XML 21 R10.htm IDEA: XBRL DOCUMENT

Note 2 - Investments

3 Months Ended

Mar. 31, 2025

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 March 31, 2025 and December 31, 2024:

	March 31, 2025
								Estimated
	Amortized		Unrealized		Unrealized			Fair
SECURITIES AVAILABLE-FOR-SALE	Cost		Gains		Losses			Values		ACL
U.S. agency securities	$	20,251	$	45	$	(2,728	)	$	17,568	$	—
Corporate securities		16,000		8		(821	)		15,187		—
Municipal bonds		82,495		—		(12,374	)		70,121		—
Mortgage-backed securities		186,222		1,462		(10,302	)		177,382		—
Asset-backed securities		11,767		67		(959	)		10,875		—
Total securities available-for-sale		316,735		1,582		(27,184	)		291,133		—

SECURITIES HELD-TO-MATURITY
Corporate securities		10,500		1		(243	)		10,258		66
Total securities held-to-maturity		10,500		1		(243	)		10,258		66

Total securities	$	327,235	$	1,583	$	(27,427	)	$	301,391	$	66

	December 31, 2024
								Estimated
	Amortized		Unrealized		Unrealized			Fair
SECURITIES AVAILABLE-FOR-SALE	Cost		Gains		Losses			Values		ACL
U.S. agency securities	$	20,247	$	45	$	(3,154	)	$	17,138	$	—
Corporate securities		16,000		8		(882	)		15,126		—
Municipal bonds		82,774		—		(12,430	)		70,344		—
Mortgage-backed securities		178,740		415		(11,969	)		167,186		—
Asset-backed securities		12,511		3		(1,133	)		11,381		—
Total securities available-for-sale		310,272		471		(29,568	)		281,175		—

SECURITIES HELD-TO-MATURITY
Corporate securities		8,500		—		(356	)		8,144		45
Total securities held-to-maturity		8,500		—		(356	)		8,144		45

Total securities	$	318,772	$	471	$	(29,924	)	$	289,319	$	45

The following table presents the activity in the ACL on securities held-to-maturity by major security type for the three months ended March 31, 2025 and 2024:

SECURITIES HELD-TO-MATURITY	For the Three Months Ended March 31,
Corporate Securities	2025		2024
Beginning ACL balance	$	45	$	45
Provision for credit losses		21		—
Total ending ACL balance	$	66	$	45

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 totaled $120,000 and $116,000 on held-to-maturity debt securities and $1.6 million and $1.2 million on available-for-sale debt securities as of March 31, 2025 and December 31, 2024, 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:

	March 31,		December 31,
Corporate securities	2025		2024
BBB/BBB-	$	10,500	$	8,500

At March 31, 2025 and December 31, 2024, 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 March 31, 2025, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law:

	March 31, 2025
Purpose or beneficiary	Carrying Value		Amortized Cost		Fair Value
State and local government public deposits	$	34,483	$	40,193	$	34,483

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.

	March 31, 2025
	Less than 12 Months					12 Months or Longer					Total
SECURITIES AVAILABLE-FOR-SALE	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. agency securities	$	—	$	—		$	15,523	$	(2,728	)	$	15,523	$	(2,728	)
Corporate securities		2,983		(17	)		9,196		(804	)		12,179		(821	)
Municipal bonds		1,674		(4	)		68,447		(12,370	)		70,121		(12,374	)
Mortgage-backed securities		35,231		(294	)		65,190		(10,008	)		100,421		(10,302	)
Asset-backed securities		—		—			6,798		(959	)		6,798		(959	)
Total securities available-for-sale		39,888		(315	)		165,154		(26,869	)		205,042		(27,184	)

SECURITIES HELD-TO-MATURITY
Corporate securities		1,937		(63	)		4,319		(180	)		6,256		(243	)
Total securities held-to-maturity		1,937		(63	)		4,319		(180	)		6,256		(243	)

Total securities	$	41,825	$	(378	)	$	169,473	$	(27,049	)	$	211,298	$	(27,427	)

	December 31, 2024
	Less than 12 Months					12 Months or Longer					Total
SECURITIES AVAILABLE-FOR-SALE	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. agency securities	$	—	$	—		$	15,093	$	(3,154	)	$	15,093	$	(3,154	)
Corporate securities		6,781		(219	)		5,337		(663	)		12,118		(882	)
Municipal bonds		1,677		(10	)		68,667		(12,420	)		70,344		(12,430	)
Mortgage-backed securities		31,093		(241	)		63,934		(11,728	)		95,027		(11,969	)
Asset-backed securities		3,638		(41	)		7,190		(1,092	)		10,828		(1,133	)
Total securities available-for-sale		43,189		(511	)		160,221		(29,057	)		203,410		(29,568	)

SECURITIES HELD-TO-MATURITY
Corporate securities		—		—			8,144		(356	)		8,144		(356	)
Total securities held-to-maturity		—		—			8,144		(356	)		8,144		(356	)

Total securities	$	43,189	$	(511	)	$	168,365	$	(29,413	)	$	211,554	$	(29,924	)

There were two held-to-maturity debt securities in an unrealized loss position of less than one year and four held-to-maturity debt securities in an unrealized loss position of more than one year at March 31, 2025, compared to 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 December 31, 2024.

There were 17 available-for-sale securities in an unrealized loss position of less than one year, and 125 available-for-sale securities in an unrealized loss position of more than one year at March 31, 2025, compared to 22 available-for-sale securities in an unrealized loss position of less than one year and 121 available-for-sale securities in an unrealized loss position of more than one year at December 31, 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 of the available-for-sale mortgage-backed securities and asset-backed 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 three months ended March 31, 2025, or for the year ended December 31, 2024.

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.

	March 31, 2025				December 31, 2024
SECURITIES AVAILABLE-FOR-SALE	Amortized		Fair		Amortized		Fair
U.S. agency securities	Cost		Value		Cost		Value
Due after one year through five years	$	4,965	$	4,654	$	4,962	$	4,575
Due after five years through ten years		10,976		9,434		10,975		9,193
Due after ten years		4,310		3,480		4,310		3,370
Subtotal		20,251		17,568		20,247		17,138
Corporate securities
Due after one year through five years		14,000		13,677		11,000		10,766
Due after five years through ten years		—		—		3,000		2,918
Due after ten years		2,000		1,510		2,000		1,442
Subtotal		16,000		15,187		16,000		15,126
Municipal bonds
Due after one year through five years		2,173		2,164		2,186		2,168
Due after five years through ten years		4,145		3,733		4,158		3,728
Due after ten years		76,177		64,224		76,430		64,448
Subtotal		82,495		70,121		82,774		70,344
Mortgage-backed securities
Federal National Mortgage Association (“FNMA”)		90,055		81,520		90,771		80,677
Federal Home Loan Mortgage Corporation (“FHLMC”)		49,219		49,489		48,765		47,773
Government National Mortgage Association (“GNMA”)		46,948		46,373		39,204		38,736
Subtotal		186,222		177,382		178,740		167,186
Asset-backed securities
Due within one year		331		326		203		200
Due after one year through five years		843		817		1,073		1,037
Due after five years through ten years		2,639		2,458		2,867		2,648
Due after ten years		7,954		7,274		8,368		7,496
Subtotal		11,767		10,875		12,511		11,381
Total securities available-for-sale		316,735		291,133		310,272		281,175

SECURITIES HELD-TO-MATURITY
Corporate securities
Due after five years through ten years		10,500		10,258		8,500		8,144
Total securities held-to-maturity		10,500		10,258		8,500		8,144
Total securities	$	327,235	$	301,391	$	318,772	$	289,319

The proceeds and resulting gains and losses from sales of securities available-for-sale for the three months ended March 31, 2025 and 2024:

For the Three Months Ended March 31, 2025

Gross

Proceeds

Gains

(Losses)

Securities available-for-sale

—

	For the Three Months Ended March 31, 2024
			Gross		Gross
	Proceeds		Gains		(Losses)
Securities available-for-sale	$	44,036	$	—	$	(7,998	)