Note 3 - Investment Securities

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

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

NOTE 3. INVESTMENT SECURITIES

The amortized cost and fair values of securities, together with unrealized gains and losses, were as follows:

	June 30, 2023									December 31, 2022
			Gross									Gross
	Amortized		Unrealized					Fair		Amortized		Unrealized					Fair
	Cost		Gains		(Losses)			Value		Cost		Gains		(Losses)			Value
	(In Thousands)
Available-for-Sale:
U.S. government and agency obligations	$	7,416	$	163	$	(205	)	$	7,374	$	2,575	$	2	$	(187	)	$	2,390
U.S. Treasury obligations		52,462		-		(6,404	)		46,058		58,715		-		(6,764	)		51,951
Municipal obligations		152,990		67		(13,865	)		139,192		190,811		77		(18,039	)		172,849
Corporate obligations		4,242		-		(411	)		3,831		7,240		1		(251	)		6,990
Mortgage-backed securities		30,739		-		(1,952	)		28,787		31,553		-		(1,900	)		29,653
Collateralized mortgage obligations		97,648		-		(9,536	)		88,112		90,812		-		(8,681	)		82,131
Asset-backed securities		12,672		43		(105	)		12,610		3,569		-		(38	)		3,531
Total	$	358,169	$	273	$	(32,478	)	$	325,964	$	385,275	$	80	$	(35,860	)	$	349,495

Proceeds from sale of available-for sale securities and the associated realized gains and losses were as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
	(In Thousands)
Proceeds from sale of available-for-sale securities	$	11,247		$	43,794		$	34,020		$	43,794
Gross realized gain on sale of available-for-sale securities	$	49		$	-		$	69		$	-
Gross realized loss on sale of available-for-sale securities		(47	)		(6	)		(291	)		(6	)
Net realized gain (loss) on sale of available-for-sale securities	$	2		$	(6	)	$	(222	)	$	(6	)

The amortized cost and fair value of securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2023
	Amortized		Fair
	Cost		Value
	(In Thousands)
Due in one year or less	$	4,354	$	4,344
Due from one to five years		28,757		26,662
Due from five to ten years		76,238		66,909
Due after ten years		120,433		111,150
		229,782		209,065
Mortgage-backed securities		30,739		28,787
Collateralized mortgage obligations		97,648		88,112
Total	$	358,169	$	325,964

As of  June 30, 2023 and December 31, 2022, securities with a fair value of $25,080,000 and $58,942,000, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

The Company’s investment securities that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve or more months were as follows:

	June 30, 2023
	Less Than 12 Months					12 Months or Longer
			Gross					Gross
	Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses
	(In Thousands)
U.S. government and agency obligations	$	798	$	(92	)	$	946	$	(113	)
U.S. Treasury obligations		-		-			46,058		(6,404	)
Municipal obligations		39,143		(848	)		86,487		(13,017	)
Corporate obligations		1,118		(132	)		2,713		(279	)
Mortgage-backed securities and collateralized mortgage obligations		23,173		(951	)		93,725		(10,537	)
Asset-backed securities		9,404		(105	)		-		-
Total	$	73,636	$	(2,128	)	$	229,929	$	(30,350	)

NOTE 3. INVESTMENT SECURITIES – continued

	December 31, 2022
	Less Than 12 Months					12 Months or Longer
			Gross					Gross
	Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses
	(In Thousands)
U.S. government and agency obligations	$	1,773	$	(187	)	$	-	$	-
U.S. Treasury obligations		10,969		(196	)		40,982		(6,568	)
Municipal obligations		128,036		(8,781	)		33,092		(9,258	)
Corporate obligations		4,994		(246	)		995		(5	)
Mortgage-backed securities and collateralized mortgage obligations		67,310		(3,647	)		44,444		(6,934	)
Asset-backed securities		3,531		(38	)		-		-
Total	$	216,613	$	(13,095	)	$	119,513	$	(22,765	)

As of  June 30, 2023 and December 31, 2022, there were, respectively, 326 and 388 securities in unrealized loss positions. Based on analysis of available-for-sale debt securities with unrealized losses as of June 30, 2023, the Company determined the decline in value was unrelated to credit losses and was primarily caused by changes in interest rates and market spreads subsequent to the initial purchase of the securities. The Company is not likely to be required to sell these securities prior to maturity. As a result, no ACL was recorded on available-for-sale securities at June 30, 2023. As part of this determination, consideration was given to the extent to which fair value was less than amortized cost, adverse security ratings by a rating agency and other factors.