Carrying amounts and fair values of securities available for sale and held to maturity are summarized below:


June 30, 2026	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale:
U.S. Treasury	$	25,636	$	—	$	1,860	$	23,776
U.S. government agencies		49,367		83		771		48,679
GSE - Mortgage-backed securities and CMOs		173,604		249		8,729		165,124
Asset-backed securities		19,349		248		52		19,545
State and political subdivisions		110,069		316		11,688		98,697
Corporate bonds		4,000		—		50		3,950
Total securities available for sale	$	382,025	$	896	$	23,150	$	359,771


June 30, 2026	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Securities held to maturity:
State and political subdivisions	$	11,624	$	—	$	1,021	$	10,603	$	—	$	11,624
Corporate bonds		10,300		—		530		9,770		44		10,256
Total securities held to maturity	$	21,924	$	—	$	1,551	$	20,373	$	44	$	21,880


December 31, 2025	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
Securities available for sale:
U.S. Treasury	$	25,753	$	—	$	1,756	$	23,997
U.S. government agencies		45,862		95		729		45,228
GSE - Mortgage-backed securities and CMOs		182,088		839		8,173		174,754
Asset-backed securities		20,726		271		32		20,965
State and political subdivisions		100,843		221		12,178		88,886
Corporate bonds		4,000		—		90		3,910
Total securities available for sale	$	379,272	$	1,426	$	22,958	$	357,740


December 31, 2025	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses		Net Carrying Amount
	(dollars in thousands)
Securities held to maturity:
State and political subdivisions	$	11,692	$	—	$	1,133	$	10,559	$	—	$	11,692
Corporate bonds		10,300		—		651		9,649		45		10,255
Total securities held to maturity	$	21,992	$	—	$	1,784	$	20,208	$	45	$	21,947

The Company owned Federal Reserve Bank (“FRB”) stock reported at cost of $959,000 at June 30, 2026 and December 31, 2025. The Company owned Federal Home Loan Bank (“FHLB”) stock reported at cost of $866,000 and $819,000 at June 30, 2026 and December 31, 2025, respectively. The investments in FRB stock and FHLB stock are required investments related to the Company’s membership in, and borrowings with, these banks and are classified as restricted stock in the consolidated balance sheets. These investments are carried at cost since there is no ready market and redemption has historically been made at par value. The Company estimated that the fair value approximated cost and that these investments were not impaired at June 30, 2026.

There is no allowance for credit losses on available for sale securities. The following table shows a rollforward of the allowance for credit losses on held to maturity securities for the six months ended June 30, 2026.

On a quarterly basis, the Company monitors the credit quality of the debt securities held to maturity through the use of credit ratings. For unrated securities, primarily corporate bonds consisting of subordinated debt of bank holding companies, individual financial reports are reviewed quarterly. Capital, profitability, liquidity and other ratios are reviewed to assist in determining credit quality.

At June 30, 2026, the Company had no securities held to maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held to maturity classified as nonaccrual for the six months ended June 30, 2026.

At June 30, 2026 and December 31, 2025, securities available for sale with a carrying amount of $162.8 million and $167.4 million, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law.

The following tables show the gross unrealized losses and estimated fair value of available for sale securities, for which an allowance has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2026 and December 31, 2025.


	Less than 12 Months						12 Months or More						Total
June 30, 2026	Number of Securities		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(dollars in thousands)
Securities available for sale:
U.S. Treasury		—	$	—	$	—		5	$	23,776	$	1,860	$	23,776	$	1,860
U.S. government agencies		13		16,548		100		31		21,777		671		38,325		771
GSE-Mortgage-backed securities and CMOs		19		46,572		731		53		76,045		7,998		122,617		8,729
Asset-backed securities		4		3,860		26		2		1,861		26		5,721		52
State and political subdivisions		8		13,618		161		57		71,421		11,527		85,039		11,688
Corporate bonds		—		—		—		2		3,950		50		3,950		50
Total securities available for sale		44	$	80,598	$	1,018		150	$	198,830	$	22,132	$	279,428	$	23,150


	Less than 12 Months						12 Months or More						Total
December 31, 2025	Number of Securities		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(dollars in thousands)
Securities available for sale
U.S. Treasury		—	$	—	$	—		5	$	23,997	$	1,756	$	23,997	$	1,756
U.S. government agencies		11		13,378		56		28		18,932		673		32,310		729
GSE-Mortgage-backed securities and CMOs		11		23,048		177		61		94,444		7,996		117,492		8,173
Asset-backed securities		1		466		2		4		4,316		30		4,782		32
State and political subdivisions		4		5,376		113		57		72,704		12,065		78,080		12,178
Corporate bonds		—		—		—		2		3,910		90		3,910		90
Total securities available for sale		27	$	42,268	$	348		157	$	218,303	$	22,610	$	260,571	$	22,958

Declines in the fair value of the available for sale investment portfolio are believed by management to be temporary in nature. When evaluating an investment for credit loss, management considers, among other things, the length of time and extent to which the fair value has been in a loss position; the financial condition of the issuer through the review of credit ratings and, if necessary, corporate financial statements; adverse conditions specifically related to the security such as past due principal or interest; underlying assets that collateralize the debt security; other economic conditions and demographics; and the intent and ability of the Company to hold the investment until the loss position is recovered. Any unrealized losses were largely due to increases in market interest rates over the yields available at the time of purchase. The fair value is expected to recover as the bonds approach their maturity date or market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. At June 30, 2026, the Company did not intend to sell, and believed it was not likely to be required to sell, the available for sale securities that were in a loss position prior to full recovery.

The following tables show contractual maturities of the investment portfolio as of June 30, 2026:


	June 30, 2026
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities available for sale:
Due within twelve months		2,250		2,236		1.12	%
Due after one but within five years		56,799		53,483		1.75	%
Due after five but within ten years		64,633		59,984		2.84	%
Due after ten years		258,343		244,068		3.71	%
	$	382,025	$	359,771		3.26	%


	June 30, 2026
	Amortized Cost		Estimated Fair Value		Book Yield
	(dollars in thousands)
Securities held to maturity:
Due after one but within five years		5,800		5,593		7.66	%
Due after five but within ten years		7,077		6,656		3.36	%
Due after ten years		9,047		8,124		3.37	%
	$	21,924	$	20,373		4.50	%

During the quarter ended June 30, 2026, the Company participated in Visa Inc.’s exchange offer for holders of Visa Class B-1 common stock. The Company exchanged 2,202 shares of Visa Class B-1 common stock for 550 shares of Visa Class B-3 common stock and 633 shares of Visa Class C common stock. In connection with the exchange, the Company received cash in lieu of fractional shares totaling less than $1,000.

The exchanged Visa Class B-1 common stock had no carrying value. The Visa Class B-3 common stock received in the exchange represents a continuation of the Company’s restricted ownership interest and, therefore, no carrying value was assigned to the Class B-3 shares received. Accordingly, the Company recognized a gain of $827,000, which includes the fair value of the Visa Class C common stock received of approximately $826,000 and cash received in lieu of fractional shares. The gain is reflected in realized/unrealized gain (loss) on equity securities in the consolidated statements of income. Following the exchange, the Company’s investment in Visa Class C common stock is carried at fair value, with subsequent changes in fair value recognized in earnings. During the quarter, the Company sold 211 shares of Visa Class C common stock received in the exchange. At June 30, 2026, the Company held 422 shares of Visa Class C common stock.