Investment Securities

9 Months Ended

Sep. 30, 2026

Investment Securities

Investment Securities

Note 4. Investment Securities

Debt securities AFS as of the balance sheet dates consisted of the following:

						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
September 30, 2026
U.S. GSE debt securities		$	11,000,000			$	0			$	628,655			$	10,371,345
U.S. Government securities			4,000,467				0				36,865				3,963,602
Taxable Municipal securities			300,000				0				48,724				251,276
Tax-exempt Municipal securities			10,667,877				0				1,410,743				9,257,134
Agency MBS			102,905,289				2,568				14,829,994				88,077,863
ABS and OAS			1,207,745				0				95,529				1,112,216
CMO			81,360				0				2,626				78,734
Total		$	130,162,738			$	2,568			$	17,053,136			$	113,112,170

December 31, 2025
U.S. GSE debt securities		$	12,000,000			$	0			$	556,223			$	11,443,777
U.S. Government securities			11,521,640				0				185,660				11,335,980
Taxable Municipal securities			300,000				0				34,437				265,563
Tax-exempt Municipal securities			10,712,772				105,694				494,815				10,323,651
Agency MBS			118,162,360				443,634				11,344,758				107,261,236
ABS and OAS			1,745,851				0				78,970				1,666,881
CMO			1,756,131				0				12,327				1,743,804
Other investments			496,000				0				8,134				487,866
Total		$	156,694,754			$	549,328			$	12,715,324			$	144,528,758

The Company had investments in Agency MBS exceeding 10% of shareholders’ equity with a book value of $102.9 million and $118.2 million, respectively, and a fair value of $88.1 million and $107.3 million, respectively, as of September 30, 2026 and December 31, 2025.

Investment securities pledged as collateral for repurchase agreements consisted of certain U.S. GSE debt securities, Agency MBS, ABS and OAS, and CMO. These repurchase agreements mature daily. The aggregate amortized cost and fair value of these pledged investments as of the balance sheet dates were as follows:

		Amortized				Fair
		Cost				Value

September 30, 2026		$	53,699,494			$	46,197,768
December 31, 2025			59,380,136				53,294,329

There were no sales of debt securities during the first nine months of 2026 or 2025.

The scheduled maturities of debt securities as of the balance sheet dates were as follows:

		Amortized				Fair
		Cost				Value
September 30, 2026
Due in one year or less		$	6,000,467			$	5,950,133
Due from one to five years			8,510,179				8,060,486
Due from five to ten years			3,393,232				2,866,291
Due after ten years			9,353,571				8,157,397
Agency MBS			102,905,289				88,077,863
Total		$	130,162,738			$	113,112,170

December 31, 2025
Due in one year or less		$	14,556,482			$	14,347,722
Due from one to five years			11,054,063				10,602,542
Due from five to ten years			2,853,838				2,638,068
Due after ten years			10,068,011				9,679,190
Agency MBS			118,162,360				107,261,236
Total		$	156,694,754			$	144,528,758

Agency MBS are not due at a single maturity date and have not been allocated to maturity groupings for purposes of the maturity table.

Debt securities with unrealized losses as of the balance sheet dates are presented in the table below.

		Less than 12 months								12 months or more								Totals
		Fair				Unrealized				Fair				Unrealized				Number of				Fair				Unrealized
		Value				Loss				Value				Loss				Securities				Value				Loss
September 30, 2026
U.S. GSE debt securities		$	0			$	0			$	10,371,345			$	628,655				10			$	10,371,345			$	628,655
U.S. Government securities			0				0				3,963,602				36,865				7				3,963,602				36,865
Taxable Municipal securities			0				0				251,276				48,724				1				251,276				48,724
Tax-exempt Municipal securities			5,164,340				519,507				4,092,794				891,236				21				9,257,134				1,410,743
Agency MBS			18,481,870				804,752				69,429,403				14,025,242				120				87,911,273				14,829,994
ABS and OAS			0				0				1,112,216				95,529				4				1,112,216				95,529
CMO			0				0				78,734				2,626				1				78,734				2,626
Total		$	23,646,210			$	1,324,259			$	89,299,370			$	15,728,877				164			$	112,945,580			$	17,053,136

		Less than 12 months									12 months or more								Totals
		Fair				Unrealized				Fair				Unrealized				Number of				Fair				Unrealized
		Value				Loss				Value				Loss				Securities				Value				Loss
December 31, 2025
U.S. GSE debt securities		$	0			$	0			$	11,443,777			$	556,223				11			$	11,443,777			$	556,223
U.S. Government securities			0				0				11,335,980				185,660				21				11,335,980				185,660
Taxable Municipal securities			0				0				265,563				34,437				1				265,563				34,437
Tax-exempt Municipal securities			980,268				3,766				5,553,783				491,049				14				6,534,051				494,815
Agency MBS			0				0				83,695,677				11,344,758				112				83,695,677				11,344,758
ABS and OAS			0				0				1,666,881				78,970				4				1,666,881				78,970
CMO			0				0				1,743,804				12,327				4				1,743,804				12,327
Other investments			0				0				487,866				8,134				2				487,866				8,134
Total		$	980,268			$	3,766			$	116,193,331			$	12,711,558				169			$	117,173,599			$	12,715,324

As of September 30, 2026 and December 31, 2025, the Company did not have the intent to sell, nor was it more likely than not that we would be required to sell, any of the debt securities AFS in an unrealized loss position as of such dates prior to recovery. Management determined that no individual debt securities in an unrealized loss position represented credit losses that would require an allowance for credit losses, and that the unrealized losses as of the balance sheet dates were primarily attributed to increases in market interest rates since these securities were purchased under other market conditions. Accordingly, there was no ACL on AFS debt securities as of September 30, 2026, or December 31, 2025.

Accrued interest receivable on AFS debt securities which totaled $361,598 and $449,020 on September 30, 2026, and December 31, 2025, respectively, was reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses.