Amortized costs and fair values of securities available for sale at June 30, 2026 and December 31, 2025 were as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	June 30, 2026
	(in thousands)
Obligations of U.S. government corporations and agencies	$	7,093	$	—	$	(83	)		7,010
U.S. treasury securities		9,972		—		(8	)		9,964
Mortgage-backed securities		76,930		39		(7,110	)		69,859
Collateralized mortgage obligations		21,907		—		(377	)		21,530
Subordinated debt		4,250		2		(149	)		4,103
	$	120,152	$	41	$	(7,727	)	$	112,466


	December 31, 2025
	(in thousands)
Obligations of U.S. government corporations and agencies	$	7,458	$	2	$	(16	)	$	7,444
U.S. treasury securities		9,999		2		—			10,001
Mortgage-backed securities		81,492		480		(6,843	)		75,129
Collateralized mortgage obligations		22,498		84		(87	)		22,495
Subordinated debt		4,750		—		(276	)		4,474
	$	126,197	$	568	$	(7,222	)	$	119,543

The Company has elected to exclude accrued interest receivable, totaling $457 thousand and $669 thousand at June 30, 2026 and December 31, 2025, respectively from the amortized cost basis of securities. The deferred tax asset on the securities portfolio at June 30, 2026 and December 31, 2025 was $1.6 million and $1.4 million, respectively, and is included in Other Assets in the Consolidated Balance Sheets.

In March 2025, balance sheet repositioning transactions were executed. The Bank sold available for sale securities with an amortized cost balance of $99.2 million and reinvested $66.0 million into purchases of available for sale securities. The sale of securities resulted in a net realized pre-tax loss of $12.4 million recognized during the six months ended June 30, 2025. There were no sales of available for sale securities during the three months ended June 30, 2025 or the three and six months ended June 30, 2026.

The following table summarizes amounts related to the sale of available for sale securities:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)				(in thousands)
Proceeds from sales	$	—	$	—	$	—	$	86,822

Gross realized losses		—		—		—		(12,425	)
Net realized losses on securities	$	—	$	—	$	—	$	(12,425	)

The fair value and gross unrealized losses for securities available for sale, totaled by the length of time that individual securities have been in a continuous gross unrealized loss position, at June 30, 2026 and December 31, 2025 were as follows:


	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	June 30, 2026
	(in thousands)
Obligations of U.S. government corporations and agencies	$	3,475	$	68	$	3,535	$	15	$	7,010	$	83
U.S. treasury securities		9,964		8		—		—		9,964		8
Mortgage-backed securities		35,750		185		28,017		6,925		63,767		7,110
Collateralized mortgage obligations		18,846		225		2,684		152		21,530		377
Subordinated debt		477		23		2,624		126		3,101		149
Total	$	68,512	$	509	$	36,860	$	7,218	$	105,372	$	7,727


	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	December 31, 2025
	(in thousands)
Obligations of U.S. government corporations and agencies	$	5,503	$	16	$	—	$	—	$	5,503	$	16
Mortgage-backed securities		—		—		29,508		6,843		29,508		6,843
Collateralized mortgage obligations		7,116		87		—		—		7,116		87
Subordinated debt		973		28		3,002		248		3,975		276
Total	$	13,592	$	131	$	32,510	$	7,091	$	46,102	$	7,222

The reference point for determining when securities are in an unrealized loss position is month end. As such, it is possible that a security's market value exceeded its amortized cost on other days during the past twelve-month period.

There were 53 and 39 debt securities with a fair value below the amortized cost basis, totaling $105.4 million and $46.1 million of aggregate fair value as of June 30, 2026 and December 31, 2025 respectively. The Company concluded that a credit loss does not exist in its securities portfolio at June 30, 2026 based on the fact that (1) changes in fair value were caused by non-credit-related factors, primarily fluctuations in interest rates, (2) securities with unrealized losses had generally high credit quality, (3) as of June 30, 2026, the Company intends to hold these investments in debt securities to maturity and it is more-likely-than-not that the Company will not be required to sell these investments before a recovery of its investment, and (4) issuers have continued to make timely payments of principal and interest. Additionally, the Company’s mortgage-backed securities, collateralized

mortgage obligations, U.S. treasury securities, and obligations of U.S. government corporations and agencies are entirely issued by either U.S. government agencies or U.S. government-sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such securities will receive timely principal and interest payments.

Securities having carrying values of $4.0 million, $3.0 million and $84.6 million at June 30, 2026 were pledged as security for trust accounts, a deposit relationship and for borrowing capacity at the Federal Reserve Bank ("FRB") discount window, respectively.