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):


March 31, 2026	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	$	41,937	$	69	$	(67)	$	41,939	$	—



Total debt securities available-for-sale:	$	41,937	$	69	$	(67)	$	41,939	$	—


March 31, 2026	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value		Allowance for Credit Losses
Debt securities held-to-maturity:
U.S. Treasuries	$	248	$	—	$	(1)	$	247	$	—
U.S. government agencies and sponsored enterprises	3,335		3		(162)		3,176		—
Residential mortgage-backed securities issued by U.S. government agencies and sponsored enterprises	56,952		134		(3,248)		53,838		—
Residential mortgage-backed securities - other	730		—		(47)		683		—
Commercial mortgage-backed securities issued by U.S. government agencies and sponsored enterprises	6,133		—		(14)		6,119		—
Corporate bonds	27,715		297		(1,300)		26,712		(83)
Total debt securities held-to-maturity	$	95,113	$	434	$	(4,772)	$	90,775	$	(83)


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)

Net accretion of premiums and amortization of discounts related to debt securities during the three month periods ended March 31, 2026 and 2025 was immaterial, and is included in Net interest income in the Consolidated Statements of Income.

As of March 31, 2026, 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.


	March 31, 2026
	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	—		—		4,246		4,322
Due between five years and ten years	—		—		23,717		22,637
Due after ten years	—		—		—		—
Securities (MBS and Agency)	41,937		41,939		67,150		63,816
Total	$	41,937	$	41,939	$	95,113	$	90,775

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 three months ended March 31, 2026, the Company made $0.4 million of contributions to the fund partnerships and received no return on investment. During the year ended December 31, 2025, the Company made $2.2 million of contributions to the partnerships and received $0.1 million of return on investments from the partnerships. As of March 31, 2026 and December 31, 2025, the Company held a balance of investments in the partnerships of $4.9 million and $4.5 million, respectively, which is included in Other assets in the accompanying Condensed Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $7.0 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). During the three months ended March 31, 2026 and year ended December 31, 2025, the Company made no contributions to the SBIC fund. As of March 31, 2026 and December 31, 2025, the Company held a balance of $2.4 million in the SBIC fund, which is included in Other assets in the accompanying Condensed Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $0.5 million in future SBIC investments.

As of March 31, 2026 and December 31, 2025, AFS and HTM securities with carrying values of $32.2 million and $29.8 million, respectively, were pledged to secure various public deposits and credit facilities of the Company.

As of March 31, 2026 and December 31, 2025, 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 debt securities during the three months ended March 31, 2026 or 2025. The Company did not transfer any debt securities between AFS and HTM during the three months ended March 31, 2026 or 2025.

The following presents AFS debt securities that were in an unrealized loss position, based on the length of time the individual debt securities have been in an unrealized loss position.


	March 31, 2026
		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	3	$	12,462	$	(67)	$	—	$	—	$	12,462	$	(67)



Total debt securities available-for-sale	3	$	12,462	$	(67)	$	—	$	—	$	12,462	$	(67)


	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 March 31, 2026, accrued interest receivable on AFS debt securities and HTM debt securities was $39 thousand and $0.5 million, respectively. As of December 31, 2025, accrued interest receivable on AFS debt securities and HTM debt securities was $44 thousand and $0.4 million, respectively. Accrued interest receivable for debt securities is excluded from the estimate of credit losses.

As of March 31, 2026, 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 MBS 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 likely that the Company will not 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 $83 thousand and $74 thousand as of March 31, 2026 and December 31, 2025, respectively.


	Corporate Bonds
	Three Months Ended March 31,
(dollars in thousands)	2026		2025

Allowance for credit losses:
Beginning balance	$	74		$	71

Provision for credit losses	9			—
Securities charged-off (recoveries)	—			—
Total ending allowance balance	$	83		$	71

The Company monitors the credit quality of debt securities on a quarterly basis. As of March 31, 2026 and December 31, 2025, there were no debt securities past due or on non-accrual.