(4) Investment Securities

Investment securities available for sale at September 30, 2026 and December 31, 2025 are as follows:

The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2026 and December 31, 2025 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

At September 30, 2026, unrealized losses in the investment securities portfolio relating to debt securities totaled $48.8 million. The unrealized losses on these debt securities arose primarily due to changes in market interest rates and were not attributable to credit-related factors. From the September 30, 2026 table above, both of the U.S. Treasury securities, all 110 of the securities issued by state and political subdivisions, all six of the securities issued by U.S. Government sponsored enterprises (“GSE”), 118 of the 119 GSE mortgage-backed securities, and all 12 of the private label mortgage-backed securities contained unrealized losses. The Company did not have any reserves on securities at September 30, 2026, as no credit related losses were identified in the Company’s September 30, 2026 analysis. At December 31, 2025, unrealized losses in the investment securities portfolio relating to debt securities totaled $35.6 million. The unrealized losses on these debt securities arose primarily due to changes in market interest rates and were not attributable to credit-related factors. From the December 31, 2025 tables above, both of the U.S. Treasury securities, all 108 of the securities issued by state and political subdivisions, all six of the securities issued by GSEs, 110 of the 116 GSE mortgage-backed securities, and 11 of the 17 private label mortgage-backed securities contained unrealized losses. The Company did not have any reserves on securities at December 31, 2025, as no credit related losses were identified in the Company’s December 31, 2025 analysis.

The amortized cost and estimated fair value of investment securities available for sale, other than GSE mortgage-backed securities, at September 30, 2026, are shown below by contractual maturity. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

No securities available for sale were sold during the three and nine months ended September 30, 2026. No securities available for sale were sold during the three months ended September 30, 2025. During the nine months ended September 30, 2025, proceeds from sales of securities available for sale were $12.7 million and resulted in gross losses of $47,000 and gross gains of $43,000.

Securities with a fair value of approximately $20.8 million and $40.7 million at September 30, 2026 and December 31, 2025, respectively, were pledged to secure public deposits and for other purposes as required by law.