The amortized cost, unrealized gains and losses, allowance for credit losses, and estimated fair values of investment securities are summarized as follows as of the dates indicated:


	June 30, 2026
(Dollars in thousands)	Amortized		Unrealized		Unrealized			Allowance for		Fair
	Cost		Gains		Losses			Credit Losses		Value
Available for sale securities:
Mortgage-backed U.S. government agencies	$	113,068	$	123	$	(2,497	)	$	-	$	110,694
Other mortgage-backed securities		4,470		-		(146	)		-		4,324
Total	$	117,538	$	123	$	(2,643	)	$	-	$	115,018


	December 31, 2025
(Dollars in thousands)	Amortized		Unrealized		Unrealized			Allowance for		Fair
	Cost		Gains		Losses			Credit Losses		Value
Available for sale securities:
Mortgage-backed U.S. government agencies	$	66,440	$	624	$	(646	)	$	-	$	66,418
Other mortgage-backed securities		4,621		-		(1	)		-		4,620
Total	$	71,061	$	624	$	(647	)	$	-	$	71,038

Accrued interest receivable is excluded from the estimate of credit losses for available for sale securities. At June 30, 2026, accrued interest receivable totaled $285 thousand for available for sale securities, and was reported in other assets on the Company’s consolidated balance sheets. At December 31, 2025, accrued interest receivable totaled $189 thousand for available for sale securities, and was reported in accrued interest receivable on the Company’s consolidated balance sheets.

There were no gross realized gains or losses from the sale of available for sale securities during the three or six months ended June 30, 2026 or 2025.

The fair value of investment securities pledged as collateral for potential borrowing purposes (see Note 7) totaled $110.7 million at June 30, 2026 and $66.5 million at December 31, 2025.

The table below illustrates the maturity distribution of investment securities at amortized cost and fair value as of June 30, 2026:


(Dollars in thousands)	June 30, 2026
	Available for Sale
	Amortized Cost		Fair Value
Due in one year or less	$	-	$	-
Due after one but within five years		-		-
Due after five years but within ten years		-		-
Due after ten years		-		-
Mortgage-backed securities		117,538		115,018
Total	$	117,538	$	115,018

The actual maturities of mortgage-backed securities may differ from their contractual maturities because the loans underlying the securities may be repaid without any penalties. Therefore, maturity schedules are not presented for mortgage-backed securities.

The following tables present gross unrealized losses and fair value of debt security investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated.


	June 30, 2026
	Less Than 12 Months					12 Months or More					Total
(Dollars in thousands)	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Available for sale securities:
Mortgage-backed U.S. government agencies	21	$	87,015	$	2,028	11	$	8,326	$	469	32	$	95,341	$	2,497
Other mortgage-backed securities	1		88		1	1		4,236		145	2		4,324		146
Available for sale securities with gross unrealized losses	22	$	87,103	$	2,029	12	$	12,562	$	614	34	$	99,665	$	2,643


	December 31, 2025
	Less Than 12 Months					12 Months or More					Total
	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Available for sale securities:
Mortgage-backed U.S. government agencies	7	$	20,493	$	130	9	$	13,157	$	437	16	$	33,650	$	567
Other mortgage-backed securities	0		-		-	2		4,515		80	2		4,515		80
Available for sale securities with gross unrealized losses	7	$	20,493	$	130	9	$	17,672	$	517	16	$	38,165	$	647

Management believes the unrealized losses related to available for sale securities as of June 30, 2026 relate primarily to a continuation of the elevated market interest rate environment. The principal and interest payments on agency-guaranteed debt is backed by the U.S. government. Government-sponsored enterprises similarly guaranteed principal and interest payments and securities backed by government-sponsored enterprises carry an implicit guarantee from the U.S. Department of Treasury. In analyzing an issuer’s financial condition, Management considers whether downgrades by bond rating agencies have occurred and reviews various industry analysis reports. There were no Company securities downgraded during each of the three or six-month periods ended June 30, 2026 or 2025. Management currently has no near-term intentions to sell the available for sale securities in an unrealized loss position, and management believes the unrealized losses are due to non-credit-related factors, including changes in market interest rates and other market factors, and therefore no allowance for credit losses was recorded related to available for sale securities as of June 30, 2026 or December 31, 2025.