Securities

6 Months Ended

Jun. 30, 2026

Note 2: Securities

The amortized cost and fair values, together with gross unrealized gains and losses of securities are as follows:


					Gross			Gross
					Unrealized			Unrealized
		Amortized Cost			Gains			Losses			Fair Value
Available-for-sale Securities:
June 30, 2026:
U.S. government agencies		$	2,500		$	—		$	(79)		$	2,421
Subordinated notes			22,400			—			(1,043)			21,357
State and municipal obligations			220,910			1,314			(4,956)			217,268
Total debt securities		$	245,810		$	1,314		$	(6,078)		$	241,046


					Gross			Gross
					Unrealized			Unrealized
		Amortized Cost			Gains			Losses			Fair Value

		(In thousands)
Available-for-sale Securities:
December 31, 2025:
U.S. government agencies		$	2,500		$	—		$	(46)		$	2,454
Subordinated notes			22,400			—			(1,491)			20,909
State and municipal obligations			215,893			800			(5,852)			210,841
Total debt securities		$	240,793		$	800		$	(7,389)		$	234,204

There was no allowance for credit losses at June 30, 2026 or December 31, 2025.

The amortized cost and fair value of available-for-sale securities at June 30, 2026, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


		Amortized			Fair
		Cost			Value

		(In thousands)
Under one year		$	—		$	—
One to five years			3,334			3,281
Five to ten years			41,505			40,375
Over ten years			200,971			197,390
Totals		$	245,810		$	241,046

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $124.4 million and $119.4 million at June 30, 2026 and December 31, 2025, respectively.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at June 30, 2026 was $226.8 million, which represented 94% of the Company’s available-for-sale investment portfolio. The total fair value of these investments at December 31, 2025 was $143.3 million, which represented less than 61% of the Company’s available-for-sale.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary and are a result of an increase in longer term interest rates.

The following tables show the Company’s available for sale securities and the related gross unrealized losses and fair value for which an allowance for credit losses 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:


		June 30, 2026
		Less than 12 Months						12 Months or More						Total
Description of					Unrealized						Unrealized						Unrealized
Securities		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses

		(In thousands)
U.S. Government agencies		$	—		$	—		$	2,421		$	(79)		$	2,421		$	(79)
Subordinated notes			2,931			(69)			18,426			(974)			21,357			(1,043)
State and municipal obligations			59,866			(241)			49,517			(4,715)			109,383			(4,956)
Total temporarily impaired securities		$	62,797		$	(310)		$	70,364		$	(5,768)		$	133,161		$	(6,078)


		December 31, 2025
		Less than 12 Months						12 Months or More						Total
Description of					Unrealized						Unrealized						Unrealized
Securities		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses

		(In thousands)
US government agencies		$	—		$	—		$	2,454		$	(46)		$	2,454		$	(46)
Subordinated notes			1,916			(84)			18,993			(1,407)			20,909			(1,491)
State and municipal obligations			15,587			(135)			104,435			(5,717)			120,022			(5,852)
Total temporarily impaired securities		$	17,503		$	(219)		$	125,882		$	(7,170)		$	143,385		$	(7,389)

The unrealized losses on the Company’s 216 investments in available for sale securities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to require an allowance for credit losses to be recognized as of June 30, 2026 or December 31, 2025.

The Company did not sell any available-for-sale securities for the three and six months ended June 30, 2026. The Company recorded a net gain on the sale of available - for - sale securities of approximately $144,000 for the six months ended June 30, 2025. The Company sold $140,000 in securities for a loss of $2,000 and sold $7.7 million in securities for a gain of $146,000. The Company wanted to rebalance a portion of its security portfolio during the first quarter of 2025. There were no sales of available for sale securities for the three months ended June 30, 2025.