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Note 4 - Securities

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 4 - Securities

The estimated fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows:

		(Dollars in thousands)
						Gross				Gross				Estimated
		Cost				Unrealized				Unrealized				Fair
		Basis				Gains				Losses				Value
March 31, 2024
U.S. government sponsored entities		$	8,884			$	-			$	(1,018	)		$	7,866
Collateralized mortgage obligations and
residential mortgage-backed securities			145,077				-				(27,180	)			117,897
Municipal securities			264,190				2				(45,164	)			219,028
Collateralized debt obligations			2,166				-				(724	)			1,442
Total securities available-for-sale		$	420,317			$	2			$	(74,086	)		$	346,233

		(Dollars in thousands)
						Gross				Gross				Estimated
		Cost				Unrealized				Unrealized				Fair
		Basis				Gains				Losses				Value
December 31, 2023
U.S. government sponsored entities		$	8,884			$	-			$	(1,001	)		$	7,883
Collateralized mortgage obligations and
residential mortgage-backed securities			149,410				-				(25,946	)			123,464
Municipal securities			278,813				60				(40,203	)			238,670
Collateralized debt obligations			2,170				-				(813	)			1,357
Total securities available-for-sale		$	439,277			$	60			$	(67,963	)		$	371,374

The cost basis and estimated fair value of available-for-sale debt securities at March 31, 2024, by contractual maturity, were as follows. Securities not due at a single maturity date, primarily collateralized mortgage obligations and residential mortgage-backed securities, are shown separately.

		(Dollars in thousands)
		Available-for-sale
						Estimated
		Cost				Fair
March 31, 2024		Basis				Value
Due in one year or less		$	250			$	248
Due from one to five years			9,904				8,775
Due from five to ten years			13,933				12,492
Due over ten years			251,153				206,821
Collateralized mortgage obligations and residential mortgage-backed securities			145,077				117,897
Total		$	420,317			$	346,233

Sales of available-for-sale securities were as follows for the quarter ended:

		(Dollars in thousands)
		March 31,				March 31,
		2024				2023

Proceeds		$	14,697			$	-
Gross gains			-				-
Gross losses			(531	)			-

Accumulated other comprehensive income/(loss) balances, net of tax, related to available-for-sale securities, were as follows:

		(Dollars in thousands)
		Unrealized gain/(loss)
Ending balance, December 31, 2022		$	(64,300	)
Current period change			8,405
Ending balance, March 31, 2023		$	(55,895	)

		(Dollars in thousands)
		Unrealized gain/(loss)
Ending balance, December 31, 2023		$	(51,613	)
Current period change			(4,700	)
Ending balance, March 31, 2024		$	(56,313	)

Securities with market values of approximately $338.5 million and $324.1 million were pledged as of March 31, 2024 and December 31, 2023, respectively, as collateral for repurchase agreements, public funds, and for other purposes as permitted or required by law.

Securities with unrealized losses at March 31, 2024, and December 31, 2023 not recognized in income are as follows:

		(Dollars in thousands)
		Less than 12 months								12 months or longer								Total
		Estimated								Estimated								Estimated								Percentage of
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized				Total Portfolio
		Value				Losses				Value				Losses				Value				Losses				in Loss Position
March 31, 2024
U.S. government sponsored entities		$	-			$	-			$	7,866			$	(1,018	)		$	7,866			$	(1,018	)			100.0	%
Collateralized mortgage obligations and residential mortgage-backed securities			-				-				117,897				(27,180	)			117,897				(27,180	)			100.0	%
Municipal securities			-				-				218,196				(45,164	)			218,196				(45,164	)			99.6	%
Collateralized debt obligations			-				-				1,442				(724	)			1,442				(724	)			100.0	%
Total temporarily impaired		$	-			$	-			$	345,401			$	(74,086	)		$	345,401			$	(74,086	)			99.8	%
Number of securities							-								420								420

		(Dollars in thousands)
		Less than 12 months								12 months or longer								Total
		Estimated								Estimated								Estimated								Percentage of
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized				Total Portfolio
		Value				Losses				Value				Losses				Value				Losses				in Loss Position
December 31, 2023
U.S. government sponsored entities		$	-			$	-			$	7,883			$	(1,001	)		$	7,883			$	(1,001	)			100.0	%
Collateralized mortgage obligations and residential mortgage-backed securities			-				-				123,464				(25,946	)			123,464				(25,946	)			100.0	%
Municipal securities			-				-				229,595				(40,203	)			229,595				(40,203	)			96.2	%
Collateralized debt obligations			-				-				1,357				(813	)			1,357				(813	)			100.0	%
Total temporarily impaired		$	-			$	-			$	362,299			$	(67,963	)		$	362,299			$	(67,963	)			97.6	%
Number of securities							-								434								434

Unrealized losses on securities have not been recognized into income because the securities are of high credit quality or have undisrupted cash flows. Management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in interest rates and volatility in securities markets. The fair values are expected to recover as the securities approach maturity.

At March 31, 2024, collateralized debt obligations with a cost basis of $2.2 million and fair value of $1.4 million, had previously recorded impairment of $173 thousand, which will not be recoverable until maturity of the security.

Accrued interest receivable on AFS debt securities totaled $2.2 million at March 31, 2024, and $2.4 million at December 31, 2023. These amounts are excluded from the estimate of credit losses. The Bancorp made the policy election to exclude accrued interest from the amortized cost basis of AFS debt securities and report accrued interest separately on the consolidated balance sheet.