SECURITIES

12 Months Ended

Dec. 31, 2025

NOTE 2 – SECURITIES

The amortized cost and fair value of securities available for sale at December 31 are as follows (in thousands):


					Gross			Gross
		Amortized			Unrealized			Unrealized
		Cost			Gains			Losses			Fair Value
2025
U.S. Treasury Securities		$	2,955		$	6		$	—		$	2,961
State and political subdivisions			12,204			—			(185)			12,019
Mortgage-backed securities (“MBSs”) – residential			45,721			708			(382)			46,047
Collateralized mortgage obligations (“CMOs”)			97			—			(44)			53
Corporate securities			5,484			—			(2)			5,482
Total securities available for sale		$	66,461		$	714		$	(613)		$	66,562


					Gross			Gross
		Amortized			Unrealized			Unrealized
		Cost			Gains			Losses			Fair Value
2024
U.S. Treasury Securities		$	5,971		$	16		$	—		$	5,987
State and political subdivisions			13,506			—			(659)			12,847
Mortgage-backed securities (“MBSs”) – residential			51,914			257			(1,079)			51,092
Collateralized mortgage obligations (“CMOs”)			97			1			(39)			59
Corporate securities			6,970			—			(1)			6,969
Total securities available for sale		$	78,458		$	274		$	(1,778)		$	76,954

NOTE 2 – SECURITIES (Continued)

The Company did not sell any securities during the year ended December 31, 2025 or during the year ended December 31, 2024. There were no securities called during the year ended December 31, 2025 or during the year ended December 31, 2024.

As of December 31, 2025, the contractual maturity of debt securities available for sale (MBSs and CMOs are shown separately) at amortized cost and approximate fair value is as follows (in thousands):


		Amortized
		Cost			Fair Value
Within one year		$	2,955		$	2,962
After one year to five years			8,248			8,186
After five years to ten years			9,440			9,314
Over ten years			—			—
Total debt securities			20,643			20,462
MBSs and CMOs			45,818			46,100
Total		$	66,461		$	66,562

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

The carrying value of securities available for sale pledged to secure borrowings, deposits, and for other purposes was $60.6 million and $69.9 million at December 31, 2025 and 2024, respectively. At year-end 2025 and 2024, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.

The following table provides the gross unrealized losses and fair value, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position at December 31 (in thousands).


		Less than 12 Months						12 Months or longer						Total
					Gross						Gross
					Unrealized						Unrealized						Unrealized
		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
2025
U.S. Treasury Securities		$	—		$	—		$	—		$	—		$	—		$	—
State and political subdivisions			—			—			11,816			(185)			11,816			(185)
MBSs			—			—			16,133			(382)			16,133			(382)
CMOs			—			—			53			(44)			53			(44)
Corporate Securities			2,482			(2)			—			—			2,482			(2)
		$	2,482		$	(2)		$	28,002		$	(611)		$	30,484		$	(613)


		Less than 12 Months						12 Months or longer						Total
		Estimated			Unrealized			Estimated			Unrealized			Estimated			Unrealized
		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
2024
Treasury		$	—		$	—		$	—		$	—		$	—		$	—
State and political subdivisions			3,968			(135)			8,879			(524)			12,847			(659)
MBSs			24,928			(411)			11,074			(668)			36,002			(1,079)
CMOs			—			—			58			(39)			58			(39)
Corporate Securities			—			—			2,469			(1)			2,469			(1)
		$	28,896		$	(546)		$	22,480		$	(1,232)		$	51,376		$	(1,778)

NOTE 2 – SECURITIES (Continued)

Management has assessed the securities available for sale that were in an unrealized loss position at December 31, 2025, and determined that the decline in fair value is driven by changes in market interest rates and credit spreads, not changes in credit quality. There were no defaults on principal or interest payments, and no interest payments were deferred. Based on management’s analysis of each individual security, the issues appear to have the ability to meet debt service requirements over the life of the security. The Company had no allowance for credit losses on securities available for sale at December 31, 2025 and 2024. At December 31, 2025 the Company had no intent to sell securities in an unrealized loss position and has the ability to hold them until recovery.