Note 2 - Investments

6 Months Ended

Jun. 30, 2026

NOTE 2 – INVESTMENTS

The following tables present the amortized costs, unrealized gains, unrealized losses, estimated fair values of securities available-for-sale and held-to-maturity, and the ACL on securities available-for-sale and held-to-maturity at June 30, 2026 and December 31, 2025:

	June 30, 2026
								Estimated
	Amortized		Unrealized		Unrealized			Fair
SECURITIES AVAILABLE-FOR-SALE	Cost		Gains		Losses			Values		ACL
U.S. agency securities	$	20,272	$	63	$	(2,303	)	$	18,032	$	—
Corporate securities		16,000		8		(510	)		15,498		—
Municipal bonds		79,341		5		(9,226	)		70,120		—
Mortgage-backed securities		165,956		585		(9,783	)		156,758		—
Asset-backed securities		9,748		—		(696	)		9,052		—
Total securities available-for-sale		291,317		661		(22,518	)		269,460		—

SECURITIES HELD-TO-MATURITY
Corporate securities		32,989		719		(603	)		33,105		277
Municipal bonds		2,133		—		(55	)		2,078		—
Total securities held-to-maturity		35,122		719		(658	)		35,183		277

Total securities	$	326,439	$	1,380	$	(23,176	)	$	304,643	$	277

	December 31, 2025
								Estimated
	Amortized		Unrealized		Unrealized			Fair
SECURITIES AVAILABLE-FOR-SALE	Cost		Gains		Losses			Values		ACL
U.S. agency securities	$	20,264	$	66	$	(2,203	)	$	18,127	$	—
Corporate securities		16,000		5		(619	)		15,386		—
Municipal bonds		81,156		4		(9,755	)		71,405		—
Mortgage-backed securities		181,849		757		(9,039	)		173,567		—
Asset-backed securities		10,828		1		(647	)		10,182		—
Total securities available-for-sale		310,097		833		(22,263	)		288,667		—

SECURITIES HELD-TO-MATURITY
Corporate securities		31,393		831		(149	)		32,075		277
Municipal bonds		2,108		213		—			2,321		—
Total securities held-to-maturity		33,501		1,044		(149	)		34,396		277

Total securities	$	343,598	$	1,877	$	(22,412	)	$	323,063	$	277

The following table presents the activity in the ACL on securities held-to-maturity by major security type for the three and six months ended June 30, 2026 and 2025:

SECURITIES HELD-TO-MATURITY	For the Three Months Ended June 30,
Corporate Securities	2026		2025
Beginning ACL balance	$	277	$	66
Provision for credit losses		—		154
Total ending ACL balance	$	277	$	220

SECURITIES HELD-TO-MATURITY	For the Six Months Ended June 30,
Corporate Securities	2026		2025
Beginning ACL balance	$	277	$	45
Provision for credit losses		—		175
Total ending ACL balance	$	277	$	220

Management measures expected credit losses on held-to-maturity debt securities on an individual basis. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. There were no changes in credit loss reserves during the period, as there were no changes to the credit loss model and securities balances remained relatively flat. Accrued interest receivable totaled $672,000 and $271,000 on held-to-maturity debt securities and $1.1 million and $1.2 million on available-for-sale debt securities as of June 30, 2026 and December 31, 2025, respectively. Accrued interest receivable on securities is reported in “Accrued interest receivable” on the Consolidated Balance Sheets and is excluded from the calculation of the ACL.

The Company monitors the credit quality of debt securities held-to-maturity quarterly using credit rating, material event notices, and changes in market value. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator:

	June 30,		December 31,
Corporate securities	2026		2025
BBB	$	31,989	$	29,521
BB		1,000		1,872
Municipal bonds
A		2,133		2,108
Total	$	35,122	$	33,501

At June 30, 2026 and December 31, 2025, there were no debt securities held-to-maturity that were classified as either nonaccrual or 90 days or more past due and still accruing interest.

The following table presents, as of June 30, 2026, investment securities which were pledged to secure borrowings, public deposits, or other obligations as permitted or required by law:

	June 30, 2026
Purpose or beneficiary	Carrying Value		Amortized Cost		Fair Value
State and local government public deposits	$	22,618	$	25,618	$	22,618

Investment securities that were in an unrealized loss position at the dates indicated are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position.

	June 30, 2026
	Less than 12 Months					12 Months or Longer					Total
SECURITIES AVAILABLE-FOR-SALE	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. agency securities	$	—	$	—		$	15,968	$	(2,303	)	$	15,968	$	(2,303	)
Corporate securities		—		—			8,490		(510	)		8,490		(510	)
Municipal bonds		775		(4	)		66,101		(9,222	)		66,876		(9,226	)
Mortgage-backed securities		29,377		(592	)		66,152		(9,191	)		95,529		(9,783	)
Asset-backed securities		3,118		(14	)		5,934		(682	)		9,052		(696	)
Total securities available-for-sale		33,270		(610	)		162,645		(21,908	)		195,915		(22,518	)

SECURITIES HELD-TO-MATURITY
Corporate securities		10,945		(531	)		928		(72	)		11,873		(603	)
Municipal bonds		2,078		(55	)		—		—			2,078		(55	)
Total securities held-to-maturity		13,023		(586	)		928		(72	)		13,951		(658	)

Total securities	$	46,293	$	(1,196	)	$	163,573	$	(21,980	)	$	209,866	$	(23,176	)

	December 31, 2025
	Less than 12 Months					12 Months or Longer					Total
SECURITIES AVAILABLE-FOR-SALE	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. agency securities	$	—	$	—		$	16,061	$	(2,203	)	$	16,061	$	(2,203	)
Corporate securities		3,961		(39	)		8,420		(580	)		12,381		(619	)
Municipal bonds		—		—			70,228		(9,755	)		70,228		(9,755	)
Mortgage-backed securities		35,194		(380	)		64,321		(8,659	)		99,515		(9,039	)
Asset-backed securities		3,047		(25	)		6,644		(622	)		9,691		(647	)
Total securities available-for-sale		42,202		(444	)		165,674		(21,819	)		207,876		(22,263	)

SECURITIES HELD-TO-MATURITY
Corporate securities		6,788		(84	)		935		(65	)		7,723		(149	)
Total securities held-to-maturity		6,788		(84	)		935		(65	)		7,723		(149	)

Total securities	$	48,990	$	(528	)	$	166,609	$	(21,884	)	$	215,599	$	(22,412	)

The unrealized losses associated with our investment securities are believed to be caused by changing market conditions and considered to be temporary, and the Company does not intend and is not likely to be required to sell these securities prior to maturity. Management monitors the published credit ratings of the issuers of the debt securities for material ratings or outlook changes. Substantially all the Company’s municipal bond portfolio is comprised of obligations of states and political subdivisions located within the Company’s geographic footprint that are monitored through quarterly or annual financial review utilizing published credit ratings. All the municipal bond securities are investment grade.

All of the available-for-sale mortgage-backed securities and asset-backed securities in an unrealized loss position are issued or guaranteed by government-sponsored enterprises, and the available-for-sale corporate securities are all investment grade and monitored for rating or outlook changes. Based on the Company’s evaluation of these securities, no credit impairment was recorded for the three and six months ended June 30, 2026 and 2025.

The contractual maturities of securities available-for-sale and held-to-maturity at the dates indicated are listed below. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay the obligations; therefore, these securities are classified separately with no specific maturity date.

	June 30, 2026				December 31, 2025
SECURITIES AVAILABLE-FOR-SALE	Amortized		Fair		Amortized		Fair
U.S. agency securities	Cost		Value		Cost		Value
Due after one year through five years	$	4,982	$	4,800	$	4,976	$	4,785
Due after five years through ten years		15,290		13,232		15,288		13,342
Subtotal		20,272		18,032		20,264		18,127
Corporate securities
Due within one year		6,000		5,999		6,000		6,001
Due after one year through five years		8,000		7,934		8,000		7,858
Due after five years through ten years		2,000		1,565		2,000		1,527
Subtotal		16,000		15,498		16,000		15,386
Municipal bonds
Due after one year through five years		1,761		1,659		2,135		2,137
Due after five years through ten years		6,133		5,620		7,080		6,441
Due after ten years		71,447		62,841		71,941		62,827
Subtotal		79,341		70,120		81,156		71,405
Mortgage-backed securities
Federal National Mortgage Association (“FNMA”)		78,516		71,122		82,555		75,492
Federal Home Loan Mortgage Corporation (“FHLMC”)		42,224		41,245		47,170		46,556
Government National Mortgage Association (“GNMA”)		45,216		44,391		52,124		51,519
Subtotal		165,956		156,758		181,849		173,567
Asset-backed securities
Due within one year		459		454		130		129
Due after one year through five years		275		269		743		730
Due after five years through ten years		2,390		2,212		2,598		2,458
Due after ten years		6,624		6,117		7,357		6,865
Subtotal		9,748		9,052		10,828		10,182
Total securities available-for-sale		291,317		269,460		310,097		288,667

SECURITIES HELD-TO-MATURITY
Corporate securities
Due after one year through five years		2,000		1,981		3,000		2,986
Due after five years through ten years		30,989		31,124		26,143		26,839
Due after ten years		—		—		2,250		2,250
Subtotal		32,989		33,105		31,393		32,075
Municipal bonds
Due after ten years		2,133		2,078		2,108		2,321
Total securities held-to-maturity		35,122		35,183		33,501		34,396
Total securities	$	326,439	$	304,643	$	343,598	$	323,063

There were no sales of securities available-for-sale for the three and six months ended June 30, 2026 and 2025.