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Note 2 - Securities | 3 Months Ended
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Mar. 31, 2025
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 2. Securities The Company invests in U.S. Treasury securities, U.S. agency and mortgage-backed securities, obligations of state and political subdivisions, and corporate debt securities. Amortized costs, gross unrealized gains and losses, allowance for credit losses, and fair values of debt securities at March 31, 2025 and December 31, 2024 were as follows (in thousands):
|  | March 31, 2025 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized (Losses) |  |  | Fair Value |  |  | Allowance for Credit Losses |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 12,486 |  |  | $ | — |  |  | $ | (646 | ) |  | $ | 11,840 |  |  | $ | — |
U.S. agency and mortgage-backed securities |  |  | 105,963 |  |  |  | 62 |  |  |  | (10,954 | ) |  |  | 95,071 |  |  |  | — |
Obligations of states and political subdivisions |  |  | 62,558 |  |  |  | 4 |  |  |  | (8,497 | ) |  |  | 54,065 |  |  |  | — |
Total securities available for sale |  | $ | 181,007 |  |  | $ | 66 |  |  | $ | (20,097 | ) |  | $ | 160,976 |  |  | $ | — |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 9,696 |  |  | $ | — |  |  | $ | (81 | ) |  | $ | 9,615 |  |  | $ | — |
U.S. agency and mortgage-backed securities |  |  | 85,038 |  |  |  | — |  |  |  | (7,874 | ) |  |  | 77,164 |  |  |  | — |
Obligations of states and political subdivisions |  |  | 10,645 |  |  |  | 5 |  |  |  | (1,064 | ) |  |  | 9,586 |  |  |  | — |
Corporate debt securities |  |  | 3,000 |  |  |  | — |  |  |  | (420 | ) |  |  | 2,580 |  |  |  | (87 | )
Total securities held to maturity |  | $ | 108,379 |  |  | $ | 5 |  |  | $ | (9,439 | ) |  | $ | 98,945 |  |  | $ | (87 | )
Total securities |  | $ | 289,386 |  |  | $ | 71 |  |  | $ | (29,536 | ) |  | $ | 259,921 |  |  | $ | (87 | )
|  | December 31, 2024 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized (Losses) |  |  | Fair Value |  |  | Allowance for Credit Losses |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 12,483 |  |  | $ | — |  |  | $ | (795 | ) |  | $ | 11,688 |  |  | $ | — |
U.S. agency and mortgage-backed securities |  |  | 110,480 |  |  |  | 57 |  |  |  | (12,498 | ) |  |  | 98,039 |  |  |  | — |
Obligations of states and political subdivisions |  |  | 62,954 |  |  |  | 5 |  |  |  | (8,839 | ) |  |  | 54,120 |  |  |  | — |
Total securities available for sale |  | $ | 185,917 |  |  | $ | 62 |  |  | $ | (22,132 | ) |  | $ | 163,847 |  |  | $ | — |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 9,632 |  |  | $ | — |  |  | $ | (125 | ) |  | $ | 9,507 |  |  | $ | — |
U.S. agency and mortgage-backed securities |  |  | 86,554 |  |  |  | — |  |  |  | (9,282 | ) |  |  | 77,272 |  |  |  | — |
Obligations of states and political subdivisions |  |  | 10,649 |  |  |  | 8 |  |  |  | (1,112 | ) |  |  | 9,545 |  |  |  | — |
Corporate debt securities |  |  | 3,000 |  |  |  | — |  |  |  | (450 | ) |  |  | 2,550 |  |  |  | (94 | )
Total securities held to maturity |  | $ | 109,835 |  |  | $ | 8 |  |  | $ | (10,969 | ) |  | $ | 98,874 |  |  | $ | (94 | )
Total securities |  | $ | 295,752 |  |  | $ | 70 |  |  | $ | (33,101 | ) |  | $ | 262,721 |  |  | $ | (94 | )
Information pertaining to available for sale securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows (in thousands):
|  | March 31, 2025 |
|  | Less than 12 months |  |  | 12 months or more |  |  | Total |
|  | Fair Value |  |  | Unrealized (Loss) |  |  | Fair Value |  |  | Unrealized (Loss) |  |  | Fair Value |  |  | Unrealized (Loss) |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | — |  |  | $ | — |  |  | $ | 11,840 |  |  | $ | (646 | ) |  | $ | 11,840 |  |  | $ | (646 | )
U.S. agency and mortgage-backed securities |  |  | 16,497 |  |  |  | (76 | ) |  |  | 66,642 |  |  |  | (10,878 | ) |  |  | 83,139 |  |  |  | (10,954 | )
Obligations of states and political subdivisions |  |  | 3,361 |  |  |  | (40 | ) |  |  | 48,990 |  |  |  | (8,457 | ) |  |  | 52,351 |  |  |  | (8,497 | )
Total securities available for sale |  | $ | 19,858 |  |  | $ | (116 | ) |  | $ | 127,472 |  |  | $ | (19,981 | ) |  | $ | 147,330 |  |  | $ | (20,097 | )
|  | December 31, 2024 |
|  | Less than 12 months |  |  | 12 months or more |  |  | Total |
|  | Fair Value |  |  | Unrealized (Loss) |  |  | Fair Value |  |  | Unrealized (Loss) |  |  | Fair Value |  |  | Unrealized (Loss) |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | — |  |  | $ | — |  |  | $ | 11,688 |  |  | $ | (795 | ) |  | $ | 11,688 |  |  | $ | (795 | )
U.S. agency and mortgage-backed securities |  |  | 23,445 |  |  |  | (237 | ) |  |  | 67,800 |  |  |  | (12,261 | ) |  |  | 91,245 |  |  |  | (12,498 | )
Obligations of states and political subdivisions |  |  | 4,839 |  |  |  | (135 | ) |  |  | 47,776 |  |  |  | (8,704 | ) |  |  | 52,615 |  |  |  | (8,839 | )
Total securities available for sale |  | $ | 28,284 |  |  | $ | (372 | ) |  | $ | 127,264 |  |  | $ | (21,760 | ) |  | $ | 155,548 |  |  | $ | (22,132 | )
The tables above provide information about available for sale securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities to determine whether the impairment is due to credit-related factors or noncredit-related factors at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. Presently, the Company does not intend to sell any of these securities, does not expect to be required to sell these securities, and expects to recover the entire amortized cost of all the securities. Accrued interest receivable on securities available for sale and securities held to maturity totaled $829 thousand and $487 thousand, respectively, at March 31, 2025. Accrued interest on debt securities is included in accrued interest receivable on the Company's consolidated balance sheets. At March 31, 2025, there were three out of three available for sale U.S. Treasury securities, 97 out of 117 U.S. agency and mortgage-backed available for sale securities, and 94 out of 104 obligations of states and political subdivisions available for sale in an unrealized loss position. One hundred percent of the Company’s investment portfolio was considered investment grade. The weighted-average re-pricing term of the portfolio was 5.6 years at March 31, 2025. One hundred percent of the Company’s investment portfolio was considered investment grade at December 31, 2024. The weighted-average re-pricing term of the portfolio was 5.7 years at December 31, 2024. The unrealized losses at March 31, 2025 in the U.S. Treasury securities portfolio, U.S. agency and mortgage-backed securities portfolio, and obligations of states and political subdivisions portfolio were related to current interest rates above those that existed when these securities were purchased. Additionally, spreads on securities change from period to period, also impacting pricing. At March 31, 2025 the Company did not have credit concerns on any of the securities represented by these issuers. The amortized cost and fair value of securities at March 31, 2025 by contractual maturity are shown below (in thousands). Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.
|  | Available for Sale |  |  | Held to Maturity |
|  | Amortized Cost |  |  | Fair Value |  |  | Amortized Cost |  |  | Fair Value |
Due within one year |  | $ | 1,335 |  |  | $ | 1,331 |  |  | $ | 206 |  |  | $ | 205 |
Due after one year through five years |  |  | 33,931 |  |  |  | 32,194 |  |  |  | 28,080 |  |  |  | 26,930 |
Due after five years through ten years |  |  | 39,598 |  |  |  | 36,639 |  |  |  | 12,829 |  |  |  | 11,979 |
Due after ten years |  |  | 106,143 |  |  |  | 90,812 |  |  |  | 67,264 |  |  |  | 59,831 |
|  | $ | 181,007 |  |  | $ | 160,976 |  |  | $ | 108,379 |  |  | $ | 98,945 |
Federal Home Loan Bank, Federal Reserve Bank, and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The composition of restricted securities at March 31, 2025 and December 31, 2024 was as follows (in thousands):
|  | March 31, 2025 |  |  | December 31, 2024 |
Federal Home Loan Bank stock |  | $ | 1,421 |  |  | $ | 1,467 |
Federal Reserve Bank stock |  |  | 2,752 |  |  |  | 2,010 |
Community Bankers’ Bank stock |  |  | 263 |  |  |  | 264 |
|  | $ | 4,436 |  |  | $ | 3,741 |
The Company also holds limited partnership investments in Small Business Investment Companies (SBICs), which are included in other assets in the Consolidated Balance Sheets. The limited partnership investments are measured as equity investments without readily determinable fair values at their cost, less any impairment. The amounts included in other assets for the limited partnership investments were $2.4 million at March 31, 2025 and December 31, 2024 Credit Quality Indicators & Allowance for Credit Losses - HTM The Company monitors the credit quality of the debt securities held to maturity through the use of credit ratings from Moody's, S&P, and Egan-Jones. The Company monitors the credit ratings on a quarterly basis. The following table summarizes the amortized cost of debt securities held to maturity at March 31, 2025 and December 31, 2024, aggregated by credit quality indicators.
|  | U.S. Treasury securities |  |  | U.S. agency and mortgage-backed securities |  |  | Obligations of states and political subdivisions |  |  | Corporate debt securities |  |  | Total Held to Maturity Securities |
March 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aaa |  | $ | 9,696 |  |  | $ | 23,233 |  |  | $ | 2,481 |  |  | $ | — |  |  | $ | 35,410 |
Aa1 / Aa2 / Aa3 |  |  | — |  |  |  | — |  |  |  | 8,164 |  |  |  | — |  |  |  | 8,164 |
Baa1 / Baa2 / Baa3 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,000 |  |  |  | 3,000 |
Not rated - Agency (1) |  |  | — |  |  |  | 61,805 |  |  |  | — |  |  |  | — |  |  |  | 61,805 |
Total |  | $ | 9,696 |  |  | $ | 85,038 |  |  | $ | 10,645 |  |  | $ | 3,000 |  |  | $ | 108,379 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aaa |  | $ | 9,632 |  |  | $ | 23,173 |  |  | $ | 2,487 |  |  | $ | — |  |  | $ | 35,292 |
Aa1 / Aa2 / Aa3 |  |  | — |  |  |  | — |  |  |  | 8,162 |  |  |  | — |  |  |  | 8,162 |
Baa1 / Baa2 / Baa3 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,000 |  |  |  | 3,000 |
Not rated - Agency (1) |  |  | — |  |  |  | 63,381 |  |  |  | — |  |  |  | — |  |  |  | 63,381 |
Total |  | $ | 9,632 |  |  | $ | 86,554 |  |  | $ | 10,649 |  |  | $ | 3,000 |  |  | $ | 109,835 |
(1) Generally considered not to have credit risk given the implied governmental guarantees associated with these agencies. The following tables summarize the change in the allowance for credit losses on held to maturity securities for the three months ended March 31, 2025 and for the year ended December 31, 2024.
|  | U.S. Treasury securities |  |  | U.S. agency and mortgage-backed securities |  |  | Obligations of states and political subdivisions |  |  | Corporate debt securities |  |  | Total Held to Maturity Securities |
Balance, December 31, 2024 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 94 |  |  | $ | 94 |
Provision for credit losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (7 | ) |  |  | (7 | )
Charge-offs of securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Recoveries |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Balance, March 31, 2025 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 87 |  |  | $ | 87 |
|  | U.S. Treasury securities |  |  | U.S. agency and mortgage-backed securities |  |  | Obligations of states and political subdivisions |  |  | Corporate debt securities |  |  | Total Held to Maturity Securities |
Balance, December 31, 2023 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 106 |  |  | $ | 106 |
Provision for credit losses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (12 | ) |  |  | (12 | )
Charge-offs of securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Recoveries |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Balance, December 31, 2024 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 94 |  |  | $ | 94 |
At March 31, 2025, the Company had no securities held-to-maturity that were past due 30 days or more as to principal and interest payments. The Company had no securities held-to-maturity classified as nonaccrual as of March 31, 2025.

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