The following presents the amortized cost, fair value, and allowance for credit losses of debt securities and the corresponding amounts of gross unrealized or unrecognized gains and losses as of the date noted (dollars in thousands):


December 31, 2025	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses
Debt securities available-for-sale:
Residential mortgage-backed securities issued by U.S. government agencies and sponsored enterprises	$	45,623	$	54	$	(70)	$	45,607	$	—


Total debt securities available-for-sale	$	45,623	$	54	$	(70)	$	45,607	$	—


December 31, 2025	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasuries	$	248	$	1	$	—	$	249	$	—
U.S. government agencies and sponsored enterprises	3,412		3		(131)		3,284		—
Residential mortgage-backed securities issued by U.S. government agencies and sponsored enterprises	59,839		209		(3,005)		57,043		—
Residential mortgage-backed securities - other	751		—		(47)		704		—
Commercial mortgage-backed securities issued by U.S. government agencies and sponsored enterprises	6,138		—		(8)		6,130		—
Corporate bonds	24,656		116		(1,547)		23,225		(74)

Total debt securities held-to-maturity	$	95,044	$	329	$	(4,738)	$	90,635	$	(74)


December 31, 2024	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasuries	$	246	$	—	$	(4)	$	242	$	—
U.S. government agencies and sponsored enterprises	3,874		5		(255)		3,624		—
Residential mortgage-backed securities issued by U.S. government agencies and sponsored enterprises	47,220		—		(4,514)		42,706		—
Residential mortgage-backed securities - other	877		—		(65)		812		—
Commercial mortgage-backed securities issued by U.S. government agencies and sponsored enterprises	173		—		(14)		159		—
Corporate bonds	23,405		—		(2,787)		20,618		(71)
Total debt securities held-to-maturity	$	75,795	$	5	$	(7,639)	$	68,161	$	(71)

Net accretion of premiums and amortization of discounts related to debt securities during the years ended December 31, 2025 and 2024 was immaterial and $0.1 million, respectively, and is included in Net interest income in the Consolidated Statements of Income.

As of December 31, 2025, the amortized cost and estimated fair value of debt securities have contractual maturity dates shown in the table below. 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. Debt securities not due at a single maturity date are shown separately.


	December 31, 2025
	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	—	$	—	$	—	$	—
Due between one year and five years	—		—		6,938		6,988
Due between five years and ten years	—		—		17,966		16,486
Due after ten years	—		—		—		—
Securities (MBS and Agency)	45,623		45,607		70,140		67,161
Total	$	45,623	$	45,607	$	95,044	$	90,635

In 2022, the Company committed $6.0 million in total to two bank technology funds. Additionally, in 2025, the Company committed $3.0 million to a sale-leaseback fund as well as $3.0 million to a bank technology fund. During the years ended December 31, 2025 and 2024, the Company made $2.2 million and $0.5 million in contributions to the fund partnerships and received $0.1 million and $0.3 million of return on investments from the partnerships, respectively. Additionally, during the years ended December 31, 2025 and 2024, the Company received $0.2 million and $0 of returns of capital from the partnerships, respectively. As of December 31, 2025 and 2024, the Company held a balance of investments in the partnerships of $4.5 million and $2.5 million, respectively, which is included in Other assets in the accompanying Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $7.4 million in future contributions.

In 2014, the Company began investing in a small business investment company (SBIC) fund administered by the Small Business Administration (SBA). The Company made $0 and $0.2 million in contributions to the SBIC fund during the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, the Company held a balance of $2.4 million in the SBIC fund, which is included in Other assets in the accompanying Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $0.5 million in future SBIC investments.

As of December 31, 2025 and 2024, AFS and HTM securities with carrying values of $29.8 million and $34.9 million, respectively, were pledged to secure various public deposits and credit facilities of the Company.

As of December 31, 2025 and 2024, there were no holdings of debt securities of any one issuer, other than the U.S. Government sponsored entities and agencies, in an amount greater than 10% of shareholders’ equity.

The Company did not sell any securities during the years ended December 31, 2025 or 2024. The Company did not transfer securities between debt securities AFS and HTM during the years ended December 31, 2025 and 2024.


	December 31, 2025
		Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Number of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Debt securities available-for-sale:
Residential mortgage-backed securities issued by U.S. government agencies and sponsored enterprises	6	$	27,693	$	(70)	$	—	$	—	$	27,693	$	(70)


Total debt securities available-for-sale	6	$	27,693	$	(70)	$	—	$	—	$	27,693	$	(70)

Management measures expected credit losses on debt securities on a collective basis by major security type. The majority of our investment portfolio consists of securities issued by U.S. government entities and agencies and we consider the risk of credit loss to be zero and, therefore, we do not record an ACL. The Company's non-government backed debt securities include private label MBS and corporate bonds. Refer to Note 1 – Organization and Summary of Significant Accounting Policies for additional information on the Company’s methodology on estimating credit losses.

As of December 31, 2025, accrued interest receivable on AFS debt securities and HTM debt securities was $44 thousand and $0.4 million, respectively. As of December 31, 2024, accrued interest receivable of HTM debt securities was $0.3 million. Accrued interest receivable for debt securities is excluded from the estimate of credit losses.

As of December 31, 2025, no ACL has been recognized on AFS debt securities in an unrealized loss position as management does not believe any of the debt securities are impaired due to reasons of credit quality. The Company’s AFS portfolio is comprised of mortgage-backed securities issued by U.S. government entities and agencies, which we consider the risk of credit loss to be zero. Total gross unrealized losses were attributable to changes in interest rates, relative to when the debt securities were purchased, and not due to the credit quality of the debt securities. The Company does not intend to sell the AFS debt securities that were in an unrealized loss position and it is not likely that the Company will be required to sell the AFS debt securities before recovery of their amortized cost basis, which may be at maturity.

The ACL on HTM debt securities is estimated using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The ACL on HTM debt securities was $74 thousand and $71 thousand as of December 31, 2025 and 2024, respectively.


	Years Ended December 31,
	2025				2024
(dollars in thousands)	Corporate Bonds		Corporate MBS		Corporate Bonds		Corporate MBS
Allowance for credit losses:
Beginning balance	$	71	$	—	$	71	$	—

Provision for credit losses	3		—		—		—
Securities charged-off (recoveries)	—		—		—		—
Total ending allowance balance	$	74	$	—	$	71	$	—