Securities Held-to-Maturity

3 Months Ended

Mar. 31, 2026

Note 5 — Securities Held-to-Maturity

The following table summarizes the Company’s portfolio of securities held-to-maturity at March 31, 2026 and December 31, 2025.


	March 31, 2026
			Gross		Gross				Allowance
	Amortized		Unrealized		Unrealized		Fair		for
	Cost		Gains		Losses		Value		Credit Loss

	(In Thousands)
Mortgage-backed securities – residential:
Government National Mortgage Association	$	317	$	3	$	—	$	320	$	—
Federal Home Loan Mortgage Corporation		663		—		67		596		—
Federal National Mortgage Association		1,322		—		102		1,220		—
Collateralized mortgage obligations – GSE		2,627		—		560		2,067		—
Total mortgage-backed securities		4,929		3		729		4,203		—
Municipal Bonds		13,362		—		2,200		11,162		126
	$	18,291	$	3	$	2,929	$	15,365	$	126


	December 31, 2025
			Gross		Gross					Allowance
	Amortized		Unrealized		Unrealized			Fair		for
	Cost		Gains		Losses			Value		Credit Loss

	(In Thousands)
Mortgage-backed securities – residential:
Government National Mortgage Association	$	327	$	4	$	—		$	331	$	—
Federal Home Loan Mortgage Corporation		684		—		65			619		—
Federal National Mortgage Association		1,390		—		100			1,290		—
Collateralized mortgage obligations – GSE		2,673		—		551			2,122		—
Total mortgage-backed securities		5,074		4		716			4,362		—
Municipal Bonds		13,367		—		2,202			11,165		126
	$	18,441	$	4	$	2,918		$	15,527	$	126

Contractual final maturities of mortgage-backed securities and municipal bonds were as follows at March 31, 2026:


	March 31, 2026
	Amortized		Fair
	Cost		Value

	(In Thousands)
Due within one year	$	1,459	$	1,371
Due after one but within five years		3,546		3,162
Due after five but within ten years		4,200		3,662
Due after ten years		9,086		7,170
	$	18,291	$	15,365

The maturities shown above are based upon contractual final maturity. Actual maturities will differ from contractual maturities due to scheduled monthly repayments and due to the underlying borrowers having the right to prepay their obligations.

The activity in the allowance for credit losses for debt securities held-to-maturity for the three months ended March 31, 2026 and 2025 was as follows:


		Municipal Bonds
Balance – December 31, 2025	$	126
Provision for (reversal of) credit loss		-
Balance – March 31, 2026	$	126

		Municipal Bonds
Balance – December 31, 2024	$	126
Provision for (reversal of) credit loss		-
Balance – March 31, 2025	$	126

At March 31, 2026, eight mortgage-backed securities had unrealized losses due to interest rate volatility. Management concluded that the unrealized losses reflected above were temporary in nature since the unrealized losses were related primarily to market interest rate volatility, and were not related to the underlying credit quality of the issuers of the securities. Additionally, the Company has the ability and intent to hold the securities for the time necessary to recover the amortized cost. At December 31, 2025, there were eleven mortgage-backed securities that had unrealized losses due to interest rate volatility.

Credit Quality Indicators

The held to maturity securities portfolio consists of agency mortgage-backed securities and municipal bonds. All agency mortgage-backed securities are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The ten municipal bonds in the portfolio carry no lower than A ratings from the rating agencies at March 31, 2026 and have no realized losses since they were issued. The Company regularly monitors the municipal bonds sector of the market and reviews collectability including such factors as the financial condition of the issuers as well as credit ratings in effect as of the reporting period.