Debt Securities Available for Sale

9 Months Ended

Sep. 30, 2026

Investments, Debt and Equity Securities [Abstract]

Debt Securities Available for Sale

(2)

Debt Securities Available for Sale:

The following tables reflect the amortized cost and fair value of debt securities available for sale as of September 30, 2026:

2026
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				(Losses)				Value
U.S. Treasuries & Govt. - sponsored agencies		$	26,772			$	0			$	(1,040	)		$	25,732
State and Municipal			56,704				48				(4,462	)			52,290
Mortgage Backed			49,082				0				(5,702	)			43,380
Collateralized Mortgage Obligations (CMOs)			21,500				0				(1,837	)			19,663

		$	154,058			$	48			$	(13,041	)		$	141,065

The following tables reflect the amortized cost and fair value of debt securities available for sale as of December 31, 2025:

2025
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				(Losses)				Value
U.S. Treasuries & Govt. - sponsored agencies		$	31,744			$	0			$	(943	)		$	30,801
State and Municipal			60,070				257				(2,846	)			57,481
Mortgage Backed			49,175				299				(4,103	)			45,371
Collateralized Mortgage Obligations (CMOs)			21,753				120				(1,319	)			20,554

		$	162,742			$	676			$	(9,211	)		$	154,207

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

(2)

Debt Securities Available for Sale (continued):

Debt securities with a carrying amount of approximately $75,182 and $66,676 at September 30, 2026 and December 31, 2025, respectively, were pledged as collateral on public deposits, debt securities sold under agreements to repurchase and for other purposes as required or permitted by law.

At September 30, 2026 and December 31, 2025, there were no holdings of debt securities of any one issuer, other than the U.S. Government and its sponsored agencies, in an amount greater than 10% of stockholders’ equity.

As of September 30, 2026 and December 31, 2025, accrued interest on debt securities available-for-sale of $796 and $667, respectively, was excluded from CECL evaluation. Accrued interest on debt securities available-for-sale is recorded within accrued interest receivable on the consolidated balance sheet.

The amortized cost and approximate fair value of debt securities at September 30, 2026 by contractual maturity are shown below. Expected maturities may differ from contractual maturities on mortgage-backed and collateralized mortgage obligation debt securities because the underlying mortgages may be called or prepaid without any penalties.

		Amortized Cost				Fair Value
Due in one year or less		$	12,734			$	12,635
Due after one year through five years			35,002				33,787
Due after five years through ten years			20,379				18,484
Due after ten years			15,361				13,116
			83,476				78,022
Mortgage Backed			49,082				43,380
Collateralized Mortgage Obligations			21,500				19,663
		$	154,058			$	141,065

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)

(2)

Debt Securities Available-for-Sale (continued):

Debt securities with unrealized losses as of September 30, 2026 not recognized in income are as follows:

2026
		Less than 12 Months								12 Months or More								Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Loss				Value				Loss				Value				Loss
U.S. Treas. & Gov’t - sponsored agencies		$	967			$	26			$	24,765			$	1,014			$	25,732			$	1,040
State and
Municipal			18,843				483				24,644				3,979				43,487				4,462
Mortgage
Backed			17,059				784				26,321				4,918				43,380				5,702
CMOs			9,308				296				10,355				1,541				19,663				1,837

Total		$	46,177			$	1,589			$	86,085			$	11,452			$	132,262			$	13,041

Debt securities with unrealized losses as of December 31, 2025 not recognized in income are as follows:

2025
		Less than 12 Months								12 Months or More								Total
		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
U.S. Treas. & Gov’t - sponsored agencies		$	0			$	0			$	30,801			$	943			$	30,801			$	943
State and
Municipal			3,335				8				29,054				2,838				32,389				2,846
Mortgage
Backed			1,886				44				30,879				4,059				32,765				4,103
CMOs			1,970				3				12,110				1,316				14,080				1,319

Total		$	7,191			$	55			$	102,844			$	9,156			$	110,035			$	9,211

At September 30, 2026 and December 31, 2025, the investment portfolio included 195 and 142 debt securities that were in an unrealized loss position, respectively. Unrealized losses have not been recognized as an allowance for credit losses because the Company does not intend to sell the securities prior to their anticipated recovery and the decline in fair value is largely due to changes in interest rates and other market conditions.

TRI-COUNTY FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(000s omitted except share data)