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Note 3 - Investments | 12 Months Ended
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Dec. 31, 2023
Notes to Financial Statements |
Investment [Text Block] | NOTE 3 – INVESTMENTS The following tables present the amortized costs, unrealized gains, unrealized losses, and estimated fair values of securities available-for-sale and held-to-maturity, and ACL on securities held-to-maturity, at the dates indicated:
|  | December 31, 2023 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Estimated |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |  |  |  |  |
SECURITIES AVAILABLE-FOR-SALE |  | Cost |  |  | Gains |  |  | Losses |  |  | Values |  |  | ACL |
U.S. agency securities |  | $ | 21,151 |  |  | $ | 46 |  |  | $ | (3,179 | ) |  | $ | 18,018 |  |  | $ | — |
Corporate securities |  |  | 13,000 |  |  |  | 613 |  |  |  | (741 | ) |  |  | 12,872 |  |  |  | — |
Municipal bonds |  |  | 138,803 |  |  |  | 42 |  |  |  | (19,398 | ) |  |  | 119,447 |  |  |  | — |
Mortgage-backed securities |  |  | 112,855 |  |  |  | 238 |  |  |  | (11,845 | ) |  |  | 101,248 |  |  |  | — |
U.S. Small Business Administration securities |  |  | 42,886 |  |  |  | — |  |  |  | (1,538 | ) |  |  | 41,348 |  |  |  | — |
Total securities available-for-sale |  |  | 328,695 |  |  |  | 939 |  |  |  | (36,701 | ) |  |  | 292,933 |  |  |  | — |
SECURITIES HELD-TO-MATURITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate securities |  |  | 8,500 |  |  |  | — |  |  |  | (834 | ) |  |  | 7,666 |  |  |  | 45 |
Total securities held-to-maturity |  |  | 8,500 |  |  |  | — |  |  |  | (834 | ) |  |  | 7,666 |  |  |  | 45 |
Total securities |  | $ | 337,195 |  |  | $ | 939 |  |  | $ | (37,535 | ) |  | $ | 300,599 |  |  | $ | 45 |
|  | December 31, 2022 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Estimated |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |  |  |  |  |
SECURITIES AVAILABLE-FOR-SALE |  | Cost |  |  | Gains |  |  | Losses |  |  | Values |  |  | ACL |
U.S. agency securities |  | $ | 21,153 |  |  | $ | — |  |  | $ | (3,865 | ) |  | $ | 17,288 |  |  | $ | — |
Corporate securities |  |  | 9,497 |  |  |  | 27 |  |  |  | (979 | ) |  |  | 8,545 |  |  |  | — |
Municipal bonds |  |  | 144,200 |  |  |  | 21 |  |  |  | (23,619 | ) |  |  | 120,602 |  |  |  | — |
Mortgage-backed securities |  |  | 82,424 |  |  |  | — |  |  |  | (12,458 | ) |  |  | 69,966 |  |  |  | — |
U.S. Small Business Administration securities |  |  | 14,519 |  |  |  | — |  |  |  | (1,668 | ) |  |  | 12,851 |  |  |  | — |
Total securities available-for-sale |  |  | 271,793 |  |  |  | 48 |  |  |  | (42,589 | ) |  |  | 229,252 |  |  |  | — |
SECURITIES HELD-TO-MATURITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate securities |  |  | 8,500 |  |  |  | — |  |  |  | (571 | ) |  |  | 7,929 |  |  |  | 31 |
Total securities held-to-maturity |  |  | 8,500 |  |  |  | — |  |  |  | (571 | ) |  |  | 7,929 |  |  |  | 31 |
Total securities |  | $ | 280,293 |  |  | $ | 48 |  |  | $ | (43,160 | ) |  | $ | 237,181 |  |  | $ | 31 |
The following table presents the activity in the ACL on securities held-to-maturity by major security type for the years indicated:
SECURITIES HELD-TO-MATURITY |  | For the Year Ended |
Corporate Securities |  | December 31, 2023 |  |  | December 31, 2022 |
Beginning ACL balance |  | $ | 31 |  |  | $ | — |
Impact of adopting ASU 2016-13 |  |  | — |  |  |  | 72 |
Provision for (recapture of) credit losses |  |  | 14 |  |  |  | (41 | )
Securities charged-off |  |  | — |  |  |  | — |
Recoveries |  |  | — |  |  |  | — |
Total ending ACL balance |  | $ | 45 |  |  | $ | 31 |
Management measures expected credit losses on held-to-maturity debt securities on an individual basis. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Accrued interest receivable on held-to-maturity debt securities totaled $116,000 as of December 31, 2023 and 2022, and was $1.5 million and $1.2 million on available-for-sale debt securities as of December 31, 2023 and 2022, respectively. Accrued interest receivable on securities is reported in “Accrued interest receivable” on the Consolidated Balance Sheets and is excluded from the calculation of the ACL. The Bank monitors the credit quality of debt securities held-to-maturity quarterly using credit rating, material event notices, and changes in market value. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator:
|  | December 31, |
Corporate securities |  | 2023 |  |  | 2022 |
BBB/BBB- |  | $ | 7,000 |  |  | $ | 8,500 |
BB+ |  |  | 1,500 |  |  |  | — |
Total |  | $ | 8,500 |  |  | $ | 8,500 |
At December 31, 2023, there were no debt securities held-to-maturity that were classified as either nonaccrual or 90 days or more past due and still accruing interest. The following table presents, as of December 31, 2023, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law:
|  | December 31, 2023 |
Purpose or beneficiary |  | Carrying Value |  |  | Amortized Cost |  |  | Fair Value |
State and local government public deposits |  | $ | 39,704 |  |  | $ | 45,689 |  |  | $ | 39,704 |
FRB - Bank Term Funding Program facility ("BTFP") |  |  | 77,043 |  |  |  | 90,195 |  |  |  | 77,043 |
Total pledged securities |  | $ | 116,747 |  |  | $ | 135,884 |  |  | $ | 116,747 |
Investment securities that were in an unrealized loss position at the dates indicated are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position.
|  | December 31, 2023 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
SECURITIES AVAILABLE-FOR-SALE |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
U.S. agency securities |  | $ | — |  |  | $ | — |  |  | $ | 15,972 |  |  | $ | (3,179 | ) |  | $ | 15,972 |  |  | $ | (3,179 | )
Corporate securities |  |  | 959 |  |  |  | (41 | ) |  |  | 4,300 |  |  |  | (700 | ) |  |  | 5,259 |  |  |  | (741 | )
Municipal bonds |  |  | 3,922 |  |  |  | (23 | ) |  |  | 113,577 |  |  |  | (19,375 | ) |  |  | 117,499 |  |  |  | (19,398 | )
Mortgage-backed securities |  |  | 20,662 |  |  |  | (113 | ) |  |  | 67,376 |  |  |  | (11,732 | ) |  |  | 88,038 |  |  |  | (11,845 | )
U.S. Small Business Administration securities |  |  | 33,211 |  |  |  | (460 | ) |  |  | 8,137 |  |  |  | (1,078 | ) |  |  | 41,348 |  |  |  | (1,538 | )
Total securities available-for-sale |  | $ | 58,754 |  |  | $ | (637 | ) |  | $ | 209,362 |  |  | $ | (36,064 | ) |  | $ | 268,116 |  |  | $ | (36,701 | )
SECURITIES HELD-TO-MATURITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate securities |  |  | — |  |  |  | — |  |  |  | 7,666 |  |  |  | (834 | ) |  |  | 7,666 |  |  |  | (834 | )
Total securities held-to-maturity |  |  | — |  |  |  | — |  |  |  | 7,666 |  |  |  | (834 | ) |  |  | 7,666 |  |  |  | (834 | )
Total |  | $ | 58,754 |  |  | $ | (637 | ) |  | $ | 217,028 |  |  | $ | (36,898 | ) |  | $ | 275,782 |  |  | $ | (37,535 | )
|  | December 31, 2022 |
|  | Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
SECURITIES AVAILABLE-FOR-SALE |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
U.S. agency securities |  | $ | 3,823 |  |  | $ | (118 | ) |  | $ | 13,465 |  |  | $ | (3,747 | ) |  | $ | 17,288 |  |  | $ | (3,865 | )
Corporate securities |  |  | 2,494 |  |  |  | (4 | ) |  |  | 4,026 |  |  |  | (975 | ) |  |  | 6,520 |  |  |  | (979 | )
Municipal bonds |  |  | 44,261 |  |  |  | (5,794 | ) |  |  | 73,990 |  |  |  | (17,825 | ) |  |  | 118,251 |  |  |  | (23,619 | )
Mortgage-backed securities |  |  | 29,791 |  |  |  | (3,188 | ) |  |  | 40,175 |  |  |  | (9,270 | ) |  |  | 69,966 |  |  |  | (12,458 | )
U.S. Small Business Administration securities |  |  | 10,807 |  |  |  | (1,162 | ) |  |  | 2,044 |  |  |  | (506 | ) |  |  | 12,851 |  |  |  | (1,668 | )
Total securities available-for-sale |  | $ | 91,176 |  |  | $ | (10,266 | ) |  | $ | 133,700 |  |  | $ | (32,323 | ) |  | $ | 224,876 |  |  | $ | (42,589 | )
SECURITIES HELD-TO-MATURITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate securities |  |  | 7,929 |  |  |  | (571 | ) |  |  | — |  |  |  | — |  |  |  | 7,929 |  |  |  | (571 | )
Total securities held-to-maturity |  |  | 7,929 |  |  |  | (571 | ) |  |  | — |  |  |  | — |  |  |  | 7,929 |  |  |  | (571 | )
Total |  | $ | 99,105 |  |  | $ | (10,837 | ) |  | $ | 133,700 |  |  | $ | (32,323 | ) |  | $ | 232,805 |  |  | $ | (43,160 | )
There were no held-to-maturity debt securities in an unrealized loss position of less than one year and seven in an unrealized loss position of more than one year at December 31, 2023. There were 30 available-for-sale securities in an unrealized loss position of less than one year and 180 available-for-sale securities in an unrealized loss position of more than one year at December 31, 2023. The unrealized losses associated with these securities are believed to be caused by changing market conditions that are considered to be temporary and the Company does not intend to sell the securities, and it is not likely to be required to sell these securities prior to maturity. Management monitors the published credit ratings of the issuers of the debt securities for material ratings or outlook changes. Substantially all of the Company’s municipal bond portfolio is comprised of obligations of states and political subdivisions located within the Company’s geographic footprint that are monitored through quarterly or annual financial review utilizing published credit ratings. All the municipal bond securities are investment grade. All of the available-for-sale mortgage-backed securities and U.S. Small Business Administration securities in an unrealized loss position are issued or guaranteed by government-sponsored enterprises, and the available-for-sale corporate securities are all investment grade and monitored for rating or outlook changes. Based on the Company’s evaluation of these securities, no credit impairment was recorded for the years ended December 31, 2023, 2022, and 2021. The contractual maturities of securities available-for-sale and held-to-maturity at the dates indicated are listed below. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay the obligations; therefore, these securities are classified separately with no specific maturity date.
|  | December 31, |
|  | 2023 |  |  | 2022 |
SECURITIES AVAILABLE-FOR-SALE |  | Amortized |  |  | Fair |  |  | Amortized |  |  | Fair |
U.S. agency securities |  | Cost |  |  | Value |  |  | Cost |  |  | Value |
Due within one year |  | $ | 922 |  |  | $ | 914 |  |  | $ | — |  |  | $ | — |
Due after one year through five years |  |  | 3,947 |  |  |  | 3,544 |  |  |  | 4,874 |  |  |  | 4,321 |
Due after five years through ten years |  |  | 11,972 |  |  |  | 10,139 |  |  |  | 6,989 |  |  |  | 5,963 |
Due after ten years |  |  | 4,310 |  |  |  | 3,421 |  |  |  | 9,290 |  |  |  | 7,004 |
Subtotal |  |  | 21,151 |  |  |  | 18,018 |  |  |  | 21,153 |  |  |  | 17,288 |
Corporate securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due within one year |  |  | 1,000 |  |  |  | 1,004 |  |  |  | 1,000 |  |  |  | 997 |
Due after one year through five years |  |  | 6,000 |  |  |  | 6,609 |  |  |  | 2,497 |  |  |  | 2,519 |
Due after five years through ten years |  |  | 4,000 |  |  |  | 3,839 |  |  |  | 4,000 |  |  |  | 3,763 |
Due after ten years |  |  | 2,000 |  |  |  | 1,420 |  |  |  | 2,000 |  |  |  | 1,266 |
Subtotal |  |  | 13,000 |  |  |  | 12,872 |  |  |  | 9,497 |  |  |  | 8,545 |
Municipal bonds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due within one year |  |  | 1,013 |  |  |  | 1,003 |  |  |  | 2,660 |  |  |  | 2,644 |
Due after one year through five years |  |  | 757 |  |  |  | 751 |  |  |  | 1,038 |  |  |  | 1,012 |
Due after five years through ten years |  |  | 7,603 |  |  |  | 7,101 |  |  |  | 6,341 |  |  |  | 5,771 |
Due after ten years |  |  | 129,430 |  |  |  | 110,592 |  |  |  | 134,161 |  |  |  | 111,175 |
Subtotal |  |  | 138,803 |  |  |  | 119,447 |  |  |  | 144,200 |  |  |  | 120,602 |
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal National Mortgage Association (“FNMA”) |  |  | 76,369 |  |  |  | 66,275 |  |  |  | 68,421 |  |  |  | 57,358 |
Federal Home Loan Mortgage Corporation (“FHLMC”) |  |  | 32,311 |  |  |  | 31,376 |  |  |  | 9,290 |  |  |  | 8,424 |
Government National Mortgage Association (“GNMA”) |  |  | 4,175 |  |  |  | 3,597 |  |  |  | 4,713 |  |  |  | 4,184 |
Subtotal |  |  | 112,855 |  |  |  | 101,248 |  |  |  | 82,424 |  |  |  | 69,966 |
U.S. Small Business Administration securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due within one year |  |  | 198 |  |  |  | 196 |  |  |  | — |  |  |  | — |
Due after one year through five years |  |  | 1,860 |  |  |  | 1,824 |  |  |  | 2,553 |  |  |  | 2,407 |
Due after five years through ten years |  |  | 21,420 |  |  |  | 20,929 |  |  |  | 4,461 |  |  |  | 3,996 |
Due after ten years |  |  | 19,408 |  |  |  | 18,399 |  |  |  | 7,505 |  |  |  | 6,448 |
Subtotal |  |  | 42,886 |  |  |  | 41,348 |  |  |  | 14,519 |  |  |  | 12,851 |
Total securities available-for-sale |  |  | 328,695 |  |  |  | 292,933 |  |  |  | 271,793 |  |  |  | 229,252 |
SECURITIES HELD-TO-MATURITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due after five years through ten years |  |  | 8,500 |  |  |  | 7,666 |  |  |  | 8,500 |  |  |  | 7,929 |
Total securities held-to-maturity |  |  | 8,500 |  |  |  | 7,666 |  |  |  | 8,500 |  |  |  | 7,929 |
Total securities |  | $ | 337,195 |  |  | $ | 300,599 |  |  | $ | 280,293 |  |  | $ | 237,181 |
There were no sales proceeds, or gains or losses from the sale of securities available-for-sale for the years ended December 31, 2023, 2022, and 2021.

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