Note 2 - Securities Available for Sale

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 2 – SECURITIES AVAILABLE FOR SALE

The following table summarizes the amortized cost, fair value, and gross unrealized gains and losses of securities available for sale, by contractual maturity, none of which had an allowance for credit losses at September 30, 2024 and December 31, 2023:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
September 30, 2024
U.S. government and agency obligations
One through five years	$	6,000,000	$	—	$	(263,082	)	$	5,736,918
Corporate bonds due in:
Less than one year		5,325,846		—		(37,411	)		5,288,435
One through five years		3,974,138		6,988		(76,147	)		3,904,979
Five through ten years		5,000,000		24,560		(91,910	)		4,932,650
MBS – residential		76,182,161		270,055		(4,357,505	)		72,094,711
MBS – commercial		18,485,785		—		(1,882,667	)		16,603,118
Total	$	114,967,930	$	301,603	$	(6,708,722	)	$	108,560,811

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
December 31, 2023
U.S. government and agency obligations
One through five years		6,000,000		—		(454,599	)		5,545,401
Corporate bonds due in:
Less than one year		3,000,000		—		(44,230	)		2,955,770
One through five years		8,264,973		—		(247,937	)		8,017,036
Five through ten years		1,000,000		—		(154,050	)		845,950
MBS – residential		41,105,143		5,182		(5,703,143	)		35,407,182
MBS – commercial		18,753,711		—		(2,636,871	)		16,116,840
Total	$	78,123,827	$	5,182	$	(9,240,830	)	$	68,888,179

All of the mortgaged-backed securities (“MBSs”) are issued by the following government sponsored agencies: Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Government National Mortgage Association (“GNMA”).

There were no sales of securities during the three and nine months ended September 30, 2024 or September 30, 2023.

The age of unrealized losses and the fair value of related securities as of  September 30, 2024 and  December 31, 2023 were as follows:

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
September 30, 2024
U.S. government and agency obligations	$	—	$	—		$	5,736,918	$	(263,082	)	$	5,736,918	$	(263,082	)
Corporate bonds		1,998,738		(1,262	)		8,092,155		(204,206	)		10,090,893		(205,468	)
MBS – residential		—		—			32,966,892		(4,357,505	)		32,966,892		(4,357,505	)
MBS – commercial		—		—			16,603,118		(1,882,667	)		16,603,118		(1,882,667	)
Total	$	1,998,738	$	(1,262	)	$	63,399,083	$	(6,707,460	)	$	65,397,821	$	(6,708,722	)

	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
December 31, 2023
U.S. government and agency obligations	$	—	$	—		$	5,545,401	$	(454,599	)	$	5,545,401	$	(454,599	)
Corporate bonds		1,999,940		(60	)		9,818,816		(446,157	)		11,818,756		(446,217	)
MBS – residential		-		-			34,829,468		(5,703,143	)		34,829,468		(5,703,143	)
MBS – commercial		-		-			16,116,840		(2,636,871	)		16,116,840		(2,636,871	)
Total	$	1,999,940	$	(60	)	$	66,310,525	$	(9,240,770	)	$	68,310,465	$	(9,240,830	)

Unrealized losses on corporate bonds available for sale are not considered to be credit losses because the bonds are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value was largely due to changes in interest rates and other market conditions. At September 30, 2024, 100% of the mortgage-backed securities were issued by U.S. government-sponsored entities and agencies, primarily FNMA and FHLMC, institutions which the government has affirmed its commitment to support. There were 34 securities in a loss position at September 30, 2024. Because the decline in fair value was attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Bank does not consider these losses to be credit-related at September 30, 2024. As of September 30, 2024, no allowance for credit loss ("ACL") was required on available for sale securities. At September 30, 2024 and December 31, 2023, securities available for sale with a carrying value of $98,231 and $113,415 were pledged to secure public deposits.