| Securities Available For Sale |
2.Securities Available-for-Sale The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses for which an allowance for credit losses has not been recorded, are as follows as of June 30, 2026 and December 31, 2025:
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June 30, 2026 |
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|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
|
(Dollars in thousands) |
|
U.S. Government-sponsored enterprises obligations |
|
$ |
1,602 |
|
|
$ |
— |
|
|
$ |
(172 |
) |
|
$ |
1,430 |
|
U.S. Government agency small business administration
pools guaranteed by SBA |
|
|
9,799 |
|
|
|
55 |
|
|
|
(699 |
) |
|
|
9,155 |
|
Collateralized mortgage obligations issued by the
FHLMC, FNMA and GNMA |
|
|
29,446 |
|
|
|
389 |
|
|
|
(427 |
) |
|
|
29,408 |
|
Residential mortgage-backed securities |
|
|
60,823 |
|
|
|
593 |
|
|
|
(3,389 |
) |
|
|
58,027 |
|
Municipal bonds |
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|
32,353 |
|
|
|
44 |
|
|
|
(3,008 |
) |
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|
29,389 |
|
Corporate debt |
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|
500 |
|
|
|
— |
|
|
|
(10 |
) |
|
|
490 |
|
Corporate subordinated debt |
|
|
5,881 |
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|
104 |
|
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|
(101 |
) |
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|
5,884 |
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|
$ |
140,404 |
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|
$ |
1,185 |
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|
$ |
(7,806 |
) |
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$ |
133,783 |
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|
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|
|
|
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|
December 31, 2025 |
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|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
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|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
|
(Dollars in thousands) |
|
U.S. Government-sponsored enterprises obligations |
|
$ |
1,615 |
|
|
$ |
— |
|
|
$ |
(162 |
) |
|
$ |
1,453 |
|
U.S. Government agency small business administration
pools guaranteed by SBA |
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|
11,272 |
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17 |
|
|
|
(716 |
) |
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|
10,573 |
|
Collateralized mortgage obligations issued by the
FHLMC, FNMA and GNMA |
|
|
34,765 |
|
|
|
349 |
|
|
|
(372 |
) |
|
|
34,742 |
|
Residential mortgage-backed securities |
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|
66,725 |
|
|
|
988 |
|
|
|
(3,218 |
) |
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|
64,495 |
|
Municipal bonds |
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|
32,554 |
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|
37 |
|
|
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(3,322 |
) |
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|
29,269 |
|
Corporate debt |
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|
6,190 |
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|
|
— |
|
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|
(13 |
) |
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|
6,177 |
|
Corporate subordinated debt |
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|
5,866 |
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|
92 |
|
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(261 |
) |
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|
5,697 |
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|
$ |
158,987 |
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|
$ |
1,483 |
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|
$ |
(8,064 |
) |
|
$ |
152,406 |
|
The amortized cost and fair values of securities available-for-sale at June 30, 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.
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June 30, 2026 |
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Amortized
Cost |
|
|
Fair Value |
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|
(Dollars in thousands) |
|
Due in one year or less |
|
$ |
— |
|
|
$ |
— |
|
Due after one year through five years |
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|
4,043 |
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|
3,909 |
|
Due after five years through ten years |
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|
5,543 |
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|
5,420 |
|
Due after ten years |
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|
30,750 |
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|
27,864 |
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Total U.S. Government-sponsored enterprises obligations,
municipal bonds, corporate debt and corporate subordinated debt |
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40,336 |
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|
37,193 |
|
U.S. Government agency small business pools guaranteed
by SBA(1) |
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|
9,799 |
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|
9,155 |
|
Collateralized mortgage obligations issued by the FHLMC,
FNMA, and GNMA(1) |
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|
29,446 |
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|
29,408 |
|
Residential mortgage-backed securities(1) |
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|
60,823 |
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|
58,027 |
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Total |
|
$ |
140,404 |
|
|
$ |
133,783 |
|
(1) Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans. The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at June 30, 2026 and December 31, 2025.
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Less than 12 Months |
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More than 12 Months |
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Total |
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Number of
Securities |
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|
Fair
Value |
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|
Unrealized
Losses |
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|
Number of
Securities |
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|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
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|
(Dollars in thousands) |
|
June 30, 2026 |
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|
|
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|
U.S. Government-sponsored
enterprises obligations |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
3 |
|
|
$ |
1,430 |
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|
$ |
(172 |
) |
|
$ |
1,430 |
|
|
$ |
(172 |
) |
U.S. Government agency small
business administration pools
guaranteed by SBA |
|
|
2 |
|
|
|
816 |
|
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(31 |
) |
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|
10 |
|
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6,430 |
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|
(668 |
) |
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|
7,246 |
|
|
|
(699 |
) |
Collateralized mortgage
obligations issued by
the FHLMC, FNMA
and GNMA |
|
|
4 |
|
|
|
5,005 |
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(71 |
) |
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6 |
|
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4,834 |
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(356 |
) |
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9,839 |
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(427 |
) |
Residential mortgage
backed securities |
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6 |
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13,080 |
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|
(263 |
) |
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|
28 |
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|
15,851 |
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(3,126 |
) |
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28,931 |
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(3,389 |
) |
Municipal bonds |
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1 |
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|
406 |
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(4 |
) |
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|
36 |
|
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27,071 |
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(3,004 |
) |
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27,477 |
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|
(3,008 |
) |
Corporate debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
490 |
|
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|
(10 |
) |
|
|
490 |
|
|
|
(10 |
) |
Corporate subordinated debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
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|
3,399 |
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(101 |
) |
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|
3,399 |
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(101 |
) |
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13 |
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|
$ |
19,307 |
|
|
$ |
(369 |
) |
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|
87 |
|
|
$ |
59,505 |
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|
$ |
(7,437 |
) |
|
$ |
78,812 |
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|
$ |
(7,806 |
) |
December 31, 2025 |
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|
|
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|
U.S. Government-sponsored
enterprises obligations |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
3 |
|
|
$ |
1,453 |
|
|
$ |
(162 |
) |
|
$ |
1,453 |
|
|
$ |
(162 |
) |
U.S. Government agency small
business administration pools
guaranteed by SBA |
|
|
1 |
|
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|
593 |
|
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(11 |
) |
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12 |
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8,211 |
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(705 |
) |
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8,804 |
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|
(716 |
) |
Collateralized mortgage
obligations issued by
the FHLMC, FNMA
and GNMA |
|
|
1 |
|
|
|
818 |
|
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|
(24 |
) |
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|
9 |
|
|
|
10,434 |
|
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|
(348 |
) |
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|
11,252 |
|
|
|
(372 |
) |
Residential mortgage
backed securities |
|
|
4 |
|
|
|
9,805 |
|
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|
(148 |
) |
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|
29 |
|
|
|
17,128 |
|
|
|
(3,070 |
) |
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|
26,933 |
|
|
|
(3,218 |
) |
Municipal bonds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36 |
|
|
|
26,953 |
|
|
|
(3,322 |
) |
|
|
26,953 |
|
|
|
(3,322 |
) |
Corporate debt |
|
|
2 |
|
|
|
3,705 |
|
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|
(2 |
) |
|
|
1 |
|
|
|
489 |
|
|
|
(11 |
) |
|
|
4,194 |
|
|
|
(13 |
) |
Corporate subordinated debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
3,239 |
|
|
|
(261 |
) |
|
|
3,239 |
|
|
|
(261 |
) |
|
|
|
8 |
|
|
$ |
14,921 |
|
|
$ |
(185 |
) |
|
|
93 |
|
|
$ |
67,907 |
|
|
$ |
(7,879 |
) |
|
$ |
82,828 |
|
|
$ |
(8,064 |
) |
Management evaluates securities available-for-sale in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At June 30, 2026, the Company had 100 securities available-for-sale in an unrealized loss position without an allowance for credit losses. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of June 30, 2026, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore the Company carried no allowance for credit losses on securities available-for-sale as of June 30, 2026. Proceeds from sales, maturities, principal payments received and gross realized gains and losses on securities available-for-sale were as follows for the three and six months ended June 30, 2026 and 2025:
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|
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|
Three Months Ended June 30, |
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|
Six Months Ended June 30, |
|
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|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
|
(Dollars in thousands) |
|
Proceeds from principal payments received on securities available-for-sale |
|
$ |
6,088 |
|
|
$ |
4,001 |
|
|
$ |
12,718 |
|
|
$ |
7,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sales, calls and maturities received on securities available-for-sale |
|
|
3,685 |
|
|
|
— |
|
|
|
5,685 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross realized gains |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gross realized losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net realized gains (losses) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
As of June 30, 2026 and December 31, 2025, there were no holdings of securities of any issuer, other than the SBA, FHLMC, GNMA and FNMA, whose aggregate carrying value exceeded 10% of consolidated stockholders’ equity.
|