Investment Securities

12 Months Ended

Dec. 31, 2025

Investment Securities

Investment Securities

Note 2— Investment Securities

Available-for-Sale

Each of the securities in the Company’s available-for-sale investment portfolio is either covered by the explicit or implied guarantee of the United States government or one of its agencies or rated investment grade or higher. All available-for-sale securities were current with no securities past due or on nonaccrual as of December 31, 2025 or December 31, 2024.

The following tables summarize the amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses at December 31, 2025 and December 31, 2024, respectively.

	December 31, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		(Losses)		Value
Available-for-sale
U.S. Treasuries	$	13,244	$	—	$	(112)	$	13,132
U.S. government and federal agencies		6,976		2		(158)		6,820
Corporate bonds		3,000		—		(180)		2,820
U.S. agency collateralized mortgage obligations		31,019		7		(5,333)		25,693
Tax-exempt municipal		1,378		—		(142)		1,236
U.S. agency mortgage-backed		77,306		136		(3,291)		74,151
Total Available-for-sale Securities	$	132,923	$	145	$	(9,216)	$	123,852

	December 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		(Losses)		Value
Available-for-sale
U.S. Treasuries	$	27,920	$	—	$	(783)	$	27,137
U.S. government and federal agencies		10,966		—		(385)		10,581
Corporate bonds		3,000		—		(261)		2,739
U.S. agency collateralized mortgage obligations		36,032		—		(6,421)		29,611
Tax-exempt municipal		1,379		—		(208)		1,171
Taxable municipal		270		—		(7)		263
U.S. agency mortgage-backed		64,274		—		(5,519)		58,755
Total Available-for-sale Securities	$	143,841	$	—	$	(13,584)	$	130,257

The Company did not sell or recognize any gain or loss for any securities in either 2025 or 2024.  

Available-for-sale securities having a market value of $54.8 million and $48.8 million at December 31, 2025 and December 31, 2024, respectively, were pledged to secure public deposits and for other purposes required by law. These securities had an amortized cost of $58.6 million and $52.5 million at December 31, 2025 and December 31, 2024, respectively.

The following tables summarize the fair value of securities available-for-sale at December 31, 2025 and December 31, 2024 and the corresponding amounts of gross unrealized losses. Management uses the valuations as of month-end in determining when securities are in an unrealized loss position. Therefore, a security’s market value could have exceeded its amortized cost on other days during the prior twelve-month period.

	December 31, 2025
	Less than 12 Months				12 Months or Longer				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Available-for-sale
U.S. Treasuries	$	—	$	—	$	13,132	$	(112)	$	13,132	$	(112)
U.S. government and federal agencies		—		—		5,838		(158)		5,838		(158)
Corporate bonds		—		—		2,820		(180)		2,820		(180)
U.S. agency collateralized mortgage obligations		—		—		24,930		(5,333)		24,930		(5,333)
Tax-exempt municipal		—		—		1,236		(142)		1,236		(142)
U.S. agency mortgage-backed		11,214		(28)		46,318		(3,263)		57,532		(3,291)
Total Available-for-sale Securities	$	11,214	$	(28)	$	94,274	$	(9,188)	$	105,488	$	(9,216)

	December 31, 2024
	Less than 12 Months				12 Months or Longer				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Available-for-sale
U.S. Treasuries	$	—	$	—	$	27,137	$	(783)	$	27,137	$	(783)
U.S. government and federal agencies		—		—		10,581		(385)		10,581		(385)
Corporate bonds		—		—		2,739		(261)		2,739		(261)
U.S. agency collateralized mortgage obligations		—		—		29,611		(6,421)		29,611		(6,421)
Tax-exempt municipal		—		—		1,171		(208)		1,171		(208)
Taxable municipal		—		—		263		(7)		263		(7)
U.S. agency mortgage-backed		—		—		58,755		(5,519)		58,755		(5,519)
Total Available-for-sale Securities	$	—	$	—	$	130,257	$	(13,584)	$	130,257	$	(13,584)

The Company had 137 and 147 securities in an unrealized loss position as of December 31, 2025 and December 31, 2024, respectively. The Company has evaluated available-for-sale securities in an unrealized loss position for credit related impairment at December 31, 2025 and December 31, 2024 and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no allowance for credit losses on available-for-sale securities at December 31, 2025.

The table below summarizes the contractual maturities of our available-for-sale investment securities as of December 31, 2025. Issuers may have the right to call or prepay certain obligations and as such, the expected maturities of our securities may differ from the scheduled contractual maturities presented below.

	December 31, 2025
	Amortized		Fair
(Dollars in thousands)	Cost		Value
Available-for-sale
Due in one year or less	$	17,400	$	17,280
Due after one year through five years		21,600		21,079
Due after five years through ten years		42,717		42,158
Due after ten years		51,206		43,335
Total Available-for-sale Securities	$	132,923	$	123,852

In the prevailing interest rate environments as of December 31, 2025 and December 31, 2024, the Company’s available-for-sale investment portfolio had an estimated weighted average remaining life of approximately 3.1 years as of both periods.

Held-to-Maturity

Each of the securities in the Company’s held-to-maturity investment portfolio is either rated investment grade or higher or covered by the explicit or implied guarantee of the United States government or one of its agencies. All held-to-maturity securities were current with no securities past due or on nonaccrual as of December 31, 2025 or December 31, 2024.

The following tables summarize the amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrealized losses at December 31, 2025 and December 31, 2024, respectively.

	December 31, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		(Losses)		Value
Held-to-maturity
U.S. Treasuries	$	6,002	$	—	$	(308)	$	5,694
U.S. government and federal agencies		35,314		—		(2,934)		32,380
U.S. agency collateralized mortgage obligations		16,163		—		(3,006)		13,157
Taxable municipal		6,024		—		(754)		5,270
U.S. agency mortgage-backed		24,918		—		(3,844)		21,074
Total Held-to-maturity Securities	$	88,421	$	—	$	(10,846)	$	77,575

	December 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		(Losses)		Value
Held-to-maturity
U.S. Treasuries	$	6,001	$	—	$	(583)	$	5,418
U.S. government and federal agencies		35,349		—		(4,743)		30,606
U.S. agency collateralized mortgage obligations		17,805		—		(3,948)		13,857
Taxable municipal		6,041		—		(1,089)		4,952
U.S. agency mortgage-backed		26,813		—		(5,376)		21,437
Total Held-to-maturity Securities	$	92,009	$	—	$	(15,739)	$	76,270

Held-to-maturity securities having a market value of $45.2 million and $43.0 million at December 31, 2025 and December 31, 2024, respectively, were pledged to secure public deposits and for other purposes required by law. These securities had an amortized cost of $49.8 million and $50.0 million at December 31, 2025 and December 31, 2024, respectively.

The Company evaluates the credit risk of its held-to-maturity securities on at least a quarterly basis. The Company estimates expected credit losses on held-to-maturity securities on an individual basis based on a PD/LGD methodology primarily using security-level credit ratings. The primary indicators of credit quality for the Company’s held-to-maturity portfolio are security type and credit rating, which is influenced by a number of factors including obligor cash flow, geography, seniority, and others. The Company’s held-to-maturity securities with credit risk were comprised of municipal bonds and had a credit rating of AA or better as of December 31, 2025. All other held-to-maturity securities are covered by the explicit or implied guarantee of the United States government or one of its agencies. The Company did not have an allowance for credit losses on held-to-maturity securities as of December 31, 2025.

The table below summarizes the contractual maturities of our held-to-maturity investment securities as of December 31, 2025. Issuers may have the right to call or prepay certain obligations and as such, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below.

	December 31, 2025
	Amortized		Fair
(Dollars in thousands)	Cost		Value
Held-to-maturity
Due in one year or less	$	—	$	—
Due after one year through five years		34,754		32,532
Due after five years through ten years		15,208		13,340
Due after ten years		38,459		31,703
Total Held-to-maturity Securities	$	88,421	$	77,575

In the prevailing rate environments as of December 31, 2025 and December 31, 2024, the Company’s held-to-maturity investment portfolio had an estimated weighted average remaining life of approximately 5.2 years and 6.0 years, respectively.

Restricted Securities

The table below summarizes the carrying amount of restricted securities as of December 31, 2025 and December 31, 2024.

(Dollars in thousands)	December 31, 2025		December 31, 2024
Federal Reserve Bank Stock	$	3,342	$	3,327
Federal Home Loan Bank Stock		4,242		4,247
Community Bankers’ Bank Stock		60		60
Total Restricted Securities	$	7,644	$	7,634

Equity Securities

The Company held equity securities with readily determinable fair values totaling $2.8 million at December 31, 2025 and December 31, 2024, respectively. These securities consist of mutual funds held in a trust and were obtained for the purpose of economically hedging changes in the Company’s nonqualified deferred compensation liability. Changes in the fair value of these securities are reflected in earnings. A gain of $402 thousand and a gain of $236 thousand were recorded in non-qualified deferred compensation plan asset gains, net in the Consolidated Statements of Income as of December 31, 2025 and December 31, 2024, respectively.