INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2026

Investment securities activity

INVESTMENT SECURITIES

NOTE 5 INVESTMENT SECURITIES

The amortized cost and estimated fair value of available-for-sale (“AFS”) securities as of June 30, 2026 and December 31, 2025 are as follows:

Schedule of securities amortized cost and estimated fair value
						Gross				Gross				Estimated
		Amortized				Unrealized				Unrealized				Fair
(Dollars in thousands)		Cost				Gains				Losses				Value
June 30, 2026
U.S. Treasuries		$	6,077			$	—			$	150			$	5,927
U.S. Government agencies			9,322				30				408				8,944
Municipal securities			24,193				2				4,505				19,690
Corporate bonds			2,500				2				123				2,379
Mortgage-backed securities			51,043				21				5,093				45,971
Collateralized mortgage obligations guaranteed			16,454				9				764				15,699
Total securities available-for-sale		$	109,589			$	64			$	11,043			$	98,610

December 31, 2025
U.S. Treasuries		$	5,597			$	16			$	153			$	5,460
U.S. Government agencies			9,482				49				372				9,159
Municipal securities			24,217				4				4,224				19,997
Corporate bonds			2,500				6				127				2,379
Mortgage-backed securities			50,742				134				4,797				46,079
Collateralized mortgage obligations guaranteed			13,854				70				565				13,359
Total securities available-for-sale		$	106,392			$	279			$	10,238			$	96,433

The following table details unrealized losses and related fair values in the AFS portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2026 and December 31, 2025.

Schedule of fair value and gross unrealized losses on investment securities
		Less than 12 Months								12 Months or More								Total
(Dollars in thousands)		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
June 30, 2026
U.S. Treasuries		$	2,979			$	20			$	1,611			$	130			$	4,590			$	150
U.S. Government agencies			2,100				18				5,358				390				7,458				408
Municipal securities			556				21				18,122				4,484				18,678				4,505
Corporate bonds			—				—				1,877				123				1,877				123
Mortgage-backed securities			8,082				124				32,270				4,969				40,352				5,093
Collateralized mortgage obligations guaranteed			9,774				119				3,299				645				13,073				764
Total		$	23,491			$	302			$	62,537			$	10,741			$	86,028			$	11,043

December 31, 2025
U.S. Treasuries		$	—			$	—			$	4,444			$	153			$	4,444			$	153
U.S. Government agencies			814				1				4,469				371				5,283				372
Municipal securities			946				110				18,036				4,114				18,982				4,224
Corporate bonds			—				—				1,873				127				1,873				127
Mortgage-backed securities			744				5				37,156				4,792				37,900				4,797
Collateralized mortgage obligations guaranteed			3,076				5				3,699				560				6,775				565
Total		$	5,580			$	121			$	69,677			$	10,117			$	75,257			$	10,238

As of June 30, 2026, the available-for-sale portfolio included 211 investments for which the fair market value was less than amortized cost. As of December 31, 2025, the available-for-sale portfolio included 165 investments for which the fair market value was less than amortized cost. Management believes that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions and are not a result of credit deterioration. Management does not plan to sell, and it is not likely that the Bank will be required to sell any of the securities referenced in the table above before recovery of their amortized cost. None of the individual securities are past due as to principal or interest payments and a number of these securities have explicit or implicit payment guarantees. The remaining securities have credit ratings at or above that necessary to be considered “bank qualified.”

Investment securities with a carrying value of $29.8 million and $32.5 million as of June 30, 2026 and December 31, 2025, respectively, were pledged as collateral to secure public deposits and for other purposes required or permitted by law.

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

The amortized cost and fair value of investment securities as of June 30, 2026, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Schedule of amortized cost and fair value of investment securities contractual maturity
										Weighted
(Dollars in thousands)		Amortized				Fair				Average
Securities Available-for-Sale		Cost				Value				Yield
Due in one year or less		$	3,435			$	3,397				1.75	%
Due after one year through five years			12,630				12,220				3.21	%
Due after five years through ten years			32,935				30,697				2.90	%
Due after ten years			60,589				52,296				2.73	%
Total		$	109,589			$	98,610				2.88	%

The Bank, as a member bank of the Federal Reserve Bank of Richmond (“Federal Reserve Bank”) and the Federal Home Loan Bank of Atlanta (FHLB), is required to hold stock in each. The Bank also owns stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities are restricted from trading and are recorded at a cost of $2.6 million as of June 30, 2026 and December 31, 2025. The stock has no quoted market value and no ready market exists. When evaluating these securities for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Equity securities are viewed as long-term investments and management believes the Company has the ability and the intent to hold these securities until their value is recovered.