Securities

12 Months Ended

Dec. 31, 2024

Note 3 – Securities

The following table summarizes the amortized cost and fair value of the available‑for‑sale investment securities portfolios at December 31, 2024 and December 31, 2023 and the corresponding amounts of unrealized gains (losses) which are recognized in accumulated other comprehensive loss:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
December 31, 2024:
Federal agency mortgage-backed securities	$	62,853	$	8	$	(9,832	)	$	53,029
Federal agency Collateralized Mortgage Obligations (CMOs)		21,299		6		(1,247	)		20,058
Federal agency debt		42,100		2		(2,068	)		40,034
Municipal bonds		4,800		–		(412	)		4,388
U. S. Treasuries		77,857		–		(667	)		77,190
SBA pools		10,749		2		(1,588	)		9,163
Total available-for-sale securities	$	219,658	$	18	$	(15,814	)	$	203,862
December 31, 2023:
Federal agency mortgage-backed securities	$	76,091	$	3	$	(9,316	)	$	66,778
Federal agency CMOs		24,720		–		(1,381	)		23,339
Federal agency debt		50,893		–		(3,057	)		47,836
Municipal bonds		4,833		–		(460	)		4,373
U. S. Treasuries		167,055		–		(3,175	)		163,880
SBA pools		12,386		4		(1,646	)		10,744
Total available-for-sale securities	$	335,978	$	7	$	(19,035	)	$	316,950

There were no sales of securities during the years ended December 31, 2024 or 2023.

The amortized cost and estimated fair value of all investment securities available-for-sale at December 31, 2024, by contractual maturities are shown below. Contractual maturities may differ from expected maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Due in one year or less	$	85,890	$	–	$	(932	)	$	84,958
Due after one year through five years		37,790		2		(2,248	)		35,544
Due after five years through ten years		21,691		13		(1,000	)		20,704
Due after ten years		74,287		3		(11,634	)		62,656
	$	219,658	$	18	$	(15,814	)	$	203,862

The table below indicates the length of time individual securities have been in a continuous unrealized loss position:

	Less than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2024:	(In thousands)
Federal agency mortgage-backed securities	$	–	$	–		$	52,568	$	(9,832	)	$	52,568	$	(9,832	)
Federal agency CMOs		–		–			19,303		(1,247	)		19,303		(1,247	)
Federal agency debt		–		–			37,508		(2,068	)		37,508		(2,068	)
Municipal bonds		–		–			4,388		(412	)		4,388		(412	)
U. S. Treasuries		–		–			77,190		(667	)		77,190		(667	)
SBA pools		629		(1	)		8,179		(1,587	)		8,808		(1,588	)
Total	$	629	$	(1	)	$	199,136	$	(15,813	)	$	199,765	$	(15,814	)

December 31, 2023:
Federal agency mortgage-backed securities	$	–	$	–		$	66,575	$	(9,316	)	$	66,575	$	(9,316	)
Federal agency CMOs		–		–			23,339		(1,381	)		23,339		(1,381	)
Federal agency debt		3,018		(37	)		44,818		(3,020	)		47,836		(3,057	)
Municipal bonds		–		–			4,373		(460	)		4,373		(460	)
U. S. Treasuries		–		–			163,880		(3,175	)		163,880		(3,175	)
SBA pools		286		(1	)		9,439		(1,645	)		9,725		(1,646	)
Total	$	3,304	$	(38	)	$	312,424	$	(18,997	)	$	315,728	$	(19,035	)

Securities with a market value of $83.3 million were pledged as collateral for securities sold under agreements to repurchase as of December 31, 2024 and included $46.5 million of U.S. Treasuries, $27.1 million of federal agency debt, $5.5 million of federal agency mortgage-backed securities, and $4.2 million of SBA pools. Securities with a market value of $89.0 million were pledged as collateral for securities sold under agreements to repurchase as of December 31, 2023 and included $47.8 million of U.S. Treasuries, $30.2 million of federal agency debt, and $11.0 million of federal agency mortgage-backed securities. Investment securities with a book value of $107.3 million and a fair value of $98.3 million were pledged as collateral to the Federal Reserve as of December 31, 2023 for borrowings under the Bank Term Funding Program.

At December 31, 2024 and 2023, there were no securities pledged to secure public deposits since those public deposits are under $250 thousand which are fully insured by FDIC. At December 31, 2024 and 2023, there were no holdings of securities by any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. Accrued interest receivable on securities was $796 thousand and $1.2 million at December 31, 2024 and 2023, respectively, and is included in the consolidated statements of financial condition in accrued interest receivable.

At December 31, 2024 and 2023, there were no securities in nonaccrual status. All securities in the portfolio were current with their contractual principal and interest payments. At December 31, 2024 and 2023, there were no securities purchased with deterioration in credit quality since their origination, and there were no collateral dependent securities.