XML 27 R14.htm IDEA: XBRL DOCUMENT

Note 6 - Investment and Equity Securities

9 Months Ended

Sep. 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:

		September 30, 2025
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
(Dollar amounts in thousands)		Cost^(a)				Gains				Losses				Value
Subordinated debt		$	24,500			$	85			$	(1,013	)		$	23,572
Obligations of states and political subdivisions:
Tax-exempt			146,851				21				(22,499	)			124,373
Mortgage-backed securities in government-sponsored entities			8,396				46				(532	)			7,910
Total		$	179,747			$	152			$	(24,044	)		$	155,855

(a)	Accrued interest of $1.4 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 September 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		$	70			$	70
Due after one year through five years			8,051				7,887
Due after five years through ten years			47,775				46,255
Due after ten years			123,851				101,643
Total		$	179,747			$	155,855

There were no investment securities sold during the three and nine months ended September 30, 2025, or the year ended December 31, 2024.

Investment securities with an approximate carrying value of $115.2 million and $112.1 million on September 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.

		September 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		$	727			$	(23	)		$	19,761			$	(989	)		$	20,487			$	(1,013	)
Obligations of states and political subdivisions:
Tax-exempt			-				-				111,984				(22,499	)			111,984				(22,499	)
Mortgage-backed securities in government-sponsored entities			1,026				(3	)			5,093				(529	)			6,119				(532	)
Total		$	1,753			$	(26	)		$	136,838			$	(24,017	)		$	138,590			$	(24,044	)

		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 3 securities in an unrealized loss position for less than twelve months and 173 securities in an unrealized loss position for twelve months or greater on September 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 September 30, 2025 and December 31, 2024, no allowance for credit losses was required on investment securities available for sale.

Other investments, which primarily represent equity securities, totaled $1.1 million and $855,000 at September 30, 2025 and December 31, 2024, respectively. The Company recognized a gain on other investments of $17,000 and $14,000 for the three months ended September 30, 2025, and 2024, respectively. The Company recognized a loss on other investments of ($24,000) and ($65,000) for the nine months ended September 30, 2025 and 2024, respectively.