XML 20 R10.htm IDEA: XBRL DOCUMENT v3.25.1
Available-for-Sale Securities
 3 Months Ended
Mar. 31, 2025
Investments [Abstract]  
Available-for-Sale Securities Available-for-Sale Securities
The amortized cost, gross unrealized gains, gross unrealized losses and fair values of available-for-sale securities at March 31, 2025 and December 31, 2024 are as follows:
(In thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
March 31, 2025:
U. S. Government agency and mortgage-backed securities$75,116 $— $(14,115)$61,001 
Corporate bonds15,996 — (3,359)12,637 
Subordinated notes4,000 — (450)3,550 
SBA loan pools4,345 — (882)3,463 
Total available-for-sale securities$99,457 $— $(18,806)$80,651 
December 31, 2024:
U. S. Government agency and mortgage-backed securities$75,689 $— $(15,466)$60,223 
Corporate bonds15,996 — (3,261)12,735 
Subordinated notes4,000 — (539)3,461 
SBA loan pools4,562 — (989)3,573 
Total available-for-sale securities$100,247 $— $(20,255)$79,992 
The following table presents the available-for-sale securities’ gross unrealized losses and fair value, aggregated by the length of time the individual securities have been in a continuous loss position as of March 31, 2025 and December 31, 2024:
(In thousands)Less than 12 Months12 Months or MoreTotal
Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Fair Value Unrealized (Loss)
March 31, 2025:
U. S. Government agency and mortgage-backed securities$2,013 $(27)$58,988 $(14,088)$61,001 $(14,115)
Corporate bonds— — 12,637 (3,359)12,637 (3,359)
Subordinated notes— — 3,550 (450)3,550 (450)
SBA loan pools— — 3,463 (882)3,463 (882)
Total available-for-sale securities$2,013 $(27)$78,638 $(18,779)$80,651 $(18,806)
      
December 31, 2024:      
U. S. Government agency and mortgage-backed securities$4,170 $(160)$56,053 $(15,306)$60,223 $(15,466)
Corporate bonds— — 12,735 (3,261)12,735 (3,261)
Subordinated notes— — 3,461 (539)3,461 (539)
SBA loan pools— — 3,573 (989)3,573 (989)
Total available-for-sale securities$4,170 $(160)$75,822 $(20,095)$79,992 $(20,255)
As of March 31, 2025 and December 31, 2024, all forty-four available-for-sale securities had unrealized losses with an aggregate decline of 18.9% and 20.2% from the amortized cost of those securities, respectively.
At March 31, 2025 and December 31, 2024, no allowance for credit losses has been recognized on available-for-sale debt securities in an unrealized loss position as the Company does not believe any of the debt securities are credit impaired. This is based on the Company’s analysis of the risk characteristics, including credit ratings, and other qualitative factors related to available-for-sale debt securities. The issuers of these debt securities continue to make timely principal and interest payments under the contractual terms of the securities. The Company does not intend to sell these debt securities and it is more likely than not that the Company will not be required to sell the debt securities before recovery of their amortized cost, which may be at maturity. The unrealized losses are due to increases in market interest rates over the yields available at the time the debt securities were purchased.
With regard to U.S. mortgage-backed securities and municipal bonds issued by the U.S. government, or agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost basis of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities.
With regard to corporate bonds, management considers (i) issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, and (iv) internal forecasts. Securities under the U.S. Small Business Administration (“SBA”) government guaranteed loan pools program were purchased at a premium and the impairment was attributable primarily to increased prepayment speeds. The timely payment of principal and interest on these securities is guaranteed by the U.S. Government agency. The contractual terms of the subordinated notes do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Furthermore, as of March 31, 2025, there were no past due principal or interest payments associated with these securities. Based upon (i) the issuer’s strong bond ratings and (ii) a zero historical loss rate, no allowance for credit losses has been recorded for available-for-sale securities at March 31, 2025. All debt securities in an unrealized loss position as of March 31, 2025 continue to perform as scheduled and the Company does not believe there is a possible credit loss or that an allowance for credit loss on these debt securities is necessary.
As of March 31, 2025 and December 31, 2024, available-for-sale securities of $80.7 million and $60.2 million, respectively, were pledged to either the Federal Home Loan Bank ("FHLB") or Federal Reserve Bank (“FRB”). The securities were pledged primarily to secure borrowings from the FHLB and FRB.
The following summarizes, by class and contractual maturity, the amortized cost and estimated fair value of available-for-sale debt securities held as of March 31, 2025 and December 31, 2024. The mortgages underlying the mortgage-backed securities are not due at a single maturity date. Additionally, these mortgages often are and generally may be pre-paid without penalty, creating a degree of uncertainty that such investments can be held until maturity. For convenience, mortgage-backed securities have been included in the summary as a separate line item.
(In thousands)Amortized CostFair Value
Due
Within
5 years		 Due After
5 years
through
10 years		 Due
After
10 years		TotalDue
Within
5 years		 Due After
5 years
through
10 years		 Due
After
10 years		Total
March 31, 2025:
Corporate bonds$—  $15,996  $— $15,996 $—  $12,637  $— $12,637 
Subordinated notes3,000  1,000  — 4,000 2,640  910  — 3,550 
SBA loan pools—  —  4,345 4,345 —  —  3,463 3,463 
Municipal bonds—  —  — — —  —  — — 
Available-for-sale securities with stated maturity dates3,000  16,996  4,345 24,341 2,640  13,547  3,463 19,650 
U. S. Government agency and mortgage-backed securities—  5,159  69,957 75,116 —  4,233  56,768 61,001 
Total available-for-sale securities$3,000  $22,155  $74,302 $99,457 $2,640  $17,780  $60,231 $80,651 
December 31, 2024:
Corporate bonds$—  $15,996  $— $15,996 $—  $12,735  $— $12,735 
Subordinated notes3,000  1,000  — 4,000 2,610  851  — 3,461 
SBA loan pools—  —  4,562 4,562 —  —  3,573 3,573 
Municipal bonds—  —  — — —  —  — — 
Available-for-sale securities with stated maturity dates3,000  16,996  4,562 24,558 2,610  13,586  3,573 19,769 
U. S. Government agency and mortgage-backed securities—  5,172  70,517 75,689 —  4,134  56,089 60,223 
Total available-for-sale securities$3,000  $22,168  $75,079 $100,247 $2,610  $17,720  $59,662 $79,992