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Note 3 - Debt Securities

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3. Debt Securities

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:

		*December 31, 2023*
		*Amortized*				*Unrealized*				*Unrealized*				*Fair*
		*Cost*				*Gains*				*Losses*				*Value*
(Amounts in thousands)
U.S. Agency securities		$	5,750			$	—			$	(1	)		$	5,749
U.S. Treasury securities			146,653				16				(843	)			145,826
Municipal securities			19,528				11				(162	)			19,377
Corporate Notes			28,566				—				(1,485	)			27,081
Mortgage-backed Agency securities			94,548				2				(11,622	)			82,928
Total		$	295,045			$	29			$	(14,113	)		$	280,961

		*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 securities			161,617				—				(4,353	)			157,264
Municipal securities			23,480				21				(192	)			23,309
Mortgage-backed Agency securities			37,046				—				(2,189	)			34,857
Total			96,480				3				(13,049	)			83,434
		$	320,123			$	24			$	(19,798	)		$	300,349

The following table presents the amortized cost and fair value of available-for-sale debt securities, by contractual maturity, as of December 31, 2023. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay obligations with or without penalties.

(Amounts in thousands)		*U.S. Agency Securities*				*U.S. Treasury Securities*				*Municipal Securities*				*Corporate Notes*				*Total*
Amortized cost maturity:
One year or less		$	5,750			$	146,653			$	5,118			$	—			$	157,521
After one year through five years			—				—				14,410				28,566				42,976
After five years through ten years			—				—				—				—				—
After ten years			—				—				—				—				—
Amortized cost		$	5,750			$	146,653			$	19,528			$	28,566				200,497
Mortgage-backed securities																			94,548
Total amortized cost																		$	295,045

Fair value maturity:
One year or less		$	5,749			$	145,826			$	5,116			$	—			$	156,691
After one year through five years			—				—				14,261				27,081				41,342
After five years through ten years			—				—				—				—				—
After ten years			—				—				—				—				—
Fair value		$	5,749			$	145,826			$	19,377			$	27,081				198,033
Mortgage-backed securities																			82,928
Total fair value																		$	280,961

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:

		*December 31, 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		$	5,749			$	(1	)		$	—			$	—			$	5,749			$	(1	)
U.S. Treasury securities			11,417				(14	)			129,108				(829	)			140,525				(843	)
Municipal securities			4,742				(20	)			5,484				(142	)			10,226				(162	)
Corporate Notes			—				—				27,081				(1,485	)			27,081				(1,485	)
Mortgage-backed Agency securities			3,421				(10	)			78,319				(11,612	)			81,740				(11,622	)
Total		$	25,329			$	(45	)		$	239,992			$	(14,068	)		$	265,321			$	(14,113	)

		*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 securities			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	)
Mortgage-backed Agency 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 112 individual debt securities in an unrealized loss position as of December 31, 2023, and their combined depreciation in value represented 5.02% 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.

Approximately $38.98 million in securities available for sale have been sold in 2023. Gross gains and gross losses were $30 thousand and $51 thousand, respectively for December 31, 2023. There were no sales of available for sale debt securities in 2022. The carrying amount of securities pledged for various purposes totaled $145.09 million as of December 31, 2023, and $22.43 million as of December 31, 2022.

In determining whether or not a security is impaired, we consider the severity of the loss as well as our intent to hold the securities to maturity or the recovery of the cost basis. Unrealized losses have not been recognized into income as the decline in fair value is largely due to changes in interest rates and other market conditions. Management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery.

U. S. Agency securities

The Company has one U.S. Agency security as of December 31, 2023, with an amortized cost of $5.75 million. The security is issued by the Federal Home Loan Bank. The security is guaranteed of full and timely payments by the issuing agency. Based on management's analysis and judgement, there was no credit loss attributable to the U.S. Agency security at December 31, 2023.

U.S. Treasury securities

U.S. Treasury securities are backed by the full faith and credit of the United States government. At December 31, 2023, the total amortized cost of available for sale U. S. Treasury securities was $146.65 million. Based on management's analysis and judgement, there were no credit losses attributable to U.S. Treasury securities at December 31, 2023.

Municipal securities

Municipal securities are securities issued by various municipalities in the United States. At December 31, 2023, the total amortized cost of available for sale Municipal securities was $19.53 million. The majority of the portfolio was rated AA or higher, with no securities rated below investment grade at year-end. Based on management's analysis and judgement, there were no credit losses attributable to Municipal securities at December 31, 2023.

Corporate Notes

Corporate notes are debt obligations issued by public or private corporations. As of December 31, 2023, the total amortized cost of available for sale Corporate notes was $28.57 million. The majority of the portfolio was rated AA or higher, with no securities rated below investment grade at year-end. Based on management's analysis and judgement, there were no credit losses attributable to Corporate note securities at December 31, 2023.

Mortgage-backed Agency securities

Mortgage-backed Agency securities within the Company's portfolio are issued by Ginnie Mae, Fannie Mae, and Freddie Mac. As of December 31, 2023, the total amortized cost of available for sale mortgage-backed Agency securities was $94.55 million. Each agency provides a guarantee of full and timely payments of principal and interest by the issuing agency. Based on management's analysis and judgement, there were no credit losses attributable to mortgage-backed Agency securities at December 31, 2023.