XML 22 R11.htm IDEA: XBRL DOCUMENT v3.24.3
Investment Securities
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

NOTE 2 – Investment Securities

The amortized costs and fair value of investment securities are as follows:

                             
 
   September 30, 2024 
   Amortized   Gross Unrealized  Fair 
(dollars in thousands)   Cost   Gains   Losses  Value 
Available for sale                    
Corporate bonds   $2,128    -   181   1,947 
US treasuries   999    -    75   924 
US government agencies    18,113    4    1,431   16,686 
State and political subdivisions    22,450    -    2,427   20,023 
Asset-backed securities    34,271    70    76   34,265 
Mortgage-backed securities   68,108    35    7,391   60,752 
Total investment securities available for sale  $146,069    109    11,581   134,597 
    
   December 31, 2023
    Amortized   Gross Unrealized   Fair  
    Cost    Gains    Losses   Value 
Available for sale                   
Corporate bonds  $2,147    -    237   1,910 
US treasuries   9,495    1    102   9,394 
US government agencies   20,594    -    1,938   18,656 
State and political subdivisions   22,642    11    2,912   19,741 
Asset-backed securities   33,450    2    216   33,236 
Mortgage-backed securities   60,730    -    8,965   51,765 
Total investment securities available for sale  $149,058    14    14,370   134,702 

Contractual maturities and yields on the Company’s investment securities at September 30, 2024 and December 31, 2023 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

                                                                               
     
   September 30, 2024 
   Less than one  year   One to five years   Five to ten years   Over ten years   Total 
(dollars in thousands)  Amount   Yield   Amount   Yield   Amount   Yield   Amount   Yield   Amount   Yield 
Available for sale                                                  
Corporate bonds   $-    -   $-    -   $1,947    2.02%  $-    -   $1,947    2.02%
US treasuries   -    -    924    1.27%   -    -    -    -    924    1.27%
US government agencies    -    -    4,239    1.08%   12,447    4.56%   -    -    16,686    3.67%
State and political subdivisions    -    -    1,331    1.96%   6,101    1.98%   12,591    2.13%   20,023    2.07%
Asset-backed securities    -    -    49    (0.12%)   -    -    34,216    6.70%   34,265    6.69%
Mortgage-backed securities    -    -    6,689    1.28%   7,865    3.01%   46,198    2.37%   60,752    2.33%
Total investment securities   $-    -   $13,232    1.28%  $28,360    3.40%  $93,005    3.93%  $134,597    3.56%
                 
               December 31, 2023 
   Less than one year   One to five years   Five to ten years   Over ten years   Total 
(dollars in thousands)  Amount   Yield   Amount   Yield   Amount   Yield   Amount   Yield   Amount   Yield 
Available for sale                                                  
Corporate bonds  $-    -   $-    -   $1,910    2.01%  $-    -   $1,910    2.01%
US treasuries   8,497    5.42%   897    1.27%   -    -    -    -    9,394    5.02%
US government agencies   970    0.45%   2,385    1.00%   15,301    4.41%   -    -    18,656    3.77%
State and political subdivisions   -    -    906    1.94%   5,769    1.89%   13,066    2.15%   19,741    2.06%
Asset-backed securities   -    -    296    (6.13%)   -    -    32,940    6.63%   33,236    6.57%
Mortgage-backed securities   -    -    4,795    1.15%   5,400    1.59%   41,570    2.00%   51,765    1.87%
Total investment securities  $9,467    4.91%  $9,279    0.98%  $28,380    3.20%  $87,576    3.76%  $134,702    3.55%

 

The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at September 30, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

 

                                                                       
             
           September 30, 2024 
   Less than 12 months   12 months or longer   Total 
(dollars in thousands)  #   Fair
value		   Unrealized
losses		   #   Fair
value		   Unrealized
losses		   #   Fair
value		   Unrealized
losses		 
Available for sale                                             
Corporate bonds   -   $-   $-    1   $1,947   $181    1   $1,947   $181 
US treasuries   -    -    -    1    924    75    1    924    75 
US government agencies   -    -    -    9    10,582    1,431    9    10,582    1,431 
State and political subdivisions   2    757    2    30    19,266    2,425    32    20,023    2,427 
Asset-backed   4    9,575    44    8    7,124    32    12    16,699    76 
Mortgage-backed securities   5    7,303    23    61    47,929    7,368    66    55,232    7,391 
Total investment securities    11   $17,635   $69    110   $87,772   $11,512    121   $105,407   $11,581 
                             
                           December 31, 2023 
   Less than 12 months   12 months or longer   Total 
(dollars in thousands)  #   Fair
value		   Unrealized
losses		   #   Fair
value		   Unrealized
losses		   #   Fair
value		   Unrealized
losses		 
Available for sale                                             
Corporate bonds   -   $-   $-    1   $1,910   $237    1   $1,910   $237 
US treasuries   -    -    -    1    897    102    1    897    102 
US government agencies   2    7,533    50    10    11,123    1,888    12    18,656    1,938 
State and political subdivisions   -    -    -    30    18,964    2,912    30    18,964    2,912 
Asset-backed   8    26,746    145    7    4,866    71    15    31,612    216 
Mortgage-backed securities   2    2,869    36    62    48,896    8,929    64    51,765    8,965 
Total investment securities   12   $37,148   $231    111   $86,656   $14,139    123   $123,804   $14,370 

At September 30, 2024, the Company had 121 individual investments that were in an unrealized loss position. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The individual securities are each investment grade securities. The Company considers factors such as the financial condition of the issuer including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. As such, there is no allowance for credit losses on available for sale securities recognized as of September 30, 2024.

 

Other investments are comprised of the following and are recorded at cost which approximates fair value.

 

           
         
(dollars in thousands)  September 30,  2024   December 31, 2023 
Federal Home Loan Bank stock  $14,516    16,063 
Other nonmarketable investments   4,721    3,473 
Investment in Trust Preferred subsidiaries   403    403 
Total other investments  $19,640    19,939 

The Company has evaluated other investments for impairment and determined that the other investments are not impaired as of September 30, 2024 and that ultimate recoverability of the par value of the investments is probable. All of the FHLB stock is used to collateralize advances with the FHLB.

At September 30, 2024, there were no securities pledged as collateral for repurchase agreements from brokers.