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Securities

3 Months Ended

Mar. 31, 2025

Note 2: Securities

The amortized cost and fair values, together with gross unrealized gains and losses of securities are as follows:


					Gross			Gross
					Unrealized			Unrealized
		Amortized Cost			Gains			Losses			Fair Value
Available-for-sale Securities:
March 31, 2025:
U.S. government agencies		$	12,500		$	—		$	(160)		$	12,340
Subordinated notes			26,928			—			(2,500)			24,428
State and municipal obligations			205,627			34			(12,586)			193,075
Total debt securities		$	245,055		$	34		$	(15,246)		$	229,843


					Gross			Gross
					Unrealized			Unrealized
		Amortized Cost			Gains			Losses			Fair Value

		(In thousands)
Available-for-sale Securities:
December 31, 2024:
U.S. government agencies		$	12,500		$	—		$	(246)		$	12,254
Subordinated notes			26,942			—			(2,824)			24,118
State and municipal obligations			213,319			335			(9,395)			204,259
Total debt securities		$	252,761		$	335		$	(12,465)		$	240,631

There was no allowance for credit losses at March 31, 2025 or December 31, 2024.

The amortized cost and fair value of available-for-sale securities at March 31, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


		Amortized			Fair
		Cost			Value

		(In thousands)
Under one year		$	4,235		$	4,194
One to five years			14,500			14,376
Five to ten years			27,037			24,329
Over ten years			199,283			186,944
Totals		$	245,055		$	229,843

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $118.7 million and $121.4 million at March 31, 2025 and December 31, 2024, respectively.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at March 31, 2025 was $221.7 million, which represented 96% of the Company’s available-for-sale investment portfolio. The total fair value of these investments at December 31, 2024 was $208.8 million, which represented less than 87% of the Company’s available-for-sale.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary and are a result of an increase in longer term interest rates.

The following tables show the Company’s available for sale securities and the related gross unrealized losses and fair value,for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2025 and December 31. 2024:


		March 31, 2025
		Less than 12 Months						12 Months or More						Total
Description of					Unrealized						Unrealized						Unrealized
Securities		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses

		(In thousands)
U.S. Government agencies		$	—		$	—		$	12,340		$	(160)		$	12,340		$	(160)
Subordinated notes			—			—			24,428			(2,500)			24,428			(2,500)
State and municipal obligations			133,752			(4,706)			51,152			(7,880)			184,904			(12,586)
Total temporarily impaired securities		$	133,752		$	(4,706)		$	87,920		$	(10,540)		$	221,672		$	(15,246)


		December 31, 2024
		Less than 12 Months						12 Months or More						Total
Description of					Unrealized						Unrealized						Unrealized
Securities		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses

		(In thousands)
US government agencies		$	—		$	—		$	12,254		$	(246)		$	12,254		$	(246)
Subordinated notes			—			—			24,118			(2,824)			24,118			(2,824)
State and municipal obligations			127,876			(2,478)			44,535			(6,917)			172,411			(9,395)
Total temporarily impaired securities		$	127,876		$	(2,478)		$	80,907		$	(9,987)		$	208,783		$	(12,465)

The unrealized losses on the Company’s 196 investments in available for sale securities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to require an allowance for credit losses to be recognized as of March 31, 2025 or December 31, 2024.

The Company recorded a gain on the sale of available - for - sale securities of approximately $143,000 for the three months ended March 31, 2025. The Company sold $140,000 in securities for a loss of $2,000 and sold $7,593,000 million in securities for a gain of $145,000. The Company wanted to rebalance a portion of its security portfolio during the first quarter of 2025. The Company recorded a loss on the sale of available-for-sale securities of approximately $194,000 for the three months ended March 31, 2024. The Company sold $20.3 million in securities for a loss of $228,000 and sold $5.0 million in securities for a gain of $34,000.