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Note 2 - Securities Available for Sale

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 2: Securities Available for Sale

The amortized cost and estimated fair value of debt securities at March 31, 2024 and December 31, 2023, by contractual maturity, are shown below. The accrued interest receivable for securities available for sale was $297,000 and $351,000 on March 31, 2024 and December 31, 2023, respectively. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties, therefore, these securities have been included in the below table based on average remaining life.

March 31, 2024			*U.S. Treasury Notes*				*U.S. government agency obligations*				*Municipal obligations*				*Mortgage-backed residential obligations*				*Collateralized mortgage obligations*				*Total available-for-sale*
		(Dollars in thousands)
1 year or less		$	2,992			$	992			$	1,297			$	—			$	—			$	5,281
1 to 5 years			—				3,629				1,447				9,053				12,151				26,280
5 to 10 years			—				4,182				1,266				18,492				9,629				33,569
After 10 years			—				—				9,377				1,421				3,871				14,669
Fair value			2,992				8,803				13,387				28,966				25,651				79,799
Gross unrealized gains			—				—				—				—				—				—
Gross unrealized losses			(8	)			(1,193	)			(2,051	)			(4,876	)			(4,144	)			(12,272	)
Amortized cost		$	3,000			$	9,996			$	15,438			$	33,842			$	29,795			$	92,071

December 31, 2023			*U.S. Treasury Notes*				*U.S. government agency obligations*				*Municipal obligations*				*Mortgage-backed residential obligations*				*Collateralized mortgage obligations*				*Total available-for-sale*
		(Dollars in thousands)
1 year or less		$	2,973			$	—			$	1,292			$	—			$	—			$	4,265
1 to 5 years			—				4,769				1,461				8,976				12,919				28,125
5 to 10 years			—				4,337				882				19,777				9,756				34,752
After 10 years			—				—				9,935				1,598				3,460				14,993
Fair value			2,973				9,106				13,570				30,351				26,135				82,135
Gross unrealized gains			—				—				1				—				—				1
Gross unrealized losses			(22	)			(1,128	)			(1,882	)			(4,533	)			(3,938	)			(11,503	)
Amortized cost		$	2,995			$	10,234			$	15,451			$	34,884			$	30,073			$	93,637

As of March 31, 2024, and December 31, 2023, no securities were pledged to secure public deposits or for other purposes as required or permitted by law.

Information pertaining to securities with gross unrealized losses at March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows:

		Less than 12 Months								12 Months or Longer								Total
		(Dollars in thousands)
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
March 31, 2024
U.S. Treasury Notes		$	—			$	—			$	1,492			$	8			$	1,492			$	8
U.S. government agency obligations			—				—				8,803				1,193				8,803				1,193
Municipal obligations			565				9				12,352				2,042				12,917				2,051
Mortgage-backed residential obligations			—				—				28,966				4,876				28,966				4,876
Collateralized mortgage obligations			—				—				25,651				4,144				25,651				4,144
Total		$	565			$	9			$	77,264			$	12,263			$	77,829			$	12,272
December 31, 2023
U.S. Treasury Notes		$	—			$	—			$	2,973			$	22			$	2,973			$	22
U.S. government agency obligations			—				—				9,106				1,128				9,106				1,128
Municipal obligations			279				1				12,796				1,881				13,075				1,882
Mortgage-backed residential obligations			—				—				30,351				4,533				30,351				4,533
Collateralized mortgage obligations			—				—				26,135				3,938				26,135				3,938
Total		$	279			$	1			$	81,361			$	11,502			$	81,640			$	11,503

At March 31, 2024 and December 31, 2023, certain investment securities were in unrealized loss positions. There were no securities with identified credit losses at March 31, 2024 and December 31, 2023, respectively. Unrealized losses have not been recognized into income because, based on management's evaluation, the decline in fair value is largely due to increased market rates, temporary market conditions and trading spreads, and, as such, are considered to be temporary by the Bank. In addition, management has the intent and ability to hold the securities until they mature or they recover their carrying values.

All U.S. Treasuries, U.S. government agency obligations, mortgage-based residential obligations and collateralized mortgage obligations are agency-issued or government-sponsored enterprise issued. Agency-issued securities are generally guaranteed by a U.S. government agency, such as the Government National Mortgage Association. Government-sponsored enterprises, such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, or the Small Business Administration, have either a direct or implied guarantee by the U.S. government.

The Bank holds two classifications of municipal bonds, general obligation bonds and revenue bonds. General obligation bonds are backed by the general revenue of the issuing municipality, while revenue bonds are supported by a specific revenue source. All general obligation and revenue bonds have a bond rating of investment grade by Standard and Poor's or Moody's Investor Services or are not rated. There have been no declines in investment grades on bonds in a loss position and as of March 31, 2024, all municipal bonds are paying as agreed.

There were no sales of securities available-for-sale during the three months ended March 31, 2024 and 2023.