Debt Securities Available for Sale

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

Debt Securities Available for Sale

(3)

Debt Securities Available for Sale:

The following tables reflect the amortized cost and fair value of debt securities available for sale as of March 31, 2026:

		2026
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				(Losses)				Value

U.S. Treasuries & Govt. - sponsored agencies		$	29,780			$	0			$	(956	)		$	28,824
State and Municipal			58,372				287				(2,792	)			55,867
Mortgage Backed			51,387				226				(4,086	)			47,527
Collateralized Mortgage
Obligations (CMOs)			23,827				90				(1,386	)			22,531

		$	163,366			$	603			$	(9,220	)		$	154,749

The following tables reflect the amortized cost and fair value of debt securities available for sale as of December 31, 2025:

		2025
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				(Losses)				Value

U.S. Treasuries & Govt. - sponsored agencies		$	31,744			$	0			$	(943	)		$	30,801
State and Municipal			60,070				257				(2,846	)			57,481
Mortgage Backed			49,175				299				(4,103	)			45,371
Collateralized Mortgage
Obligations (CMOs)			21,753				120				(1,319	)			20,554

		$	162,742			$	676			$	(9,211	)		$	154,207

(3)

Debt Securities Available for Sale (continued):

Debt securities with a carrying amount of approximately $63,042 and $66,676 at March 31, 2026 and December 31, 2025, respectively, were pledged as collateral on public deposits, debt securities sold under agreements to repurchase and for other purposes as required or permitted by law.

At March 31, 2026 and December 31, 2025, there were no holdings of debt securities of any one issuer, other than the U.S. Government and its sponsored agencies, in an amount greater than 10% of stockholders’ equity.

As of March 31, 2026 and December 31, 2025, accrued interest on debt securities available-for-sale of $830 and $667, respectively, was excluded from CECL evaluation. Accrued interest on debt securities available-for-sale is recorded within accrued interest receivable on the consolidated balance sheet.

The amortized cost and approximate fair value of debt securities at March 31, 2026 by contractual maturity are shown below. Expected maturities may differ from contractual maturities on mortgage-backed and collateralized mortgage obligation debt securities because the underlying mortgages may be called or prepaid without any penalties.

		Amortized Cost				Fair Value
Due in one year or less		$	13,339			$	13,259
Due after one year through five years			38,103				37,254
Due after five years through ten years			19,250				18,198
Due after ten years			17,460				15,980
			88,152				84,691
Mortgage Backed			51,387				47,527
Collateralized Mortgage Obligations			23,827				22,531
		$	163,366			$	154,749

(3)

Debt Securities Available-for-Sale (continued):

Debt securities with unrealized losses as of March 31, 2026 not recognized in income are as follows:


		2026
		Less than 12 Months								12 Months or More								Total
		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss

U.S Treas. & Gov’t - sponsored agencies		$	0			$	0			$	28,825			$	956			$	28,825			$	956
State and Municipal			3,654				17				25,934				2,775				29,588				2,792
Mortgage Backed			2,817				53				29,740				4,033				32,557				4,086
CMOs			3,759				21				11,669				1,365				15,428				1,386
Total
temporarily impaired		$	10,230			$	91			$	96,168			$	9,129			$	106,398			$	9,220

Debt securities with unrealized losses as of December 31, 2025 not recognized in income are as follows:


		2025
		Less than 12 Months								12 Months or More								Total
		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
U.S Treas. & Gov’t - sponsored agencies		$	0			$	0			$	30,801			$	943			$	30,801			$	943
State and Municipal			3,335				8				29,054				2,838				32,389				2,846
Mortgage Backed			1,886				44				30,879				4,059				32,765				4,103
CMOs			1,970				3				12,110				1,316				14,080				1,319
Total
temporarily impaired		$	7,191			$	55			$	102,844			$	9,156			$	110,035			$	9,211

At March 31, 2026 and December 31, 2025, the investment portfolio included 138 and 142 debt securities that were in an unrealized loss position, respectively. Unrealized losses have not been recognized as an allowance for credit losses because the Company does not intend to sell the securities prior to their anticipated recovery and the decline in fair value is largely due to changes in interest rates and other market conditions.