Securities

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Note 3 — Securities

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


	As of December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
Available-for-sale:
U.S. treasuries	$	4,989	$	—	$	(271	)		4,718
U.S. government agency securities - government-sponsored enterprises		3,500		—		(347	)		3,153
Municipal securities		39,997		—		(5,136	)		34,861
Residential mortgage-backed securities - government issued		125,571		470		(2,818	)		123,223
Residential mortgage-backed securities - government-sponsored enterprises		145,888		234		(11,357	)		134,765
Commercial mortgage-backed securities - government issued		2,665		—		(441	)		2,224
Commercial mortgage-backed securities - government-sponsored enterprises		43,033		24		(4,609	)		38,448
	$	365,643	$	728	$	(24,979	)	$	341,392


	As of December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
Available-for-sale:
U.S. treasuries	$	14,158	$	7	$	(389	)	$	13,776
U.S. government agency securities - government-sponsored enterprises		27,986		35		(455	)		27,566
Municipal securities		40,407		—		(4,526	)		35,881
Residential mortgage-backed securities - government issued		69,441		1,000		(2,385	)		68,056
Residential mortgage-backed securities - government-sponsored enterprises		131,321		281		(10,769	)		120,833
Commercial mortgage-backed securities - government issued		2,995		—		(470	)		2,525
Commercial mortgage-backed securities - government-sponsored enterprises		32,774		65		(4,470	)		28,369
	$	319,082	$	1,388	$	(23,464	)	$	297,006

The amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses were as follows:


	As of December 31, 2024
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
	(In Thousands)
Held-to-maturity:
Municipal securities	$	3,137	$	—	$	(38	)	$	3,099
Residential mortgage-backed securities - government issued		836		—		(48	)		788
Residential mortgage-backed securities - government-sponsored enterprises		766		—		(42	)		724
Commercial mortgage-backed securities - government-sponsored enterprises		2,002		—		(78	)		1,924
	$	6,741	$	—	$	(206	)	$	6,535


	As of December 31, 2023
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
	(In Thousands)
Held-to-maturity:
Municipal securities	$	4,210	$	4	$	(41	)	$	4,173
Residential mortgage-backed securities - government issued		1,211		—		(76	)		1,135
Residential mortgage-backed securities - government-sponsored enterprises		1,078		—		(53	)		1,025
Commercial mortgage-backed securities - government-sponsored enterprises		2,004		—		(82	)		1,922
	$	8,503	$	4	$	(252	)	$	8,255

U.S. Treasuries contain treasury bonds issued by the United States Treasury. U.S. government agency securities - government-sponsored enterprises represent securities issued by Federal National Mortgage Association (“FNMA”) and the SBA. Municipal securities include securities issued by various municipalities located primarily within Wisconsin and are primarily general obligation bonds that are tax-exempt in nature. Residential and commercial mortgage-backed securities - government issued represent securities guaranteed by the Government National Mortgage Association. Residential and commercial mortgage-backed securities -

government-sponsored enterprises include securities guaranteed by the Federal Home Loan Mortgage Corporation, FNMA, and the FHLB. The Corporation sold five available-for-sale securities during the year ended December 31, 2024 and 16 available-for-sale securities during the year ended December 31, 2023.

Total proceeds and gross realized gains and losses from sales of securities available-for-sale were as follows:


	For the Year Ended December 31,
	2024			2023			2022
	(In Thousands)
Gross gains	$	—		$	68		$	—
Gross losses		(8	)		(113	)		—
Net losses on sale of available-for-sale securities	$	(8	)	$	(45	)	$	—
Proceeds from sale of available-for-sale securities	$	7,533		$	5,085		$	—

At December 31, 2024 and December 31, 2023, securities with a fair value of $36.9 million and $45.4 million, respectively, were pledged to secure various obligations, including interest rate swap contracts and municipal deposits.

The amortized cost and fair value of securities by contractual maturity at December 31, 2024 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations with or without call or prepayment penalties.


	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In Thousands)
Due in one year or less	$	1,501	$	1,473	$	987	$	983
Due in one year through five years		18,145		16,902		2,150		2,116
Due in five through ten years		8,430		7,570		—		—
Due in over ten years		20,410		16,787		—		—
		48,486		42,732		3,137		3,099
Residential mortgage-backed securities		271,459		257,988		1,602		1,512
Commercial mortgage-backed securities		45,698		40,672		2,002		1,924
	$	365,643	$	341,392	$	6,741	$	6,535

The tables below show the Corporation’s gross unrealized losses and fair value of available-for-sale investments aggregated by investment category and length of time that individual investments were in a continuous loss position at December 31, 2024 and December 31, 2023. At December 31, 2024, the Corporation held 188 available-for-sale securities that were in an unrealized loss position, 155 of which have been in a continuous unrealized loss position for twelve months or greater.

The Corporation has not specifically identified available-for-sale securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. The Corporation reviews its securities on a quarterly basis to assess declines in fair value for credit losses. Consideration is given to such factors as the credit rating of the borrower, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. For the years ended December 31, 2024 and 2023, management concluded that in all instances securities with fair value less than carrying value was due to market factors; thus, no credit loss provision was required.

A summary of unrealized loss information for securities available-for-sale, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows:


	As of December 31, 2024
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Available-for-sale:
U.S. treasuries	$	—	$	—	$	4,718	$	271	$	4,718	$	271
U.S. government agency securities - government- sponsored enterprises		—		—		3,153		347		3,153		347
Municipal securities		—		—		34,861		5,136		34,861		5,136
Residential mortgage-backed securities - government issued		40,320		374		18,999		2,444		59,319		2,818
Residential mortgage-backed securities - government-sponsored enterprises		43,907		995		71,103		10,362		115,010		11,357
Commercial mortgage-backed securities - government issued		—		—		2,224		441		2,224		441
Commercial mortgage-backed securities - government-sponsored enterprises		10,717		425		26,751		4,184		37,468		4,609
	$	94,944	$	1,794	$	161,809	$	23,185	$	256,753	$	24,979


	As of December 31, 2023
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Available-for-sale:
U.S. treasuries	$	—	$	—	$	4,595	$	389	$	4,595	$	389
U.S. government agency securities - government- sponsored enterprises		13,370		30		3,076		425		16,446		455
Municipal securities		—		—		35,881		4,526		35,881		4,526
Residential mortgage-backed securities - government issued		13,178		160		13,819		2,225		26,997		2,385
Residential mortgage-backed securities - government-sponsored enterprises		19,925		285		78,086		10,484		98,011		10,769
Commercial mortgage-backed securities - government issued		—		—		2,525		470		2,525		470
Commercial mortgage-backed securities - government-sponsored enterprises		893		20		26,465		4,450		27,358		4,470
	$	47,366	$	495	$	164,447	$	22,969	$	211,813	$	23,464

The tables below show the Corporation’s gross unrealized losses and fair value of held-to-maturity investments, aggregated by investment category and length of time that individual investments were in a continuous loss position at December 31, 2024 and December 31, 2023. At December 31, 2024, the Corporation held 22 held-to-maturity securities that were in an unrealized loss position, 21 of which have been in a continuous loss position for twelve months or greater. Management assesses held-to-maturity securities for credit losses on a quarterly basis. The assessment includes review of credit ratings, identification of delinquency and evaluation of market factors. Based on this analysis, management concludes the decline in fair value is due to market factors, specifically changes in interest rates. Accordingly, no credit loss provision was recorded in the Consolidated Statements of Income for the years ended December 31, 2024, 2023, and 2022.

A summary of unrecognized loss information for securities held-to-maturity, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows:


	As of December 31, 2024
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
	(In Thousands)
Held-to-maturity:
Municipal securities	$	454	$	5	$	2,139	$	33	$	2,593	$	38
Residential mortgage-backed securities - government issued		—		—		788		48		788		48
Residential mortgage-backed securities - government- sponsored enterprises		—		—		724		42		724		42
Commercial mortgage-backed securities - government- sponsored enterprises		—		—		1,924		78		1,924		78
	$	454	$	5	$	5,575	$	201	$	6,029	$	206


	As of December 31, 2023
	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses		Fair Value		Unrecognized Losses
	(In Thousands)
Held-to-maturity:
Municipal securities	$	1,424	$	4	$	2,234	$	37	$	3,658	$	41
Residential mortgage-backed securities - government issued		—		—		1,135		76		1,135		76
Residential mortgage-backed securities - government- sponsored enterprises		—		—		1,025		53		1,025		53
Commercial mortgage-backed securities - government- sponsored enterprises		—		—		1,922		82		1,922		82
	$	1,424	$	4	$	6,316	$	248	$	7,740	$	252