XML 27 R14.htm IDEA: XBRL DOCUMENT

Note 6 - Investments and Equity Securities

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 6 – INVESTMENT AND EQUITY SECURITIES

The amortized cost and fair values of investment securities available for sale are as follows:

		June 30, 2024
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
(Dollar amounts in thousands)		Cost (a)				Gains				Losses				Value

Subordinated debt		$	34,300			$	57			$	(2,427	)		$	31,930
Obligations of states and political subdivisions:
Tax-exempt			148,254				7				(21,573	)			126,688
Mortgage-backed securities in government-sponsored entities			8,513				12				(719	)			7,806
Total		$	191,067			$	76			$	(24,719	)		$	166,424

(a)	Amortized cost excludes accrued interest receivable of $1.7 million for the period ending June 30, 2024.

		December 31, 2023
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
(Dollar amounts in thousands)		Cost (a)				Gains				Losses				Value

Subordinated debt		$	34,300			$	70			$	(2,451	)		$	31,919
Obligations of states and political subdivisions:
Tax-exempt			149,881				153				(17,492	)			132,542
Mortgage-backed securities in government-sponsored entities			6,965				-				(647	)			6,318
Total		$	191,146			$	223			$	(20,590	)		$	170,779

(a)	Amortized cost excludes accrued interest receivable of $1.7 million for the period ending December 31, 2023.

The amortized cost and fair value of investment securities at June 30, 2024, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

		Amortized				Fair
(Dollar amounts in thousands)		Cost				Value

Due in one year or less		$	3			$	3
Due after one year through five years			6,009				5,826
Due after five years through ten years			54,200				50,786
Due after ten years			130,855				109,809
Total		$	191,067			$	166,424

There were no investment securities sold during the six months ended June 30, 2024, or year ended December 31, 2023.

Investment securities with an approximate carrying value of $116.4 million and $118.8 million on June 30, 2024, and December 31, 2023, respectively, were pledged to secure deposits and for other purposes as required by law.

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.

		June 30, 2024
		Less than Twelve Months								Twelve Months or Greater								Total
						Gross								Gross								Gross
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
(Dollar amounts in thousands)		Value				Losses				Value				Losses				Value				Losses

Subordinated debt		$	10,376			$	(374	)		$	20,496			$	(2,053	)		$	30,872			$	(2,427	)
Obligations of states and political subdivisions:
Tax-exempt			17,093				(290	)			103,085				(21,283	)			120,178				(21,573	)
Mortgage-backed securities in government-sponsored entities			-				-				5,899				(719	)			5,899				(719	)
Total		$	27,469			$	(664	)		$	129,480			$	(24,055	)		$	156,949			$	(24,719	)

		December 31, 2023
		Less than Twelve Months								Twelve Months or Greater								Total
						Gross								Gross								Gross
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
(Dollar amounts in thousands)		Value				Losses				Value				Losses				Value				Losses

Subordinated debt		$	994			$	(6	)		$	29,356			$	(2,445	)		$	30,350			$	(2,451	)
Obligations of states and political subdivisions:
Tax-exempt			1,386				(10	)			106,078				(17,482	)			107,464				(17,492	)
Mortgage-backed securities in government-sponsored entities			195				(1	)			6,122				(646	)			6,317				(647	)
Total		$	2,575			$	(17	)		$	141,556			$	(20,573	)		$	144,131			$	(20,590	)

Every quarter, the Company evaluates investment securities with unrealized losses to determine if the decline in fair value has resulted from credit losses or other factors. There were 35 securities in an unrealized loss position for less than twelve months and 166 securities in an unrealized loss position for twelve months or greater on June 30, 2024. Unrealized losses on investment securities available for sale have not been recognized into income because we do not intend to sell and it is more likely than not that we will not be required to sell any of the securities in an unrealized loss position before recovery of their amortized cost. The unrealized losses on investment securities were attributable to changes in interest rates and not related to the credit quality of these issuers. As of June 30, 2024, no ACL was required on investment securities available for sale.

Other investments, which primarily represents equity securities, totaled $881,000 and $955,000 at June 30, 2024 and December 31, 2023, respectively. The Company recognized a net loss on other investments of $27,000 and $67,000 for the three months ended June 30, 2024 and 2023, respectively. No other investments were sold during these periods.