The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:


	(Dollars in thousands)
	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2025
U.S. government agency securities(1)	$	8,884	$	-	$	(418)	$	8,466
Collateralized mortgage obligations and residential mortgage-backed securities(1)	123,833		-		(19,168)		104,665
Municipal securities	236,168		2		(34,956)		201,214
Collateralized debt obligations	2,141		-		(259)		1,882
Total securities available-for-sale	$	371,026	$	2	$	(54,801)	$	316,227


	(Dollars in thousands)
	Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2024
U.S. government agency securities(1)	$	8,884	$	-	$	(823)	$	8,061
Collateralized mortgage obligations and residential mortgage-backed securities(1)	135,974		-		(26,649)		109,325
Municipal securities	262,954		-		(48,205)		214,749
Collateralized debt obligations	2,156		-		(737)		1,419
Total securities available-for-sale	$	409,968	$	-	$	(76,414)	$	333,554

The cost basis and estimated fair value of available-for-sale debt securities at December 31, 2025, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily collateralized mortgage obligations and residential mortgage-backed securities, are shown separately.


	(Dollars in thousands)
	Available-for-sale
December 31, 2025	Cost Basis		Estimated Fair Value
Due in one year or less	$	-	$	-
Due from one to five years	13,044		12,367
Due from five to ten years	39,873		35,800
Due over ten years	194,276		163,395
Collateralized mortgage obligations and residential mortgage-backed securities	123,833		104,665
Total	$	371,026	$	316,227


	(Dollars in thousands)
	Unrealized loss
Beginning Balance, January 1, 2025	$	(58,084)
Period change	16,422
Ending Balance, December 31, 2025	$	(41,662)


	(Dollars in thousands)
	Unrealized loss
Beginning balance, January 1, 2024	$	(51,613)
Current period change	(6,471)
Ending balance, December 31, 2024	$	(58,084)

Securities with market values of approximately $315.5 million and $326.5 million were pledged as of December 31, 2025 and December 31, 2024, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.

Securities with gross unrealized losses and the related estimated fair value, segregated between investments that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more at December 31, 2025, and December 31, 2024:


					(Dollars in thousands)
	Less than 12 months				12 months or longer				Total
December 31, 2025	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Percentage of Total Portfolio in Loss Position
U.S. government agency securities	$	-	$	-	$	8,466	$	(418)	$	8,466	$	(418)	100.0	%
Collateralized mortgage obligations and residential mortgage-backed securities	-		-		104,665		(19,168)		104,665		(19,168)		100.0	%
Municipal securities	-		-		200,469		(34,956)		200,469		(34,956)		99.6	%
Collateralized debt obligations	-		-		1,882		(259)		1,882		(259)		100.0	%
Total	$	-	$	-	$	315,482	$	(54,801)	$	315,482	$	(54,801)	99.8	%
Number of securities			-				369				369


					(Dollars in thousands)
	Less than 12 months				12 months or longer				Total
December 31, 2024	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Percentage of Total Portfolio in Loss Position
U.S. government agency securities	$	-	$	-	$	8,061	$	(823)	$	8,061	$	(823)	100.0	%
Collateralized mortgage obligations and residential mortgage-backed securities	-		-		109,325		(26,649)		109,325		(26,649)		100.0	%
Municipal securities	3,310		(156)		211,439		(48,049)		214,749		(48,205)		100.0	%
Collateralized debt obligations	-		-		1,419		(737)		1,419		(737)		100.0	%
Total	$	3,310	$	(156)	$	330,244	$	(76,258)	$	333,554	$	(76,414)	100.0	%
Number of securities			4				409				413

Unrealized losses on securities have not been recognized into income because the securities are of high credit quality or have undisrupted cash flows. Management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in securities markets. The fair values are expected to recover as the securities approach maturity.

Collateralized debt obligations with a cost basis of $2.1 million and fair value of $1.9 million at December 31, 2025 and a cost basis of $2.2 million and fair value of $1.4 million at December 31, 2024, had previously recorded impairment of $173 thousand, which will not be recoverable until maturity of the security.

Accrued interest receivable on AFS debt securities totaled $2.0 million at December 31, 2025, and $2.3 million at December 31, 2024. These amounts are excluded from the estimate of credit losses. The Company made the policy election to exclude accrued interest from the amortized cost basis of AFS debt securities and report accrued interest separately on the consolidated balance sheet.