INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2025

  Investment securities activity

INVESTMENT SECURITIES

NOTE 5 INVESTMENT SECURITIES

The amortized cost and estimated fair value of available-for-sale (“AFS”) securities as of September 30, 2025 and December 31, 2024 are as follows:

				Gross		Gross		Approximate
		Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)		Cost		Gains		Losses		Value
September 30, 2025
U.S. Treasuries	$	7,105	$	18	$	199	$	6,924
U.S. Government Agencies		9,241		64		397		8,908
Taxable municipals		24,229	6		4,415		19,820
Corporate bonds		2,500	7		159		2,348
Mortgage-backed securities		63,618	202		5,667		58,153
Total securities available-for-sale	$	106,693	$	297	$	10,837	$	96,153
December 31, 2024
U.S. Treasuries	$	8,370	$	-	$	409	$	7,961
U.S. Government Agencies		9,380		11		586		8,805
Taxable municipals		23,940		-		5,416		18,524
Corporate bonds		2,499		-		246		2,253
Mortgage-backed securities		66,965		11		8,535		58,441
Total securities available-for-sale	$	111,154	$	22	$	15,192	$	95,984

The following table details unrealized losses and related fair values in the AFS portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2025 and December 31, 2024.

	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
September 30, 2025
U.S. Treasuries	$	—	$	—	$	5,906	$	199	$	5,906	$	199
U.S. Government Agencies		204		—		4,585		397		4,789		397
Taxable municipals		1,344		177		17,646		4,238		18,990		4,415
Corporate bonds		—		—		1,841		159		1,841		159
Mortgage-backed securities		937		9		41,725		5,658		42,662		5,667
Total	$	2,485	$	186	$	71,703	$	10,651	$	74,188	$	10,837
December 31, 2024
U.S. Treasuries	$	980	$	20	$	6,981	$	389	$	7,961	$	409
U.S. Government Agencies		2,221		38		6,026		548		8,247		586
Taxable municipals		1,559		212		16,965		5,204		18,524		5,416
Corporate bonds		499		1		1,755		245		2,254		246
Mortgage-backed securities		14,982		311		42,018		8,224		57,000		8,535
Total	$	20,241	$	582	$	73,745	$	14,610	$	93,986	$	15,192

As of September 30, 2025, the available-for-sale portfolio included 165 investments for which the fair market value was less than amortized cost. As of December 31, 2024, the available-for-sale portfolio included 195 investments for which the fair market value was less than amortized cost. Management believes that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions and are not a result of credit deterioration. Management does not plan to sell, and it is not likely that the Bank will be required to sell any of the securities referenced in the table above before recovery of their amortized cost. None of the individual securities have past due principal or interest payments, and a number of these securities have explicit or implicit payment guarantees. The remaining securities have credit ratings at or above that necessary to be considered “bank qualified.”

Investment securities with a carrying value of $35.8 million and $35.2 million as of September 30, 2025 and December 31, 2024, respectively, were pledged as collateral to secure public deposits and for other purposes required or permitted by law.

There were no sales of investment securities available-for-sale during the three or nine months ended September 30, 2025. During the three and nine months ended September 30, 2024, investment securities available-for-sale with a carrying value of $2.2 million were sold, realizing a net gain of $4,000.

The amortized cost and fair value of investment securities as of September 30, 2025, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

						Weighted
(Dollars in thousands)		Amortized		Fair		Average
Securities Available-for-Sale		Cost		Value		Yield
Due in one year or less	$	2,995	$	2,963		0.96%
Due after one year through five years	12,294		11,938		2.79%
Due after five years through ten years		23,204		22,234		3.43%
Due after ten years		68,200		59,018		2.29%
Total	$	106,693	$	96,153		2.56%

The Bank, as a member bank of the Federal Reserve Bank of Richmond (“Federal Reserve Bank”) and the Federal Home Loan Bank of Atlanta (FHLB), is required to hold stock in each. The Bank also owns stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities, which are included in other assets on the consolidated balance sheet, are restricted from trading and are recorded at a cost of $2.7 million and $2.7 million as of September 30, 2025 and December 31, 2024, respectively. The stock has no quoted market value and no ready market exists. When evaluating these securities for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Equity securities are viewed as long-term investments and management believes the Company has the ability and the intent to hold these securities until their value is recovered.