Note 2 - Securities Available for Sale

6 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Investment in Debt and Equity Securities and Other Trading Assets [Text Block]

Note 2: Securities Available for Sale

The amortized cost and estimated fair value of debt securities at June 30, 2026 and December 31, 2025, by contractual maturity, are shown below. The accrued interest receivable for securities available for sale was $315,000 and $326,000 on June 30, 2026 and December 31, 2025, respectively. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties, therefore, these securities have been included in the below table based on average remaining life.

June 30, 2026		*U.S. Treasury notes*				*U.S. government agency obligations*				*Municipal obligations*				*Mortgage-backed residential obligations*				*Collateralized mortgage obligations*				*Total available-for-sale*
		(Dollars in thousands)
1 year or less		$	1,001			$	—			$	119			$	—			$	5,728			$	6,848
1 to 5 years			6,019				7,785				1,206				8,006				13,355				36,371
5 to 10 years			—				368				4,622				13,192				4,590				22,772
After 10 years			—				—				6,081				553				2,002				8,636
Fair value			7,020				8,153				12,028				21,751				25,675				74,627
Gross unrealized gains			—				—				—				—				—				—
Gross unrealized losses			(87	)			(718	)			(1,842	)			(3,099	)			(2,620	)			(8,366	)
Amortized cost		$	7,107			$	8,871			$	13,870			$	24,850			$	28,295			$	82,993

December 31, 2025		U.S. Treasury notes				U.S. government agency obligations				Municipal obligations				Mortgage-backed residential obligations				Collateralized mortgage obligations				Total available-for-sale
		(Dollars in thousands)
1 year or less		$	—			$	—			$	198			$	—			$	1,412			$	1,610
1 to 5 years			7,085				7,208				1,202				8,860				17,757				42,112
5 to 10 years			—				1,326				3,642				14,336				5,918				25,222
After 10 years			—				—				7,104				573				2,098				9,775
Fair value		$	7,085			$	8,534			$	12,146			$	23,769			$	27,185			$	78,719
Gross unrealized gains			4				—				—				—				1				5
Gross unrealized losses			(7	)			(685	)			(1,829	)			(2,990	)			(2,552	)			(8,063	)
Amortized cost		$	7,088			$	9,219			$	13,975			$	26,759			$	29,736			$	86,777

As of June 30, 2026, and December 31, 2025, no securities were pledged to secure public deposits or for other purposes as required or permitted by law.

Information pertaining to securities with gross unrealized losses at June 30, 2026 and December 31, 2025, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows:

		*Less than 12 Months*								*12 Months or Longer*								*Total*
		(Dollars in thousands)
		*Fair*				*Unrealized*				*Fair*				*Unrealized*				*Fair*				*Unrealized*
		*Value*				*Losses*				*Value*				*Losses*				*Value*				*Losses*
June 30, 2026
U.S. Treasury notes		$	7,020			$	87			$	—			$	—			$	7,020			$	87
U.S. government agency obligations			986				14				7,167				704				8,153				718
Municipal obligations			—				—				12,028				1,842				12,028				1,842
Mortgage-backed residential obligations			—				—				21,751				3,099				21,751				3,099
Collateralized mortgage obligations			2,465				49				23,210				2,571				25,675				2,620
Total		$	10,471			$	150			$	64,156			$	8,216			$	74,627			$	8,366
December 31, 2025
U.S. Treasury notes		$	2,990			$	7			$	—			$	—			$	2,990			$	7
U.S. government agency obligations			1,000				1				7,534				684				8,534				685
Municipal obligations			—				—				12,146				1,829				12,146				1,829
Mortgage-backed residential obligations			—				—				23,769				2,990				23,769				2,990
Collateralized mortgage obligations			1,530				24				24,654				2,528				26,184				2,552
Total		$	5,520			$	32			$	68,103			$	8,031			$	73,623			$	8,063

At June 30, 2026 and December 31, 2025, many of the investment securities were in unrealized loss positions. There were no securities with identified credit losses at June 30, 2026 and December 31, 2025, respectively. Unrealized losses have not been recognized into income because, based on management's evaluation, the decline in fair value is largely due to increased market rates, temporary market conditions and trading spreads, and, as such, are considered to be temporary by the Bank. In addition, management has the intent and ability to hold the securities until they mature or they recover their carrying values.

All U.S. government agency obligations, mortgage-based residential obligations and collateralized mortgage obligations are agency-issued or government-sponsored enterprise issued. Agency-issued securities are generally guaranteed by a U.S. government agency, such as the Government National Mortgage Association. Government-sponsored enterprises, such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, or the Small Business Administration, have either a direct or implied guarantee by the U.S. government.

The Bank holds two classifications of municipal bonds, general obligation bonds and revenue bonds. General obligation bonds are backed by the general revenue of the issuing municipality, while revenue bonds are supported by a specific revenue source. All general obligation and revenue bonds have a bond rating of investment grade by Standard and Poor's or Moody's Investor Services or are not rated. There have been no declines in investment grades on bonds in a loss position and, as of June 30, 2026, all municipal bonds are paying as agreed.

There were no sales of securities available-for-sale during the six months ended June 30, 2026 and 2025.