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Note 6 - Investment and Equity Securities

6 Months Ended

Jun. 30, 2025

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, 2025
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
(Dollar amounts in thousands)		Cost^(a)				Gains				Losses				Value

Subordinated debt		$	34,000			$	75			$	(1,441	)		$	32,634
Obligations of states and political subdivisions:
Tax-exempt			147,502				4				(27,024	)			120,482
Mortgage-backed securities in government-sponsored entities			8,648				21				(669	)			8,000
Total		$	190,150			$	100			$	(29,134	)		$	161,116

(a)	Accrued interest of $1.5 million is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheet.

		December 31, 2024
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
(Dollar amounts in thousands)		Cost ^(a)				Gains				Losses				Value

Subordinated debt		$	34,300			$	67			$	(1,898	)		$	32,469
Obligations of states and political subdivisions:
Tax-exempt			147,767				4				(22,805	)			124,966
Mortgage-backed securities in government-sponsored entities			9,144				1				(778	)			8,367
Total		$	191,211			$	72			$	(25,481	)		$	165,802

(a)	Accrued interest of $1.5 million is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheet.

The amortized cost and fair value of investment securities at June 30, 2025, 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		$	590			$	590
Due after one year through five years			12,091				11,852
Due after five years through ten years			52,878				50,268
Due after ten years			124,591				98,406
Total		$	190,150			$	161,116

There were no investment securities sold during the six months ended June 30, 2025, or the year ended December 31, 2024.

Investment securities with an approximate carrying value of $110.2 million and $112.1 million on June 30, 2025, and December 31, 2024, 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, 2025
		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		$	3,463			$	(37	)		$	26,596			$	(1,404	)		$	30,059			$	(1,441	)
Obligations of states and political subdivisions:
Tax-exempt			12,246				(649	)			102,212				(26,375	)			114,458				(27,024	)
Mortgage-backed securities in government-sponsored entities			1,358				(42	)			4,810				(627	)			6,168				(669	)
Total		$	17,067			$	(728	)		$	133,618			$	(28,406	)		$	150,685			$	(29,134	)

		December 31, 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		$	10,632			$	(368	)		$	20,770			$	(1,530	)		$	31,402			$	(1,898	)
Obligations of states and political subdivisions:
Tax-exempt			15,456				(487	)			102,484				(22,318	)			117,940				(22,805	)
Mortgage-backed securities in government-sponsored entities			1,986				(49	)			5,118				(729	)			7,104				(778	)
Total		$	28,074			$	(904	)		$	128,372			$	(24,577	)		$	156,446			$	(25,481	)

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 24 securities in an unrealized loss position for less than twelve months and 174 securities in an unrealized loss position for twelve months or greater on June 30, 2025. 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, 2025 and December 31, 2024, no ACL was required on investment securities available for sale.

Other investments, which primarily represent equity securities, totaled $1.0 million and $855,000 at June 30, 2025 and December 31, 2024, respectively. The Company recognized a loss on other investments of $7,000 and $27,000 for the three months ended June 30, 2025, and 2024, respectively. The Company recognized a loss on other investments of $41,000 and $79,000 for the six months ended June 30, 2025, and 2024, respectively.