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Securities
 9 Months Ended
Sep. 30, 2024
Securities [Abstract]  
Securities

Note 2. Securities


The Company’s debt securities all of which are classified as available-for-sale, are summarized as follows:


   
September 30, 2024
  
          Gross     Gross        
    Amortized     Unrealized     Unrealized     Fair  
(dollars in thousands)
  
Cost
    
Gains
    
(Losses)
    
Value
  
U.S. Treasury securities
  
$
4,044
    
$
-
    
$
(111
)
  
$
3,933
  
Obligations of U.S. Government agencies
    
33,887
      
235
      
(288
)
    
33,834
  
Obligations of state and political subdivisions
    
57,814
      
16
      
(6,180
)
    
51,650
  
Mortgage-backed securities
    
85,961
      
121
      
(7,688
)
    
78,394
  
Corporate bonds and other securities
    
29,000
      
-
      
(2,971
)
    
26,029
  
   
$
210,706
    
$
372
    
$
(17,238
)
  
$
193,840
  


   
December 31, 2023
 
           Gross      Gross        
     Amortized      Unrealized       Unrealized      Fair  
(dollars in thousands)
  
Cost
    
Gains
    
(Losses)
    
Value
  
U.S. Treasury securities
  
$
4,068
    
$
-
    
$
(211
)
  
$
3,857
  
Obligations of U.S. Government agencies
    
43,233
      
167
      
(665
)
    
42,735
  
Obligations of state and political subdivisions
    
58,292
      
13
      
(7,708
)
    
50,597
  
Mortgage-backed securities
    
91,328
      
84
      
(10,105
)
    
81,307
  
Corporate bonds and other securities
    
27,500
      
-
      
(3,765
)
    
23,735
  
   
$
224,421
    
$
264
    
$
(22,454
)
  
$
202,231
  


The amortized cost and fair value of securities at September 30, 2024 and December 31, 2023, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.
 
September 30, 2024
 
  Amortized   Fair  
(dollars in thousands)
Cost
  
Value
  
Due in one year or less
  
$
1,501
    
$
1,485
  
Due after one year through five years
    
19,984
      
19,053
  
Due after five through ten years
    
55,659
      
49,844
  
Due after ten years
    
133,562
      
123,458
  
   
$
210,706
    
$
193,840
  

   
December 31, 2023
  
    Amortized     Fair  
(dollars in thousands)
  
Cost
    
Value
  
Due in one year or less
  
$
1,570
    
$
1,541
  
Due after one year through five years
    
12,962
      
12,178
  
Due after five through ten years
    
63,248
      
54,806
  
Due after ten years
    
146,641
      
133,706
  
   
$
224,421
    
$
202,231
  

The following table shows realized gains or losses on the sale of investment securities during the three and nine months ended September 30, 2024 and 2023, respectively.


 
Three Months Ended
  
Nine Months Ended
  
 
September 30,
  
September 30,
  
(dollars in thousands)
2024
  
2023
  
2024
  
2023
  
Realized gains on sales of securities
  
$
-
    
$
1,061
    
$
-
    
$
1,061
  
Realized losses on sales of securities
    
-
      
(1,031
)
    
-
      
(1,195
)
Net realized gain (loss)
  
$
-
    
$
30
 
$
-
    
$
(134
)


The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses for which an ACL has not been recorded as of September 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 as of the dates indicated:


   
 September 30, 2024
  
   
Less than 12 months
    
12 months or more
    
Total
        
   
Gross
          
Gross
          
Gross
          
Number
  
   
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
of
  
(dollars in thousands)
  
Losses
    
Value
    
Losses
    
Value
    
Losses
    
Value
    
Securities
  
U.S. Treasury securities
  
$
-
    
$
-
    
$
111
    
$
3,933
    
$
111
    
$
3,933
      
1
  
Obligations of U.S. Government agencies
    
7
      
2,003
      
281
      
17,190
      
288
      
19,193
      
32
  
Obligations of state and political subdivisions
    
-
      
-
      
6,180
      
50,646
      
6,180
      
50,646
      
42
  
Mortgage-backed securities
    
1
      
1,101
      
7,687
      
73,892
      
7,688
      
74,993
      
40
  
Corporate bonds and other securities
    
207
      
2,293
      
2,764
      
23,736
      
2,971
      
26,029
      
25
  
Total securities available-for-sale
  
$
215
    
$
5,397
    
$
17,023
    
$
169,397
    
$
17,238
    
$
174,794
      
140
  

   
December 31, 2023
  
   
Less than 12 months
    
12 months or more
    
Total
        
   
Gross
          
Gross
          
Gross
          
Number
  
   
Unrealized
    
Fair
    
Unrealized
    
Fair
    
Unrealized
    
Fair
    
of
  
(dollars in thousands)
  
Losses
    
Value
    
Losses
    
Value
    
Losses
    
Value
    
Securities
  
U.S. Treasury securities
  
$
-
    
$
-
    
$
211
    
$
3,857
    
$
211
    
$
3,857
      
1
  
Obligations of U.S. Government agencies
    
91
      
8,803
      
574
      
22,817
      
665
      
31,620
      
43
  
Obligations of state and political subdivisions
    
-
      
-
      
7,708
      
49,597
      
7,708
      
49,597
      
43
  
Mortgage-backed securities
    
96
      
4,423
      
10,009
      
73,347
      
10,105
      
77,770
      
40
  
Corporate bonds and other securities
    
-
      
-
      
3,765
      
22,735
      
3,765
      
22,735
      
23
  
Total securities available-for-sale
  
$
187
    
$
13,226
    
$
22,267
    
$
172,353
    
$
22,454
    
$
185,579
      
150
  

The number of investments in an unrealized loss position as of September 30, 2024 and December 31, 2023 were 140 and 150, respectively. The Company concluded no ACL should be recognized as of September 30, 2024 and December 31, 2023 based primarily on the fact that (1) changes in fair value were caused primarily by fluctuations in interest rates, (2) securities with unrealized losses had generally high credit quality, (3) the Company intends to hold these investments in debt securities to maturity and it is more-likely-than-not that the Company will not be required to sell these investments before a recovery of its investment, and (4) issuers have continued to make timely payments of principal and interest. Additionally, the Company’s state and political subdivision securities are rated AA or better and the Company receives a surveillance report that is reviewed quarterly for indications of credit concerns. The Company’s mortgage-backed securities are entirely issued by either U.S. government agencies or U.S. government-sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments. The Company’s corporate bonds and other securities portfolio issuers consist of bank holding companies that are monitored on a quarterly basis by the Company’s credit department for indications of declining credit quality.


Restricted Stock

The restricted stock category is comprised of stock in FHLB, FRB, and CBB. These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and the securities lack a market. Therefore, FHLB, FRB, and CBB stock are carried at cost and evaluated for impairment. When evaluating these stocks for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Restricted stock is viewed as a long-term investment and management believes that the Company has the ability and the intent to hold this stock until its value is recovered. The Company did not consider its investment in restricted stock to be impaired at September 30, 2024 and no impairment has been recognized.