Investment Securities

3 Months Ended

Mar. 31, 2024

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, 2024
	Amortized		Gross Unrealized				Fair
(dollars in thousands)	Cost		Gains		Losses		Value
Available for sale
Corporate bonds	$	2,140		-		253		1,887
US treasuries		999		-		111		888
US government agencies		20,183		-		1,986		18,197
State and political subdivisions		22,579		-		3,042		19,537
Asset-backed securities		34,247		33		76		34,204
Mortgage-backed securities		60,782		-		9,499		51,283
Total investment securities available for sale	$	140,930		33		14,967		125,996
		December 31, 2023
		Amortized		Gross Unrealized				Fair
		Cost		Gains		Losses		Value
Available for sale
Corporate bonds	$	2,147		-		237		1,910
US treasuries		9,495		1		102		9,394
US government agencies		20,594		-		1,938		18,656
State and political subdivisions		22,642		11		2,912		19,741
Asset-backed securities		33,450		2		216		33,236
Mortgage-backed securities		60,730		-		8,965		51,765
Total investment securities available for sale	$	149,058		14		14,370		134,702

Contractual maturities and yields on the Company’s investment securities at March 31, 2024 and December 31, 2023 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, 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		$	-	-		$	-	-		$	1,887	2.01	%	$	-	-		$	1,887	2.01	%
US treasuries			-	-			888	1.27	%		-	-			-	-			888	1.27	%
US government agencies			980	0.45	%		2,380	1.00	%		14,837	4.38	%		-	-			18,197	3.72	%
State and political subdivisions			-	-			902	1.94	%		5,744	1.89	%		12,891	2.15	%		19,537	2.07	%
Asset-backed securities			-	-			211	6.21	%		-	-			33,993	6.61	%		34,204	6.61	%
Mortgage-backed securities			-	-			6,626	1.29	%		3,419	1.54	%		41,238	2.04	%		51,283	1.91	%
Total investment securities		$	980	0.45	%	$	11,007	1.37	%	$	25,887	3.28	%	$	88,122	3.82	%	$	125,996	3.47	%
			December 31, 2023
			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		$	-	-		$	-	-		$	1,910	2.01	%	$	-	-		$	1,910	2.01	%
US treasuries			8,497	5.42	%		897	1.27	%		-	-			-	-			9,394	5.02	%
US government agencies			970	0.45	%		2,385	1.00	%		15,301	4.41	%		-	-			18,656	3.77	%
State and political subdivisions			-	-			906	1.94	%		5,769	1.89	%		13,066	2.15	%		19,741	2.06	%
Asset-backed securities			-	-			296	(6.13	%)		-	-			32,940	6.63	%		33,236	6.57	%
Mortgage-backed securities			-	-			4,795	1.15	%		5,400	1.59	%		41,570	2.00	%		51,765	1.87	%
Total investment securities		$	9,467	4.91	%	$	9,279	0.98	%	$	28,380	3.20	%	$	87,576	3.76	%	$	134,702	3.55	%

The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at March 31, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

													March 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	$	1,887	$	253		1	$	1,887	$	253
US treasuries		-		-		-		1		888		111		1		888		111
US government agencies		2		7,133		39		10		11,064		1,947		12		18,197		1,986
State and political subdivisions		2		759		4		30		18,778		3,038		32		19,537		3,042
Asset-backed		4		11,343		31		7		4,567		45		11		15,910		76
Mortgage-backed securities		1		1,387		8		64		49,896		9,491		65		51,283		9,499
Total investment securities		9	$	20,622	$	82		113	$	87,080	$	14,885		122	$	107,702	$	14,967
	December 31, 2023
		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	$	1,910	$	237		1	$	1,910	$	237
US treasuries		-		-		-		1		897		102		1		897		102
US government agencies		2		7,533		50		10		11,123		1,888		12		18,656		1,938
State and political subdivisions		-		-		-		30		18,964		2,912		30		18,964		2,912
Asset-backed		8		26,746		145		7		4,866		71		15		31,612		216
Mortgage-backed securities		2		2,869		36		62		48,896		8,929		64		51,765		8,965
Total investment securities		12	$	37,148	$	231		111	$	86,656	$	14,139		123	$	123,804	$	14,370

At March 31, 2024, the Company had 122 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, 2024.

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

(dollars in thousands)	March 31, 2024		December 31, 2023
Federal Home Loan Bank stock	$	14,633		16,063
Other nonmarketable investments		3,463		3,473
Investment in Trust Preferred subsidiaries		403		403
Total other investments	$	18,499		19,939

The Company has evaluated other investments for impairment and determined that the other investments are not impaired as of March 31, 2024 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, 2024, there were no securities pledges as collateral for repurchase agreements from brokers.