
	September 30, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale
U.S. Treasury securities	$	796	$	—	$	2	$	794
SBA Pools	3,619		—		420		3,199
Federal agencies	15,000		—		1,065		13,935
State and municipal obligations	157,268		7		28,578		128,697
Mortgage-backed securities - government-sponsored enterprises (GSE) residential	110,502		72		16,394		94,180
Corporate obligations	11,500		—		1,856		9,644

	298,685		79		48,315		250,449
Held to maturity
State and municipal obligations	2,772		9		57		2,724
	2,772		9		57		2,724

Total investment securities	$	301,457	$	88	$	48,372	$	253,173


	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale
U.S. Treasury securities	$	3,159	$	2	$	—	$	3,161
SBA Pools	4,243		—		543		3,700
Federal agencies	15,000		—		1,666		13,334
State and municipal obligations	162,524		1		32,166		130,359
Mortgage-backed securities - (GSE) residential	119,748		5		21,440		98,313
Corporate obligations	11,500		—		2,175		9,325

	316,174		8		57,990		258,192
Held to maturity
State and municipal obligations	3,498		8		85		3,421
	3,498		8		85		3,421

Total investment securities	$	319,672	$	16	$	58,075	$	261,613

The amortized cost and fair value of investment securities at September 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Within one year	$	1,770	$	1,767	$	725	$	725
One to five years	23,490		22,463		987		988
Five to ten years	45,435		41,006		450		450
After ten years	117,488		91,033		610		561
	188,183		156,269		2,772		2,724
Mortgage-backed securities –GSE residential	110,502		94,180		—		—

Totals	$	298,685	$	250,449	$	2,772	$	2,724

Investment securities with a carrying value of $138,306,000 and $136,799,000 were pledged at September 30, 2025 and December 31, 2024, respectively, to secure certain deposits and for other purposes as permitted or required by law.

Proceeds from the sale of securities available for sale were $0 and $6,765,000 for the three and nine months ended September 30, 2025. Gross losses recognized on the sale of securities available for sale for the three and nine months ended September 30, 2025 were $0 and $157,000, while there were no gross gains recognized during those same periods. Proceeds from the sale of securities available for sale for the three and nine months ended September 30, 2024 were $3,119,000 and $6,908,000, respectively. Gross losses recognized on the sale of securities available for sale for the three and nine months ended September 30, 2024 were $9,000 and $71,000, respectively, while gross gains recognized were $157,000 during those same periods.

Certain investments in debt securities, as reflected in the table below, are reported in the condensed consolidated financial statements and notes at an amount less than their historical cost. Total fair value of these investments at September 30, 2025 and December 31, 2024 was $244,243,000 and $255,749,000, respectively, which is approximately 96% and 98% of the Company’s aggregated available for sale and held to maturity investment portfolio at those dates, respectively. These declines primarily resulted from changes in market interest rates since their purchase.

The Company does not consider available for sale securities with unrealized losses to be experiencing credit losses at September 30, 2025. Management considers it more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost basis, which may be the maturity dates of the securities.

Held to maturity securities are financial assets measured at amortized cost. Held to maturity securities are required to have an established allowance for credit losses that represents the portion of the amortized cost basis of a financial asset that is not expected to be collectable. The Company estimates expected credit losses on a collective basis by security type, with consideration given to historical information, credit ratings, and the statistical probability of future losses.

The Company monitors the credit quality of investment securities held to maturity through the use of credit ratings quarterly. As of September 30, 2025, there was no allowance for credit losses recognized on the Company's securities held to maturity portfolio.

The following table summarizes the amortized cost of held to maturity securities by credit quality indicator as of September 30, 2025 and December 31, 2024:


	State and municipal obligations
	September 30, 2025		December 31, 2024

AA+	$	350	$	483
AA	—		—
AA-	—		295
A+	375		605
BBB+	—		—
Not rated	2,047		2,115

	$	2,772	$	3,498

The following tables show the Company’s investment securities by gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025 and December 31, 2024:


Description of Securities	September 30, 2025
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale
U.S. Treasury Securities	$	795	$	2	$	—	$	—	$	795	$	2
SBA Pools	—		—		2,899		420		2,899		420
Federal agencies	—		—		13,935		1,065		13,935		1,065
State and municipal obligations	—		—		125,795		28,578		125,795		28,578
Mortgage-backed securities - GSE residential	—		—		89,917		16,394		89,917		16,394
Corporate obligations	—		—		9,644		1,856		9,644		1,856
Total available for sale	795		2		242,190		48,313		242,985		48,315

Held to maturity
State and municipal obligations	280		—		978		57		1,258		57

Total	$	1,075	$	2	$	243,168	$	48,370	$	244,243	$	48,372


Description of Securities	December 31, 2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale

SBA Pools	$	454	$	1	$	2,991	$	542	$	3,445	$	543
Federal agencies	—		—		13,334		1,666		13,334		1,666
State and municipal obligations	1,578		17		127,705		32,149		129,283		32,166
Mortgage-backed securities - GSE residential	1,045		10		96,296		21,430		97,341		21,440
Corporate obligations	—		—		9,324		2,175		9,324		2,175
Total available for sale	3,077		28		249,650		57,962		252,727		57,990

Held to maturity
State and municipal obligations	1,253		12		1,769		73		3,022		85

Total	$	4,330	$	40	$	251,419	$	58,035	$	255,749	$	58,075

Federal Agency Obligations. The unrealized losses on the Company’s investments in direct obligations of U.S. federal agencies were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.

SBA Pools and Mortgage-Backed Securities - GSE Residential. The unrealized losses on the Company’s investment in mortgage-backed securities and SBA pools were caused by interest rate changes and illiquidity. The Company expects to recover the amortized cost basis over the term of the securities. The decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell the securities and it is not more likely than not the Company will be required to sell the securities before recovery of their amortized cost basis, which may be maturity.

State, Municipal, and Corporate Obligations. The unrealized losses on the Company’s investments in securities of state, municipal, and corporate obligations were caused by interest rate changes. The contractual terms of those securities do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the securities and it is not more likely than not the Company will be required to sell the securities before recovery of their amortized cost basis, which may be maturity.