Amortized costs and fair values of securities available for sale at March 31, 2026 and December 31, 2025 were as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	March 31, 2026
	(in thousands)
Obligations of U.S. government corporations and agencies	$	7,222	$	—	$	(18	)		7,204
U.S. treasury securities		9,884		—		(12	)		9,872
Mortgage-backed securities		79,271		116		(7,131	)		72,256
Collateralized mortgage obligations		22,289		15		(235	)		22,069
Subordinated debt		4,250		—		(281	)		3,969
	$	122,916	$	131	$	(7,677	)	$	115,370


	December 31, 2025
	(in thousands)
Obligations of U.S. government corporations and agencies	$	7,458	$	2	$	(16	)	$	7,444
U.S. treasury securities		9,999		2		—			10,001
Mortgage-backed securities		81,492		480		(6,843	)		75,129
Collateralized mortgage obligations		22,498		84		(87	)		22,495
Subordinated debt		4,750		—		(276	)		4,474
	$	126,197	$	568	$	(7,222	)	$	119,543

The Company has elected to exclude accrued interest receivable, totaling $442 thousand and $669 thousand at March 31, 2026 and December 31, 2025, respectively from the amortized cost basis of securities. The deferred tax asset on the securities portfolio at March 31, 2026 and December 31, 2025 was $1.6 million and $1.4 million, respectively, and is included in Other Assets in the Consolidated Balance Sheets.

In March 2025, balance sheet repositioning transactions were executed. The Bank sold available for sale securities with an amortized cost balance of $99.2 million and reinvested $66.0 million into purchases of available for sale securities. The sale of securities resulted in a net realized pre-tax loss of $12.4 million recognized during the three months ended March 31, 2025. There were no sales of available for sale securities during the three months ended March 31, 2026.

The fair value and gross unrealized losses for securities available for sale, totaled by the length of time that individual securities have been in a continuous gross unrealized loss position, at March 31, 2026 and December 31, 2025 were as follows:


	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	March 31, 2026
	(in thousands)
Obligations of U.S. government corporations and agencies	$	7,204	$	18	$	—	$	—	$	7,204	$	18
U.S. treasury securities		9,872		12		—		—		9,872		12
Mortgage-backed securities		14,956		39		28,650		7,092		43,606		7,131
Collateralized mortgage obligations		15,835		109		2,755		126		18,590		235
Subordinated debt		981		19		2,488		262		3,469		281
Total	$	48,848	$	197	$	33,893	$	7,480	$	82,741	$	7,677


	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	December 31, 2025
	(in thousands)
Obligations of U.S. government corporations and agencies	$	5,503	$	16	$	—	$	—	$	5,503	$	16
Mortgage-backed securities		—		—		29,508		6,843		29,508		6,843
Collateralized mortgage obligations		7,116		87		—		—		7,116		87
Subordinated debt		973		28		3,002		248		3,975		276
Total	$	13,592	$	131	$	32,510	$	7,091	$	46,102	$	7,222

The reference point for determining when securities are in an unrealized loss position is month end. As such, it is possible that a security's market value exceeded its amortized cost on other days during the past twelve-month period.

There were 47 and 39 debt securities with a fair value below the amortized cost basis, totaling $82.7 million and $46.1 million of aggregate fair value as of March 31, 2026 and December 31, 2025 respectively. The Company concluded that a credit loss does not exist in its securities portfolio at March 31, 2026 based on the fact that (1) changes in fair value were caused by non-credit-related factors, primarily fluctuations in interest rates, (2) securities with unrealized losses had generally high credit quality, (3) as of March 31, 2026, the Company intends to hold these investments in debt securities to maturity and it is more-likely-than-not that the Company will not be required to sell these investments before a recovery of its investment, and (4) issuers have continued to make timely payments of principal and interest. Additionally, the Company’s mortgage-backed securities, collateralized

mortgage obligations, U.S. treasury securities, and obligations of U.S. government corporations and agencies are entirely issued by either U.S. government agencies or U.S. government-sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments.

Securities having carrying values of $3.9 million, $3.0 million and $87.3 million at March 31, 2026 were pledged as security for trust accounts, a deposit relationship and for borrowing capacity at the Federal Reserve Bank ("FRB") discount window, respectively.