v3.26.1
Securities (Tables)
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Schedule of AFS Securities

AFS securities at June 30, 2026 and December 31, 2025 consisted of the following:

 

 

 

June 30, 2026

 

(dollars in thousands)

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

 

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

Agencies

 

$

275

 

 

$

—

 

 

$

—

 

 

$

275

 

Corporate securities

 

 

2,233

 

 

 

3

 

 

 

116

 

 

 

2,120

 

Mortgage-backed securities

 

 

24,462

 

 

 

11

 

 

 

1,518

 

 

 

22,955

 

Treasuries

 

 

6,872

 

 

 

—

 

 

 

4

 

 

 

6,868

 

Total

 

$

33,842

 

 

$

14

 

 

$

1,638

 

 

$

32,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

(dollars in thousands)

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

Agencies

 

$

404

 

 

$

—

 

 

$

—

 

 

$

404

 

Corporate securities

 

 

1,482

 

 

 

—

 

 

 

121

 

 

 

1,361

 

Mortgage-backed securities

 

 

20,570

 

 

 

19

 

 

 

1,473

 

 

 

19,116

 

Treasuries

 

 

12,329

 

 

 

16

 

 

 

—

 

 

 

12,345

 

Total

 

$

34,785

 

 

$

35

 

 

$

1,594

 

 

$

33,226

 

 
Schedule of HTM securities

HTM securities at June 30, 2026 and December 31, 2025 consisted of the following:

 

 

 

June 30, 2026

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

Amortized

 

 

Unrecognized

 

 

Unrecognized

 

 

Fair

 

(dollars in thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

 

 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities(1)

 

$

3,199

 

 

$

—

 

 

$

120

 

 

$

3,079

 

Mortgage-backed securities

 

 

2,448

 

 

 

2

 

 

 

446

 

 

 

2,004

 

Total

 

$

5,647

 

 

$

2

 

 

$

566

 

 

$

5,083

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

Amortized

 

 

Unrecognized

 

 

Unrecognized

 

 

Fair

 

(dollars in thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

 

 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities(1)

 

$

3,198

 

 

$

—

 

 

$

200

 

 

$

2,998

 

Mortgage-backed securities

 

 

2,538

 

 

 

4

 

 

 

438

 

 

 

2,104

 

Total

 

$

5,736

 

 

$

4

 

 

$

638

 

 

$

5,102

 

 

(1) Amount is net of Current Expected Credit Loss ("CECL") credit reserve of $1,000 at June 30, 2026 and $2,000 at December 31, 2025.
Schedule of Contractual Maturities Securities The amortized cost and fair value of securities as of June 30, 2026 and December 31, 2025, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without prepayment penalties.

 

 

 

June 30, 2026

 

 

 

Available for sale

 

 

Held to maturity

 

 

 

Amortized

 

 

Fair

 

 

Amortized

 

 

Fair

 

(dollars in thousands)

 

cost

 

 

value

 

 

cost

 

 

value

 

 

 

 

 

Maturing

 

 

 

 

 

 

 

 

 

 

 

 

Due under one year

 

$

21,468

 

 

$

21,433

 

 

$

3,329

 

 

$

3,211

 

Due after one year through five years

 

 

2,269

 

 

 

2,155

 

 

 

70

 

 

 

67

 

Due after five years through ten years

 

 

590

 

 

 

556

 

 

 

254

 

 

 

243

 

Due after ten years

 

 

9,515

 

 

 

8,074

 

 

 

1,994

 

 

 

1,562

 

Total

 

$

33,842

 

 

$

32,218

 

 

$

5,647

 

 

$

5,083

 
Schedule of Investment Securities with Unrealized Loss

Investment securities with unrealized losses for continuous periods of less than 12 months and 12 months or longer are as follows:

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

June 30, 2026

 

losses

 

 

value

 

 

losses

 

 

value

 

 

losses

 

 

value

 

(dollars in thousands)

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities

 

$

8

 

 

$

492

 

 

$

108

 

 

$

875

 

 

$

116

 

 

$

1,367

 

Mortgage-backed securities

 

 

25

 

 

 

8,377

 

 

 

1,493

 

 

 

13,222

 

 

 

1,518

 

 

 

21,599

 

Treasuries

 

 

4

 

 

 

6,867

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

6,867

 

Total

 

$

37

 

 

$

15,736

 

 

$

1,601

 

 

$

14,097

 

 

$

1,638

 

 

$

29,833

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities (1)

 

$

—

 

 

$

—

 

 

$

120

 

 

$

3,080

 

 

 

120

 

 

 

3,080

 

Mortgage-backed securities

 

 

1

 

 

 

52

 

 

 

444

 

 

 

1,778

 

 

 

446

 

 

 

1,830

 

Total

 

$

1

 

 

$

52

 

 

$

564

 

 

$

4,858

 

 

$

566

 

 

$

4,910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 months

 

 

12 months or longer

 

 

Total

 

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

December 31, 2025

 

losses

 

 

value

 

 

losses

 

 

value

 

 

losses

 

 

value

 

(dollars in thousands)

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency securities

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Corporate securities

 

 

11

 

 

 

489

 

 

 

110

 

 

 

872

 

 

 

121

 

 

 

1,361

 

Mortgage-backed securities

 

 

1

 

 

 

564

 

 

 

1,472

 

 

 

14,076

 

 

 

1,473

 

 

 

14,640

 

Total

 

$

12

 

 

$

1,053

 

 

$

1,582

 

 

$

14,948

 

 

$

1,594

 

 

$

16,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities (1)

 

$

—

 

 

$

—

 

 

$

200

 

 

$

2,998

 

 

$

200

 

 

$

2,998

 

Mortgage-backed securities

 

 

—

 

 

 

1

 

 

 

438

 

 

 

1,895

 

 

 

438

 

 

 

1,896

 

Total

 

$

—

 

 

$

1

 

 

$

638

 

 

$

4,893

 

 

$

638

 

 

$

4,894

 

 

(1) Fair value amount is net of CECL credit reserve of $1,000 at June 30, 2026 and $2,000 at December 31, 2025.
Schedule of Credit Ratings of HTM Debt Securities

We monitor the credit quality of HTM debt securities through both internal analysis performed on a quarterly basis and credit ratings when available. The following table reflects the credit ratings for the HTM debt securities at June 30, 2026.

 

(dollars in thousands)

 

AAA

 

 

A-

 

 

BBB/BBB+

 

 

BBB-

 

 

Not Rated

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities

 

$

—

 

 

$

500

 

 

$

1,249

 

 

$

700

 

 

$

750

 

 

$

3,199

 

Mortgage-backed securities

 

 

2,448

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,448

 

 

$

2,448

 

 

$

500

 

 

$

1,249

 

 

$

700

 

 

$

750

 

 

$

5,647

 

 

 

The following table provides a breakdown of our HTM debt securities by year of origination at June 30, 2026.

 

(dollars in thousands)

 

Total

 

 

2026

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

Prior

 

Corporate securities

 

$

3,199

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

750

 

 

$

2,449

 

Mortgage-backed securities

 

 

2,448

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,774

 

 

 

674

 

 

$

5,647

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2,524

 

 

$

3,123

 

 

 
Summary of ACL on HTM Debt Securities

The following table is a roll forward of our ACL on HTM debt securities at June 30, 2026 and 2025.

 

(dollars in thousands)

 

Three Months Ended June 30, 2026

 

 

Three Months Ended June 30, 2025

 

 

Six Months Ended June 30, 2026

 

 

Six Months Ended June 30, 2025

 

Beginning balance

 

$

1

 

 

$

3

 

 

$

2

 

 

$

4

 

(Recovery) for credit losses

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(1

)

Ending Balance

 

$

1

 

 

$

3

 

 

$

1

 

 

$

3