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.
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