v3.26.1
Available-for-Sale Securities
 6 Months Ended
Jun. 30, 2026
Investments [Abstract]  
Available-for-Sale Securities Available-for-Sale Securities
The amortized cost, gross unrealized gains, gross unrealized losses and fair values of available-for-sale securities at June 30, 2026 and December 31, 2025 are as follows:
(In thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
June 30, 2026
Government sponsored enterprise "GSE" debentures18,859 — (3,498)15,361 
U. S. Government agency mortgage-backed-securities195,814 — (8,910)186,905 
GSE mortgage-backed-securities22,706 — (4,866)17,840 
Total mortgage-backed-securities218,520 — (13,776)204,745 
Corporate bonds15,997 — (2,844)13,153 
Subordinated notes4,000 — (139)3,861 
SBA loan pools3,931 — (705)3,226 
Total available-for-sale securities$261,307 $— $(20,961)$240,345 
December 31, 2025:
Government sponsored enterprise "GSE" debentures18,850 — (3,392)15,458 
U. S. Government agency mortgage-backed-securities150,821 — (5,073)145,748 
GSE mortgage-backed-securities47,557 215 (4,909)42,863 
Total mortgage-backed-securities198,377 215 (9,982)188,610 
Corporate bonds15,996 — (2,533)13,464 
Subordinated notes4,000 — (248)3,752 
SBA loan pools4,146 — (752)3,393 
Total available-for-sale securities$241,370 $215 $(16,908)$224,677 
The following table presents the available-for-sale securities’ gross unrealized losses and fair value, aggregated by the length of time the individual securities have been in a continuous loss position as of June 30, 2026 and December 31, 2025:
(In thousands)Less than 12 Months12 Months or MoreTotal
Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Fair Value Unrealized (Loss)
June 30, 2026
Government sponsored enterprise "GSE" debentures$— $— $15,361 $(3,498)$15,361 $(3,498)
U. S. Government agency mortgage-backed-securities161,792 (4,336)25,112 (4,573)186,905 (8,910)
GSE mortgage-backed-securities— — 17,840 (4,866)17,840 (4,866)
Total mortgage-backed-securities161,792 (4,336)42,953 (9,439)204,745 (13,776)
Corporate bonds— — 13,153 (2,844)13,153 (2,844)
Subordinated notes— — 3,861 (139)3,861 (139)
SBA loan pools— — 3,226 (705)3,226 (705)
Total available-for-sale securities$161,792 $(4,336)$78,553 $(16,625)$240,345 $(20,961)
December 31, 2025:
Government sponsored enterprise "GSE" debentures$— $— $15,458 $(3,392)$15,458 $(3,392)
U. S. Government agency mortgage-backed-securities119,770 (855)25,986 (4,218)145,756 (5,073)
GSE mortgage-backed-securities4,452 (61)18,778 (4,848)23,230 (4,909)
Total mortgage-backed-securities124,222 (917)44,764 (9,066)168,986 (9,982)
Corporate bonds— — 13,464 (2,533)13,464 (2,533)
Subordinated notes— — 3,752 (248)3,752 (248)
SBA loan pools— — 3,393 (752)3,393 (752)
Total available-for-sale securities$124,222 $(917)$80,831 $(15,991)$205,052 $(16,908)

As of June 30, 2026, all fifty-eight available-for-sale securities were in an unrealized loss position, with an aggregate depreciation of 8.0% from amortized cost. As of December 31, 2025, fifty-five of sixty available-for-sale securities were in an unrealized loss position, with an aggregate depreciation of 7.6% from amortized cost.
At June 30, 2026 and December 31, 2025, no allowance for credit losses has been recognized on available-for-sale debt securities in an unrealized loss position as the Company does not believe any of the debt securities are credit impaired. This is based on the Company’s analysis of the risk characteristics, including credit ratings, and other qualitative factors related to available-for-sale debt securities. The issuers of these debt securities continue to make timely principal and interest payments under the contractual terms of the securities. The Company does not intend to sell these debt securities and it is more likely than not that the Company will not be required to sell the debt securities before recovery of their amortized cost, which may be at maturity. The unrealized losses are due to increases in market interest rates over the yields available at the time the debt securities were purchased.
With regard to U.S. mortgage-backed securities and municipal bonds issued by the U.S. government, or agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost basis of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities.
With regard to corporate bonds, management considers (i) issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, and (iv) internal forecasts. Securities under the U.S. Small Business Administration (“SBA”) government guaranteed loan pools program were purchased at a premium and the impairment was attributable primarily to increased prepayment speeds. The timely payment of principal and interest on these securities is guaranteed by the U.S. Government agency. The contractual terms of the subordinated notes do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Furthermore, as of June 30, 2026, there were no past due principal or interest payments associated with these securities. Based
upon (i) the issuer’s strong bond ratings and (ii) a zero historical loss rate, no allowance for credit losses has been recorded for available-for-sale securities. All debt securities in an unrealized loss position continue to perform as scheduled and the Company does not believe there is a possible credit loss or that an allowance for credit loss on these debt securities is necessary.
As of June 30, 2026 and December 31, 2025, available-for-sale securities of $132.7 million and $15.1 million, respectively, were pledged to either the Federal Home Loan Bank (“FHLB”) or Federal Reserve Bank (“FRB”). The securities were pledged primarily to secure borrowings from the FHLB and/or FRB.
The following summarizes, by class and contractual maturity, the amortized cost and estimated fair value of available-for-sale debt securities held as of June 30, 2026 and December 31, 2025. The mortgages underlying the mortgage-backed securities are not due at a single maturity date. Additionally, these mortgages often are and generally may be pre-paid without penalty, creating a degree of uncertainty that such investments can be held until maturity. For convenience, mortgage-backed securities have been included in the summary as a separate line item.
(In thousands)Amortized CostFair Value
Due
Within
5 years		Due After
5 years
through
10 years		Due
After
10 years		TotalDue
Within
5 years		Due After
5 years
through
10 years		Due
After
10 years		Total
June 30, 2026
Corporate bonds$15,997 $— $— $15,997 $13,153 $— $— $13,153 
Subordinated notes3,000 1,000 — 4,000 2,919 941 — 3,861 
SBA loan pools— — 3,931 3,931 — — 3,226 3,226 
Government sponsored enterprise "GSE" debentures— 8,869 9,990 18,859 — 7,339 8,021 15,361 
Total debt securities18,997 9,869 13,921 42,787 16,072 8,280 11,247 35,601 
U. S. Government agency mortgage-backed-securities$— $— $195,814 $195,814 $— $— $186,905 $186,905 
GSE mortgage-backed-securities$— $173 $22,533 $22,706 $— $165 $17,675 $17,840 
Total mortgage-backed-securities$— $173 $218,347 $218,520 $— $165 $204,580 $204,745 
Total available-for-sale securities$18,997 $10,042 $232,268 $261,307 $16,073 $8,446 $215,827 $240,345 
December 31, 2025:
Corporate bonds$— $15,996 $— $15,996 $— $13,464 $— $13,464 
Subordinated notes3,000 1,000 — 4,000 2,807 945 — 3,752 
SBA loan pools— — 4,146 4,146 — — 3,393 3,393 
Government sponsored enterprise "GSE" debentures— 4,946 13,904 18,850 — 4,191 11,267 15,458 
Total debt securities3,000 21,942 18,050 42,992 2,807 18,600 14,660 36,067 
U. S. Government agency mortgage-backed-securities$— $— $150,822 $150,822 $— $— $145,748 $145,748 
GSE mortgage-backed-securities$— $188 $47,369 $47,557 $— $181 $42,681 $42,863 
Total mortgage-backed-securities$— $188 $198,190 $198,377 $— $181 $188,429 $188,610 
Total available-for-sale securities$3,000 $22,130 $216,240 $241,370 $2,807 $18,780 $203,090 $224,677