 and December 31, 2025, respectively.


		March 31, 2026
					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
(Dollars in thousands)		Cost			Gains			(Losses)			Value
Held-to-maturity
U.S. Treasuries		$	6,003		$	—		$	(310)		$	5,693
U.S. government and federal agencies			35,305			—			(3,026)			32,279
U.S. agency collateralized mortgage obligations			15,807			—			(3,089)			12,718
Taxable municipal			6,020			—			(720)			5,300
U.S. agency mortgage-backed			24,463			—			(3,784)			20,679
Total Held-to-maturity Securities		$	87,598		$	—		$	(10,929)		$	76,669


		December 31, 2025
					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
(Dollars in thousands)		Cost			Gains			(Losses)			Value
Held-to-maturity
U.S. Treasuries		$	6,002		$	—		$	(308)		$	5,694
U.S. government and federal agencies			35,314			—			(2,934)			32,380
U.S. agency collateralized mortgage obligations			16,163			—			(3,006)			13,157
Taxable municipal			6,024			—			(754)			5,270
U.S. agency mortgage-backed			24,918			—			(3,844)			21,074
Total Held-to-maturity Securities		$	88,421		$	—		$	(10,846)		$	77,575

Held-to-maturity securities having a market value of $47.9 million and $45.2 million at March 31, 2026 and December 31, 2025, respectively, were pledged to secure public deposits. These securities had an amortized cost of $52.7 million and $49.8 million at March 31, 2026 and December 31, 2025, respectively.

The Company evaluates the credit risk of its held-to-maturity securities on at least a quarterly basis. The Company estimates expected credit losses on held-to-maturity securities on an individual basis based on a probability of default/loss given default methodology primarily using security-level credit ratings. The primary indicators of credit quality for the Company’s held-to-maturity portfolio are security type and credit rating, which is influenced by a number of factors including obligor cash flow, geography, seniority, and others. The Company’s held-to-maturity securities with credit risk were comprised of municipal bonds and had a credit rating of AA or better as of March 31, 2026. All other held-to-maturity securities are covered by the explicit or implied guarantee of the United States government or one of its agencies. The Company did not have an allowance for credit losses on held-to-maturity securities as of March 31, 2026 or December 31, 2025.

The table below summarizes the contractual maturities of our held-to-maturity investment securities as of March 31, 2026. Issuers may have the right to call or prepay certain obligations and as such, the expected maturities of our securities may occur sooner than the scheduled contractual maturities presented below.


		March 31, 2026
		Amortized			Fair
(Dollars in thousands)		Cost			Value
Held-to-maturity
Due in one year or less		$	—		$	—
Due after one year through five years			41,920			38,919
Due after five years through ten years			8,015			6,886
Due after ten years			37,663			30,864
Total Held-to-maturity Securities		$	87,598		$	76,669

In the prevailing rate environments as of March 31, 2026 and December 31, 2025, the Company’s held-to-maturity investment portfolio had an estimated weighted average remaining life of approximately 4.9 years and 5.2 years, respectively.

Restricted Securities

The table below summarizes the carrying amounts of restricted securities as of March 31, 2026 and December 31, 2025.


(Dollars in thousands)		March 31, 2026			December 31, 2025
Federal Reserve Bank Stock		$	3,347		$	3,342
Federal Home Loan Bank Stock			4,310			4,242
Community Bankers’ Bank Stock			60			60
Total Restricted Securities		$	7,717		$	7,644

Equity Securities

The Company held equity securities with readily determinable fair values totaling $2.9 million and $2.8 million at March 31, 2026 and December 31, 2025, respectively. These securities consist of mutual funds held in a trust and were obtained for the purpose of economically hedging changes in the Company’s nonqualified deferred compensation liability. Changes in the fair value of these securities are reflected in earnings. A loss of $13 thousand and a gain of $24 thousand were recorded in non-interest income in the Consolidated Statements of Income for the three months ended March 31, 2026 and March 31, 2025, respectively.