| Securities |
Securities The following tables present the amortized cost, allowance for credit losses, and fair value of securities at the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | (dollars in thousands) | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Allowance for credit losses | | Fair value | | # of Securities in unrealized loss position | | Securities available-for-sale: | | | | | | | | | | | | | U.S. asset backed securities | $ | 20,771 | | | $ | 59 | | | $ | (88) | | | $ | — | | | $ | 20,742 | | | 10 | | | U.S. government agency MBS | 28,326 | | | — | | | (1,352) | | | — | | | 26,974 | | | 19 | | | U.S. government agency CMO | 77,008 | | | 9 | | | (4,479) | | | — | | | 72,538 | | | 64 | | | State and municipal securities | 42,711 | | | — | | | (5,742) | | | — | | | 36,969 | | | 34 | | | U.S. Treasuries | 17,040 | | | — | | | (864) | | | — | | | 16,176 | | | 16 | | | Non-U.S. government agency CMO | 13,010 | | | 8 | | | (439) | | | — | | | 12,579 | | | 14 | | | Corporate bonds | 17,598 | | | 270 | | | (244) | | | — | | | 17,624 | | | 10 | | | Total securities available-for-sale | $ | 216,464 | | | $ | 346 | | | $ | (13,208) | | | $ | — | | | $ | 203,602 | | | 167 | | | | | | | | | | | | | | | (dollars in thousands) | Amortized cost | | Gross unrecognized gains | | Gross unrecognized losses | | Allowance for credit losses | | Fair value | | # of Securities in unrecognized loss position | | | | | | | | | | | | | | Securities held to maturity: | | | | | | | | | | | | | State and municipal securities | $ | 32,395 | | | $ | 1 | | | $ | (4,481) | | | $ | — | | | $ | 27,915 | | | 20 | | | Total securities held-to-maturity | $ | 32,395 | | | $ | 1 | | | $ | (4,481) | | | $ | — | | | $ | 27,915 | | | 20 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | (dollars in thousands) | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Allowance for credit losses | | Fair value | | # of Securities in unrealized loss position | | Securities available-for-sale: | | | | | | | | | | | | | U.S. asset backed securities | $ | 26,385 | | | $ | 51 | | | $ | (219) | | | $ | — | | | $ | 26,217 | | | 13 | | | U.S. government agency MBS | 22,396 | | | 223 | | | (268) | | | — | | | 22,351 | | | 6 | | | U.S. government agency CMO | 67,216 | | | 441 | | | (1,526) | | | — | | | 66,131 | | | 38 | | | State and municipal securities | 43,282 | | | 151 | | | (3,401) | | | — | | | 40,032 | | | 31 | | | U.S. Treasuries | 17,039 | | | — | | | (833) | | | — | | | 16,206 | | | 16 | | | Non-U.S. government agency CMO | 8,786 | | | 27 | | | (207) | | | — | | | 8,606 | | | 9 | | | Corporate bonds | 14,023 | | | 266 | | | (375) | | | — | | | 13,914 | | | 11 | | | Total securities available-for-sale | $ | 199,127 | | | $ | 1,159 | | | $ | (6,829) | | | $ | — | | | $ | 193,457 | | | 124 | | | | | | | | | | | | | | | (dollars in thousands) | Amortized cost | | Gross unrecognized gains | | Gross unrecognized losses | | Allowance for credit losses | | Fair value | | # of Securities in unrecognized loss position | | Securities held to maturity: | | | | | | | | | | | | | State and municipal securities | $ | 32,544 | | | $ | 22 | | | $ | (2,414) | | | $ | — | | | $ | 30,152 | | | 19 | | | Total securities held-to-maturity | $ | 32,544 | | | $ | 22 | | | $ | (2,414) | | | $ | — | | | $ | 30,152 | | | 19 | | | | | | | | | | | | | |
Although the Corporation’s investment portfolio overall is in a net unrealized loss position at September 30, 2026, the temporary impairment in the above noted securities is primarily the result of changes in market interest rates subsequent to purchase and it is more likely than not that the Corporation will not be required to sell these securities prior to recovery to satisfy liquidity needs, and therefore, no securities warranted an ACL. The following table shows the Corporation’s investment gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | Less than 12 Months | | 12 Months or more | | Total | | (dollars in thousands) | Fair
value | | Unrealized losses | | Fair
value | | Unrealized losses | | Fair
value | | Unrealized losses | | Securities available-for-sale: | | | | | | | | | | | | | U.S. asset backed securities | $ | 3,435 | | | $ | (6) | | | $ | 7,155 | | | $ | (82) | | | $ | 10,590 | | | $ | (88) | | | U.S. government agency MBS | 24,595 | | | (1,033) | | | 2,374 | | | (319) | | | 26,969 | | | (1,352) | | | U.S. government agency CMO | 51,008 | | | (2,315) | | | 19,864 | | | (2,164) | | | 70,872 | | | (4,479) | | | State and municipal securities | 4,520 | | | (144) | | | 32,448 | | | (5,598) | | | 36,968 | | | (5,742) | | | U.S. Treasuries | — | | | — | | | 16,176 | | | (864) | | | 16,176 | | | (864) | | | Non-U.S. government agency CMO | 7,967 | | | (121) | | | 3,903 | | | (318) | | | 11,870 | | | (439) | | | Corporate bonds | 6,837 | | | (163) | | | 2,202 | | | (81) | | | 9,039 | | | (244) | | | Total securities available-for-sale | $ | 98,362 | | | $ | (3,782) | | | $ | 84,122 | | | $ | (9,426) | | | $ | 182,484 | | | $ | (13,208) | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or more | | Total | | (dollars in thousands) | Fair
value | | Unrecognized
losses | | Fair
value | | Unrecognized
losses | | Fair
value | | Unrecognized
losses | | Securities held-to-maturity: | | | | | | | | | | | | | State and municipal securities | $ | 2,890 | | | $ | (238) | | | $ | 23,785 | | | $ | (4,243) | | | $ | 26,675 | | | $ | (4,481) | | | Total securities held-to-maturity | $ | 2,890 | | | $ | (238) | | | $ | 23,785 | | | $ | (4,243) | | | $ | 26,675 | | | $ | (4,481) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Less than 12 Months | | 12 Months or more | | Total | | (dollars in thousands) | Fair value | | Unrealized losses | | Fair value | | Unrealized losses | | Fair value | | Unrealized losses | | Securities available-for-sale: | | | | | | | | | | | | | U.S. asset backed securities | $ | 6,504 | | | $ | (39) | | | $ | 11,285 | | | $ | (180) | | | $ | 17,789 | | | $ | (219) | | | U.S. government agency MBS | 3,881 | | | (38) | | | 3,945 | | | (230) | | | 7,826 | | | (268) | | | U.S. government agency CMO | 20,511 | | | (178) | | | 17,074 | | | (1,348) | | | 37,585 | | | (1,526) | | | State and municipal securities | — | | | — | | | 35,212 | | | (3,401) | | | 35,212 | | | (3,401) | | | U.S. Treasuries | — | | | — | | | 16,206 | | | (833) | | | 16,206 | | | (833) | | | Non-U.S. government agency CMO | 456 | | | — | | | 5,235 | | | (207) | | | 5,691 | | | (207) | | | Corporate bonds | 1,476 | | | (26) | | | 4,879 | | | (349) | | | 6,355 | | | (375) | | | Total securities available-for-sale | $ | 32,828 | | | $ | (281) | | | $ | 93,836 | | | $ | (6,548) | | | $ | 126,664 | | | $ | (6,829) | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or more | | Total | | (dollars in thousands) | Fair
value | | Unrecognized
losses | | Fair
value | | Unrecognized
losses | | Fair
value | | Unrecognized
losses | | Securities held-to-maturity: | | | | | | | | | | | | | State and municipal securities | $ | 2,087 | | | $ | (69) | | | $ | 25,842 | | | $ | (2,345) | | | $ | 27,929 | | | $ | (2,414) | | | Total securities held-to-maturity | $ | 2,087 | | | $ | (69) | | | $ | 25,842 | | | $ | (2,345) | | | $ | 27,929 | | | $ | (2,414) | |
As of September 30, 2026, substantially all of the Corporation’s available-for-sale investment securities were mortgage-backed securities or collateral mortgage obligations which were issued or guaranteed by U.S. government-sponsored entities and agencies. As of September 30, 2026 and December 31, 2025, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 4% of stockholders’ equity. The amortized cost and carrying value of securities are shown below by contractual maturities at the dates indicated. Actual maturities may differ from contractual maturities as issuers may have the right to call or repay obligations with or without call or prepayment penalties. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | | | Available-for-sale | | Held-to-maturity | | | | | | (dollars in thousands) | Amortized cost | | Fair value | | Amortized cost | | Fair value | | | | | | | | | | Due in one year or less | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | Due after one year through five years | 98,120 | | | 91,511 | | | 32,172 | | | 27,692 | | | | | | | | | | | Due after five years through ten years | — | | | — | | | — | | | — | | | | | | | | | | | Due after ten years | — | | | — | | | 223 | | | 223 | | | | | | | | | | | Subtotal | 98,120 | | | 91,511 | | | 32,395 | | | 27,915 | | | | | | | | | | | Mortgage-related securities | 118,344 | | | 112,091 | | | — | | | — | | | | | | | | | | | Total | $ | 216,464 | | | $ | 203,602 | | | $ | 32,395 | | | $ | 27,915 | | | | | | | | | |
There were no sales of investment securities available for sale for the three and nine months ended September 30, 2026, while there were sales of investment securities available for sale for the three and nine months ended September 30, 2025 totaling $2.5 million with $65 thousand in gross gains and $17 thousand in gross losses recognized. ACL on Securities AFS and HTM We use credit ratings quarterly and the most recent financial information of securities' issuers annually to help evaluate the credit quality of our securities AFS and HTM portfolios on a quarterly basis. The securities portfolio consists primarily of U.S. government treasuries and U.S. government agency asset backed securities which have no probability of default. The remaining portfolio consists of highly rated municipal bonds, non-agency CMO, and corporate bonds that have a low probability of default. For the three and nine months ended September 30, 2026 and 2025, we had no significant ACL or provision expense and no charge-offs or recoveries on AFS or HTM securities. Pledged Securities As of September 30, 2026 and December 31, 2025, securities having a carrying value of $68.8 million and $69.5 million, respectively, were specifically pledged as collateral for public funds, the FRB discount window program, FHLB borrowings and other purposes. The FHLB has a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement.
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