Note 2 - Securities

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 2 - Securities

The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale at December 31, 2025, are summarized as follows:

	December 31, 2025
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Allowance for Credit Losses
Available for Sale
Municipal bonds	$	92,148	$	—	$	(11,896	)	$	80,252	$	—
U.S. government agency issued asset-backed securities (ABS agency)		11,927		28		(12	)		11,943		—
Corporate issued asset-backed securities (ABS corporate)		7,963		2		(4	)		7,961		—
Corporate issued debt securities (Corporate debt)		39,772		251		(1,222	)		38,801		—
U.S. Small Business Administration securities (SBA)		6,293		18		(18	)		6,293		—
Mortgage-Backed Securities:
U.S. government agency issued mortgage-backed securities (MBS agency)		101,618		379		(10,341	)		91,656		—
Non-agency issued mortgage-backed securities (MBS non-agency)		36,128		4		(2,728	)		33,404		—
Total securities available for sale	$	295,849	$	682	$	(26,221	)	$	270,310	$	—

The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale at December 31, 2024, are summarized as follows:

	December 31, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Allowance for Credit Losses
Available for Sale
Municipal bonds	$	93,212	$	—	$	(15,336	)	$	77,876	$	—
ABS agency		12,944		16		(84	)		12,876		—
ABS corporate		16,065		62		(5	)		16,122		—
Corporate debt		58,106		55		(3,670	)		54,491		—
SBA		8,664		18		(16	)		8,666		—
Mortgage-Backed Securities
MBS agency		111,372		83		(12,758	)		98,697		—
MBS non-agency		75,902		4		(4,290	)		71,616		—
Total securities available for sale	$	376,265	$	238	$	(36,159	)	$	340,344	$	—

There were no securities classified as held-to-maturity at  December 31, 2025 and 2024. There was no allowance for credit losses on investment securities recorded at December 31, 2025 and 2024, based on analysis performed by the Company.

Accrued interest receivable on available-for-sale debt securities totaled $1.5 million and $2.0 million as of December 31, 2025 and 2024, respectively. Accrued interest receivable on securities is reported in accrued interest receivable on the Consolidated Balance Sheets and is excluded from the calculation of the allowance for credit losses on investment securities.

The following table shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of December 31, 2025:

	Less Than Twelve Months					Twelve Months or Longer					Total
(dollars in thousands)	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Available for Sale
Municipal bonds	$	—		$	—	$	(11,896	)	$	80,252	$	(11,896	)	$	80,252
ABS agency		—			—		(12	)		4,116		(12	)		4,116
ABS corporate		—			—		(4	)		958		(4	)		958
Corporate debt		(8	)		993		(1,214	)		27,570		(1,222	)		28,563
SBA		(5	)		643		(13	)		2,380		(18	)		3,023
Mortgage-Backed Securities
MBS agency		(31	)		3,871		(10,310	)		57,375		(10,341	)		61,246
MBS non-agency		—			—		(2,728	)		31,154		(2,728	)		31,154
Total	$	(44	)	$	5,507	$	(26,177	)	$	203,805	$	(26,221	)	$	209,312

The following table shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of December 31, 2024:

	Less Than Twelve Months					Twelve Months or Longer					Total
(dollars in thousands)	Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value
Available for Sale
Municipal bonds	$	—		$	—	$	(15,336	)	$	77,876	$	(15,336	)	$	77,876
ABS Agency		(21	)		2,957		(63	)		6,311		(84	)		9,268
ABS Corporate		—			—		(5	)		2,798		(5	)		2,798
Corporate debt		—			—		(3,670	)		46,355		(3,670	)		46,355
SBA		(16	)		3,093		—			—		(16	)		3,093
Mortgage-Backed Securities
MBS agency		(545	)		26,531		(12,213	)		51,181		(12,758	)		77,712
MBS non-agency		(71	)		9,352		(4,219	)		57,470		(4,290	)		66,822
Total	$	(653	)	$	41,933	$	(35,506	)	$	241,991	$	(36,159	)	$	283,924

There were 4 available-for-sale securities with unrealized losses of less than one year, and 131 available-for-sale securities with an unrealized loss of more than one year at December 31, 2025. There were 22 available-for-sale securities with unrealized losses of less than one year, and 144 available-for-sale securities with an unrealized loss of more than one year at December 31, 2024. Management believes that the unrealized losses on our investment securities relate principally to the general change in interest rates, market liquidity and demand, and market volatility that has occurred since the initial purchase, and such unrecognized losses or gains will continue to vary with general interest rate level and market fluctuations in the future. Management does not believe the unrealized losses on our securities are related to a deterioration in credit quality. Certain investments in a loss position are guaranteed by government entities or government sponsored entities. The Company does not intend to sell the securities in an unrealized loss position and believes that it is unlikely that we will be required to sell these investments prior to a market price recovery or maturity. Based on the Company’s evaluation of these securities, no credit impairment was recorded at  December 31, 2025 or December 31, 2024.

The amortized cost and estimated fair value of investment securities by contractual maturity are shown in the following tables at the dates indicated. Expected maturities of MBS may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; therefore, these securities are shown separately.

	December 31, 2025				December 31, 2024
(dollars in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Mortgage-backed securities:
Due within one year	$	4,602	$	4,603	$	26,690	$	26,509
Due after one through five years		6,912		6,856		11,564		11,539
Due after five through ten years		7,215		7,012		8,080		7,609
Due after ten years		119,017		106,589		140,940		124,656
Total mortgage-backed securities		137,746		125,060		187,274		170,313
All other investment securities:
Due within one year		1,000		959		—		—
Due after one through five years		24,082		23,620		21,559		20,751
Due after five through ten years		45,356		41,453		58,535		53,321
Due after ten years		87,665		79,218		108,897		95,959
Total all other investment securities		158,103		145,250		188,991		170,031
Total investment securities	$	295,849	$	270,310	$	376,265	$	340,344

Sales of available-for-sale securities were as follows:

	For the Year Ended December 31,
(dollars in thousands)	2025		2024
Proceeds from sales	$	—	$	21,048
Gross realized gains		—		—
Gross realized losses		—		(2,117	)