| Securities |
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 | | Gross | | | Allowance | | | | | | Amortized | | unrealized | | unrealized | | | for credit | | Estimated | (In thousands) | | cost | | gains | | losses | | | 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 | | | 29 | | | (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 | | | 75 | | | — | | | — | | | 1,262 | Residential mortgage-backed securities | | | 6,902 | | | — | | | (2,370) | | | — | | | 4,532 | Total debt securities held to maturity | | $ | 36,089 | | $ | 75 | | $ | (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) |
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