| Securities |
Note 2 - Securities Securities available for sale at September 30, 2024 and December 31, 2023 consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2024 |
|
(dollars in thousands) |
|
Amortized cost |
|
|
Gross unrealized gains |
|
|
Gross unrealized losses |
|
|
Fair value |
|
|
|
|
|
Available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
Agencies |
|
$ |
544 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
544 |
|
Corporate securities |
|
|
1,726 |
|
|
|
— |
|
|
|
172 |
|
|
|
1,554 |
|
Mortgage-backed securities |
|
|
26,624 |
|
|
|
15 |
|
|
|
1,843 |
|
|
|
24,796 |
|
Treasuries |
|
|
12,228 |
|
|
|
40 |
|
|
|
— |
|
|
|
12,268 |
|
Total |
|
$ |
41,122 |
|
|
$ |
55 |
|
|
$ |
2,015 |
|
|
$ |
39,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
(dollars in thousands) |
|
Amortized cost |
|
|
Gross unrealized gains |
|
|
Gross unrealized losses |
|
|
Fair value |
|
|
|
|
|
Available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
Agencies |
|
$ |
4,728 |
|
|
$ |
— |
|
|
$ |
5 |
|
|
$ |
4,723 |
|
Corporate securities |
|
|
1,722 |
|
|
|
— |
|
|
|
304 |
|
|
|
1,418 |
|
Mortgage-backed securities |
|
|
31,032 |
|
|
|
5 |
|
|
|
2,397 |
|
|
|
28,640 |
|
Total |
|
$ |
37,482 |
|
|
$ |
5 |
|
|
$ |
2,706 |
|
|
$ |
34,781 |
|
Securities held to maturity at September 30, 2024 and December 31, 2023 consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2024 |
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Fair |
|
(dollars in thousands) |
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
|
|
|
|
Held to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Corporate securities (1) |
|
|
3,196 |
|
|
|
— |
|
|
|
440 |
|
|
|
2,756 |
|
Mortgage-backed securities |
|
|
2,833 |
|
|
|
3 |
|
|
|
382 |
|
|
|
2,454 |
|
Total |
|
$ |
6,029 |
|
|
$ |
3 |
|
|
$ |
822 |
|
|
$ |
5,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2023 |
|
|
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
|
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Fair |
|
(dollars in thousands) |
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
|
|
|
|
Held to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
Agencies |
|
$ |
4,003 |
|
|
$ |
— |
|
|
$ |
22 |
|
|
$ |
3,981 |
|
Corporate securities (1) |
|
|
3,194 |
|
|
|
— |
|
|
|
570 |
|
|
|
2,624 |
|
Mortgage-backed securities |
|
|
3,012 |
|
|
|
3 |
|
|
|
414 |
|
|
|
2,601 |
|
Total |
|
$ |
10,209 |
|
|
$ |
3 |
|
|
$ |
1,006 |
|
|
$ |
9,206 |
|
(1) Amount is net of CECL credit reserve of $4,000 at September 30, 2024 and $6,000 at December 31, 2023. The Company pledged securities with an amortized cost of $29.9 million and a fair value of $27.9 million at September 30, 2024 to secure deposits from municipalities. At December 31, 2023, the Company pledged securities with an amortized cost of $41.4 million and a fair value of $38.6 million to secure deposits from municipalities. The amortized cost and fair value of securities as of September 30, 2024 and December 31, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without prepayment penalties.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2024 |
|
|
|
Available for sale |
|
|
Held to maturity |
|
|
|
Amortized |
|
|
Fair |
|
|
Amortized |
|
|
Fair |
|
(dollars in thousands) |
|
cost |
|
|
value |
|
|
cost |
|
|
value |
|
|
|
|
|
Maturing |
|
|
|
|
|
|
|
|
|
|
|
|
Due under one year |
|
$ |
27,539 |
|
|
$ |
27,461 |
|
|
$ |
171 |
|
|
$ |
170 |
|
Due after one year through five years |
|
|
202 |
|
|
|
197 |
|
|
|
3,217 |
|
|
|
2,777 |
|
Due after five years through ten years |
|
|
1,841 |
|
|
|
1,645 |
|
|
|
494 |
|
|
|
471 |
|
Due after ten years |
|
|
11,540 |
|
|
|
9,859 |
|
|
|
2,147 |
|
|
|
1,792 |
|
Total |
|
$ |
41,122 |
|
|
$ |
39,162 |
|
|
$ |
6,029 |
|
|
$ |
5,210 |
|
All mortgage-backed securities are guaranteed by Freddie Mac, Fannie Mae or Ginnie Mae. Investment securities with unrealized losses for continuous periods of less than 12 months and 12 months or longer are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 months |
|
|
Over 12 months |
|
|
Total |
|
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
September 30, 2024 |
|
losses |
|
|
value |
|
|
losses |
|
|
value |
|
|
losses |
|
|
value |
|
(dollars in thousands) |
|
|
|
Available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate securities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
172 |
|
|
$ |
1,554 |
|
|
|
172 |
|
|
|
1,554 |
|
Mortgage-backed securities |
|
|
— |
|
|
|
— |
|
|
|
1,843 |
|
|
|
22,099 |
|
|
|
1,843 |
|
|
|
22,099 |
|
Total |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,015 |
|
|
$ |
23,653 |
|
|
$ |
2,015 |
|
|
$ |
23,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate securities (1) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
440 |
|
|
$ |
2,756 |
|
|
|
440 |
|
|
|
2,756 |
|
Mortgage-backed securities |
|
|
— |
|
|
|
7 |
|
|
|
382 |
|
|
|
2,296 |
|
|
|
382 |
|
|
|
2,303 |
|
Total |
|
$ |
— |
|
|
$ |
7 |
|
|
$ |
822 |
|
|
$ |
5,052 |
|
|
$ |
822 |
|
|
$ |
5,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 months |
|
|
Over 12 months |
|
|
Total |
|
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
|
Unrealized |
|
|
Fair |
|
December 31, 2023 |
|
losses |
|
|
value |
|
|
losses |
|
|
value |
|
|
losses |
|
|
value |
|
(dollars in thousands) |
|
|
|
Available for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency securities |
|
$ |
5 |
|
|
$ |
4,723 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5 |
|
|
$ |
4,723 |
|
Corporate securities |
|
|
83 |
|
|
|
667 |
|
|
|
221 |
|
|
|
751 |
|
|
|
304 |
|
|
|
1,418 |
|
Mortgage-backed securities |
|
|
1 |
|
|
|
478 |
|
|
|
2,396 |
|
|
|
26,152 |
|
|
|
2,397 |
|
|
|
26,630 |
|
Total |
|
$ |
89 |
|
|
$ |
5,868 |
|
|
$ |
2,617 |
|
|
$ |
26,903 |
|
|
$ |
2,706 |
|
|
$ |
32,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency securities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
22 |
|
|
$ |
3,981 |
|
|
$ |
22 |
|
|
$ |
3,981 |
|
Corporate securities (1) |
|
|
— |
|
|
|
— |
|
|
|
570 |
|
|
|
2,624 |
|
|
|
570 |
|
|
|
2,624 |
|
Mortgage-backed securities |
|
|
— |
|
|
|
14 |
|
|
|
414 |
|
|
|
2,482 |
|
|
|
414 |
|
|
|
2,496 |
|
Total |
|
$ |
— |
|
|
$ |
14 |
|
|
$ |
1,006 |
|
|
$ |
9,087 |
|
|
$ |
1,006 |
|
|
$ |
9,101 |
|
(1) Fair value amount is net of CECL credit reserve of $4,000 at September 30, 2024 and $6,000 at December 31, 2023. As of September 30, 2024 and December 31, 2023, the Company determined that for its available-for-sale debt securities in an unrealized loss position, it did not intend to sell nor was it more likely than not that it would be required to sell any security and that the decline in fair value was not due to credit factors, but due to changes in interest rates and other factors. Accordingly, at September 30, 2024 and December 31, 2023, the Company did not record an allowance for credit losses for its available-for-sale debt securities. We monitor the credit quality of HTM debt securities through both internal analysis performed on a quarterly basis and credit ratings when available. The following table reflects the credit ratings for the HTM debt securities at September 30, 2024.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
AAA |
|
|
A- |
|
|
BBB/BBB+ |
|
|
BBB- |
|
|
Not Rated |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate securities |
|
$ |
— |
|
|
$ |
500 |
|
|
$ |
1,246 |
|
|
$ |
700 |
|
|
$ |
750 |
|
|
$ |
3,196 |
|
Mortgage-backed securities |
|
|
2,833 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,833 |
|
|
|
$ |
2,833 |
|
|
$ |
500 |
|
|
$ |
1,246 |
|
|
$ |
700 |
|
|
$ |
750 |
|
|
$ |
6,029 |
|
The following table provides a breakdown of our HTM debt securities by year of origination at September 30, 2024.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Total |
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
Prior |
|
Corporate securities |
|
$ |
3,196 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
750 |
|
|
$ |
2,446 |
|
|
$ |
— |
|
|
$ |
— |
|
Mortgage-backed securities |
|
|
2,833 |
|
|
|
— |
|
|
|
— |
|
|
|
1,811 |
|
|
|
119 |
|
|
|
— |
|
|
|
903 |
|
|
|
$ |
6,029 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,561 |
|
|
$ |
2,565 |
|
|
$ |
— |
|
|
$ |
903 |
|
The following table is a roll forward of our allowance for credit losses on HTM debt securities at September 30, 2024 and 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Three Months Ended September 30, 2024 |
|
|
Nine Months Ended September 30, 2024 |
|
|
Three Months Ended September 30, 2023 |
|
|
Nine Months Ended September 30, 2023 |
|
Beginning Balance |
|
$ |
5 |
|
|
$ |
6 |
|
|
$ |
7 |
|
|
$ |
— |
|
Impact of adopting ASC 326 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
(Recovery) for credit losses |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
— |
|
|
|
(3 |
) |
Ending Balance |
|
$ |
4 |
|
|
$ |
4 |
|
|
$ |
7 |
|
|
$ |
7 |
|
|