The amortized cost and estimated fair value of securities available for sale along with gross unrealized gains and losses as of the dates indicated are summarized as follows:


June 30, 2026	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government agencies and corporations	$	190,735	$	-	$	20,599	$	170,136
States and political subdivisions		177,135		-		24,406		152,729
Mortgage-backed securities		329,651		353		4,173		325,831
Corporate debt securities		4,502		-		538		3,964
Total securities available for sale	$	702,023	$	353	$	49,716	$	652,660


December 31, 2025	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government agencies and corporations	$	312,353	$	-	$	24,298	$	288,055
States and political subdivisions		177,453		-		23,736		153,717
Mortgage-backed securities		210,918		129		3,406		207,641
Corporate debt securities		5,505		-		541		4,964
Total securities available for sale	$	706,229	$	129	$	51,981	$	654,377

The following tables present information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that the individual securities have been in a continuous loss position, as of the dates indicated:


	Less Than 12 Months				12 Months or More
June 30, 2026	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. government agencies and corporations	$	1,986	$	14	$	168,150	$	20,585
State and political subdivisions		2,797		378		149,548		24,028
Mortgage-backed securities		187,949		1,796		36,248		2,377
Corporate debt securities		-		-		3,964		538
Total temporarily impaired securities	$	192,732	$	2,188	$	357,910	$	47,528


	Less Than 12 Months				12 Months or More
December 31, 2025	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. government agencies and corporations	$	-	$	-	$	288,055	$	24,298
State and political subdivisions		1,680		364		151,652		23,372
Mortgage-backed securities		55,986		223		99,446		3,183
Corporate debt securities		-		-		4,964		541
Total temporarily impaired securities	$	57,666	$	587	$	544,117	$	51,394

The Company evaluates securities available for sale that are in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value.

At June 30, 2026, the Company had 410 securities with a fair value of $550,642 in an unrealized loss position. The Company reviews securities in an unrealized loss position to evaluate credit risk. The Company considers payment history, risk ratings from external parties, financial statements for municipal and corporate securities, public statements from issuers and other available credible published sources in evaluating credit risk. No credit losses were identified and no ACL on securities available for sale was recorded as of June 30, 2026. The unrealized losses are attributed to noncredit-related factors, including changes in interest rates and other market conditions. The Company does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The contractual terms of the investments do not permit the

issuers to settle the securities at a price less than the cost basis of the investments. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline.

The amortized cost and fair value of securities available for sale at June 30, 2026, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities included in these totals are categorized by final maturity.


June 30, 2026	Amortized Cost		Fair Value
Available for Sale:
Due in one year or less	$	20,517	$	20,305
Due after one year through five years		130,924		119,640
Due after five years through ten years		178,222		154,468
Due after ten years		372,360		358,247
Total securities available for sale	$	702,023	$	652,660

Accrued interest receivable on securities, included in accrued interest receivable on the Consolidated Balance Sheets, totaled $3,249 at June 30, 2026 and $3,177 at December 31, 2025.

The deferred tax asset for the net unrealized loss on securities available for sale was $10,366 as of June 30, 2026 and $10,889 as of December 31, 2025. The deferred tax asset is included in other assets on the Consolidated Balance Sheets.

During 2026, the Company realized a loss of $6,549 on the sale securities under a restructuring plan to manage interest rate risk. No securities were sold in 2025. Information pertaining to realized losses on sold securities follows:

The Company held restricted stock of $1,872 as of June 30, 2026 and $1,848 as of December 31, 2025. Restricted stock is reported separately from available for sale securities and is included in other assets on the Consolidated Balance Sheets. As a member of the Federal Reserve and the Federal Home Loan Bank of Atlanta (“FHLB”), NBB is required to maintain certain minimum investments in the common stock of those entities. Required levels of investment are based upon NBB’s capital and a percentage of qualifying assets. The Company purchases stock from or sells stock back to the correspondents based on their calculations. The stock is held by member institutions only and is not actively traded.

Redemption of FHLB stock is subject to certain limitations and conditions. At its discretion, the FHLB may declare dividends on the stock. In addition to dividends, NBB also benefits from its membership with FHLB through eligibility to borrow from the FHLB, using as collateral NBB’s capital stock investment in the FHLB and qualifying NBB real estate mortgage loans totaling $504,596 at June 30, 2026. The Company’s management reviews for impairment based upon the ultimate recoverability of the cost basis of the FHLB stock, and at June 30, 2026, did not determine any impairment.