v3.25.2
Note 2 - Investment Securities
6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 2. INVESTMENT SECURITIES

 

The amortized cost and fair values of securities, together with unrealized gains and losses, were as follows:

 

  

June 30, 2025

  

December 31, 2024

 
      

Gross

              

Gross

         
  

Amortized

  

Unrealized

      

Fair

  

Amortized

  

Unrealized

      

Fair

 
  

Cost

  

Gains

  

(Losses)

  

ACL

  

Value

  

Cost

  

Gains

  

(Losses)

  

ACL

  

Value

 
  

(In Thousands)

     

Available-for-Sale:

                                        

U.S. government and agency

obligations

 $4,587  $77  $(115) $-  $4,549  $5,298  $85  $(188) $-  $5,195 

U.S. treasury obligations

  48,632   -   (4,210)  -   44,422   52,592   -   (5,679)  -   46,913 

Municipal obligations

  128,187   1   (13,366)  -   114,822   131,109   1   (13,233)  -   117,877 

Corporate obligations

  3,250   -   (102)  -   3,148   4,249   -   (87)  -   4,162 

Mortgage-backed securities

  28,785   120   (1,199)  -   27,706   29,867   21   (1,653)  -   28,235 

Collateralized mortgage

obligations

  88,693   53   (5,544)  -   83,202   89,313   11   (6,701)  -   82,623 

Asset-backed securities

  7,123   51   -   -   7,174   7,511   83   (9)  -   7,585 

Total

 $309,257  $302  $(24,536) $-  $285,023  $319,939  $201  $(27,550) $-  $292,590 

 

There was no sales activity for available-for-sale securities during the three or six months ended June 30, 2025 or 2024. 

 

The amortized cost and fair value of securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

  

June 30, 2025

 
  

Amortized

  

Fair

 
  

Cost

  

Value

 
  

(In Thousands)

 

Due in one year or less

 $2,475  $2,457 

Due from one to five years

  38,189   35,842 

Due from five to ten years

  83,389   73,993 

Due after ten years

  67,726   61,823 
   191,779   174,115 

Mortgage-backed securities

  28,785   27,706 

Collateralized mortgage obligations

  88,693   83,202 

Total

 $309,257  $285,023 

 

As of  June 30, 2025 and December 31, 2024, securities with a fair value of $19,765,000 and $22,892,000, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

 

The Company’s investment securities that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve or more months were as follows:

 

  

June 30, 2025

 
  

Less Than 12 Months

  

12 Months or Longer

 
      

Gross

      

Gross

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

 
  

(In Thousands)

 

U.S. government and agency obligations

 $-  $-  $1,815  $(115)

U.S. treasury obligations

  -   -   44,422   (4,210)

Municipal obligations

  12,079   (725)  102,187   (12,641)

Corporate obligations

  -   -   3,148   (102)

Mortgage-backed securities and collateralized mortgage obligations

  10,229   (106)  78,931   (6,637)

Asset-backed securities

  -   -   200   - 

Total

 $22,308  $(831) $230,703  $(23,705)

 

 

  

December 31, 2024

 
  

Less Than 12 Months

  

12 Months or Longer

 
      

Gross

      

Gross

 
  

Fair

  

Unrealized

  

Fair

  

Unrealized

 
  

Value

  

Losses

  

Value

  

Losses

 
  

(In Thousands)

 

U.S. government and agency obligations

 $-  $-  $1,749  $(188)

U.S. treasury obligations

  -   -   46,914   (5,679)

Municipal obligations

  14,678   (261)  102,521   (12,972)

Corporate obligations

  -   -   4,163   (87)

Mortgage-backed securities and collateralized mortgage obligations

  10,984   (188)  85,392   (8,166)

Asset-backed securities

  1,993   (9)  -   - 

Total

 $27,655  $(458) $240,739  $(27,092)

 

As of  June 30, 2025 and December 31, 2024, there were, respectively, 269 and 284 securities in unrealized loss positions. Based on analysis of available-for-sale debt securities with unrealized losses as of June 30, 2025, the Company determined the decline in value was unrelated to credit losses and was primarily caused by changes in interest rates and market spreads subsequent to the initial purchase of the securities. Management does not intend to sell and the Company is not likely to be required to sell these securities prior to maturity. As a result, no ACL was recorded on available-for-sale securities at June 30, 2025 and  December 31, 2024. As part of this determination, consideration was given to the extent to which fair value was less than amortized cost, adverse security ratings by a rating agency and other factors.