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Note 2 - Securities Available for Sale

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

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

NOTE 2 – SECURITIES AVAILABLE FOR SALE

The following table summarizes the amortized cost, fair value, and gross unrealized gains and losses of securities available for sale, by contractual maturity, none of which had an allowance for credit losses at March 31, 2025 and December 31, 2024:

						*Gross*				*Gross*
		*Amortized*				*Unrealized*				*Unrealized*				*Fair*
		*Cost*				*Gains*				*Losses*				*Value*
March 31, 2025
U.S. government and agency obligations
One through five years		$	3,000,000			$	—			$	(114,762	)		$	2,885,238
Corporate bonds due in:
Less than one year			350,000				930				—				350,930
One through five years			10,112,901				89,590				(94,745	)			10,107,746
Five through ten years			23,950,000				177,790				(1,050,658	)			23,077,132
Greater than ten years			6,333,526				194,444				—				6,527,970
Municipal obligations due in:
Five through ten years			506,449				—				(91,224	)			415,225
MBS – residential			81,687,087				231,514				(1,944,998	)			79,973,603
MBS – commercial			16,417,854				—				(2,023,177	)			14,394,677
Total		$	142,357,817			$	694,268			$	(5,319,564	)		$	137,732,521

						*Gross*				*Gross*
		*Amortized*				*Unrealized*				*Unrealized*				*Fair*
		*Cost*				*Gains*				*Losses*				*Value*
December 31, 2024
U.S. government and agency obligations
Less than one year		$	10,000,000			$	—			$	(55,870	)		$	9,944,130
One through five years			3,000,000				—				(151,590	)			2,848,410
Corporate bonds due in:
Less than one year			350,000				1,090				—				351,090
One through five years			9,112,269				83,414				(64,547	)			9,131,136
Five through ten years			25,410,219				202,205				(1,389,376	)			24,223,048
Greater than ten years			4,321,924				202,576				—				4,524,500
Municipal obligations due in:
Greater than ten years			506,706				—				(108,431	)			398,275
MBS – residential			76,661,752				53,730				(2,162,673	)			74,552,809
MBS – commercial			16,515,823				—				(2,181,774	)			14,334,049
Total		$	145,878,693			$	543,015			$	(6,114,261	)		$	140,307,447

All of the mortgaged-backed securities (“MBSs”) are issued by the following government sponsored agencies: Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Government National Mortgage Association (“GNMA”).

There were no sales of securities during the three months ended March 31, 2025 or March 31, 2024.

The age of unrealized losses and the fair value of related securities as of March 31, 2025 and December 31, 2024 were as follows:

		*Less Than 12 Months*								*12 Months or More*								*Total*
		*Fair*				*Unrealized*				*Fair*				*Unrealized*				*Fair*				*Unrealized*
		*Value*				*Losses*				*Value*				*Losses*				*Value*				*Losses*
March 31, 2025
U.S. government and agency obligations		$	—			$	—			$	2,885,238			$	(114,762	)		$	2,885,238			$	(114,762	)
Corporate bonds			4,424,335				(68,364	)			13,845,286				(1,077,039	)			18,269,621				(1,145,403	)
Municipal obligations			—				—				415,225				(91,224	)			415,225				(91,224	)
MBS – residential			41,572,254				(55,975	)			11,078,976				(1,889,023	)			52,651,230				(1,944,998	)
MBS – commercial			—				—				14,394,677				(2,023,177	)			14,394,677				(2,023,177	)
Total		$	45,996,589			$	(124,339	)		$	42,619,402			$	(5,195,225	)		$	88,615,991			$	(5,319,564	)

		*Less Than 12 Months*								*12 Months or More*								*Total*
		*Fair*				*Unrealized*				*Fair*				*Unrealized*				*Fair*				*Unrealized*
		*Value*				*Losses*				*Value*				*Losses*				*Value*				*Losses*
December 31, 2024
U.S. government and agency obligations		$	—			$	—			$	12,792,540			$	(207,460	)		$	12,792,540			$	(207,460	)
Corporate bonds			-				-				15,965,261				(1,453,923	)			15,965,261				(1,453,923	)
Municipal obligations			-				-				398,275				(108,431	)			398,275				(108,431	)
MBS – residential			43,739,606				(120,511	)			11,741,816				(2,042,162	)			55,481,422				(2,162,673	)
MBS – commercial			-				-				14,334,049				(2,181,774	)			14,334,049				(2,181,774	)
Total		$	43,739,606			$	(120,511	)		$	55,231,941			$	(5,993,750	)		$	98,971,547			$	(6,114,261	)

Unrealized losses on corporate bonds available for sale are not considered to be credit losses because the bonds are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value was largely due to changes in interest rates and other market conditions. At March 31, 2025, 100% of the mortgage-backed securities were issued by U.S. government-sponsored entities and agencies, primarily FNMA and FHLMC, institutions which the government has affirmed its commitment to support. There were 52 securities in a loss position at March 31, 2025. Because the decline in fair value was attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Bank does not consider these losses to be credit-related at March 31, 2025. As of March 31, 2025, no allowance for credit loss ("ACL") was required on available for sale securities. At March 31, 2025 and December 31, 2024, securities available for sale with a carrying value of $5,658,678 and $5,741,240 were pledged to secure public deposits.