Securities

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Note 4 — 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 March 31, 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
Available-for-sale:
U.S. treasuries	$	4,991	$	—	$	(214	)		4,777
U.S. government agency securities - government-sponsored enterprises		3,500		—		(279	)		3,221
Municipal securities		39,893		—		(5,173	)		34,720
Residential mortgage-backed securities - government issued		141,494		1,092		(2,115	)		140,471
Residential mortgage-backed securities - government-sponsored enterprises		143,652		520		(9,324	)		134,848
Commercial mortgage-backed securities - government issued		2,582		—		(384	)		2,198
Commercial mortgage-backed securities - government-sponsored enterprises		42,848		43		(3,732	)		39,159
	$	378,960	$	1,655	$	(21,221	)	$	359,394


	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

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 March 31, 2025
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
	(In Thousands)
Held-to-maturity:
Municipal securities	$	3,134	$	—	$	(26	)	$	3,108
Residential mortgage-backed securities - government issued		757		—		(40	)		717
Residential mortgage-backed securities - government-sponsored enterprises		697		—		(33	)		664
Commercial mortgage-backed securities - government-sponsored enterprises		2,002		—		(52	)		1,950
	$	6,590	$	—	$	(151	)	$	6,439


	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

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 Small Business Administration ("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 no available-for-sale securities during the three months ended March 31, 2025 and five available-for-sale securities during the three months ended March 31, 2024.

At March 31, 2025 and December 31, 2024, securities with a fair value of $41.5 million and $36.9 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 March 31, 2025 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	$	1,500	$	1,485	$	1,270	$	1,265
Due in one year through five years		18,111		17,080		1,864		1,843
Due in five through ten years		8,410		7,578		—		—
Due in over ten years		20,363		16,575		—		—
		48,384		42,718		3,134		3,108
Residential mortgage-backed securities		285,146		275,319		1,454		1,381
Commercial mortgage-backed securities		45,430		41,357		2,002		1,950
	$	378,960	$	359,394	$	6,590	$	6,439

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 March 31, 2025 and December 31, 2024. At March 31, 2025, the Corporation held 173 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 three months ended March 31, 2025 and 2024, 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 March 31, 2025
	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	$	—	$	—	$	4,777	$	214	$	4,777	$	214
U.S. government agency securities - government- sponsored enterprises		—		—		3,221		279		3,221		279
Municipal securities		—		—		34,721		5,173		34,721		5,173
Residential mortgage-backed securities - government issued		15,995		51		18,779		2,064		34,774		2,115
Residential mortgage-backed securities - government-sponsored enterprises		32,196		413		70,126		8,911		102,322		9,324
Commercial mortgage-backed securities - government issued		—		—		2,198		384		2,198		384
Commercial mortgage-backed securities - government-sponsored enterprises		10,952		186		27,206		3,546		38,158		3,732
	$	59,143	$	650	$	161,028	$	20,571	$	220,171	$	21,221


	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

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 March 31, 2025 and December 31, 2024. At March 31, 2025, the Corporation held 23 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 unaudited Consolidated Statements of Income for the three months ended March 31, 2025 and 2024.

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 March 31, 2025
	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	$960	$5	$2,148	$21	$3,108	$26
Residential mortgage-backed securities - government issued	—	—	717	40	717	40
Residential mortgage-backed securities - government-sponsored enterprises	—	—	664	33	664	33
Commercial mortgage-backed securities - government-sponsored enterprises	—	—	1,950	52	1,950	52
	$960	$5	$5,479	$146	$6,439	$151


	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