
	June 30, 2026
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Securities available-for-sale:
Residential MBS
Agency	$	275,524	$	894	$	(807)	$	275,611
Non-agency	20,825		—		(297)		20,528
Total residential MBS	296,349		894		(1,104)		296,139
Commercial MBS - Agency	5,974		—		(17)		5,957
Asset backed securities	21,445		—		(144)		21,301
Corporate bonds	2,000		—		(56)		1,944
	$	325,768	$	894	$	(1,321)	$	325,341


	December 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(Dollars in thousands)
Securities available-for-sale:
Residential MBS
Agency	$	292,071	$	291	$	(547)	$	291,815
Non-agency	7,750		—		(176)		7,574
Total residential MBS	299,821		291		(723)		299,389
Commercial MBS - Agency	5,979		—		(15)		5,964
Asset backed securities	4,927		1		(100)		4,828
Corporate bonds	2,000		—		(91)		1,909
	$	312,727	$	292	$	(929)	$	312,090

The following table summarizes available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded at June 30, 2026 and December 31, 2025, aggregated by major security type and length of time in a continuous unrealized loss position:


June 30, 2026	Less Than 12 Months				More Than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Securities available-for-sale:
Residential MBS
Agency	$	97,764	$	(304)	$	2,029	$	(503)	$	99,793	$	(807)
Non-agency	17,576		(108)		2,952		(189)		20,528		(297)
Total residential MBS	115,340		(412)		4,981		(692)		120,321		(1,104)
Commercial MBS - Agency	—		—		5,957		(17)		5,957		(17)
Asset backed securities	18,664		(41)		2,638		(103)		21,302		(144)
Corporate bonds	—		—		1,944		(56)		1,944		(56)
	$	134,004	$	(453)	$	15,520	$	(868)	$	149,524	$	(1,321)


December 31, 2025	Less Than 12 Months				More Than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Securities available-for-sale:
Residential MBS
Agency	$	109,232	$	(56)	$	2,092	$	(491)	$	111,324	$	(547)
Non-agency	4,327		(1)		3,246		(175)		7,573		(176)
Total residential MBS	113,559		(57)		5,338		(666)		118,897		(723)
Commercial MBS - Agency	—		—		5,965		(15)		5,965		(15)
Asset backed securities	1,302		—		2,900		(100)		4,202		(100)
Corporate bonds	—		—		1,909		(91)		1,909		(91)
	$	114,861	$	(57)	$	16,112	$	(872)	$	130,973	$	(929)

For any securities classified as available-for-sale that are in an unrealized loss position at the balance sheet date, the Company assesses whether or not it intends to sell the security, or more-likely-than-not will be required to sell the security, before recovery of its amortized cost basis which would require a write-down to fair value through net income. As of June 30, 2026, the Company did not intend to sell those securities that had an unrealized loss. At June 30, 2026, it was not more-likely-than-not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be maturity. The Company has determined that no write-down is necessary. In addition, the Company evaluates whether any portion of the decline in fair value is the result of credit deterioration, which would require the recognition of an allowance for credit losses. Such evaluations consider the extent to which the amortized cost of the security exceeds its fair value, changes in credit ratings and any other known adverse conditions related to the specific security. These securities will continue to be monitored as a part of the Company’s ongoing evaluation of credit quality.

During the third quarter of the year ended December 31, 2025, the Company sold all debt securities previously classified as HTM. The sales were undertaken due to circumstances that were isolated, non-recurring, and unusual for the Company, and therefore met the conditions under ASC 320 for sales from the HTM portfolio without calling into question management’s intent to hold other HTM securities to maturity.

The HTM securities sold had an amortized cost basis of $35.9 million and resulted in a net realized loss of $684 thousand. The sales occurred as a result of significant deterioration in the credit quality of the issuers, which was not anticipated at the time the securities were originally purchased. Management determined that the credit-related concerns represented a significant increase in the risk of non-performance and warranted disposition of the securities to mitigate potential future losses.

Under ASC 320-10-25-6, sales of HTM securities are permitted when there is evidence of a significant deterioration in creditworthiness of the issuer. Accordingly, management concluded that these transactions were consistent with the Company’s HTM classification and will not taint future purchases to the HTM portfolio.

The amortized cost and fair values of securities, available-for-sale, as of June 30, 2026 and December 31, 2025, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because some issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	June 30, 2026
	Amortized Cost		Fair Value
(Dollars in thousands)
Securities available-for-sale:
Due within one year	$	—	$	—
Due after one but within five years	2,641		2,607
Due after five but within ten years	24,762		24,582
Due after ten years	298,365		298,152
Total	$	325,768	$	325,341


	December 31, 2025
	Amortized Cost		Fair Value
(Dollars in thousands)
Securities available-for-sale:
Due within one year	$	—	$	—
Due after one but within five years	1,651		1,650
Due after five but within ten years	10,109		9,902
Due after ten years	300,967		300,538
Total	$	312,727	$	312,090

For the purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities may mature earlier than their weighted-average contractual maturities because of principal payments.

Sales of securities available-for-sale during the six-month period ending June 30, 2026 totaled approximately $86 million. The sales generated $108 thousand in realized gains. There were no sales or gains recognized of securities available-for-sale during the six-month period ending June 30, 2025. There were no sales or gains recognized of securities available-for-sale during the three-month periods ending June 30, 2026 and 2025.

As of June 30, 2026 and December 31, 2025, there were no securities pledged to secure public deposits. As of June 30, 2026 and December 31, 2025, securities totaling $289 million and $325 million respectively, were pledged to secure borrowings.