Debt Securities Held-to-Maturity

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Debt Securities Held-to-Maturity

Debt Securities Held-to-Maturity

The following is a summary of mortgage-backed securities held-to-maturity at September 30, 2025, and December 31, 2024 (in thousands):

	September 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities:
Pass-through certificates:
GSE	$	8,396	$	83	$	(334)	$	8,145
Total securities held-to-maturity	$	8,396	$	83	$	(334)	$	8,145

	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities:
Pass-through certificates:
GSE	$	9,303	$	16	$	(557)	$	8,762
Total securities held-to-maturity	$	9,303	$	16	$	(557)	$	8,762

Contractual maturities for mortgage-backed securities are not presented, as expected maturities on mortgage-backed securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. There were no sales of held-to-maturity securities during the nine months ended September 30, 2025 or September 30, 2024.

At September 30, 2025, and December 31, 2024, debt securities held-to-maturity with a carrying value of $8.2 million and $9.1 million, respectively, were pledged to secure borrowings and deposits.

Gross unrealized losses on mortgage-backed securities held-to-maturity, and the estimated fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025, and December 31, 2024, were as follows (in thousands):

	September 30, 2025
	Less than 12 months				12 months or more				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
	losses		fair value		losses		fair value		losses		fair value
Mortgage-backed securities:
Pass-through certificates:
GSE	$	—	$	—	$	(334)	$	5,930	$	(334)	$	5,930
Total	$	—	$	—	$	(334)	$	5,930	$	(334)	$	5,930

	December 31, 2024
	Less than 12 months				12 months or more				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
	losses		fair value		losses		fair value		losses		fair value
Mortgage-backed securities:
Pass-through certificates:
GSE	$	—	$	—	$	(557)	$	5,974	$	(557)	$	5,974
Total	$	—	$	—	$	(557)	$	5,974	$	(557)	$	5,974

The Company held nine pass-through mortgage-backed debt securities held-to-maturity issued or guaranteed by GSEs that were in a continuous unrealized loss position of twelve months or greater at September 30, 2025.

The Company's held-to-maturity securities are residential mortgage-backed securities issued by Ginnie Mae, Freddie Mac and Fannie Mae, and it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. Government. Accordingly, no allowance for credit losses has been recorded for these securities.

The Company has made the accounting policy election to exclude accrued interest receivable on held-to-maturity securities from the estimate of credit losses. Accrued interest receivable associated with held-to-maturity securities totaling $30,000 and $33,000 at September 30, 2025, and December 31, 2024, respectively, was reported in accrued interest receivable on the consolidated balance sheets. The Company elected not to measure an allowance for credit losses on accrued interest receivable as an allowance on possible uncollectible accrued interest is not warranted.