INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2026

INVESTMENT SECURITIES

INVESTMENT SECURITIES

2.	INVESTMENT SECURITIES:

The Bank’s investment securities are classified entirely as available-for-sale and are presented as a single line item on the balance sheet. The amortized cost and approximate fair values of securities are as follows:


					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
March 31, 2026		Cost			Gains			Losses			Value
Available-for-sale securities:
Municipal securities		$	2,836,073		$	1,913		$	3,535		$	2,834,451
Collateralized mortgage obligation bonds			47,340			—			1,327			46,013
U.S. government agencies			1,497,851			—			68,954			1,428,897
Mortgage-backed securities			1,232,096			4,922			77,121			1,159,897
		$	5,613,360		$	6,835		$	150,937		$	5,469,258


					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
December 31, 2025		Cost			Gains			Losses			Value
Available-for-sale securities:
Municipal securities		$	2,837,990		$	2,253		$	4,207		$	2,836,036
Collateralized mortgage obligation bonds			50,980			—			1,263			49,717
U.S. government agencies			1,497,747			—			59,911			1,437,836
Mortgage-backed securities			1,282,116			6,981			73,994			1,215,103
		$	5,668,833		$	9,234		$	139,375		$	5,538,692

There were no sales of available-for-sale securities for the three months ended March 31, 2026 and 2025. The amortized cost and fair value of securities at March 31, 2026, by contractual maturity, are shown below. Contractual maturity information is presented as of March 31, 2026, the most recent balance sheet date. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


		March 31, 2026
		Available-for-sale
		Amortized			Fair
		Cost			Value
Municipal securities and U.S. government agencies
Due less than one year		$	310,000		$	310,081
Due one to five years			1,497,851			1,428,897
Due five to ten years			1,995,000			1,996,832
Due after ten years			531,073			527,538
Total		$	4,333,924		$	4,263,348

Mortgage-backed securities and collateralized mortgage obligation bonds			1,279,436			1,205,910
Total		$	5,613,360		$	5,469,258

The maturity of mortgage-backed securities and collateralized mortgage obligation bonds are based on the repayment of the underlying mortgages.

The following table shows the Bank’s investments’ gross unrealized losses and fair value of the Bank’s investments with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous loss position at March 31, 2026 and December 31, 2025:


		Less than 12 Months						12 Months or Longer						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		Value			Losses			Value			Losses			Value			Losses
March 31, 2026
Municipal securities		$	—		$	—		$	527,538		$	3,535		$	527,538		$	3,535
Collateralized mortgage obligation bonds			—			—			46,013			1,327			46,013			1,327
U.S. government agencies			—			—			1,428,897			68,954			1,428,897			68,954
Mortgage-backed securities			—			—			774,171			77,121			774,171			77,121
Total		$	—		$	—		$	2,776,619		$	150,937		$	2,776,619		$	150,937


		Less than 12 Months						12 Months or Longer						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		Value			Losses			Value			Losses			Value			Losses
December 31, 2025
Municipal securities		$	—		$	—		$	528,782		$	4,207		$	528,782		$	4,207
Collateralized mortgage obligation bonds			—			—			49,717			1,263			49,717			1,263
U.S. government agencies			—			—			1,437,836			59,911			1,437,836			59,911
Mortgage-backed securities			—			—			825,648			73,994			825,648			73,994
Total		$	—		$	—		$	2,841,983		$	139,375		$	2,841,983		$	139,375

Total fair value of these investments at March 31, 2026 and December 31, 2025, was $2,776,619 and $2,841,983. The following table presents the number and aggregate depreciation from the Bank’s amortized cost basis of available-for-sale securities in a continuous unrealized loss position by security type at March 31, 2026 and December 31, 2025.


		Number of
		securities in		Aggregate
		a loss position		Depreciation
March 31, 2026
Municipal securities		1		(0.67)	%
Collateralized mortgage obligation bonds		1		(2.80)	%
U.S. government agencies		2		(4.60)	%
Mortgage-backed securities		8		(9.06)	%
Total Portfolio		12		(5.16)	%


		Number of
		securities in		Aggregate
		a loss position		Depreciation
December 31, 2025
Municipal securities		1		(0.79)	%
Collateralized mortgage obligation bonds		1		(2.48)	%
U.S. government agencies		2		(4.00)	%
Mortgage-backed securities		8		(8.22)	%
Total Portfolio		12		(4.67)	%

Unrealized losses on securities have not been recognized into income because management believes the issuers’ bonds are of high credit quality, does not intend to sell these securities, and it is more likely than not the Bank will retain, and not be required to sell, the securities in an unrealized loss position prior to the recovery of value. Accordingly, management has not recorded an allowance for credit loss on any available-for-sale securities and the allowance for credit losses on available-for-sale securities was zero at March 31, 2026 and December 31, 2025. The decline in market value is largely due to fluctuations in market interest rates and other market conditions and not credit quality. The issuers continue to make timely principal and interest payments on the bonds. The fair values are expected to recover as securities approach their maturity dates. Net unrealized holding losses on available-for-sale securities recognized in accumulated other comprehensive income (loss) during the three months ended March 31, 2026 and 2025 are reflected in the statements of comprehensive income.

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

At March 31, 2026 and December 31, 2025, the Bank did not have any investment securities pledged or restricted for public funds, borrowings, or other purposes.