Investment Securities

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

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


	Available-for-Sale
	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	87,703	$	347	$	(2,768	)	$	85,282
Commercial		12,105		17		(202	)		11,920
Obligations of U.S. government-sponsored agencies		11,436		18		(620	)		10,834
Obligations of states and political subdivisions		1,577		—		(28	)		1,549
Corporate notes		17,757		58		(1,871	)		15,944
U.S. Treasury securities		44,019		—		(1,660	)		42,359
Total	$	174,597	$	440	$	(7,149	)	$	167,888


	Held-to-Maturity
	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	264	$	—	$	(10	)	$	254
Obligations of U.S. government-sponsored agencies		384		—		(27	)		357
Obligations of states and political subdivisions		34		—		(3	)		31
Total	$	682	$	—	$	(40	)	$	642


	Available-for-Sale
	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair 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

The scheduled maturities of investment securities available-for-sale and held-to-maturity as of December 31, 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	$	24,216	$	23,882	$	—	$	—
Maturing after one to five years		27,466		26,039		265		258
Maturing after five to ten years		60,051		55,754		310		283
Maturing after ten years		62,864		62,213		107		101
Total	$	174,597	$	167,888	$	682	$	642

For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments.

The following table reflects gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2024 and 2023:


	Available-for-Sale
	December 31, 2024
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	41,417	$	(424	)	$	28,520	$	(2,344	)
Commercial		3,374		(13	)		5,331		(189	)
Obligations of U.S. government-sponsored agencies		3,823		(1	)		4,457		(619	)
Obligations of states and political subdivisions		—		—			1,549		(28	)
Corporate notes		—		—			13,886		(1,871	)
U.S. Treasury securities		—		—			42,359		(1,660	)
Total	$	48,614	$	(438	)	$	96,102	$	(6,711	)


	Held-to-Maturity
	December 31, 2024
	Less than 12 Months				12 Months or More
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	—	$	—	$	254	$	(10	)
Obligations of U.S. government-sponsored agencies		—		—		357		(27	)
Obligations of states and political subdivisions		—		—		31		(3	)
Total	$	—	$	—	$	642	$	(40	)


	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		—		—		436		(34	)
Obligations of states and political subdivisions		—		—		52		(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 December 31, 2024, 97 available-for-sale debt securities had been in a loss position for more than 12 months, and 16 available-for-sale debt securities 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 December 31, 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 December 31, 2024 and 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 December 31, 2024 or 2023. Accrued interest receivable is excluded from the estimate of credit losses for available-for-sale securities. As of December 31, 2024 and 2023, accrued interest receivable totaled $0.7 million and $0.6 million, respectively, with no related ACL and was reported in the accrued interest line on the accompanying consolidated balance sheet.

Held-to-Maturity Considerations

Effective January 1, 2023, the Company adopted the 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 December 31, 2024 or 2023. Accrued interest receivable is excluded from the estimate of credit losses for held-to-maturity securities. As of December 31, 2024 and 2023, accrued interest receivable totaled $2.0 thousand and $3.0 thousand, respectively, with no related ACL and was reported in the accrued interest line on the accompanying consolidated balance sheet.

Pledged Securities

Investment securities with a carrying value of $72.1 million and $41.4 million as of December 31, 2024 and 2023, respectively, were pledged to secure public deposits and for other purposes.