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Note 3 - Securities | 9 Months Ended
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Sep. 30, 2024
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 3 – SECURITIES Equity Securities The Company held equity securities with fair values of $3,274,000 and $3,132,000 as of September 30, 2024 and December 31, 2023, respectively. There were no sales of equity securities during the three and nine-month periods ended September 30, 2024 and 2023. Consistent with ASC 321, Equity Securities, these securities are carried at fair value with the changes in fair value recognized in the condensed consolidated statements of income. Accordingly, the Company recognized a gain of $141,000 during the three-month period ended September 30, 2024, and a loss of $60,000, during the nine-month period ended September 30, 2024, as compared to losses of $144,000 and $141,000 during the same periods of 2023. Debt Securities Debt securities have been classified in the financial statements as available for sale. The amortized cost and estimated fair values of debt securities as of September 30, 2024 are as follows:
(dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agencies |  | $ | 96,862 |  |  | $ | 226 |  |  | $ | (3,106 | ) |  | $ | 93,982 |
Collateralized mortgage obligations |  |  | 26,388 |  |  |  | 65 |  |  |  | (355 | ) |  |  | 26,098 |
Municipalities |  |  | 322,063 |  |  |  | 1,671 |  |  |  | (17,522 | ) |  |  | 306,212 |
SBA pools |  |  | 940 |  |  |  | 1 |  |  |  | (1 | ) |  |  | 940 |
Corporate debt |  |  | 43,500 |  |  |  | 10 |  |  |  | (2,477 | ) |  |  | 41,033 |
Asset backed securities |  |  | 49,637 |  |  |  | 59 |  |  |  | (629 | ) |  |  | 49,067 |
|  | $ | 539,390 |  |  | $ | 2,032 |  |  | $ | (24,090 | ) |  | $ | 517,332 |
The following table details the gross unrealized losses and fair values of debt securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2024.
(dollars in thousands) |  |  |  |  |  | Less than 12 months |  |  | 12 months or more |  |  | Total |
Description of Securities |  | Number of Securities |  |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |
U.S. agencies |  |  | 37 |  |  | $ | 4,966 |  |  | $ | (119 | ) |  | $ | 57,899 |  |  | $ | (2,987 | ) |  | $ | 62,865 |  |  | $ | (3,106 | )
Collateralized mortgage obligations |  |  | 6 |  |  |  | 8,286 |  |  |  | (7 | ) |  |  | 3,568 |  |  |  | (348 | ) |  |  | 11,854 |  |  |  | (355 | )
Municipalities |  |  | 93 |  |  |  | 28,246 |  |  |  | (139 | ) |  |  | 183,696 |  |  |  | (17,383 | ) |  |  | 211,942 |  |  |  | (17,522 | )
SBA pools |  |  | 3 |  |  |  | 128 |  |  |  | 0 |  |  |  | 160 |  |  |  | (1 | ) |  |  | 288 |  |  |  | (1 | )
Corporate debt |  |  | 11 |  |  |  | 0 |  |  |  | 0 |  |  |  | 39,023 |  |  |  | (2,477 | ) |  |  | 39,023 |  |  |  | (2,477 | )
Asset backed securities |  |  | 14 |  |  |  | 8,143 |  |  |  | (21 | ) |  |  | 17,625 |  |  |  | (608 | ) |  |  | 25,768 |  |  |  | (629 | )
Total temporarily impaired securities |  |  | 164 |  |  | $ | 49,769 |  |  | $ | (286 | ) |  | $ | 301,971 |  |  | $ | (23,804 | ) |  | $ | 351,740 |  |  | $ | (24,090 | )
For available-for-sale debt securities in an unrealized loss position, management evaluates whether the decline in fair value is a reflection of credit deterioration or other factors. In performing this evaluation, management considers the extent which fair value has fallen below amortized cost, changes in ratings by rating agencies, and other information indicating a deterioration in repayment capacity of either the underlying issuer or the borrowers providing repayment capacity in a securitization. If management’s evaluation indicates that a credit loss exists then a present value of the expected cash flows is calculated and compared to the amortized cost basis of the security in question and, to the degree that the amortized cost basis exceeds the present value, an allowance for credit loss (“ACL”) is established, with the caveat that the maximum amount of the reserve on any individual security is the difference between the fair value and amortized cost balance of the security in question. Any unrealized loss that has not been recorded through an ACL is recognized in other comprehensive income. As of September 30, 2024, accrued interest receivable on available-for-sale securities was $4,164,000 and is not included in the tables within this footnote. The unrealized losses are due primarily to rising market yields and not due to credit deterioration. As such, no ACL on available-for-sale securities has been established as of September 30, 2024. The Company does not intend to sell the securities and it is not likely that the Company will be required to sell the securities before the earlier of the forecasted recovery or the maturity of the underlying investment security. The amortized cost and estimated fair value of debt securities as of September 30, 2024, segregated by contractual maturity or call date, 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.
(dollars in thousands) |  | Amortized |  |  | Fair |
|  | Cost |  |  | Value |
Available-for-sale securities: |  |  |  |  |  |  |  |
Due in one year or less |  | $ | 89,461 |  |  | $ | 86,651 |
Due after one year through five years |  |  | 155,826 |  |  |  | 153,114 |
Due after five years through ten years |  |  | 185,793 |  |  |  | 172,544 |
Due after ten years |  |  | 108,310 |  |  |  | 105,023 |
|  | $ | 539,390 |  |  | $ | 517,332 |
The amortized cost and estimated fair values of debt securities as of December 31, 2023 are as follows:
(dollars in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agencies |  | $ | 84,678 |  |  | $ | 11 |  |  | $ | (4,430 | ) |  | $ | 80,259 |
Collateralized mortgage obligations |  |  | 9,108 |  |  |  | 0 |  |  |  | (444 | ) |  |  | 8,664 |
Municipalities |  |  | 345,981 |  |  |  | 2,792 |  |  |  | (19,865 | ) |  |  | 328,908 |
SBA pools |  |  | 1,394 |  |  |  | 3 |  |  |  | (2 | ) |  |  | 1,395 |
Corporate debt |  |  | 47,500 |  |  |  | 9 |  |  |  | (3,992 | ) |  |  | 43,517 |
Asset backed securities |  |  | 56,613 |  |  |  | 133 |  |  |  | (1,411 | ) |  |  | 55,335 |
|  | $ | 545,274 |  |  | $ | 2,948 |  |  | $ | (30,144 | ) |  | $ | 518,078 |
The following tables detail the gross unrealized losses and fair values aggregated of debt securities by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023.
(dollars in thousands) |  |  |  |  |  | Less than 12 months |  |  | 12 months or more |  |  | Total |
Description of Securities |  | Number of Securities |  |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |  |  | Fair Value |  |  | Unrealized Loss |
U.S. agencies |  |  | 51 |  |  | $ | 190 |  |  | $ | (3 | ) |  | $ | 79,556 |  |  | $ | (4,427 | ) |  | $ | 79,746 |  |  | $ | (4,430 | )
Collateralized mortgage obligations |  |  | 6 |  |  |  | 4,791 |  |  |  | (1 | ) |  |  | 3,873 |  |  |  | (443 | ) |  |  | 8,664 |  |  |  | (444 | )
Municipalities |  |  | 106 |  |  |  | 44,859 |  |  |  | (453 | ) |  |  | 178,812 |  |  |  | (19,412 | ) |  |  | 223,671 |  |  |  | (19,865 | )
SBA pools |  |  | 4 |  |  |  | 116 |  |  |  | 0 |  |  |  | 472 |  |  |  | (2 | ) |  |  | 588 |  |  |  | (2 | )
Corporate debt |  |  | 13 |  |  |  | 0 |  |  |  | 0 |  |  |  | 41,508 |  |  |  | (3,992 | ) |  |  | 41,508 |  |  |  | (3,992 | )
Asset backed securities |  |  | 19 |  |  |  | 2,123 |  |  |  | (8 | ) |  |  | 32,535 |  |  |  | (1,403 | ) |  |  | 34,658 |  |  |  | (1,411 | )
Total temporarily impaired securities |  |  | 199 |  |  | $ | 52,079 |  |  | $ | (465 | ) |  | $ | 336,756 |  |  | $ | (29,679 | ) |  | $ | 388,835 |  |  | $ | (30,144 | )
There were no sales of available-for-sale securities during the three-months ended September 30, 2024 and 2023. The Company sold eighteen available-for-sale securities during the nine-months ended September 30, 2024 with a book value of $28,258,000, resulting in gross gains of $106,000, as compared to 24 available-for-sale securities sold with a book value of $42,791,000, resulting in gross losses of $72,000 and gross gains of $215,000, for a net gain of $143,000 during the nine-months ended September 30, 2023. In addition, the Company recognized a net gain of $8,000 and $9,000 on called securities during the three and nine-month periods ended June, 2024, respectively, as compared to gains of $13,000 during the comparable 2023 periods. Debt securities carried at $305,109,000 and $288,199,000 as of September 30, 2024 and December 31, 2023, respectively, were pledged to secure deposits of public funds.

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