INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2025

Investment securities activity:

INVESTMENT SECURITIES

NOTE 6 INVESTMENT SECURITIES

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

	December 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(Dollars in thousands)
U.S. Treasuries	$	5,597	$	16	$	153	$	5,460
U. S. Government agencies		9,482		49		372		9,159
Corporate bonds		2,500		6		127		2,379
Municipal securities		24,217		4		4,224		19,997
Mortgage-backed securities		50,742		134		4,797		46,079
Collateralized mortgage obligations - guaranteed		13,854		70		565		13,359
	$	106,392	$	279	$	10,238	$	96,433

	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(Dollars in thousands)
U.S. Treasuries	$	8,370	$	—	$	409	$	7,961
U. S. Government agencies		9,380		11		586		8,805
Corporate bonds		2,499		—		246		2,253
Municipal securities		23,940		—		5,416		18,524
Mortgage-backed securities		55,653		—		7,518		48,135
Collateralized mortgage obligations - guaranteed		11,312		11		1,017		10,306
	$	111,154	$	22	$	15,192	$	95,984

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

	December 31, 2025
	Less Than 12 Months				More Than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. Treasuries	$	—	$	—	$	4,444	$	153	$	4,444	$	153
U. S. Government agencies		814		1		4,469		371		5,283		372
Corporate bonds		—		—		1,873		127		1,873		127
Municipal securities		946		110		18,036		4,114		18,982		4,224
Mortgage-backed securities		744		5		37,156		4,792		37,900		4,797
Collateralized mortgage obligations - guaranteed		3,076		5		3,699		560		6,775		565
	$	5,580	$	121	$	69,677	$	10,117	$	75,257	$	10,238

	December 31, 2024
	Less Than 12 Months				More Than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. Treasuries	$	980	$	20	$	6,981	$	389	$	7,961	$	409
U. S. Government agencies		2,221		38		6,026		548		8,247		586
Corporate bonds		499		1		1,755		245		2,254		246
Municipal securities		1,559		212		16,965		5,204		18,524		5,416
Mortgage-backed securities		9,388		190		38,747		7,328		48,135		7,518
Collateralized mortgage obligations - guaranteed		5,594		121		3,271		896		8,865		1,017
	$	20,241	$	582	$	73,745	$	14,610	$	93,986	$	15,192

As of December 31, 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 are past due as to 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 $32.5 million and $35.2 million as of December 31, 2025 and 2024, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

The following table presents the gross proceeds, gross gains and gross losses, and the tax provision resulting from sales of securities for the years ended December 31, 2025 and December 31, 2024.

(Dollars in thousands)	2025		2024
Proceeds	$	—	$	2,134
Gains		—		43
Losses		—		(39	)
Tax provision		—		1

The amortized cost and fair value of investment securities as of December 31, 2025, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Also, actual maturities may differ from scheduled maturities on amortizing securities, such as mortgage-backed securities and collateralized mortgage obligations, because the underlying collateral on these types of securities may be repaid prior to the scheduled maturity date.

						Weighted
(Dollars in thousands)		Amortized		Fair		Average
Securities Available for Sale		Cost		Value		Yield
Due in one year or less	$	3,944	$	3,881		1.28%
Due after one year through five years	11,425		11,174		3.32%
Due after five years through ten years		23,275		22,349		3.42%
Due after ten years		67,748		59,029		2.35%
Total	$	106,392	$	96,433		2.65%

The Bank, as a member of the Federal Reserve Bank and the 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 are restricted from trading and are recorded at a cost of $2.6 million and $2.7 million as of December 31, 2025 and 2024, respectively. The stock has no quoted market value and no ready market exists.