Investment Securities (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost and Estimated Fair Value of Investment Securities

The amortized cost and estimated fair value of available-for-sale and held-to-maturity investment securities are summarized as follows:

	September 30, 2024
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
Available-for-Sale Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	79,254	$	539	$	(2,963	)	$	76,830
State and political subdivisions		34,236		101		(1,295	)		33,042
Corporate		10,975		248		(267	)		10,956
Asset backed securities		19,295		31		(166	)		19,160
Residential mortgage-backed - US agency		35,703		216		(685	)		35,234
Collateralized mortgage obligations - US agency		14,897		128		(738	)		14,287
Collateralized mortgage obligations - Private label		84,429		298		(2,465	)		82,262
Total		278,789		1,561		(8,579	)		271,771
Equity investment securities:
Common stock - financial services industry		206		-		-			206
Total		206		-		-			206
Total available-for-sale	$	278,995	$	1,561	$	(8,579	)	$	271,977
Held-to-Maturity Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	3,658	$	-	$	(200	)	$	3,458
State and political subdivisions		17,341		35		(1,506	)		15,870
Corporate		44,395		20		(1,742	)		42,673
Asset backed securities		13,709		19		(491	)		13,237
Residential mortgage-backed - US agency		6,746		42		(491	)		6,297
Collateralized mortgage obligations - US agency		12,517		5		(1,060	)		11,462
Collateralized mortgage obligations - Private label		63,281		270		(1,576	)		61,975
Total		161,647		391		(7,066	)		154,972
Less: Allowance for credit losses		262		-		-			-
Total held-to-maturity	$	161,385	$	391	$	(7,066	)	$	154,972

	December 31, 2023
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
Available-for-Sale Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	82,588	$	754	$	(3,259	)	$	80,083
State and political subdivisions		34,588		145		(1,809	)		32,924
Corporate		11,008		276		(365	)		10,919
Asset backed securities		20,251		-		(359	)		19,892
Residential mortgage-backed - US agency		25,446		57		(1,085	)		24,418
Collateralized mortgage obligations - US agency		13,058		116		(995	)		12,179
Collateralized mortgage obligations - Private label		81,812		128		(3,845	)		78,095
Total		268,751		1,476		(11,717	)		258,510
Equity investment securities:
Common stock - financial services industry		206		-		-			206
Total		206		-		-			206
Total available-for-sale	$	268,957	$	1,476	$	(11,717	)	$	258,716
Held-to-Maturity Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	3,760	$	-	$	(304	)	$	3,456
State and political subdivisions		16,576		28		(1,874	)		14,730
Corporate		45,427		9		(3,281	)		42,155
Asset backed securities		16,860		-		(1,180	)		15,680
Residential mortgage-backed - US agency		6,974		15		(665	)		6,324
Collateralized mortgage obligations - US agency		13,221		-		(1,293	)		11,928
Collateralized mortgage obligations - Private label		76,819		120		(3,178	)		73,761
Total		179,637		172		(11,775	)		168,034
Less: Allowance for credit losses		351		-		-			-
Total held-to-maturity	$	179,286	$	172	$	(11,775	)	$	168,034

Schedule of Amortized Cost and Estimated Fair Value of Debt Investments by Contractual Maturity

The amortized cost and estimated fair value of debt investments at September 30, 2024 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Amounts disclosed are gross values and do not include any allowance for credit loss.

	Available-for-Sale				Held-to-Maturity
	Amortized		Estimated		Amortized		Estimated
(In thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	7,075	$	7,300	$	6,709	$	6,672
Due after one year through five years		10,013		9,704		18,439		18,257
Due after five years through ten years		41,457		38,109		38,105		35,584
Due after ten years		85,215		84,875		15,850		14,725
Sub-total		143,760		139,988		79,103		75,238
Residential mortgage-backed - US agency		35,703		35,234		6,746		6,297
Collateralized mortgage obligations - US agency		14,897		14,287		12,517		11,462
Collateralized mortgage obligations - Private label		84,429		82,262		63,281		61,975
Totals	$	278,789	$	271,771	$	161,647	$	154,972

Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category and Length of Time that Individual Securities have Continuous Unrealized Loss Position

The Company’s investment securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

	September 30, 2024
	Less than Twelve Months							Twelve Months or More							Total
	Number of							Number of							Number of
	Individual		Unrealized			Fair		Individual		Unrealized			Fair		Individual		Unrealized			Fair
(In thousands)	Securities		Losses			Value		Securities		Losses			Value		Securities		Losses			Value
Available-for-Sale Portfolio
US Treasury, agencies and GSEs		7	$	(58	)	$	21,910		4	$	(2,905	)	$	27,910		11	$	(2,963	)	$	49,820
State and political subdivisions		1		(9	)		2,009		20		(1,286	)		25,472		21		(1,295	)		27,481
Corporate		-		-			-		4		(267	)		3,434		4		(267	)		3,434
Asset backed securities		1		(10	)		1,521		8		(156	)		9,018		9		(166	)		10,539
Residential mortgage-backed - US agency		5		(85	)		7,894		9		(600	)		6,323		14		(685	)		14,217
Collateralized mortgage obligations - US agency		1		(1	)		1,150		11		(737	)		7,361		12		(738	)		8,511
Collateralized mortgage obligations - Private label		9		(64	)		16,640		27		(2,401	)		30,362		36		(2,465	)		47,002
Totals		24	$	(227	)	$	51,124		83	$	(8,352	)	$	109,880		107	$	(8,579	)	$	161,004
Held-to-Maturity Portfolio
US Treasury, agencies and GSEs		-	$	-		$	-		2	$	(200	)	$	3,458		2	$	(200	)	$	3,458
State and political subdivisions		1		(1	)		501		17		(1,505	)		13,429		18		(1,506	)		13,930
Corporate		-		-			-		37		(1,742	)		30,355		37		(1,742	)		30,355
Asset backed securities		1		(4	)		588		5		(487	)		7,066		6		(491	)		7,654
Residential mortgage-backed - US agency		-		-			-		7		(491	)		5,019		7		(491	)		5,019
Collateralized mortgage obligations - US agency		-		-			-		9		(1,060	)		10,837		9		(1,060	)		10,837
Collateralized mortgage obligations - Private label		-		-			-		37		(1,576	)		46,238		37		(1,576	)		46,238
Totals		2	$	(5	)	$	1,089		114	$	(7,061	)	$	116,402		116	$	(7,066	)	$	117,491

	December 31, 2023
	Less than Twelve Months							Twelve Months or More							Total
	Number of							Number of							Number of
	Individual		Unrealized			Fair		Individual		Unrealized			Fair		Individual		Unrealized			Fair
(In thousands)	Securities		Losses			Value		Securities		Losses			Value		Securities		Losses			Value
Available-for-Sale Portfolio
US Treasury, agencies and GSEs		3	$	(13	)	$	5,990		3	$	(3,246	)	$	25,794		6	$	(3,259	)	$	31,784
State and political subdivisions		-		-			-		20		(1,809	)		26,432		20		(1,809	)		26,432
Corporate		-		-			-		5		(365	)		4,351		5		(365	)		4,351
Asset backed securities		3		(65	)		5,907		10		(294	)		13,985		13		(359	)		19,892
Residential mortgage-backed - US agency		1		(14	)		2,477		15		(1,071	)		14,931		16		(1,085	)		17,408
Collateralized mortgage obligations - US agency		-		-			-		11		(995	)		8,123		11		(995	)		8,123
Collateralized mortgage obligations - Private label		10		(274	)		18,067		33		(3,571	)		46,483		43		(3,845	)		64,550
Totals		17	$	(366	)	$	32,441		97	$	(11,351	)	$	140,099		114	$	(11,717	)	$	172,540
Held-to-Maturity Portfolio
US Treasury, agencies and GSE's		-	$	-		$	-		2	$	(304	)	$	3,456		2	$	(304	)	$	3,456
State and political subdivisions		4		(2	)		575		14		(1,872	)		12,718		18		(1,874	)		13,293
Corporate		1		(61	)		439		39		(3,220	)		33,532		40		(3,281	)		33,971
Asset backed securities		2		(8	)		2,877		8		(1,172	)		10,652		10		(1,180	)		13,529
Residential mortgage-backed - US agency		-		-			-		7		(665	)		4,942		7		(665	)		4,942
Collateralized mortgage obligations - US agency		-		-			-		10		(1,293	)		11,928		10		(1,293	)		11,928
Collateralized mortgage obligations - Private label		4		(38	)		5,827		43		(3,140	)		60,260		47		(3,178	)		66,087
Totals		11	$	(109	)	$	9,718		123	$	(11,666	)	$	137,488		134	$	(11,775	)	$	147,206

Schedule of Allowance for Credit Losses on Investment Securities Classified as Held-to-maturity

The following tables depicts a rollforward of the allowance for credit losses on investment securities classified as held-to-maturity for the three months ended September 30, 2024 and 2023:

(In thousands)	Government Issued and Government Sponsored Enterprise Securities		Mortgage and Asset-backed Securities		Securities Issued By State and Political Subdivisions		Corporate Securities			Total
Balance, June 30, 2024	$	-	$	-	$	1	$	292		$	293
Provision for credit losses		-		-		-		(31	)		(31	)
Allowance on purchased financial assets with credit deterioration		-		-		-		-			-
Charge-offs of securities		-		-		-		-			-
Recoveries		-		-		-		-			-
Balance, September 30, 2024	$	-	$	-	$	1	$	261		$	262

	Government Issued and Government Sponsored Enterprise Securities		Mortgage and Asset-backed Securities		Securities Issued By State and Political Subdivisions		Corporate Securities		Total
Balance, June 30, 2023	$	-	$	22	$	2	$	397	$	421
Provision for credit losses		-		-		-		5		5
Allowance on purchased financial assets with credit deterioration		-		-		-		-		-
Charge-offs of securities		-		-		-		-		-
Recoveries		-		-		-		-		-
Balance, September 30, 2023	$	-	$	22	$	2	$	402	$	426

The following tables depicts a rollforward of the allowance for credit losses on investment securities classified as held-to-maturity for the nine months ended September 30, 2024 and 2023:

(In thousands)	Government Issued and Government Sponsored Enterprise Securities		Mortgage and Asset-backed Securities		Securities Issued By State and Political Subdivisions			Corporate Securities			Total
Balance, December 31, 2023	$	-	$	-	$	2		$	350		$	352
Provision for credit losses		-				(1	)		(89	)		(90	)
Allowance on purchased financial assets with credit deterioration		-		-		-			-			-
Charge-offs of securities		-		-		-			-			-
Recoveries		-		-		-			-			-
Balance, September 30, 2024	$	-	$	-	$	1		$	261		$	262

(In thousands)	Government Issued and Government Sponsored Enterprise Securities		Mortgage and Asset-backed Securities			Securities Issued By State and Political Subdivisions		Corporate Securities			Total
Balance, December 31, 2022	$	-	$	-		$	-	$	-		$	-
Adjustment for the adoption of ASU 2016-13		-		40			1		409			450
Provision for credit losses		-		(18	)		1		(7	)		(24	)
Allowance on purchased financial assets with credit deterioration		-		-			-		-			-
Charge-offs of securities		-		-			-		-			-
Recoveries		-		-			-		-			-
Balance, September 30, 2023	$	-	$	22		$	2	$	402		$	426

Schedule of Amortized Cost of Debt Securities Categorized as Held-to-maturity Aggregated by Credit Quality

The following table summarizes the amortized cost of debt securities categorized as HTM at September 30, 2024 and December 31, 2023, aggregated by credit quality indicators:

(In thousands)	September 30, 2024		December 31, 2023
AAA or equivalent	$	33,922	$	42,476
AA or equivalent, including securities issued by the United States Government or Government Sponsored Enterprises		35,121		49,479
A or equivalent		13,030		19,021
BBB or equivalent		16,777		16,304
BB or equivalent		986		983
Unrated		61,811		51,374
Total	$	161,647	$	179,637

Schedule of Gross Realized Gains (Losses) on Sale and Redemptions of Securities

Gross realized (losses) gains on sales and redemptions of available-for-sale and held-to-maturity securities for the indicated periods are detailed below:

	For the three months						For the nine months
	ended September 30,						ended September 30,
(In thousands)	2024			2023			2024			2023
Realized gains on investments	$	-		$	-		$	750		$	2,021
Realized losses on investments		(188	)		(13	)		(1,070	)		(1,961	)
Total	$	(188	)	$	(13	)	$	(320	)	$	60