XML 25 R14.htm IDEA: XBRL DOCUMENT

Securities

3 Months Ended

Mar. 31, 2024

NOTE 6. Securities

This table provides the major components of debt securities available for sale ("AFS") and held to maturity (“HTM”) at amortized cost and estimated fair value at March 31, 2024 and December 31, 2023:

March 31, 2024

Gross

Allowance

Amortized

unrealized

for credit

Estimated

(In thousands)

cost

gains

losses

fair value

Available for sale:

U.S. Government sponsored entities

15,749

—

(485)

—

15,264

State and political subdivisions

379

—

(29)

—

350

Residential mortgage-backed securities

15,184

(1,681)

—

13,532

Corporate and other securities

69,203

250

(2,634)

(1,283)

65,536

Total debt securities available for sale

100,515

279

(4,829)

(1,283)

94,682

Held to maturity:

U.S. Government sponsored entities

28,000

—

(4,656)

—

23,344

State and political subdivisions

1,187

—

1,262

Residential mortgage-backed securities

6,902

—

(2,370)

—

4,532

Total debt securities held to maturity

36,089

(7,026)

—

29,138


	December 31, 2023
			Gross		Gross			Allowance
	Amortized		unrealized		unrealized			for credit	Estimated
(In thousands)	cost		gains		losses			losses	fair value
Available for sale:
U.S. Government sponsored entities	$	16,490	$	—	$	(457)	$	—	$	16,033
State and political subdivisions		388		—		(28)		—		360
Residential mortgage-backed securities		15,473		30		(1,426)		—		14,077
Corporate and other securities		65,203		251		(2,876)		(1,283)		61,295
Total debt securities available for sale	$	97,554	$	281	$	(4,787)	$	(1,283)	$	91,765
Held to maturity:
U.S. Government sponsored entities	$	28,000	$	—	$	(4,419)	$	—	$	23,581
State and political subdivisions		1,272		90		—		—		1,362
Residential mortgage-backed securities		6,850		—		(2,137)		—		4,713
Total debt securities held to maturity	$	36,122	$	90	$	(6,556)	$	—	$	29,656

For three months ended March 31, 2024 and 2023 there was no provision for credit loss on AFS debt securities.

The contractual maturities of available for sale and held for maturity debt securities at March 31, 2024 are set forth in the following table. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary.



		Amortized		Fair
(In thousands)		Cost		Value
Available for sale:
Due in one year	$	749	$	747
Due after one year through five years		33,780		31,358
Due after five years through ten years		13,289		11,558
Due after ten years		37,513		37,487
Residential mortgage-backed securities		15,184		13,532
Total	$	100,515	$	94,682
Held to maturity:
Due in one year	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		3,000		2,897
Due after ten years		26,187		21,709
Residential mortgage-backed securities		6,902		4,532
Total	$	36,089	$	29,138

Actual maturities of available for sale and held to maturity debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturitiy without penalty.

The fair value of debt securities with unrealized losses by length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2024 and December 31, 2023 are as follows:

March 31, 2024

Less than 12 months

12 months and greater

Total

Estimated

Unrealized

Estimated

Unrealized

Estimated

Unrealized

(In thousands)

fair value

loss

fair value

loss

fair value

loss

Available for sale:

U.S. Government sponsored entities

747

(2)

14,517

(483)

15,264

(485)

State and political subdivisions

—

350

(29)

350

(29)

Residential mortgage-backed securities

—

13,415

(1,681)

13,415

(1,681)

Corporate and other securities

4,696

(1,054)

33,526

(1,580)

38,222

(2,634)

Total

5,443

(1,056)

61,808

(3,773)

67,251

(4,829)

Held to maturity:

U.S. Government sponsored entities

—

23,344

(4,656)

23,344

(4,656)

Residential mortgage-backed securities

—

4,532

(2,370)

4,532

(2,370)

Total

—

27,876

(7,026)

27,876

(7,026)


	December 31, 2023
	Less than 12 months				12 months and greater				Total

	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)	fair value		loss		fair value		loss		fair value		loss
Available for sale:
U.S. Government sponsored entities	$	—	$	—	$	16,033	$	(457)	$	16,033	$	(457)
State and political subdivisions		—		—		360		(28)		360		(28)
Residential mortgage-backed securities		—		—		13,949		(1,426)		13,949		(1,426)
Corporate and other securities		—		—		54,827		(2,876)		54,827		(2,876)
Total temporarily impaired AFS securities	$	—	$	—	$	85,169	$	(4,787)	$	85,169	$	(4,787)
Held to maturity:
U.S. Government sponsored entities	$	—	$	—	$	23,581	$	(4,419)	$	23,581	$	(4,419)
Residential mortgage-backed securities		—		—		4,713		(2,137)		4,713		(2,137)
Total temporarily impaired HTM securities	$	—	$	—	$	28,294	$	(6,556)	$	28,294	$	(6,556)

Unrealized losses in each of the categories presented in the tables above were primarily driven by market interest rate fluctuations. Residential mortgage-backed securities are guaranteed by either Ginnie Mae, Freddie Mac or Fannie Mae.

The Company is using the practical expedient to exclude accrued interest receivable from credit loss measurement. At March 31, 2024, there was $1.5 million of accrued interest on securities. At December 31, 2023, there was $1.5 million of accrued interest on securities.

Realized Gains and Losses on Debt Securities

Net realized gains are included in noninterest income in the Consolidated Statements of Income as net security gains. There were no realized gains or losses on available for sale securities during the three months ended March 31, 2024 and 2023. There were no realized gains or losses for held to maturity debt securities during the three months ended March 31, 2024 and 2023.

Equity Securities

Included in this category are Community Reinvestment Act ("CRA") investments and the Company’s current other equity holdings of financial institutions. Equity securities are defined to include (a) preferred, common and other ownership interests in entities including partnerships, joint ventures and limited liability companies and (b) rights to acquire or dispose of ownership interests in entities at fixed or determinable prices.

The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31, 2024 and 2023:


	For the three months ended March 31,
(In thousands)	2024		2023
Net unrealized gains (losses) occurring during the period on equity securities	$	33	$	(544)
Net gains recognized during the period on equity securities sold during the period		21		222
Gains (losses) recognized during the reporting period on equity securities	$	54	$	(322)