| Securities |
Note 2 – SECURITIES Securities consisted of the following on March 31, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Allowance for Credit Losses |
|
|
Fair
Value |
|
March 31, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
6,011 |
|
|
$ |
1 |
|
|
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
6,010 |
|
U.S. Government agencies |
|
|
3,000 |
|
|
|
— |
|
|
|
(76 |
) |
|
|
— |
|
|
|
2,924 |
|
Mortgage-backed securities of government agencies |
|
|
99,359 |
|
|
|
117 |
|
|
|
(4,894 |
) |
|
|
— |
|
|
|
94,582 |
|
Asset-backed securities of government agencies |
|
|
342 |
|
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
|
334 |
|
State and political subdivisions |
|
|
11,651 |
|
|
|
1 |
|
|
|
(491 |
) |
|
|
— |
|
|
|
11,161 |
|
Corporate bonds |
|
|
14,160 |
|
|
|
6 |
|
|
|
(346 |
) |
|
|
— |
|
|
|
13,820 |
|
Total available-for-sale |
|
|
134,523 |
|
|
|
125 |
|
|
|
(5,817 |
) |
|
|
— |
|
|
|
128,831 |
|
Held-to-maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
|
5,404 |
|
|
|
— |
|
|
|
(324 |
) |
|
|
— |
|
|
|
5,080 |
|
Mortgage-backed securities of government agencies |
|
|
171,272 |
|
|
|
— |
|
|
|
(22,251 |
) |
|
|
— |
|
|
|
149,021 |
|
State and political subdivisions |
|
|
2,479 |
|
|
|
— |
|
|
|
(117 |
) |
|
|
— |
|
|
|
2,362 |
|
Total held-to-maturity |
|
|
179,155 |
|
|
|
— |
|
|
|
(22,692 |
) |
|
|
— |
|
|
|
156,463 |
|
Equity securities |
|
|
185 |
|
|
|
117 |
|
|
|
— |
|
|
|
— |
|
|
|
302 |
|
Restricted stock |
|
|
1,645 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,645 |
|
Total securities |
|
$ |
315,508 |
|
|
$ |
242 |
|
|
$ |
(28,509 |
) |
|
$ |
— |
|
|
$ |
287,241 |
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
5,010 |
|
|
$ |
10 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,020 |
|
U.S. Government agencies |
|
|
3,000 |
|
|
|
— |
|
|
|
(92 |
) |
|
|
— |
|
|
|
2,908 |
|
Mortgage-backed securities of government agencies |
|
|
103,198 |
|
|
|
290 |
|
|
|
(4,579 |
) |
|
|
— |
|
|
|
98,909 |
|
Asset-backed securities of government agencies |
|
|
355 |
|
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
|
347 |
|
State and political subdivisions |
|
|
11,660 |
|
|
|
— |
|
|
|
(433 |
) |
|
|
— |
|
|
|
11,227 |
|
Corporate bonds |
|
|
14,154 |
|
|
|
7 |
|
|
|
(355 |
) |
|
|
— |
|
|
|
13,806 |
|
Total available-for-sale |
|
|
137,377 |
|
|
|
307 |
|
|
|
(5,467 |
) |
|
|
— |
|
|
|
132,217 |
|
Held-to-maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
|
5,397 |
|
|
|
— |
|
|
|
(321 |
) |
|
|
— |
|
|
|
5,076 |
|
Mortgage-backed securities of government agencies |
|
|
175,261 |
|
|
|
32 |
|
|
|
(21,717 |
) |
|
|
— |
|
|
|
153,576 |
|
State and political subdivisions |
|
|
2,487 |
|
|
|
— |
|
|
|
(87 |
) |
|
|
— |
|
|
|
2,400 |
|
Total held-to-maturity |
|
|
183,145 |
|
|
|
32 |
|
|
|
(22,125 |
) |
|
|
— |
|
|
|
161,052 |
|
Equity securities |
|
|
185 |
|
|
|
94 |
|
|
|
— |
|
|
|
— |
|
|
|
279 |
|
Restricted stock |
|
|
1,645 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,645 |
|
Total securities |
|
$ |
322,352 |
|
|
$ |
433 |
|
|
$ |
(27,592 |
) |
|
$ |
— |
|
|
$ |
295,193 |
|
Note 2 – SECURITIES (continued) The amortized cost and fair value of debt securities on March 31, 2026, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Amortized cost |
|
|
Fair value |
|
Available-for-sale |
|
|
|
|
|
|
Due in one year or less |
|
$ |
11,045 |
|
|
$ |
10,953 |
|
Due after one through five years |
|
|
21,394 |
|
|
|
20,770 |
|
Due after five through ten years |
|
|
13,632 |
|
|
|
12,414 |
|
Due after ten years |
|
|
88,452 |
|
|
|
84,694 |
|
Total debt securities available-for-sale |
|
$ |
134,523 |
|
|
$ |
128,831 |
|
Held-to-maturity |
|
|
|
|
|
|
Due in one year or less |
|
$ |
2,496 |
|
|
$ |
2,465 |
|
Due after one through five years |
|
|
3,926 |
|
|
|
3,571 |
|
Due after five through ten years |
|
|
1,521 |
|
|
|
1,467 |
|
Due after ten years |
|
|
171,212 |
|
|
|
148,960 |
|
Total debt securities held-to-maturity |
|
$ |
179,155 |
|
|
$ |
156,463 |
|
Securities with a fair value of approximately $133 million were pledged on March 31, 2026 and $134 million on December 31, 2025, respectively, to secure public deposits, as well as other deposits and borrowings as required or permitted by law. Restricted stock primarily consists of investments in Federal Home Loan Bank of Cincinnati (FHLB) and Federal Reserve Bank stock. The Bank’s investment in FHLB stock amounted to approximately $1.1 million on March 31, 2026 and December 31, 2025. Federal Reserve Bank stock was $471 thousand on March 31, 2026 and December 31, 2025. There were no proceeds from sales of securities for the three-month periods ended March 31, 2026 and 2025. All gains and losses recognized on equity securities during the three-month periods were unrealized. Note 2 – SECURITIES (continued) The following table presents gross unrealized losses and fair value of securities available-for-sale, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, on March 31, 2026 and December 31, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities in a continuous unrealized loss position |
|
|
|
Less than 12 months |
|
|
12 months or more |
|
|
Total |
|
(Dollars in thousands) |
|
Gross
unrealized
losses |
|
|
Fair
value |
|
|
Gross
unrealized
losses |
|
|
Fair
value |
|
|
Gross
unrealized
losses |
|
|
Fair
value |
|
March 31, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
(2 |
) |
|
$ |
1,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(2 |
) |
|
$ |
1,000 |
|
U.S. Government agencies |
|
|
— |
|
|
|
— |
|
|
|
(76 |
) |
|
|
2,924 |
|
|
|
(76 |
) |
|
|
2,924 |
|
Mortgage-backed securities of government agencies |
|
|
(242 |
) |
|
|
39,995 |
|
|
|
(4,652 |
) |
|
|
37,178 |
|
|
|
(4,894 |
) |
|
|
77,173 |
|
Asset-backed securities of government agencies |
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
334 |
|
|
|
(8 |
) |
|
|
334 |
|
State and political subdivisions |
|
|
(3 |
) |
|
|
1,902 |
|
|
|
(488 |
) |
|
|
8,442 |
|
|
|
(491 |
) |
|
|
10,344 |
|
Corporate bonds |
|
|
— |
|
|
|
— |
|
|
|
(346 |
) |
|
|
12,064 |
|
|
|
(346 |
) |
|
|
12,064 |
|
Total temporarily impaired |
|
$ |
(247 |
) |
|
$ |
42,897 |
|
|
$ |
(5,570 |
) |
|
$ |
60,942 |
|
|
$ |
(5,817 |
) |
|
$ |
103,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government agencies |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(92 |
) |
|
$ |
2,908 |
|
|
$ |
(92 |
) |
|
$ |
2,908 |
|
Mortgage-backed securities of government agencies |
|
|
(4 |
) |
|
|
6,713 |
|
|
|
(4,575 |
) |
|
|
38,734 |
|
|
|
(4,579 |
) |
|
|
45,447 |
|
Asset-backed securities of government agencies |
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
347 |
|
|
|
(8 |
) |
|
|
347 |
|
State and political subdivisions |
|
|
(2 |
) |
|
|
1,518 |
|
|
|
(431 |
) |
|
|
8,508 |
|
|
|
(433 |
) |
|
|
10,026 |
|
Corporate bonds |
|
|
— |
|
|
|
— |
|
|
|
(355 |
) |
|
|
12,049 |
|
|
|
(355 |
) |
|
|
12,049 |
|
Total temporarily impaired |
|
$ |
(6 |
) |
|
$ |
8,231 |
|
|
$ |
(5,461 |
) |
|
$ |
62,546 |
|
|
$ |
(5,467 |
) |
|
$ |
70,777 |
|
There were 93 securities in an unrealized loss position on March 31, 2026, 76 of which were in a continuous loss position for twelve (12) months or more. Each quarter the Company conducts a comprehensive security-level impairment assessment on the securities portfolio. Management believes the Company will fully recover the cost of these securities. Unrealized losses on the Company’s fixed-rate debt securities are a result of interest rate increases. U.S. Treasury securities and investments in securities of U.S. government sponsored agency bonds comprise $104 million of total AFS securities. The remaining $25 million of non-agency debt securities is made up of Corporate Bonds and debt securities to State and Political Subdivisions. For non-agency debt securities, the Company verified the current credit ratings remain above investment grade. Non-rated debt securities total $7 million. Annually, management reviews the credit profile of each non-rated issue and assesses whether any impairment to the contractually obligated cash flow is likely to occur. Based on these reviews, management has concluded the underlying creditworthiness for each security remains sufficient to maintain required payment obligations and, therefore, no allowance for credit losses has been recorded. Management believes the value will recover as the securities approach maturity or market interest rates change. Note 2 – SECURITIES (continued) The Bank monitors the credit quality of held-to-maturity debt securities primarily through utilizing their credit rating. The Bank monitors the credit rating on a quarterly basis. There are no nonperforming held-to-maturity securities. As of March 31, 2026, no ACL was required for any held-to-maturity security. The majority of the securities are explicitly or implicitly guaranteed by the United States government, and any estimate of expected credit losses would be insignificant to the Bank. The following table summarizes the amortized cost of held-to maturity debt securities at March 31, 2026 and December 31, 2025, aggregated by credit quality indicator:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
U.S. Treasury securities |
|
|
Mortgage- backed securities of government agencies |
|
|
State and political subdivisions |
|
March 31, 2026 |
|
|
|
|
|
|
|
|
|
Credit rating: |
|
|
|
|
|
|
|
|
|
AAA / AA / A |
|
$ |
5,404 |
|
|
$ |
171,272 |
|
|
$ |
2,479 |
|
BBB / BB / B |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Lower than B |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-rated |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
5,404 |
|
|
$ |
171,272 |
|
|
$ |
2,479 |
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
|
|
|
|
|
|
Credit rating: |
|
|
|
|
|
|
|
|
|
AAA / AA / A |
|
$ |
5,397 |
|
|
$ |
175,261 |
|
|
$ |
2,487 |
|
BBB / BB / B |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Lower than B |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-rated |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
5,397 |
|
|
$ |
175,261 |
|
|
$ |
2,487 |
|
|