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Securities
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
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