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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment Securities Available-for-Sale and Held-to-Maturity

Details of investment securities available-for-sale and held-to-maturity as of September 30, 2024 and December 31, 2023 were as follows:


	Available-for-Sale
	September 30, 2024
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	61,314	$	1,416	$	(1,971	)	$	60,759
Commercial		12,893		107		(179	)		12,821
Obligations of U.S. government-sponsored agencies		11,439		298		(463	)		11,274
Obligations of states and political subdivisions		1,588		—		(33	)		1,555
Corporate notes		17,755		5		(2,243	)		15,517
U.S. Treasury securities		44,016		—		(1,667	)		42,349
Total	$	149,005	$	1,826	$	(6,556	)	$	144,275


	Held-to-Maturity
	September 30, 2024
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	313	$	—	$	(9	)	$	304
Obligations of U.S. government-sponsored agencies		414		—		(21	)	$	393
Obligations of states and political subdivisions		42		—		(3	)	$	39
Total	$	769	$	—	$	(33	)	$	736


	Available-for-Sale
	December 31, 2023
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	47,221	$	580	$	(3,073	)	$	44,728
Commercial		9,446		—		(406	)		9,040
Obligations of U.S. government-sponsored agencies		11,849		158		(727	)		11,280
Obligations of states and political subdivisions		1,621		—		(63	)		1,558
Corporate notes		17,757		—		(2,800	)		14,957
U.S. Treasury securities		56,999		—		(2,997	)		54,002
Total	$	144,893	$	738	$	(10,066	)	$	135,565


	Held-to-Maturity
	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	575	$	—	$	(22	)	$	553
Obligations of U.S. government-sponsored agencies		471		—		(34	)		437
Obligations of states and political subdivisions		58		—		(7	)		51
Total	$	1,104	$	—	$	(63	)	$	1,041

Maturities of Investment Securities Available-for-Sale and Held-to-Maturity

The scheduled maturities of investment securities available-for-sale and held-to-maturity as of September 30, 2024 are presented in the following table:


	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(Dollars in Thousands)
Maturing within one year	$	24,190	$	23,702	$	—	$	—
Maturing after one to five years		28,234		26,885		287		280
Maturing after five to ten years		51,525		47,372		326		309
Maturing after ten years		45,056		46,316		156		147
Total	$	149,005	$	144,275	$	769	$	736

Schedule of Fair Value and Unrealized Loss on Investments for Securities for Which Allowance for Credit Losses has not been Recorded

The following tables reflect fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of September 30, 2024 and December 31, 2023.


	Available-for-Sale
	September 30, 2024
	Less than 12 Months				12 Months or More
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	—	$	—	$	30,705	$	(1,971	)
Commercial		—		—		5,769		(179	)
Obligations of U.S. government-sponsored agencies		—		—		4,616		(463	)
Obligations of states and political subdivisions		—		—		1,555		(33	)
Corporate notes		—		—		13,512		(2,243	)
U.S. Treasury securities		—		—		42,349		(1,667	)
Total	$	—	$	—	$	98,506	$	(6,556	)


	Held-to-Maturity
	September 30, 2024
	Less than 12 Months				12 Months or More
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	—	$	—	$	304	$	(9	)
Obligations of U.S. government-sponsored agencies		—		—		393		(21	)
Obligations of states and political subdivisions		—		—		39		(3	)
Total	$	—	$	—	$	736	$	(33	)


	Available-for-Sale
	December 31, 2023
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	94	$	(1	)	$	35,584	$	(3,072	)
Commercial		600		(5	)		8,408		(401	)
Obligations of U.S. government-sponsored agencies		—		—			4,367		(727	)
Obligations of states and political subdivisions		—		—			1,558		(63	)
Corporate notes		771		(229	)		14,186		(2,571	)
U.S. Treasury securities		—		—			54,002		(2,997	)
Total	$	1,465	$	(235	)	$	118,105	$	(9,831	)


	Held-to-Maturity
	December 31, 2023
	Less than 12 Months				12 Months or More
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	—	$	—	$	553	$	(22	)
Obligations of U.S. government-sponsored agencies		—		—		437		(34	)
Obligations of states and political subdivisions		—		—		51		(7	)
Total	$	—	$	—	$	1,041	$	(63	)

Available-for-Sale Considerations

For any securities classified as available-for-sale that are in an unrealized loss position as of the balance sheet date, the Company assesses whether or not it intends to sell the security, or more-likely-than-not will be required to sell the security, before recovery of its amortized cost basis which would require a write-down to fair value through net income.

As of September 30, 2024, 96 available-for-sale debt securities had been in a loss position for more than 12 months, and there were no available-for-sale debt securities that had been in a loss position for less than 12 months. As of December 31, 2023, 108 available-for-sale debt securities had been in a loss position for more than 12 months, and three available-for-sale debt securities had been in a loss position for less than 12 months. As of September 30, 2024, the Company had the current intent and ability to retain its investments for a period of time that management believes to be sufficient to allow for any anticipated recovery of fair value. As of September 30, 2024 and December 31, 2023, the losses for all available-for-sale securities were considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and were not related to the creditworthiness of the issuers. Accordingly, no allowance for credit losses was considered necessary related to available-for-sale securities as of September 30, 2024 or December 31, 2023.

Held-to-Maturity Considerations

Effective January 1, 2023, the Company adopted the current expected credit loss ("CECL") accounting model to evaluate credit losses in the held-to-maturity investment portfolio. Each quarter, management evaluates the portfolio on a collective basis by major security type to determine whether an allowance for credit losses is needed. Qualitative factors are used in the Company’s credit loss assessments, including current and forecasted economic conditions, the characteristics of the debt issuer, and the historic ability of the issuer to make contractual principal and interest payments. Specifically, with regard to mortgage-backed securities or obligations of U.S. government sponsored agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are either backed by the full faith and credit of the U.S. government or the agency. With regard to obligations of states and political subdivisions, management considers issuer bond ratings, historical loss rates for given bond ratings, and whether the issuers continue to make timely principal and interest payments under contractual terms of the securities. Based on these evaluations, no allowance for credit losses was recorded by the Company for the held-to-maturity investment portfolio as of September 30, 2024 or December 31, 2023.

Pledged Securities

Investment securities with a carrying value of $39.6 million and $41.4 million as of September 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits and for other purposes.