Securities

12 Months Ended

Dec. 31, 2024

‎

Note 4 - Securities

A summary of the amortized cost and fair value of securities, with gross unrealized gains and losses, follows:


	December 31, 2024
	Amortized		Gross Unrealized				Fair
(in thousands)	Cost		Gains		Losses		Value
Held-to-maturity
U.S. agency obligations	$	3,606	$	—	$	(436)	$	3,170

Available-for-sale
U.S. agency obligations		79,976		—		(6,916)		73,060
Mortgage-backed securities		69,312		9		(10,348)		58,973
Municipals		52,123		—		(10,562)		41,561
Corporates		15,510		—		(1,188)		14,322

	$	216,921	$	9	$	(29,014)	$	187,916


	December 31, 2023
	Amortized		Gross Unrealized				Fair
(in thousands)	Cost		Gains		Losses		Value
Held-to-maturity
U.S. agency obligations	$	3,622	$	—	$	(391)	$	3,231

Available-for-sale
U.S. Treasuries	$	4,985	$	—	$	(38)	$	4,947
U.S. agency obligations		68,515		—		(7,560)		60,955
Mortgage-backed securities		103,992		608		(9,521)		95,079
Municipals		50,856		—		(10,067)		40,789
Corporates		15,523		—		(783)		14,740

	$	243,871	$	608	$	(27,969)	$	216,510

‎

Note 4 –Securities (continued)

The following tables summarize the fair value of securities available for sale as of December 31, 2024 and 2023 and the corresponding amounts of unrealized losses. Management uses the valuation as of year-end in determining when securities are in an unrealized loss position (amounts in thousands):


December 31, 2024	Less than 12 months						More than 12 months				Total
	Fair			Unrealized			Fair		Unrealized		Fair		Unrealized
(in thousands)	Value			Losses			Value		Losses		Value		Losses
Available-for-sale
U.S. agency obligations	$	11,455	$		324	$		61,606	$	6,592	$	73,061	$	6,916
Mortgage-backed securities		4,026			176			54,207		10,172		58,233		10,348
Municipals		1,847			31			39,714		10,531		41,561		10,562
Corporates		7,392			608			6,930		580		14,322		1,188

Total	$	24,720		$	1,139		$	162,457	$	27,875	$	187,177	$	29,014


December 31, 2023	Less than 12 months				More than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in thousands)	Value		Losses		Value		Losses		Value		Losses
Available-for-sale
U.S. Treasuries	$	—	$	—	$	4,947	$	38	$	4,947	$	38
U.S. agency obligations		—		—		60,955		7,560		60,955		7,560
Mortgage-backed securities		—		—		62,242		9,521		62,242		9,521
Municipals		1,799		25		38,990		10,042		40,789		10,067
Corporates		—		—		6,740		783		6,740		783

Total	$	1,799	$	25	$	173,874	$	27,944	$	175,673	$	27,969

As of December 31, 2024, the Bank owned 123 securities in an unrealized loss position. Of the securities, 28 were S&P rated AAA, 83 were rated AA, three were rated A, three were rated BBB, and six were non-rated. As of December 31, 2024, 54 of these securities were municipal issues, 56 were backed by the U.S. government, and 13 were issues of publicly traded domestic corporations. The Company monitors its municipal and corporate securities by periodically reviewing the issuer’s cash-flow and revenue streams, as well as other economic factors that could affect the issuer’s ability to service and/or repay the debt.

The Company has evaluated available for sale securities in an unrealized loss position for credit related impairment at December 31, 2024 and 2023 and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuers to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and

Note 4 –Securities (continued)

(5) the Company does not intend to sell any of the investments before recovery of its amortized cost basis, nor is it likely that management will be required to sell the securities. As such, there was not an allowance for credit losses on available-for-sale securities at December 31, 2024 or 2023.

The Company’s held-to-maturity portfolio is covered by the explicit or implied guarantee of the United States government or one of its agencies and rated investment grade or higher. As a result, the Company did not have an allowance for credit losses on held-to-maturity securities as of December 31, 2024 or December 31, 2023.

All held-to-maturity and available for sale securities were current with no securities past due or on non-accrual as of December 31, 2024 and 2023.

The amortized costs and fair values of securities at December 31, 2024, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Held-to-Maturity				Available-for-Sale
	Amortized		Fair		Amortized		Fair
(in thousands)	Cost		Values		Cost		Values
Due in one year or less	$	—	$	—	$	15,524	$	15,386
Due after one year through five years		—		—		39,295		36,110
Due after five years through ten years		2,419		2,177		63,085		55,408
Due after ten years		1,187		993		99,017		81,012

	$	3,606	$	3,170	$	216,921	$	187,916

The Bank received $31,353 and $0 in proceeds from sales of securities available-for-sale in 2024 and 2023, respectively. Gross realized gains amounted to $103 and $0 in 2024 and 2023, respectively. Gross realized losses amounted to $41 and $0 in 2024 and 2023, respectively.

At December 31, 2024 and 2023, securities with a carrying value of $50,178 and $43,092, respectively, were pledged as collateral for public deposits and for other purposes as required or permitted by law.