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Securities
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Securities

Note 2 - Securities

Securities available for sale at June 30, 2025 and December 31, 2024 consisted of the following:

 

 

 

June 30, 2025

 

(dollars in thousands)

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

 

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

Agencies

 

$

463

 

 

$

2

 

 

$

—

 

 

$

465

 

Corporate securities

 

 

1,729

 

 

 

—

 

 

 

146

 

 

 

1,583

 

Mortgage-backed securities

 

 

18,787

 

 

 

13

 

 

 

1,734

 

 

 

17,066

 

Treasuries

 

 

16,246

 

 

 

3

 

 

 

4

 

 

 

16,245

 

Total

 

$

37,225

 

 

$

18

 

 

$

1,884

 

 

$

35,359

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

(dollars in thousands)

 

Amortized cost

 

 

Gross unrealized gains

 

 

Gross unrealized losses

 

 

Fair value

 

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

Agencies

 

$

528

 

 

$

—

 

 

$

6

 

 

$

522

 

Corporate securities

 

 

1,727

 

 

 

—

 

 

 

192

 

 

 

1,535

 

Mortgage-backed securities

 

 

22,950

 

 

 

6

 

 

 

2,062

 

 

 

20,894

 

Treasuries

 

 

14,289

 

 

 

19

 

 

 

—

 

 

 

14,308

 

Total

 

$

39,494

 

 

$

25

 

 

$

2,260

 

 

$

37,259

 

 

 

Securities held to maturity at June 30, 2025 and December 31, 2024 consisted of the following:

 

 

 

June 30, 2025

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

(dollars in thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

 

 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities (1)

 

$

3,197

 

 

$

—

 

 

$

275

 

 

$

2,922

 

Mortgage-backed securities

 

 

2,635

 

 

 

3

 

 

 

432

 

 

 

2,206

 

Total

 

$

5,832

 

 

$

3

 

 

$

707

 

 

$

5,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

(dollars in thousands)

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

 

 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities (1)

 

$

3,196

 

 

$

—

 

 

$

336

 

 

$

2,860

 

Mortgage-backed securities

 

 

2,783

 

 

 

2

 

 

 

474

 

 

 

2,311

 

Total

 

$

5,979

 

 

$

2

 

 

$

810

 

 

$

5,171

 

 

(1) Amount is net of CECL credit reserve of $3,000 at June 30, 2025 and $4,000 at December 31, 2024.

The Company pledged securities with an amortized cost of $31.9 million and a fair value of $29.8 million at June 30, 2025 to secure deposits from municipalities. At December 31, 2024, the Company pledged securities with an amortized cost of $33.6 million and a fair value of $31.2 million to secure deposits from municipalities. The amortized cost and fair value of securities as of June 30, 2025 and December 31, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without prepayment penalties.

 

 

 

June 30, 2025

 

 

 

Available for sale

 

 

Held to maturity

 

 

 

Amortized

 

 

Fair

 

 

Amortized

 

 

Fair

 

(dollars in thousands)

 

cost

 

 

value

 

 

cost

 

 

value

 

 

 

 

 

Maturing

 

 

 

 

 

 

 

 

 

 

 

 

Due under one year

 

$

24,819

 

 

$

24,771

 

 

$

153

 

 

$

154

 

Due after one year through five years

 

 

99

 

 

 

97

 

 

 

3,302

 

 

 

3,022

 

Due after five years through ten years

 

 

1,720

 

 

 

1,552

 

 

 

325

 

 

 

311

 

Due after ten years

 

 

10,587

 

 

 

8,939

 

 

 

2,052

 

 

 

1,641

 

Total

 

$

37,225

 

 

$

35,359

 

 

$

5,832

 

 

$

5,128

 

 

All mortgage-backed securities are guaranteed by Freddie Mac, Fannie Mae or Ginnie Mae.

Investment securities with unrealized losses for continuous periods of less than 12 months and 12 months or longer are as follows:

 

 

 

Less than 12 months

 

 

Over 12 months

 

 

Total

 

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

June 30, 2025

 

losses

 

 

value

 

 

losses

 

 

value

 

 

losses

 

 

value

 

(dollars in thousands)

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities

 

$

—

 

 

$

—

 

 

$

146

 

 

$

1,583

 

 

 

146

 

 

 

1,583

 

Mortgage-backed securities

 

 

1

 

 

 

602

 

 

 

1,733

 

 

 

14,674

 

 

 

1,734

 

 

 

15,276

 

Treasuries

 

 

4

 

 

 

9,330

 

 

 

—

 

 

 

—

 

 

 

4

 

 

 

9,330

 

Total

 

$

5

 

 

$

9,932

 

 

$

1,879

 

 

$

16,257

 

 

$

1,884

 

 

$

26,189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities (1)

 

$

—

 

 

$

—

 

 

$

275

 

 

$

2,922

 

 

 

275

 

 

 

2,922

 

Mortgage-backed securities

 

 

—

 

 

 

13

 

 

 

432

 

 

 

2,084

 

 

 

432

 

 

 

2,097

 

Total

 

$

—

 

 

$

13

 

 

$

707

 

 

$

5,006

 

 

$

707

 

 

$

5,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 months

 

 

Over 12 months

 

 

Total

 

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

December 31, 2024

 

losses

 

 

value

 

 

losses

 

 

value

 

 

losses

 

 

value

 

(dollars in thousands)

 

 

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency securities

 

$

6

 

 

$

522

 

 

$

—

 

 

$

—

 

 

$

6

 

 

$

522

 

Corporate securities

 

 

—

 

 

 

—

 

 

 

192

 

 

 

1,535

 

 

 

192

 

 

 

1,535

 

Mortgage-backed securities

 

 

—

 

 

 

214

 

 

 

2,062

 

 

 

18,400

 

 

 

2,062

 

 

 

18,614

 

Total

 

$

6

 

 

$

736

 

 

$

2,254

 

 

$

19,935

 

 

$

2,260

 

 

$

20,671

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities (1)

 

$

—

 

 

$

—

 

 

$

336

 

 

$

2,860

 

 

$

336

 

 

$

2,860

 

Mortgage-backed securities

 

 

1

 

 

 

31

 

 

 

473

 

 

 

2,162

 

 

 

474

 

 

 

2,193

 

Total

 

$

1

 

 

$

31

 

 

$

809

 

 

$

5,022

 

 

$

810

 

 

$

5,053

 

 

(1) Fair value amount is net of CECL credit reserve of $3,000 at June 30, 2025 and $4,000 at December 31, 2024.

 

As of June 30, 2025 and December 31, 2024, the Company determined that for its available-for-sale debt securities in an unrealized loss position, it did not intend to sell nor was it more likely than not that it would be required to sell any security and that the decline in fair value was not due to credit factors, but due to changes in interest rates and other factors. Accordingly, at June 30, 2025 and December 31, 2024, the Company did not record an allowance for credit losses for its available-for-sale debt securities.

We monitor the credit quality of HTM debt securities through both internal analysis performed on a quarterly basis and credit ratings when available. The following table reflects the credit ratings for the HTM debt securities at June 30, 2025.

 

(dollars in thousands)

 

AAA

 

 

A-

 

 

BBB/BBB+

 

 

BBB-

 

 

Not Rated

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate securities

 

$

—

 

 

$

500

 

 

$

1,247

 

 

$

700

 

 

$

750

 

 

$

3,197

 

Mortgage-backed securities

 

 

2,635

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,635

 

 

$

2,635

 

 

$

500

 

 

$

1,247

 

 

$

700

 

 

$

750

 

 

$

5,832

 

 

 

The following table provides a breakdown of our HTM debt securities by year of origination at June 30, 2025.

 

(dollars in thousands)

 

Total

 

 

2025

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

Corporate securities

 

$

3,197

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

750

 

 

$

2,447

 

 

$

—

 

Mortgage-backed securities

 

 

2,635

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,796

 

 

 

93

 

 

 

746

 

 

$

5,832

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2,546

 

 

$

2,540

 

 

$

746

 

 

 

The following table is a roll forward of our allowance for credit losses on HTM debt securities at June 30, 2025 and 2024.

 

(dollars in thousands)

 

Three Months Ended June 30, 2025

 

 

Three Months Ended June 30, 2024

 

 

Six Months Ended June 30, 2025

 

 

Six Months Ended June 30, 2024

 

Beginning balance

 

$

3

 

 

$

5

 

 

$

4

 

 

$

6

 

(Recovery) for credit losses

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(1

)

Ending Balance

 

$

3

 

 

$

5

 

 

$

3

 

 

$

5