SECURITIES AVAILABLE-FOR-SALE

3 Months Ended

Mar. 31, 2026

3. Securities Available-for-Sale

The carrying value and estimated fair value of securities available for sale are presented below by contractual final maturity. Actual maturities may differ from below as the loans underlying some securities are subject to prepayment and regular monthly principal repayment.


	March 31, 2026
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value

	(In thousands)
Mortgage-Backed Securities:
Due within one year	$	1	$	—	$	—	$	1
Due after ten years		4,994		20		(579)		4,435
		4,995		20		(579)		4,436
Collateralized Mortgage Obligations (CMO):
Due within one year		574		—		(2)		572
Due after ten years		13,479		71		(17)		13,533
		14,053		71		(19)		14,105
Corporate Bonds:
Due after five through ten years		1,000		19		—		1,019
		1,000		19		—		1,019
Agency Securities:
Due after one through five years		2,000		—		(125)		1,875
		2,000		—		(125)		1,875
Small Business Administration:
Due after ten years		5,066		1		(28)		5,039
		5,066		1		(28)		5,039

	$	27,114	$	111	$	(751)	$	26,474

The age of unrealized losses and fair value of related securities available-for-sale were as follows:


	March 31, 2026
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses

	(In thousands)
Mortgage-Backed Securities	$	830	$	(4)	$	2,573	$	(575)	$	3,403	$	(579)
CMO		1,244		(17)		573		(2)		1,817		(19)
Agency Securities		—		—		1,875		(125)		1,875		(125)
Small Business Administration		—		—		4,352		(28)		4,352		(28)
	$	2,074	$	(21)	$	9,373	$	(730)	$	11,447	$	(751)


	December 31, 2025
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value

	(In thousands)
Mortgage-Backed Securities:
Due after one through five years	$	1	$	—	$	—	$	1
Due after ten years		4,250		33		(555)		3,728
		4,251		33		(555)		3,729
CMO:
Due within one year		578		—		(2)		576
Due after ten years		13,387		164		—		13,551
		13,965		164		(2)		14,127
Corporate Bonds:
Due after five through ten years		1,000		15		—		1,015
		1,000		15		—		1,015
Agency Securities
Due after one through five years		2,000		—		(114)		1,886
		2,000		—		(114)		1,886
Small Business Administration:
Due after ten years		5,113		—		(36)		5,077
		5,113		—		(36)		5,077

	$	26,329	$	212	$	(707)	$	25,834

The age of unrealized losses and fair value of related securities available-for-sale were as follows:


	December 31, 2025
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses

	(In thousands)
Mortgage-Backed Securities	$	—	$	—	$	2,652	$	(555)	$	2,652	$	(555)
CMO		—		—		576		(2)		576		(2)
Agency Securities		—		—		1,886		(114)		1,886		(114)
Small Business Administration		—		—		5,077		(36)		5,077		(36)
	$	—	$	—	$	10,191	$	(707)	$	10,191	$	(707)

There were no sales of securities during the three-months ended March 31, 2026. Accordingly, there were no gains or losses.

For the three months ended March 31, 2025, proceeds from sales of securities available for sale amounted to $1,870,000. Gross realized losses amounted to $130,000. There were no gains realized on any sales during this period.

At March 31, 2026, seventeen AFS debt securities had unrealized losses with aggregate depreciation of 6.2% from the Company’s amortized cost basis.

Management does not believe that any individual unrealized loss at March 31, 2026, nor at December 31, 2025 represent a credit-related unrealized loss. Management believes that all unrealized losses are due to changes in interest rates.

Management does not intend to sell these securities and it is not more-likely-than-not that the Company would be required to sell the securities reflected in the above tables prior to full recovery of fair value to a level which equals or exceeds amortized cost. All mortgage-backed securities are issued by U.S. Government sponsored entities and are collateralized by residential mortgages.

Allowance for Credit Losses – Available for Sale Securities

Available for sale securities which are guaranteed by government agencies do not currently have an allowance for credit loss as the Company determined these securities are either backed by the full faith and credit of the U.S. government and/or there is an unconditional commitment to make interest payments and to return the principal investment in full to investors when a debt security reaches maturity. In assessing the Company’s investments in government-sponsored and U.S. government guaranteed mortgage-backed securities and government-sponsored enterprise obligations, the contractual cash flows of these investments are guaranteed by the respective government-sponsored enterprise. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company’s investments. The Company will evaluate this position no less than annually, however, certain items which may cause the Company to change this methodology include legislative changes that remove a government-sponsored enterprise’s ability to draw funds from the U.S. government, or legislative changes to housing policy that reduce or eliminate the U.S. government’s implicit guarantee on such securities. There were no allowance for credit losses established on available for sale debt securities during the three months ended March 31, 2026, nor for the year ended December 31, 2025.

URSB Bancorp, Inc. 10-Q