XML 19 R10.htm IDEA: XBRL DOCUMENT
v3.23.2

Note 3 - Debt Securities | 6 Months Ended
--- | ---
Jun. 30, 2023
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 3. Debt Securities There was no allowance for credit losses for debt securities as of June 30, 2023; therefore, it is not presented in the table below. The following tables present the amortized cost and fair value of available-for-sale debt securities, including gross unrealized gains and losses, as of the dates indicated:
|  | June 30, 2023 |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 7,250 |  |  | $ | - |  |  | $ | (21 | ) |  | $ | 7,229 |
U.S. Treasury Notes |  |  | 181,670 |  |  |  | 3 |  |  |  | (3,167 | ) |  |  | 178,506 |
Municipal securities |  |  | 21,684 |  |  |  | 10 |  |  |  | (245 | ) |  |  | 21,449 |
Corporate notes |  |  | 28,551 |  |  |  | - |  |  |  | (2,088 | ) |  |  | 26,463 |
Agency mortgage-backed securities |  |  | 93,401 |  |  |  | 1 |  |  |  | (12,676 | ) |  |  | 80,726 |
Total |  | $ | 332,556 |  |  | $ | 14 |  |  | $ | (18,197 | ) |  | $ | 314,373 |
|  | December 31, 2022 |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 1,500 |  |  | $ | — |  |  | $ | (15 | ) |  | $ | 1,485 |
U.S. Treasury Notes |  |  | 161,617 |  |  |  | - |  |  |  | (4,353 | ) |  |  | 157,264 |
Municipal securities |  |  | 23,480 |  |  |  | 21 |  |  |  | (192 | ) |  |  | 23,309 |
Corporate notes |  |  | 37,046 |  |  |  | — |  |  |  | (2,189 | ) |  |  | 34,857 |
Agency mortgage-backed securities |  |  | 96,480 |  |  |  | 3 |  |  |  | (13,049 | ) |  |  | 83,434 |
Total |  | $ | 320,123 |  |  | $ | 24 |  |  | $ | (19,798 | ) |  | $ | 300,349 |
The following table presents the amortized cost and aggregate fair value of available-for-sale debt securities by contractual maturity, as of the date indicated. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.
|  | June 30, 2023 |
|  | Amortized |  |  |  |  |
(Amounts in thousands) |  | Cost |  |  | Fair Value |
Available-for-sale debt securities |  |  |  |  |  |  |  |
Due within one year |  | $ | 188,484 |  |  | $ | 185,298 |
Due after one year but within five years |  |  | 48,727 |  |  |  | 46,419 |
Due after five years but within ten years |  |  | 1,944 |  |  |  | 1,930 |
|  |  | 239,155 |  |  |  | 233,647 |
Agency mortgage-backed securities |  |  | 93,401 |  |  |  | 80,726 |
Total debt securities available for sale |  | $ | 332,556 |  |  | $ | 314,373 |
The following tables present the fair values and unrealized losses for available-for-sale debt securities in a continuous unrealized loss position for less than 12 months and for 12 months or longer as of the dates indicated:
|  | June 30, 2023 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 7,228 |  |  | $ | (21 | ) |  | $ | - |  |  | $ | - |  |  | $ | 7,228 |  |  | $ | (21 | )
U.S. Treasury Notes |  |  | 40,602 |  |  |  | (84 | ) |  |  | 126,686 |  |  |  | (3,083 | ) |  |  | 167,288 |  |  |  | (3,167 | )
Municipal securities |  |  | 14,017 |  |  |  | (189 | ) |  |  | 1,403 |  |  |  | (56 | ) |  |  | 15,420 |  |  |  | (245 | )
Corporate notes |  |  | - |  |  |  | - |  |  |  | 26,462 |  |  |  | (2,088 | ) |  |  | 26,462 |  |  |  | (2,088 | )
Agency mortgage-backed securities |  |  | 3,335 |  |  |  | (204 | ) |  |  | 77,311 |  |  |  | (12,472 | ) |  |  | 80,646 |  |  |  | (12,676 | )
Total |  | $ | 65,182 |  |  | $ | (498 | ) |  | $ | 231,862 |  |  | $ | (17,699 | ) |  | $ | 297,044 |  |  | $ | (18,197 | )
|  | December 31, 2022 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Agency securities |  | $ | 1,485 |  |  | $ | (15 | ) |  | $ | — |  |  | $ | — |  |  | $ | 1,485 |  |  | $ | (15 | )
U.S. Treasury Notes |  |  | 157,264 |  |  |  | (4,353 | ) |  |  | — |  |  |  | — |  |  |  | 157,264 |  |  |  | (4,353 | )
Municipal securities |  |  | 12,347 |  |  |  | (192 | ) |  |  | — |  |  |  | — |  |  |  | 12,347 |  |  |  | (192 | )
Corporate notes |  |  | 32,368 |  |  |  | (2,172 | ) |  |  | 2,489 |  |  |  | (17 | ) |  |  | 34,857 |  |  |  | (2,189 | )
Agency mortgage-backed securities |  |  | 64,993 |  |  |  | (8,824 | ) |  |  | 18,305 |  |  |  | (4,225 | ) |  |  | 83,298 |  |  |  | (13,049 | )
Total |  | $ | 268,457 |  |  | $ | (15,556 | ) |  | $ | 20,794 |  |  | $ | (4,242 | ) |  | $ | 289,251 |  |  | $ | (19,798 | )
There were 129 individual debt securities in an unrealized loss position as of June 30, 2023, and the combined depreciation in value represented 5.79% of the debt securities portfolio. There were 113 individual debt securities in an unrealized loss position as of December 31, 2022, and their combined depreciation in value represented 6.59% of the debt securities portfolio. Management evaluates securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Credit losses are calculated individually, rather than collectively, using a discounted cash flow method, whereby Management compares the present value of expected cash flows with the amortized cost basis of the security. The credit loss component would be recognized through the provision for credit losses and the creation of an allowance for credit losses. Consideration is given to (1) the financial condition and near-term prospects of the issuer including looking at default and delinquency rates, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) our intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that we will be required to sell the debt security prior to recovering its fair value, (5) the anticipated outlook for changes in the general level of interest rates, (6) credit ratings, (7) third party guarantees, and (8) collateral values. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the investments. All of the U.S. Treasury and Agency-Backed Securities have the full faith and credit backing of the United State Government or one of its agencies. Municipal securities and all other securities that do not have a zero expected credit loss are evaluated quarterly to determine whether there is a credit loss associated with a decline in fair value. All debt securities available for sale in an unrealized loss position as of June 30, 2023, continue to perform as scheduled and we do not believe that there is a credit loss or that a provision for credit losses is necessary. Also, as part of our evaluation of our intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, we consider our investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. We do not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that we will be required to sell the debt securities. See Note 1 – Basis of Presentation for further discussion. Management continues to monitor all of our securities with a high degree of scrutiny. There can be no assurance that we will not conclude in future periods that conditions existing at that time indicate some or all of its securities may be sold or would require a charge to earnings as a provision for credit losses in such periods. Approximately $38.98 million in securities available for sale have been sold in the first six months of 2023. Included in the sale of securities was the entire portfolio of Surrey with an acquired fair value of $20.93 million comprised primarily of U. S. Treasury Notes. A loss of $28 thousand was recognized in the sale of the portfolio. The following table presents gross realized gains and losses from the sale of available-for-sale debt securities for the periods indicated:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, |  |  | June 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross realized gains |  | $ | - |  |  | $ | - |  |  | $ | 7 |  |  | $ | - |
Gross realized losses |  |  | (28 | ) |  |  | - |  |  |  | (28 | ) |  |  | - |
Net Gain (Loss) on sale of securities |  | $ | (28 | ) |  | $ | - |  |  | $ | (21 | ) |  | $ | - |
The carrying amount of securities pledged for various purposes totaled $37.88 million as of June 30, 2023, and $22.43million as of December 31, 2022.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration