Securities

12 Months Ended

Dec. 31, 2024

Debt Securities, Available-for-Sale [Abstract]

NOTE 2. Securities

Amortized costs and fair values of securities available for sale at December 31, 2024 and 2023 were as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	December 31, 2024
	(in thousands)
Obligations of U.S. government corporations and agencies	$	8,198	$	—	$	(530	)	$	7,668
Mortgage-backed securities		127,061		—		(22,094	)		104,967
Obligations of states and political subdivisions		4,920		—		(275	)		4,645
Subordinated debt		4,750		—		(700	)		4,050
	$	144,929	$	—	$	(23,599	)	$	121,330


	December 31, 2023
	(in thousands)
Obligations of U.S. government corporations and agencies	$	9,258	$	—	$	(667	)	$	8,591
Mortgage-backed securities		140,052		—		(21,230	)		118,822
Obligations of states and political subdivisions		6,191		1		(261	)		5,931
Subordinated debt		4,750		—		(651	)		4,099
	$	160,251	$	1	$	(22,809	)	$	137,443

Accrued interest receivable on debt securities available for sale totaled $350 thousand and $393 thousand at December 31, 2024 and 2023, respectively and is included in the other assets line item in the Consolidated Balance Sheets.

Carrying amounts of restricted securities at December 31, 2024 and 2023 were as follows:


	December 31, 2024		December 31, 2023
	(in thousands)
Federal Reserve Bank Stock	$	344	$	344
Federal Home Loan Bank Stock		7,073		9,084
Community Bankers’ Bank Stock		140		140
	$	7,557	$	9,568

The amortized cost and fair value of securities available for sale at December 31, 2024, by contractual maturity, are shown below. Maturities may differ from contractual maturities primarily in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties.


	Amortized Cost		Fair Value
	(in thousands)
Due in one year or less	$	1,000	$	994
Due after one year through five years		9,691		9,204
Due after five years through ten years		12,466		11,020
Due after ten years		121,772		100,112
	$	144,929	$	121,330

There have been no sales of available for sale securities during the twelve months ended December 31, 2024 or 2023.

The fair value and gross unrealized losses for securities available for sale, totaled by the length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2024 and 2023 were as follows:


	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	December 31, 2024
	(in thousands)
Obligations of U.S. government corporations and agencies	$	—	$	—	$	7,668	$	530	$	7,668	$	530
Mortgage-backed securities		—		—		104,967		22,094		104,967		22,094
Obligations of states and political subdivisions		—		—		4,645		275		4,645		275
Subordinated debt		—		—		3,550		700		3,550		700
	$	—	$	—	$	120,830	$	23,599	$	120,830	$	23,599

	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	December 31, 2023
	(in thousands)
Obligations of U.S. government corporations and agencies	$	—	$	—	$	8,591	$	667	$	8,591	$	667
Mortgage-backed securities		—		—		118,822		21,230		118,822		21,230
Obligations of states and political subdivisions		—		—		5,430		261		5,430		261
Subordinated debt		221		29		3,378		622		3,599		651
	$	221	$	29	$	136,221	$	22,780	$	136,442	$	22,809

Gross unrealized losses on available for sale securities included one hundred one (101) and one hundred three (103) debt securities at December 31, 2024 and December 31, 2023, respectively. The Company concluded that a credit loss does not exist in its securities portfolio at December 31, 2024, and no impairment loss has been recognized based on the fact that (1) changes in fair value were caused primarily by fluctuations in interest rates, (2) securities with unrealized losses had generally high credit quality, (3) the Company intends to hold these investments in debt securities to maturity and it is more-likely-than-not that the Company will not be required to sell these investments before a recovery of its investment, and (4) issuers have continued to make timely payments of principal and interest. Additionally, the Company’s mortgage-backed securities are entirely issued by either U.S. government agencies or U.S. government-sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments.

Securities having a carrying value of $9.8 million and $101.9 million at December 31, 2024 were pledged as security for trust accounts and for borrowing capacity at the Federal Reserve Bank discount window, respectively.