Note 2 - Debt Securities

3 Months Ended

Mar. 31, 2026

Notes to Financial Statements

Investment in Debt and Equity Securities and Other Trading Assets [Text Block]

NOTE 2 – DEBT SECURITIES

The Company did not hold securities classified as trading or held-to-maturity at March 31, 2026 or December 31, 2025. The amortized cost and estimated fair value of available-for-sale debt securities at March 31, 2026 and December 31, 2025 consisted of the following:

		*March 31, 2026*
						Gross				Gross				Estimated
		Amortized				Unrealized				Unrealized				Fair
(In thousands)		Cost				Gains				Losses				Value
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government agencies		$	425			$	-			$	(19	)		$	406
Commercial mortgage-backed securities			5,448				-				(46	)			5,402
Residential mortgage-backed securities			201,783				18				(1,669	)			200,132
U.S. states and political subdivisions			4,710				50				(117	)			4,643
Total available-for-sale		$	212,366			$	68			$	(1,851	)		$	210,583

		*December 31, 2025*
						Gross				Gross				Estimated
		Amortized				Unrealized				Unrealized				Fair
(In thousands)		Cost				Gains				Losses				Value
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government agencies		$	478			$	-			$	(20	)		$	458
Commercial mortgage-backed securities			5,454				3				(27	)			5,430
Residential mortgage-backed securities			207,847				340				(635	)			207,552
U.S. states and political subdivisions			4,709				72				(61	)			4,720
Total available-for-sale		$	218,488			$	415			$	(743	)		$	218,160

Net unrealized losses on available-for-sale debt securities totaling ($1.3 million) were recorded as accumulated other comprehensive loss, net of tax of $513 thousand, within shareholders' equity at March 31, 2026. Net unrealized losses on available-for-sale debt securities totaling ($234 thousand) were recorded as accumulated other comprehensive income, net of tax of $94 thousand, within shareholders' equity at December 31, 2025.

During the three months ended March 31, 2026 and March 31, 2025, there were no sales or calls of debt securities and no gains realized or losses recognized. There were no transfers between investment categories during the three months ended March 31, 2026 or March 31, 2025.

Debt securities with unrealized losses at March 31, 2026 and December 31, 2025 are summarized and classified according to the duration of the loss period as follows: (in thousands)

		*Less than 12 Months*								*12 Months or More*								*Total*
						*Unrealized*								*Unrealized*								*Unrealized*
March 31, 2026		*Fair Value*				*Losses*				*Fair Value*				*Losses*				*Fair Value*				*Losses*
U.S. Treasury securities and obligations of U.S. government agencies		$	-			$	-			$	406			$	(19	)		$	406			$	(19	)
Commercial mortgage-backed securities			5,402				(46	)			-				-				5,402				(46	)
Residential mortgage-backed securities			176,085				(1,456	)			1,772				(213	)			177,857				(1,669	)
U.S. states and political subdivisions			1,739				(40	)			855				(77	)			2,594				(117	)
Total available-for-sale		$	183,226			$	(1,542	)		$	3,033			$	(309	)		$	186,259			$	(1,851	)

		*Less than 12 Months*								*12 Months or More*								*Total*
						*Unrealized*								*Unrealized*								*Unrealized*
December 31, 2025		*Fair Value*				*Losses*				*Fair Value*				*Losses*				*Fair Value*				*Losses*
U.S. Treasury securities and obligations of U.S. government agencies		$	-			$	-			$	458			$	(20	)		$	458			$	(20	)
Commercial mortgage-backed securities			3,441				(20	)			1,004				(7	)			4,445				(27	)
Residential mortgage-backed securities			103,636				(437	)			1,798				(198	)			105,434				(635	)
U.S. states and political subdivisions			1,004				-				871				(61	)			1,875				(61	)
Total available-for-sale		$	108,081			$	(457	)		$	4,131			$	(286	)		$	112,212			$	(743	)

At March 31, 2026, the Company held 3 securities available-for-sale, which were in a loss position for greater than 12 months. Management believes the unrealized losses on the Company’s debt securities were caused by interest rate changes. The contractual cash flows of those investments are generally guaranteed or supported by an agency or sponsored entity of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment. As of March 31, 2026, the Company did not intend to sell and does not believe it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. No credit impairment was recorded for those securities in an unrealized loss position for the three months ended March 31, 2026 or December 31, 2025, and there was no allowance for credit losses on securities available-for-sale recorded as of March 31, 2026 or December 31, 2025.

The amortized cost and estimated fair value of available-for-sale debt securities at March 31, 2026 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

		*Available-for-sale*
(In thousands)			*Amortized Cost*				*Fair Value*
Due in one year or less		$	-			$	-
Due after one year through five years			-				-
Due after five years through 10 years			425				406
Due after 10 years			4,710				4,643
			5,135				5,049
Debt securities not due at a single maturity date: mortgage-backed securities			207,231				205,534
Total available-for-sale		$	212,366			$	210,583

Debt securities with fair values of $9.4 million and $8.9 million were pledged at March 31, 2026 and December 31, 2025, respectively, toward certain letters of credit. No debt securities were pledged to secure public deposits at March 31, 2026 or December 31, 2025.