v3.26.1
Investment Securities
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

NOTE 2 – Investment Securities

 

The amortized costs and fair value of investment securities are as follows:

 

                    
 
   June 30, 2026 
   Amortized   Gross Unrealized   Fair 
(dollars in thousands)  Cost   Gains   Losses   Value 
Available for sale                    
Corporate bonds  $1,692    -    109    1,583 
US government agencies   12,635    34    1,036    11,633 
State and political subdivisions   19,820    -    2,109    17,711 
Asset-backed securities   12,258    6    114    12,150 
Mortgage-backed securities   108,580    9    7,278    101,311 
Total investment securities available for sale  $154,985    49    10,646    144,388 

 

   December 31, 2025 
   Amortized   Gross Unrealized   Fair 
   Cost   Gains   Losses   Value 
Available for sale                    
Corporate bonds  $1,703    -    103    1,600 
US government agencies   13,225    33    980    12,278 
State and political subdivisions   19,934    -    2,064    17,870 
Asset-backed securities   16,505    32    118    16,419 
Mortgage-backed securities   85,798    14    6,249    79,563 
Total investment securities available for sale  $137,165    79    9,514    127,730 

 

Contractual maturities and yields on the Company’s investment securities at June 30, 2026 and December 31, 2025 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

                                                  
                     
               June 30, 2026 
   Less than one year   One to five years   Five to ten years   Over ten years   Total 
(dollars in thousands)  Amount   Yield   Amount   Yield   Amount   Yield   Amount   Yield   Amount   Yield 
Available for sale                                                  
Corporate bondsCorporate bonds [Member]  $-    -   $1,583    2.04%  $-    -   $-    -   $1,583    2.04%
US government agencies   -    -    4,833    1.37%   6,800    4.02%   -    -    11,633    2.92%
State and political subdivisionsState and political subdivisions [Member]   -    -    3,439    1.61%   4,579    2.27%   9,693    2.12%   17,711    2.06%
Asset-backed securitiesAsset-backed securities [Member]   -    -    -    -    -    -    12,150    4.69%   12,150    4.69%
Mortgage-backed securitiesMortgage-backed securities [Member]   21    2.21%   6,820    3.62%   14,871    3.42%   79,599    4.09%   101,311    3.96%
Total investment securitiesTotal investment securities [Member]  $21    2.21%  $16,675    2.40%  $26,250    3.37%  $101,442    3.41%  $144,388    3.68%
                 
               December 31, 2025 
   Less than one year   One to five years   Five to ten years   Over ten years   Total 
(dollars in thousands)  Amount   Yield   Amount   Yield   Amount   Yield   Amount   Yield   Amount   Yield 
Available for sale                                                  
Corporate bonds  $-    -   $1,600    2.04%  $-    -   $-    -   $1,600    2.04%
US government agencies   -    -    4,871    1.37%   7,407    4.39%   -    -    12,278    3.20%
State and political subdivisions   -    -    2,561    1.62%   5,565    2.21%   9,744    2.41%   17,870    2.23%
Asset-backed securities   -    -    -    -    3,486    5.19%   12,933    5.12%   16,419    5.14%
Mortgage-backed securities   19    2.37%   2,229    1.70%   9,272    2.74%   68,043    4.17%   79,563    3.93%
Total investment securities  $19    2.37%  $11,261    1.59%  $25,730    3.43%  $90,720    4.12%  $127,730    3.76%

 

The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

 

                                             
             
           June 30, 2026 
   Less than 12 months   12 months or longer   Total 
(dollars in thousands)  #   Fair
value		   Unrealized
losses		   #   Fair
value		   Unrealized
losses		   #   Fair
value		   Unrealized
losses		 
Available for sale                                             
Corporate bonds   -   $-   $-    1   $1,583   $109    1   $1,583   $109 
US government agencies   -    -    -    7    8,312    1,036    7    8,312    1,036 
State and political subdivisions   -    -    -    29    17,711    2,109    29    17,711    2,109 
Asset-backed securities   1    2,224    7    3    7,330    107    4    9,554    114 
Mortgage-backed securities   20    60,948    1,118    54    36,650    6,160    74    97,598    7,278 
Total investment securities   21   $63,172   $1,125    94   $71,586   $9,521    115   $134,758   $10,646 
             
           December 31, 2025 
   Less than 12 months   12 months or longer   Total 
(dollars in thousands)  #   Fair
value		   Unrealized
losses		   #   Fair
value		   Unrealized
losses		   #   Fair
value		   Unrealized
losses		 
Available for sale                                             
Corporate bonds   -   $-   $-    1   $1,600   $103    1   $1,600   $103 
US government agencies   -    -    -    7    8,367    980    7    8,367    980 
State and political subdivisions   -    -    -    29    17,870    2,064    29    17,870    2,064 
Asset-backed securities   3    4,483    22    2    6,035    96    5    10,518    118 
Mortgage-backed securities   7    34,538    163    57    42,546    6,086    64    77,084    6,249 
Total investment securities   10   $39,021   $185    96   $76,418   $9,329    106   $115,439   $9,514 

 

At June 30, 2026, the Company had 115 individual investments that were in an unrealized loss position. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality and the issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost. Additional information related to the types of securities held at June 30, 2026, other than securities issued or guaranteed by US government entities or agencies including US Treasuries and substantially all of the Company’s mortgage-backed securities, is as follows:

 

Corporate securities – The Company has one holding in corporate debt securities for which there have been no payment defaults.

 

State and political subdivisions – All of the Company’s holdings of municipal bonds were investment grade and there have been no payment defaults. All of these securities have been rated A+ or higher by Moody’s or Standard & Poor’s or Fitch.

 

Asset-backed securities – There were four investment grade asset-backed securities, and there have been no payment defaults on these securities.

 

As such, there is no allowance for credit losses on available for sale securities recognized as of June 30, 2026.

 

Other investments are comprised of the following and are recorded at cost which approximates fair value.

 

        
         
(dollars in thousands)  June 30, 2026   December 31, 2025 
Federal Home Loan Bank stock  $14,796    14,540 
Other nonmarketable investments   5,285    5,120 
Investment in Trust Preferred subsidiaries   403    403 
Total other investments  $20,484    20,063 

 

The Company has evaluated other investments for impairment and determined that the other investments are not impaired as of June 30, 2026 and December 31, 2025 and ultimate recoverability of the par value of the investments is probable. All of the FHLB stock is used to collateralize advances to the FHLB.

 

At June 30, 2026 and December 31, 2025, there were no securities pledged as collateral for repurchase agreements from brokers.