v3.26.1
Securities
 6 Months Ended
Jun. 30, 2026
Securities [Abstract]  
Securities
NOTE 3 – Securities

The following table summarizes the amortized cost and fair value of the available-for-sale investment securities portfolios as of the dates indicated and the corresponding amounts of unrealized gains and losses which were recognized in accumulated other comprehensive loss:

   
 
Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

  
Fair Value
 
(In thousands)
  
June 30, 2026
      
Federal agency mortgage-backed securities
  
$
161,575
    
$
180
    
$
(8,023
)
  
$
153,732
  
Federal agency collateralized mortgage obligations (“CMO”)
    
99,591
      
294
      
(913
)
    
98,972
  
Federal agency debt
    
24,426
      
14
      
(756
)
    
23,684
  
Municipal bonds
    
4,749
      
-
      
(230
)
    
4,519
  
U.S. Small Business Administration (“SBA”) pools
    
8,702
      
3
      
(1,100
)
    
7,605
  
Asset-backed securities
    
8,638
      
3
      
(63
)
    
8,578
  
Corporate bonds
    
30,000
      
101
      
(161
)
    
29,940
  
Total available-for-sale securities
  
$
337,681
    
$
595
    
$
(11,246
)
  
$
327,030
  
December 31, 2025:
      
Federal agency mortgage-backed securities
  
$
120,372
    
$
1,109
    
$
(7,051
)
  
$
114,430
  
Federal agency CMOs
    
69,742
      
367
      
(652
)
    
69,457
  
Federal agency debt
    
29,259
      
-
      
(846
)
    
28,413
  
Municipal bonds
    
4,766
      
-
      
(244
)
    
4,522
  
U. S. Treasuries
    
4,993
      
-
      
(6
)
    
4,987
  
SBA pools
    
9,387
      
3
      
(1,115
)
    
8,275
  
Asset-backed securities
    
9,352
      
3
      
(86
)
    
9,269
  
Corporate bonds
    
17,500
      
57
      
(75
)
    
17,482
  
Total available-for-sale securities
  
$
265,371
    
$
1,539
    
$
(10,075
)
  
$
256,835
  
 
As of June 30, 2026, securities with a fair value of $85.7 million were pledged as collateral for securities sold under agreements to repurchase, securities with a market value of $7.3 million were pledged as collateral for D.C. Housing, securities with a market value of $4.1 million were pledged as collateral for D.C. Government, and securities with a market value of $127 thousand were pledged as collateral for FRB discount window.

As of December 31, 2025, securities with a fair value of $83.7 million were pledged as collateral for securities sold under agreements to repurchase, securities with a market value of $7.7 million were pledged as collateral for D.C. Housing, securities with a market value of $4.2 million were pledged as collateral for D.C. Government, and securities with a market value of $157 thousand were pledged as collateral for FRB discount window.

Accrued interest receivable on securities was $1.1 million and $745 thousand at June 30, 2026 and December 31, 2025, respectively, and is included in accrued interest receivable on the consolidated statements of financial condition.

At June 30, 2026, and December 31, 2025, there were no holdings of securities by any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

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

Gross
Unrealized
Gains

Gross
Unrealized
Losses

  

Fair Value
   
(In thousands)
  
Due in one year or less
  
$
9,013
    
$
-
    
$
(164
)
  
$
8,849
  
Due after one year through five years
    
21,728
      
2
      
(867
)
    
20,863
  
Due after five years through ten years
    
43,787
      
95
      
(997
)
    
42,885
  
Due after ten years
    
263,153
      
498
      
(9,218
)
    
254,433
  
   
$
337,681
    
$
595
    
$
(11,246
)
  
$
327,030
  

The table below indicates the length of time individual securities have been in a continuous unrealized loss position:

   
Less than 12 Months

12 Months or Longer

Total
  
  
 
Fair Value

Unrealized
Losses

 
Fair Value

Unrealized
Losses

 
Fair Value

Unrealized
Losses
  
June 30, 2026
  
(In thousands)
  
Federal agency mortgage-backed securities
  
$
84,940
    
$
(891
)
  
$
44,117
    
$
(7,132
)
  
$
129,057
    
$
(8,023
)
Federal agency CMOs
    
37,525
      
(161
)
    
12,385
      
(752
)
    
49,910
      
(913
)
Federal agency debt
    
2,509
      
(2
)
    
18,121
      
(754
)
    
20,630
      
(756
)
Municipal bonds
    
-
      
-
      
4,519
      
(230
)
    
4,519
      
(230
)
SBA pools
    
180
      
(1
)
    
7,001
      
(1,099
)
    
7,181
      
(1,100
)
Asset-backed securities
    
6,702
      
(63
)
    
-
      
-
      
6,702
      
(63
)
Corporate bonds
    
13,339
      
(161
)
    
-
      
-
      
13,339
      
(161
)
Total unrealized loss position investment securities
  
$
145,195
    
$
(1,279
)
  
$
86,143
    
$
(9,967
)
  
$
231,338
    
$
(11,246
)
                                                 
December 31, 2025
      
Federal agency mortgage-backed securities
  
$
7,197
    
$
(26
)
  
$
47,717
    
$
(7,025
)
  
$
54,914
    
$
(7,051
)
Federal agency CMOs
    
1,488
      
(2
)
    
14,804
      
(650
)
    
16,292
      
(652
)
Federal agency debt
    
2,512
      
(3
)
    
25,901
      
(843
)
    
28,413
      
(846
)
Municipal bonds
    
-
      
-
      
4,522
      
(244
)
    
4,522
      
(244
)
U. S. Treasuries
    
-
      
-
      
4,987
      
(6
)
    
4,987
      
(6
)
SBA pools
    
185
      
(1
)
    
7,621
      
(1,114
)
    
7,806
      
(1,115
)
Asset-backed securities
    
7,208
      
(86
)
    
-
      
-
      
7,208
      
(86
)
Corporate bonds
    
7,425
      
(75
)
    
-
      
-
      
7,425
      
(75
)
Total unrealized loss position investment securities
  
$
26,015
    
$
(193
)
  
$
105,552
    
$
(9,882
)
  
$
131,567
    
$
(10,075
)
At June 30, 2026, and December 31, 2025, all securities in the portfolio were current with their contractual principal and interest payments. At June 30, 2026, and December 31, 2025, there were no securities purchased with deterioration in credit quality since their origination. At June 30, 2026, and December 31, 2025, there were no collateral dependent securities.

The Company’s assessment of available-for-sale investment securities as of June 30, 2026 and December 31, 2025, indicated that an ACL was not required. The Company analyzed available-for-sale investment securities that were in an unrealized loss position and determined the decline in fair value for those securities was not related to credit, but rather related to changes in interest rates and general market conditions. As such, no ACL was recorded for available-for-sale securities as of June 30, 2026 or December 31, 2025. At June 30, 2026 and December 31, 2025, approximately 90% of the securities held by the Company were issued by U.S. government-sponsored entities and agencies. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not have the intent to sell these securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company did not record a provision for expected credit loss during the three or six months ended June 30, 2026 or 2025.