| Securities |
Note 2 Securities The amortized cost and fair values, together with gross unrealized gains and losses of securities, are as follows:
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Amortized Cost |
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Gross
Unrealized
Gains |
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Gross
Unrealized
Losses |
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Fair Value |
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Available-for-sale Securities: |
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March 31, 2026 |
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Municipal bonds, taxable |
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$ |
7,394,591 |
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$ |
— |
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|
$ |
(785,630 |
) |
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$ |
6,608,961 |
|
Municipal bonds, non-taxable |
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1,505,066 |
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|
— |
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(84,762 |
) |
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1,420,304 |
|
U.S. Government agencies |
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1,097,711 |
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|
— |
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(120,585 |
) |
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977,126 |
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Corporate bonds |
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500,000 |
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— |
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(6,250 |
) |
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|
493,750 |
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Residential mortgage-backed securities |
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26,248,304 |
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22,079 |
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(2,227,048 |
) |
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24,043,335 |
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Collateralized mortgage obligations |
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43,569,954 |
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6,685 |
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(1,611,986 |
) |
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41,964,653 |
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$ |
80,315,626 |
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$ |
28,764 |
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$ |
(4,836,261 |
) |
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$ |
75,508,129 |
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Amortized Cost |
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Gross
Unrealized
Gains |
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Gross
Unrealized
Losses |
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Fair Value |
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Available-for-sale Securities: |
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December 31, 2025 |
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Municipal bonds, taxable |
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$ |
7,399,943 |
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$ |
— |
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$ |
(719,587 |
) |
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$ |
6,680,356 |
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Municipal bonds, non-taxable |
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1,512,725 |
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— |
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(71,981 |
) |
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1,440,744 |
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U.S. Government agencies |
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1,120,039 |
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— |
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(110,988 |
) |
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|
1,009,051 |
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Residential mortgage-backed securities |
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26,839,252 |
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22,560 |
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(1,923,132 |
) |
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24,938,680 |
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Collateralized mortgage obligations |
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44,088,148 |
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755 |
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(1,457,830 |
) |
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42,631,073 |
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$ |
80,960,107 |
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$ |
23,315 |
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$ |
(4,283,518 |
) |
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$ |
76,699,904 |
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The amortized cost and fair value of securities at March 31, 2026, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties:
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Amortized |
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Fair |
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Cost |
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Value |
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March 31, 2026 |
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Available-for-sale |
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Within one year |
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$ |
— |
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$ |
— |
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One to five years |
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7,077,348 |
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6,525,870 |
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Five to ten years |
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3,420,020 |
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2,974,271 |
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After ten years |
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— |
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— |
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10,497,368 |
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9,500,141 |
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Mortgage-backed securities |
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69,818,258 |
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66,007,988 |
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Totals |
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$ |
80,315,626 |
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|
$ |
75,508,129 |
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The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was approximately $46.5 million and $47.5 million at March 31, 2026 and December 31, 2025, respectively. The Company had no sales of investment securities during the three months ended March 31, 2026 and 2025. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Based on evaluation of available evidence, including recent changes in market interest rates and information obtained from regulatory filings, management believes the declines in fair value for these securities are not attributable to credit related events. The following table shows the number of securities and aggregate depreciation from the Company’s amortized cost basis at March 31, 2026 and December 31, 2025.
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March 31, 2026 |
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December 31, 2025 |
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Number of |
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Aggregate |
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Number of |
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Aggregate |
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Description of Securities |
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securities |
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depreciation |
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securities |
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|
depreciation |
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Available-for-sale Securities: |
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Municipal bonds, taxable |
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14 |
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(10.6 |
)% |
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14 |
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(9.7 |
)% |
Municipal bonds, non-taxable |
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4 |
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(5.6 |
)% |
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4 |
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(4.8 |
)% |
U.S. Government agencies |
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4 |
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(11.0 |
)% |
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4 |
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(9.9 |
)% |
Corporate bonds |
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1 |
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(1.3 |
)% |
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— |
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— |
% |
Residential mortgage-backed securities |
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64 |
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(9.6 |
)% |
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64 |
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(8.1 |
)% |
Collateralized mortgage obligations |
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23 |
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(4.6 |
)% |
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26 |
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(3.5 |
)% |
Total |
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110 |
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(7.0 |
)% |
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112 |
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(5.7 |
)% |
Should of any of these securities experience credit related impairment, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the credit-related impairment is identified. The following tables show the Company’s investments’ gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2026 and December 31, 2025:
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March 31, 2026 |
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Less than 12 Months |
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12 Months or More |
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Total |
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Description of Securities |
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Fair
Value |
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Unrealized
Losses |
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Fair
Value |
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Unrealized
Losses |
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Fair
Value |
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|
Unrealized
Losses |
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Available-for-sale Securities: |
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Municipal bonds, taxable |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,608,961 |
|
|
$ |
(785,630 |
) |
|
$ |
6,608,961 |
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|
$ |
(785,630 |
) |
Municipal bonds, non-taxable |
|
|
— |
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|
|
— |
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|
1,420,304 |
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(84,762 |
) |
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1,420,304 |
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(84,762 |
) |
U.S. Government agencies |
|
|
— |
|
|
|
— |
|
|
|
977,126 |
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|
|
(120,585 |
) |
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977,126 |
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|
|
(120,585 |
) |
Corporate bonds |
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493,750 |
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(6,250 |
) |
|
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— |
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— |
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493,750 |
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(6,250 |
) |
Residential mortgage-backed securities |
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10,413,283 |
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(380,322 |
) |
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10,446,596 |
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(1,846,726 |
) |
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20,859,879 |
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(2,227,048 |
) |
Collateralized mortgage obligations |
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21,428,094 |
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(297,679 |
) |
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12,145,337 |
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(1,314,307 |
) |
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33,573,431 |
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(1,611,986 |
) |
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$ |
32,335,127 |
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$ |
(684,251 |
) |
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$ |
31,598,324 |
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$ |
(4,152,010 |
) |
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$ |
63,933,451 |
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$ |
(4,836,261 |
) |
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December 31, 2025 |
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Less than 12 Months |
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12 Months or More |
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Total |
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Description of Securities |
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Fair
Value |
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Unrealized
Losses |
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Fair
Value |
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Unrealized
Losses |
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Fair
Value |
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|
Unrealized
Losses |
|
Available-for-sale Securities: |
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|
|
|
|
|
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|
Municipal bonds, taxable |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,680,356 |
|
|
$ |
(719,587 |
) |
|
$ |
6,680,356 |
|
|
$ |
(719,587 |
) |
Municipal bonds, non-taxable |
|
|
— |
|
|
|
— |
|
|
|
1,440,744 |
|
|
|
(71,981 |
) |
|
|
1,440,744 |
|
|
|
(71,981 |
) |
U.S. Government agencies |
|
|
— |
|
|
|
— |
|
|
|
1,009,051 |
|
|
|
(110,988 |
) |
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|
1,009,051 |
|
|
|
(110,988 |
) |
Residential mortgage-backed securities |
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|
10,795,977 |
|
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|
(188,068 |
) |
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10,971,115 |
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(1,735,064 |
) |
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21,767,092 |
|
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|
(1,923,132 |
) |
Collateralized mortgage obligations |
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|
27,675,202 |
|
|
|
(185,699 |
) |
|
|
12,477,160 |
|
|
|
(1,272,131 |
) |
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|
40,152,362 |
|
|
|
(1,457,830 |
) |
|
|
$ |
38,471,179 |
|
|
$ |
(373,767 |
) |
|
$ |
32,578,426 |
|
|
$ |
(3,909,751 |
) |
|
$ |
71,049,605 |
|
|
$ |
(4,283,518 |
) |
U.S. Government Agencies, Corporate Bonds and Municipal Bonds Unrealized losses on these securities have not been recognized into income because the issuers' bonds are of high credit quality, values have only been impacted by changes in interest rates since the securities were purchased, and the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis. The fair value is expected to recover as the bonds approach the maturity date. Mortgage-backed Securities and Collateralized Mortgage Obligations The unrealized losses on the Company’s investment in residential mortgage-backed securities and collateralized mortgage obligations were caused by changes in interest rates and illiquidity. The Company expects to recover the amortized cost basis over the term of the securities. The decline in market value is attributable to changes in interest rates and illiquidity, not credit quality, and the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis. The fair value is expected to recover as the securities approach the maturity date.
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