Investment Securities

6 Months Ended

Jun. 30, 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:

	June 30, 2024
	Amortized		Gross Unrealized				Fair
(dollars in thousands)	Cost		Gains		Losses		Value
Available for sale
Corporate bonds	$	2,134		-		247		1,887
US treasuries		999		-		109		890
US government agencies		19,600		-		1,900		17,700
State and political subdivisions		22,514		-		3,191		19,323
Asset-backed securities		31,555		78		58		31,575
Mortgage-backed securities		59,571		-		9,593		49,978
Total investment securities available for sale	$	136,373		78		15,098		121,353
	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 June 30, 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.

																June 30, 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		2.02	%	$	-		-		$	1,887		2.02	%
US treasuries		-		-			890		1.27	%		-		-			-		-			890		1.27	%
US government agencies		992		0.45	%		2,389		1.00	%		14,319		4.29	%		-		-			17,700		3.63	%
State and political subdivisions		-		-			904		1.94	%		5,729		1.89	%		12,690		2.16	%		19,323		2.07	%
Asset-backed securities		-		-			132		3.88	%		-		-			31,443		6.68	%		31,575		6.67	%
Mortgage-backed securities		-		-			6,547		1.29	%		3,411		1.54	%		40,020		2.10	%		49,978		1.96	%
Total investment securities	$	992		0.45	%	$	10,862		1.31	%	$	25,346		3.21	%	$	84,153		3.82	%	$	121,353		3.44	%
																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 June 30, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

													June 30, 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	$	247		1	$	1,887	$	247
US treasuries		-		-		-		1		890		109		1		890		109
US government agencies		-		-		-		12		17,700		1,900		12		17,700		1,900
State and political subdivisions		2		748		13		30		18,575		3,178		32		19,323		3,191
Asset-backed		3		11,479		42		7		3,708		16		10		15,187		58
Mortgage-backed securities		1		1,161		1		63		48,817		9,592		64		49,978		9,593
Total investment securities		6	$	13,388	$	56		114	$	91,577	$	15,042		120	$	104,965	$	15,098
															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 June 30, 2024, the Company had 120 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 June 30, 2024.

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

(dollars in thousands)	June 30, 2024		December 31, 2023
Federal Home Loan Bank stock	$	14,633		16,063
Other nonmarketable investments		3,617		3,473
Investment in Trust Preferred subsidiaries		403		403
Total other investments	$	18,653		19,939

The Company has evaluated other investments for impairment and determined that the other investments are not impaired as of June 30, 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 June 30, 2024, there were no securities pledges as collateral for repurchase agreements from brokers.