| SECURITIES |
NOTE 4 – SECURITIES The following is a summary of available for sale securities: | | | | | | | | | | | | | | | | | | | Gross | | Gross | | | | | | | Amortized | | Unrealized | | Unrealized | | Estimated | | | | Cost | | Gains | | Losses | | Fair Value | | March 31, 2026 | | | | | | | | | | | | | | U.S. Treasury securities | | $ | 92,557 | | $ | 7 | | $ | (1,104) | | $ | 91,460 | | Obligations of U.S. Government sponsored agencies | | | 157,969 | | | — | | | (3,701) | | | 154,268 | | Obligations of states and political subdivisions | | | 85,189 | | | 34 | | | (5,507) | | | 79,716 | | Mortgage-backed securities | | | 136,876 | | | 5 | | | (2,034) | | | 134,847 | | Corporate notes | | | 23,614 | | | — | | | (670) | | | 22,944 | | Total available for sale securities | | $ | 496,205 | | $ | 46 | | $ | (13,016) | | $ | 483,235 | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | | | | | Obligations of U.S. Government sponsored agencies | | $ | 23,226 | | $ | — | | $ | (1,947) | | $ | 21,279 | | Obligations of states and political subdivisions | | | 61,511 | | | 95 | | | (4,187) | | | 57,419 | | Mortgage-backed securities | | | 71,384 | | | 337 | | | (965) | | | 70,756 | | Corporate notes | | | 15,675 | | | — | | | (707) | | | 14,968 | | Total available for sale securities | | $ | 171,796 | | $ | 432 | | $ | (7,806) | | $ | 164,422 | |
The following is a summary of held to maturity securities: | | | | | | | | | | | | | | | | | | Gross | | Gross | | | | | | Amortized | | Unrealized | | Unrealized | | Estimated | | | Cost | | Gains | | Losses | | Fair Value | March 31, 2026 | | | | | | | | | | | | | U.S. Treasury securities | | $ | 113,629 | | $ | 611 | | $ | (950) | | $ | 113,290 | Obligations of states and political subdivisions | | | 4,300 | | | — | | | — | | | 4,300 | Total held to maturity securities | | $ | 117,929 | | $ | 611 | | $ | (950) | | $ | 117,590 | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | | | | U.S. Treasury securities | | $ | 101,331 | | $ | 1,590 | | $ | (170) | | $ | 102,751 | Obligations of states and political subdivisions | | | 2,395 | | | — | | | — | | | 2,395 | Total held to maturity securities | | $ | 103,726 | | $ | 1,590 | | $ | (170) | | $ | 105,146 |
The following table shows the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: | | | | | | | | | | | | | | | | | | | | | Less Than 12 Months | | Greater Than 12 Months | | Total | | | | | | | | | | | | | | | | | | | | Number | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | | of | | Value | | Losses | | Value | | Losses | | Value | | Losses | | Securities | | | | | | | | | | | | | | | | | | | | | March 31, 2026 - Available for Sale | | | | | | | | | | | | | | | | | | | | U.S. Treasury securities | $ | 84,206 | | $ | (1,104) | | $ | — | | $ | — | | $ | 84,206 | | $ | (1,104) | | 9 | Obligations of U.S. Government sponsored agencies | | 135,120 | | | (1,585) | | | 19,147 | | | (2,116) | | | 154,267 | | | (3,701) | | 47 | Obligations of states and political subdivisions | | 33,355 | | | (529) | | | 37,402 | | | (4,978) | | | 70,757 | | | (5,507) | | 88 | Mortgage-backed securities | | 105,700 | | | (846) | | | 24,113 | | | (1,188) | | | 129,813 | | | (2,034) | | 119 | Corporate notes | | 3,026 | | | (4) | | | 13,838 | | | (666) | | | 16,864 | | | (670) | | 15 | Totals | $ | 361,407 | | $ | (4,068) | | $ | 94,500 | | $ | (8,948) | | $ | 455,907 | | $ | (13,016) | | 278 | | | | | | | | | | | | | | | | | | | | | March 31, 2026 - Held to Maturity | | | | | | | | | | | | | | | | | | | | U.S. Treasury securities | $ | 53,840 | | $ | (675) | | $ | 16,116 | | $ | (275) | | $ | 69,956 | | $ | (950) | | 28 | | | | | | | | | | | | | | | | | | | | | December 31, 2025 - Available for Sale | | | | | | | | | | | | | | | | | | | | Obligations of U.S. Government sponsored agencies | $ | 929 | | $ | (8) | | $ | 20,350 | | $ | (1,939) | | $ | 21,279 | | $ | (1,947) | | 24 | Obligations of states and political subdivisions | | — | | | — | | | 45,131 | | | (4,187) | | | 45,131 | | | (4,187) | | 55 | Mortgage-backed securities | | 10,911 | | | (45) | | | 24,636 | | | (920) | | | 35,547 | | | (965) | | 92 | Corporate notes | | — | | | — | | | 13,801 | | | (707) | | | 13,801 | | | (707) | | 9 | Totals | $ | 11,840 | | $ | (53) | | $ | 103,918 | | $ | (7,753) | | $ | 115,758 | | $ | (7,806) | | 180 | | | | | | | | | | | | | | | | | | | | | December 31, 2025 - Held to Maturity | | | | | | | | | | | | | | | | | | | | U.S. Treasury securities | $ | 997 | | $ | — | | $ | 22,156 | | $ | (170) | | $ | 23,153 | | $ | (170) | | 12 |
As of March 31, 2026, and December 31, 2025, no allowance for credit losses has been recognized on available for sale securities in an unrealized loss position as the Company does not believe any of the debt securities are credit impaired. This is based on the Company’s analysis of the risk characteristics, including credit ratings, and other qualitative factors related to these securities. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. As of March 31, 2026, the Company did not intend to sell these securities and it was more likely than not that the Company would not be required to sell the debt securities before recovery of their amortized cost, which may be at maturity. The unrealized losses have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. Furthermore, based on its analysis the Company has determined that held to maturity securities have zero expected credit losses. U.S. Treasury securities have the full faith and credit backing of the United States Government. The following is a summary of amortized cost and estimated fair value of securities by contractual maturity as of March 31, 2026. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties. | | | | | | | | | | | | | | | Available for Sale | | Held to Maturity | | | Amortized | | Estimated | | Amortized | | Estimated | | | Cost | | Fair Value | | Cost | | Fair Value | Due in one year or less | | $ | 33,019 | | $ | 32,975 | | $ | 23,247 | | $ | 23,226 | Due after one year through 5 years | | | 199,914 | | | 197,408 | | | 32,231 | | | 32,108 | Due after 5 years through 10 years | | | 89,573 | | | 84,880 | | | 62,451 | | | 62,256 | Due after 10 years | | | 36,823 | | | 33,125 | | | — | | | — | Subtotal | | | 359,329 | | | 348,388 | | | 117,929 | | | 117,590 | Mortgage-backed securities | | | 136,876 | | | 134,847 | | | — | | | — | Total | | $ | 496,205 | | $ | 483,235 | | $ | 117,929 | | $ | 117,590 |
As of March 31, 2026 and December 31, 2025, the carrying values of securities pledged to secure public deposits and for other purposes required or permitted by law were approximately $268.1 million and $249.7 million, respectively. Sales of securities available for sale produced $8.9 million in proceeds with immaterial gross gains and losses for the three months ended March 31, 2026. There were no sales of securities available for sale during the three months ended March 31, 2025. | | | | | | | | | 2026 | | 2025 | Proceeds from sales of securities | | $ | 8,920 | | $ | — | Gross gains on sales | | | 37 | | | — | Gross losses on sales | | | (68) | | | — |
|