Note 2 - Securities

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

The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale at  September 30, 2024 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Allowance for Credit Losses
	(In thousands)
Available for Sale
Municipal bonds	$	93,573	$	—	$	(12,210	)	$	81,363	$	—
U.S. government agency issued asset-backed securities (ABS agency)		13,312		16		(32	)		13,296		—
Corporate issued asset-backed securities (ABS corporate)		16,364		48		(21	)		16,391		—
Corporate issued debt securities (Corporate debt)		58,131		—		(4,073	)		54,058		—
U.S. Small Business Administration securities (SBA)		9,268		56		(7	)		9,317		—
Mortgage-backed securities:
U.S. government agency issued mortgage-backed securities (MBS agency)		88,822		167		(10,440	)		78,549		—
Non-agency issued mortgage-backed securities (MBS non-agency)		61,541		—		(3,655	)		57,886		—
Total securities available for sale	$	341,011	$	287	$	(30,438	)	$	310,860	$	—

The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale at December 31, 2023, are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value		Allowance for Credit Losses
	(In thousands)
Available for Sale
Municipal bonds	$	102,998	$	—	$	(15,237	)	$	87,761	$	—
ABS agency		11,847		—		(65	)		11,782		—
ABS corporate		5,370		—		(84	)		5,286		—
Corporate debt		56,515		—		(5,061	)		51,454		—
Mortgage-backed securities:
MBS agency		75,665		—		(12,418	)		63,247		—
MBS non-agency		81,555		—		(5,462	)		76,093		—
Total securities available for sale	$	333,950	$	—	$	(38,327	)	$	295,623	$	—

There were no securities classified as held-to-maturity at  September 30, 2024 and December 31, 2023. There was no allowance for credit losses on investment securities recorded at  September 30, 2024 and December 31, 2023, based on analysis performed by the Company.

Accrued interest receivable on available-for-sale debt securities totaled $2.4 million and $1.9 million as of  September 30, 2024 and December 31, 2023, respectively. Accrued interest receivable on securities is reported in accrued interest receivable on the Consolidated Balance Sheets and is excluded from the calculation of the allowance for credit losses on investment securities.

The following shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of September 30, 2024:

	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
	(In thousands)
Available for Sale
Municipal bonds	$	—		$	—	$	(12,210	)	$	81,363	$	(12,210	)	$	81,363
ABS agency		(32	)		9,520		—			—		(32	)		9,520
ABS corporate		(21	)		4,815		—			—		(21	)		4,815
Corporate debt		(50	)		1,640		(4,023	)		52,418		(4,073	)		54,058
SBA		(7	)		983		—			—		(7	)		983
Mortgage-backed securities:
MBS agency		(119	)		7,242		(10,321	)		51,487		(10,440	)		58,729
MBS non-agency		—			—		(3,655	)		56,845		(3,655	)		56,845
Total available-for-sale in a loss position	$	(229	)	$	24,200	$	(30,209	)	$	242,113	$	(30,438	)	$	266,313

The following shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of December 31, 2023:

	Less Than Twelve Months					Twelve Months or Longer					Total
	Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value
	(In thousands)
Available for Sale
Municipal bonds	$	—		$	—	$	(15,237	)	$	87,461	$	(15,237	)	$	87,461
ABS agency		(65	)		11,782		—			—		(65	)		11,782
ABS corporate		(84	)		3,771		—			—		(84	)		3,771
Corporate debt		—			—		(5,061	)		51,454		(5,061	)		51,454
Mortgage-backed securities:
MBS agency		(27	)		3,941		(12,391	)		59,305		(12,418	)		63,246
MBS non-agency		—			—		(5,462	)		76,086		(5,462	)		76,086
Total available-for-sale in a loss position	$	(176	)	$	19,494	$	(38,151	)	$	274,306	$	(38,327	)	$	293,800

There were 10 available-for-sale securities with unrealized losses of less than one year, and 145 available-for-sale securities with an unrealized loss of more than one year at September 30, 2024. There were 6 available-for-sale securities with unrealized losses of less than one year, and 156 available-for-sale securities with an unrealized loss of more than one year at December 31, 2023. Management believes that the unrealized losses on our investment securities relate principally to the general change in interest rates, market liquidity and demand, and market volatility that has occurred since the initial purchase, and such unrecognized losses or gains will continue to vary with general interest rate level and market fluctuations in the future. We do not believe the unrealized losses on our securities are related to a deterioration in credit quality. Certain investments in a loss position are guaranteed by government entities or government sponsored entities. The Company believes that it is unlikely that we would be required to sell these investments prior to a market price recovery or maturity. Based on the Company’s evaluation of these securities, no credit impairment was recorded at September 30, 2024, or December 31, 2023.

The amortized cost and estimated fair value of investment securities by contractual maturity are shown in the following tables at the dates indicated. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; therefore, these securities are shown separately.

	September 30, 2024
	Available-for-Sale
	Amortized Cost		Estimated Fair Value
	(In thousands)
Mortgage-backed securities:
Due within one year	$	19,249	$	19,091
Due after one through five years		4,264		4,226
Due after five through ten years		8,141		7,782
Due after ten years		118,709		105,336
Total mortgage-backed securities		150,363		136,435
All other investment securities:
Due within one year		1,000		815
Due after one through five years		20,574		19,857
Due after five through ten years		53,073		48,893
Due after ten years		116,001		104,860
Total all other investment securities		190,648		174,425
Total investment securities	$	341,011	$	310,860

	December 31, 2023
	Available-for-Sale
	Amortized Cost		Estimated Fair Value
	(In thousands)
Mortgage-backed securities:
Due within one year	$	25,279	$	25,017
Due after one through five years		16,622		16,029
Due after five through ten years		8,874		8,197
Due after ten years		106,445		90,097
Total mortgage-backed securities		157,220		139,340
All other investment securities:
Due within one year		300		300
Due after one through five years		18,187		17,384
Due after five through ten years		57,328		50,768
Due after ten years		100,915		87,831
Total all other investment securities		176,730		156,283
Total investment securities	$	333,950	$	295,623

Sales of available-for-sale securities were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024			2023
	(In thousands)
Proceeds from sales	$	—	$	—	$	21,048		$	—
Gross realized gains		—		—		—			—
Gross realized losses		—		—		(2,117	)		—