v3.25.1
Investment Securities
 3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

NOTE 2 – Investment Securities

 

The amortized costs and fair value of investment securities are as follows:

 

 
                               
   March 31, 2025 
   Amortized   Gross Unrealized   Fair 
(dollars in thousands)  Cost   Gains   Losses   Value 
Available for sale                     
Corporate bonds   $2,115    -    164    1,951 
US treasuries   999    -    73    926 
US government agencies    17,239    10    1,467    15,782 
State and political subdivisions    22,324    -    2,818    19,506 
Asset-backed securities    35,761    46    106    35,701 
Mortgage-backed securities   65,531    15    8,122    57,424 
Total investment securities available for sale  $143,969    71    12,750    131,290 
                     
     December 31, 2024 
    Amortized    Gross Unrealized    Fair  
    Cost    Gains    Losses    Value 
Available for sale                    
Corporate bonds  $2,121    -    194    1,927 
US treasuries   999    -    91    908 
US government agencies   17,540    1    1,746    15,795 
State and political subdivisions   22,387    -    3,065    19,322 
Asset-backed securities   36,613    36    111    36,538 
Mortgage-backed securities   66,988    19    9,370    57,637 
Total investment securities available for sale  $146,648    56    14,577    132,127 

 

 

Contractual maturities and yields on the Company’s investment securities at March 31, 2025 and December 31, 2024 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

                                                                               
                     
               March 31, 2025 
   Less than one year   One to five years   Five to ten years   Over ten years   Total 
(dollars in thousands)  Amount   Yield   Amount   Yield   Amount   Yield   Amount   Yield   Amount   Yield 
Available for sale                                                  
Corporate bonds   $-    -   $1,951    2.03%  $-    -   $-    -   $1,951    2.03%
US treasuries   -    -    926    1.27%   -    -    -    -    926    1.27%
US government agencies    -    -    5,127    1.10%   10,655    4.19%   -    -    15,782    3.19%
State and political subdivisions    465    2.13%   2,023    1.61%   4,870    2.12%   12,148    2.14%   19,506    2.08%
Asset-backed securities    -    -    -    -    3,436    5.24%   32,265    5.57%   35,701    5.53%
Mortgage-backed securities    -    -    6,565    1.27%   8,877    2.86%   41,982    2.45%   57,424    2.38%
Total investment securities   $465    2.13%  $16,592    1.35%  $27,838    3.53%  $86,395    3.57%  $131,290    3.28%
                                  

December 31, 2024

 
    Less than one year    One to five years    Five to ten years    Over ten years    Total 
(dollars in thousands)   Amount    Yield    Amount    Yield    Amount    Yield    Amount    Yield    Amount    Yield 
 Available for sale                                                  
Corporate bonds  $-    -   $1,927    2.02%  $-    -   $-    -   $1,927    2.02%
US treasuries   -    -    908    1.27%   -    -    -    -    908    1.27%
US government agencies   -    -    5,021    1.10%   10,774    4.51%   -    -    15,795    3.43%
State and political subdivisions   461    2.13%   1,726    1.61%   5,049    2.10%   12,086    2.13%   19,322    2.08%
Asset-backed securities   -    -    23    6.14%   3,420    5.25%   33,095    5.87%   36,538    5.81%
Mortgage-backed securities   -    -    6,549    1.28%   7,548    3.00%   43,540    2.45%   57,637    2.39%
Total investment securities  $461    2.13%  $16,154    1.35%  $26,791    3.73%  $88,721    3.68%  $132,127    3.40%

 

The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at March 31, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

 

            
   March 31, 2025 
   Less than 12 months   12 months or longer   Total 
(dollars in thousands)  #   Fair
value		   Unrealized
losses		   #   Fair
value		   Unrealized
losses		   #   Fair
value		   Unrealized
losses		 
Available for sale                                             
Corporate bonds   -   $-   $-    1   $1,951   $164    1   $1,951   $164 
US treasuries   -    -    -    1    926    73    1    926    73 
US government agencies   -    -    -    9    10,549    1,467    9    10,549    1,467 
State and political subdivisions   2    932    123    31    18,574    2,695    33    19,506    2,818 
Asset-backed   5    12,925    57    6    9,014    49    11    21,939    106 
Mortgage-backed securities   7    9,355    243    59    44,969    7,879    66    54,324    8,122 
Total investment securities   14   $23,212   $423    107   $85,983   $12,327    121   $109,195   $12,750 
                                              
                                       December 31, 2024 
    Less than 12 months    12 months or longer    Total 
(dollars in thousands)   #    Fair
value		    Unrealized
losses		    #    Fair
value		    Unrealized
losses		    #    Fair
value		    Unrealized
losses		 
Available for sale                                             
Corporate bonds   -   $-   $-    1   $1,927   $194    1   $1,927   $194 
US treasuries   -    -    -    1    908    91    1    908    91 
US government agencies   1    2,694    1    9    10,269    1,745    10    12,963    1,746 
State and political subdivisions   3    1,436    153    30    17,886    2,912    33    19,322    3,065 
Asset-backed   6    15,828    83    5    5,344    28    11    21,172    111 
Mortgage-backed securities    6    8,226    409    61    45,360    8,961    67    53,586    9,370 
Total investment securities   16   $28,184   $646    107   $81,694   $13,931    123   $109,878   $14,577 

 

 

At March 31, 2025, the Company had 121 individual investments that were in an unrealized loss position. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The individual securities are each investment grade securities. The Company considers factors such as the financial condition of the issuer including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. As such, there is no allowance for credit losses on available for sale securities recognized as of March 31, 2025.

 

Other investments are comprised of the following and are recorded at cost which approximates fair value.

 

           
         
(dollars in thousands)  March 31, 2025   December 31, 2024 
Federal Home Loan Bank stock  $14,539    14,516 
Other nonmarketable investments   4,985    4,571 
Investment in Trust Preferred subsidiaries   403    403 
Total other investments  $19,927    19,490 

 

The Company has evaluated other investments for impairment and determined that the other investments are not impaired as of March 31, 2025 and that ultimate recoverability of the par value of the investments is probable. All of the FHLB stock is used to collateralize advances with the FHLB.

 

At March 31, 2025, there were no securities pledged as collateral for repurchase agreements from brokers.