XML 21 R10.htm IDEA: XBRL DOCUMENT

Note 2 - Investments

6 Months Ended

Jun. 30, 2024

NOTE 2 – INVESTMENTS

The following tables present the amortized costs, unrealized gains, unrealized losses, estimated fair values of securities available-for-sale and held-to-maturity, and the ACL on securities available-for-sale and held-to-maturity at June 30, 2024 and December 31, 2023:

	June 30, 2024
								Estimated
	Amortized		Unrealized		Unrealized			Fair
SECURITIES AVAILABLE-FOR-SALE	Cost		Gains		Losses			Values		ACL
U.S. agency securities	$	20,238	$	45	$	(3,167	)	$	17,116	$	—
Corporate securities		16,000		51		(866	)		15,185		—
Municipal bonds		84,345		—		(12,700	)		71,645		—
Mortgage-backed securities		112,462		168		(11,909	)		100,721		—
U.S. Small Business Administration securities		17,603		79		(1,167	)		16,515		—
Total securities available-for-sale		250,648		343		(29,809	)		221,182		—

SECURITIES HELD-TO-MATURITY
Corporate securities		8,500		—		(633	)		7,867		45
Total securities held-to-maturity		8,500		—		(633	)		7,867		45

Total securities	$	259,148	$	343	$	(30,442	)	$	229,049	$	45

	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

The following table presents the activity in the ACL on securities held-to-maturity by major security type for the three and six months ended June 30, 2024 and 2023:

SECURITIES HELD-TO-MATURITY	For the Three Months Ended June 30,
Corporate Securities	2024		2023
Beginning ACL balance	$	45	$	31
Provision for (recapture of) credit losses		—		—
Total ending ACL balance	$	45	$	31

SECURITIES HELD-TO-MATURITY	For the Six Months Ended June 30,
Corporate Securities	2024		2023
Beginning ACL balance	$	45	$	31
Provision for (recapture of) credit losses		—		—
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 $114,000 and $116,000 at June 30, 2024 and December 31, 2023, and was $1.0 million and $1.5 million on available-for-sale debt securities as of June 30, 2024 and December 31, 2023, 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 Company 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:

	June 30,		December 31,
Corporate securities	2024		2023
BBB/BBB-	$	7,000	$	7,000
BB+		1,500		1,500
Total	$	8,500	$	8,500

At June 30, 2024 and 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 June 30, 2024, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law:

	June 30, 2024
Purpose or beneficiary	Carrying Value		Amortized Cost		Fair Value
State and local government public deposits	$	34,729	$	40,641	$	34,729

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.

	June 30, 2024
	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	$	—	$	—		$	15,071	$	(3,167	)	$	15,071	$	(3,167	)
Corporate securities		7,874		(126	)		4,260		(740	)		12,134		(866	)
Municipal bonds		884		(9	)		70,761		(12,691	)		71,645		(12,700	)
Mortgage-backed securities		11,908		(41	)		65,462		(11,868	)		77,370		(11,909	)
U.S. Small Business Administration securities		—		—			7,593		(1,167	)		7,593		(1,167	)
Total securities available-for-sale		20,666		(176	)		163,147		(29,633	)		183,813		(29,809	)

SECURITIES HELD-TO-MATURITY
Corporate securities		—		—			7,867		(633	)		7,867		(633	)
Total securities held-to-maturity		—		—			7,867		(633	)		7,867		(633	)

Total securities	$	20,666	$	(176	)	$	171,014	$	(30,266	)	$	191,680	$	(30,442	)

	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 securities	$	58,754	$	(637	)	$	217,028	$	(36,898	)	$	275,782	$	(37,535	)

There were no held-to-maturity debt securities in an unrealized loss position of less than one year and seven held-to-maturity debt securities in an unrealized loss position of more than one year at June 30, 2024.

There were nine available-for-sale securities in an unrealized loss position of less than one year, and 128 available-for-sale securities in an unrealized loss position of more than one year at June 30, 2024. The unrealized losses associated with these securities are believed to be caused by changing market conditions and considered to be temporary, and the Company does not intend and 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 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 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 six months ended June 30, 2024, or for the year ended December 31, 2023.

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.

	June 30,				December 31,
	2024				2023
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		4,954		4,499		3,947		3,544
Due after five years through ten years		10,973		9,207		11,972		10,139
Due after ten years		4,311		3,410		4,310		3,421
Subtotal		20,238		17,116		21,151		18,018
Corporate securities
Due within one year		—		—		1,000		1,004
Due after one year through five years		10,000		9,960		6,000		6,609
Due after five years through ten years		4,000		3,839		4,000		3,839
Due after ten years		2,000		1,386		2,000		1,420
Subtotal		16,000		15,185		13,000		12,872
Municipal bonds
Due within one year		1,000		1,000		1,013		1,003
Due after one year through five years		78		78		757		751
Due after five years through ten years		6,316		5,852		7,603		7,101
Due after ten years		76,951		64,715		129,430		110,592
Subtotal		84,345		71,645		138,803		119,447
Mortgage-backed securities
Federal National Mortgage Association (“FNMA”)		83,261		73,097		76,369		66,275
Federal Home Loan Mortgage Corporation (“FHLMC”)		21,351		20,331		32,311		31,376
Government National Mortgage Association (“GNMA”)		7,850		7,293		4,175		3,597
Subtotal		112,462		100,721		112,855		101,248
U.S. Small Business Administration securities
Due within one year		42		41		198		196
Due after one year through five years		1,434		1,373		1,860		1,824
Due after five years through ten years		6,858		6,648		21,420		20,929
Due after ten years		9,269		8,453		19,408		18,399
Subtotal		17,603		16,515		42,886		41,348
Total securities available-for-sale		250,648		221,182		328,695		292,933

SECURITIES HELD-TO-MATURITY
Corporate securities
Due after five years through ten years		8,500		7,867		8,500		7,666
Total securities held-to-maturity		8,500		7,867		8,500		7,666
Total securities	$	259,148	$	229,049	$	337,195	$	300,599

The proceeds and resulting gains and losses from sales of securities available-for-sale for the three and six months ended June 30, 2024:

	For the Three Months Ended
	June 30, 2024
			Gross		Gross
	Proceeds		Gains		(Losses)
Securities available-for-sale	$	54,423	$	204	$	(53)

	For the Six Months Ended
	June 30, 2024
			Gross		Gross
	Proceeds		Gains		(Losses)
Securities available-for-sale	$	98,459	$	204	$	(8,051	)

There were no sales proceeds, or gains or losses for the sale of securities available-for-sale for the three and six months ended June 30, 2023.