v3.26.1
Debt Securities
6 Months Ended
Jun. 30, 2026
Debt Securities  
Debt Securities

Note 3 -    Debt Securities

The amortized cost and fair value of securities, with gross unrealized gains and losses, follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2026

​

​

​

​

​

Gross

​

Gross

​

Estimated

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

Available for Sale

  ​ ​ ​

Cost

  ​ ​ ​

Gains

  ​ ​ ​

Losses

  ​ ​ ​

Value

Debt Securities:

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

Residential mortgage-backed

​

$

6,480

​

$

—

​

$

(712)

​

$

5,768

Collateralized mortgage obligations

​

 

36,400

​

 

—

​

 

(1,464)

​

 

34,936

State and municipal

​

 

9,719

​

 

—

​

 

(1,028)

​

 

8,691

Corporate bonds

​

 

10,528

​

 

60

​

 

(846)

​

 

9,742

Total securities available for sale

​

$

63,127

​

$

60

​

$

(4,050)

​

$

59,137

​

​

​

​

​

​

​

​

​

​

​

​

​

Held to Maturity

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

Debt Securities:

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

Residential mortgage-backed

​

$

14,766

​

$

—

​

$

(1,570)

​

$

13,196

State and municipal

​

​

1,200

​

​

—

​

​

(17)

​

​

1,183

U.S. Government and agency

​

 

742

​

 

1

​

 

—

​

 

743

Total securities held to maturity

​

$

16,708

​

$

1

​

$

(1,587)

​

$

15,122

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

​

​

​

​

Gross

​

Gross

​

Estimated

​

​

Amortized

​

Unrealized

​

Unrealized

​

Fair

Available for Sale

  ​ ​ ​

Cost

  ​ ​ ​

Gains

  ​ ​ ​

Losses

  ​ ​ ​

Value

Debt Securities:

 

​

  ​

 

​

  ​

 

​

  ​

 

​

  ​

Residential mortgage-backed

​

$

6,475

​

$

—

​

$

(679)

​

$

5,796

Collateralized mortgage obligations

​

 

37,023

​

 

12

​

 

(1,293)

​

 

35,742

State and municipal

​

 

9,753

​

 

—

​

 

(1,010)

​

 

8,743

Corporate bonds

​

 

10,519

​

 

49

​

 

(956)

​

 

9,612

Total securities available for sale

​

$

63,770

​

$

61

​

$

(3,938)

​

$

59,893

​

​

​

​

​

​

​

​

​

​

​

​

​

Held to Maturity

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

Debt Securities:

​

 

  ​

​

 

  ​

​

 

  ​

​

 

  ​

Residential mortgage-backed

​

$

16,112

​

$

—

​

$

(1,534)

​

$

14,578

State and municipal

​

 

1,200

​

 

—

​

 

(6)

​

 

1,194

U.S. Government and agency

​

​

971

​

​

1

​

​

—

​

​

972

Total securities held to maturity

​

$

18,283

​

$

1

​

$

(1,540)

​

$

16,744

​

During the three and six months ended June 30, 2026 and 2025, the Company had no sales of available for sale securities or held to maturity securities.

At June 30, 2026 and December 31, 2025, securities with a fair value of $14,317 and $14,815, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

The amortized cost and fair value of debt securities by contractual maturity at June 30, 2026, follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Available for Sale

​

Held to Maturity

​

​

​

​

​

Estimated

​

​

​

​

Estimated

​

​

Amortized

​

Fair

​

Amortized

​

Fair

​

  ​ ​ ​

Cost

  ​ ​ ​

Value

  ​ ​ ​

Cost

  ​ ​ ​

Value

Due in one year

​

$

—

​

$

—

​

$

—

​

$

—

Due from one to five years

​

 

1,145

​

 

1,049

​

 

135

​

 

129

Due in five to ten years

​

 

12,891

​

 

12,140

​

 

742

​

 

743

After ten years

​

 

6,211

​

 

5,244

​

 

1,065

​

 

1,054

Residential mortgage-backed

​

 

6,480

​

 

5,768

​

 

14,766

​

 

13,196

Collateralized mortgage obligations

​

 

36,400

​

 

34,936

​

 

—

​

 

—

Total

​

$

63,127

​

$

59,137

​

$

16,708

​

$

15,122

​

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2026

​

​

Less than 12 months

​

12 months or longer

​

​

​

​

​

Gross

​

​

​

​

Gross

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

Category (number of securities)

  ​ ​ ​

Value

  ​ ​ ​

Losses

  ​ ​ ​

Value

  ​ ​ ​

Losses

Residential mortgage-backed (1, 72)

​

$

476

​

$

(14)

​

$

18,488

​

$

(2,268)

Collateralized mortgage obligations (9, 14)

​

 

12,722

​

 

(92)

​

 

22,213

​

 

(1,372)

State and municipal (1, 9)

​

 

1,054

​

 

(11)

​

 

8,820

​

 

(1,034)

Corporate bonds (2, 14)

​

 

1,398

​

 

(2)

​

 

6,656

​

 

(844)

Total

​

$

15,650

​

$

(119)

​

$

56,177

​

$

(5,518)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

​

Less than 12 months

​

12 months or longer

​

​

​

​

​

Gross

​

​

​

​

Gross

​

​

Fair

​

Unrealized

​

Fair

​

Unrealized

Category (number of securities)

  ​ ​ ​

Value

  ​ ​ ​

Losses

  ​ ​ ​

Value

  ​ ​ ​

Losses

Residential mortgage-backed (0, 77)

​

$

—

​

$

—

​

$

20,374

​

$

(2,213)

Collateralized mortgage obligations (2, 15)

​

 

2,538

​

 

(18)

​

 

24,891

​

 

(1,275)

State and municipal (1, 9)

​

 

1,065

​

 

—

​

 

8,872

​

 

(1,016)

Corporate bonds (4, 13)

​

 

2,871

​

 

(29)

​

 

5,572

​

 

(927)

Total

​

$

6,474

​

$

(47)

​

$

59,709

​

$

(5,431)

​

At June 30, 2026 and December 31, 2025, the Company had investment securities with approximately $5,518 and $5,431, respectively, in unrealized losses, which have been in continuous loss positions for more than twelve months. The Company’s assessments indicated that the cause of the unrealized losses was primarily the change in market interest rates and not the issuers’ financial condition or downgrades by rating agencies. The Company has the ability and intent to hold such securities until maturity.

The Company monitors credit quality of debt securities held-to-maturity through the use of nationally recognized

credit ratings. The Company monitors credit ratings on a continual basis. The following table summarizes bond ratings for the Company’s held-to-maturity portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of June 30, 2026 and December 31, 2025:

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2026

​

  ​ ​ ​ ​ ​

Residential
mortgage-backed

  ​ ​ ​ ​

State and
municipal

  ​ ​ ​ ​

U.S Government
and agency

AAA

​

$

14,766

​

$

1,065

​

$

742

Baa1

​

​

—

​

​

135

​

​

—

​

​

$

14,766

​

$

1,200

​

$

742

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2025

​

​

Residential
mortgage-backed

​

State and
municipal

​

U.S Government
and agency

AAA

​

$

16,112

​

$

1,066

​

$

971

Baa1

​

​

—

​

​

134

​

​

—

​

​

$

16,112

​

$

1,200

​

$

971

​

As of June 30, 2026 and December 31, 2025, there were no securities held to maturity on nonaccrual status or past due status.

​

Mortgage-backed Securities and Collateralized Mortgage Obligations

The unrealized losses on the Company’s investments in mortgage-backed securities and collateralized mortgage obligations were caused by market interest rate increases and changes in prepayment speeds and not credit quality. It is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments because the Company does not intend to sell the investments before recovery of their amortized cost basis, which may be maturity. The unrealized losses on the Company’s investment in mortgage-backed securities have not been recognized into income and no allowance for credit losses was established at June 30, 2026 or December 31, 2025.

U.S. Government and Agency Securities

The unrealized losses on the Company’s investments in U.S. government and agency securities have not been recognized into income and no allowance for credit losses was established because the bonds are of high credit quality, management does not intend to sell, and it is likely that management will not be required to sell the securities prior to their anticipated recovery, which may be at maturity. The decline in fair value is primarily due to increases in market interest rates and not credit quality deterioration and the fair value is expected to recover as the bonds approach maturity. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments. Therefore, an allowance for credit losses is deemed unnecessary at June 30, 2026 and December 31, 2025.

Municipal Securities and Corporate Bonds

The unrealized losses on the Company’s investments in state and municipal securities and corporate bonds have not been recognized into income and no allowance for credit losses was established because the bonds are of high credit quality, management does not intend to sell, and it is likely that management will not be required to sell the securities prior to their anticipated recovery, which may be at maturity. The decline in fair value is primarily due to increases in market interest rates and not credit quality deterioration and the fair value is expected to recover as the bonds approach maturity. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments. Therefore, an allowance for credit losses is deemed unnecessary at June 30, 2026 and December 31, 2025.