Note 6 - Securities -

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

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

Note 6 – Securities –

The amortized cost and fair values of securities available for sale as of December 31, 2022 and 2021 are summarized as follows:

	December 31, 2022
	(Dollars in thousands)
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Treasury Securities	$	32,783	$	-	$	2,668	$	30,115
U.S. Government Agencies		50,288		-		2,916		47,372
Corporate Securities		48,475		25		2,496		46,004
Mortgage-Backed Securities		506,671		267		55,213		451,725
Municipal Securities		347,382		11		31,858		315,535
Total Securities Available for Sale	$	985,599	$	303	$	95,151	$	890,751

	December 31, 2021
	(Dollars in thousands)
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Treasury Securities	$	22,751	$	-	$	437	$	22,314
U.S. Government Agencies		27,867		2		376		27,493
Corporate Securities		45,876		812		106		46,582
Mortgage-Backed Securities		555,528		3,246		6,435		552,339
Municipal Securities		370,421		4,100		2,188		372,333
Total Securities Available for Sale	$	1,022,443	$	8,160	$	9,542	$	1,021,061

The following tables present a summary of securities with gross unrealized losses and fair values at December 31, 2022 and 2021, aggregated by investment category and length of time in a continued unrealized loss position. Due to the nature of these investments and current prevailing market prices, these unrealized losses are considered a temporary impairment of the securities.

	December 31, 2022
	Less Than 12 Months				12 Months or Greater				Total
	(Dollars in thousands)
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury Securities	$	9,702	$	374	$	20,413	$	2,294	$	30,115	$	2,668
U.S. Government Agencies		24,405		595		22,967		2,321		47,372		2,916
Corporate Securities		19,564		1,359		6,385		1,137		25,949		2,496
Mortgage-Backed Securities		115,692		7,473		324,043		47,740		439,735		55,213
Municipal Securities		143,035		10,206		131,944		21,652		274,979		31,858
Total Securities Available for Sale	$	312,398	$	20,007	$	505,752	$	75,144	$	818,150	$	95,151

	December 31, 2021
	Less Than 12 Months				12 Months or Greater				Total
	(Dollars in thousands)
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury Securities	$	22,314	$	437	$	-	$	-	$	22,314	$	437
U.S. Government Agencies		24,980		376		-		-		24,980		376
Corporate Securities		7,350		106		-		-		7,350		106
Mortgage-Backed Securities		407,986		6,108		18,985		327		426,971		6,435
Municipal Securities		145,649		1,872		10,161		316		155,810		2,188
Total Securities Available for Sale	$	608,279	$	8,899	$	29,146	$	643	$	637,425	$	9,542

Management evaluates securities for other than temporary impairment when economic and market conditions warrant such evaluations. Consideration is given to the extent and length of time the fair value has been below cost, the reasons for the decline in value, and the Company’s intent to sell a security or whether it is more likely than not that the Company will be required to sell the security before the recovery of its amortized cost. The Company developed a process to identify securities that could potentially have a credit impairment that is other than temporary. This process involves evaluating each security for impairment by monitoring credit performance, collateral type, collateral geography, loan-to-value ratios, credit scores, loss severity levels, pricing levels, downgrades by rating agencies, cash flow projections and other factors as indicators of potential credit issues. When the Company determines that a security is deemed to be other than temporarily impaired, an impairment loss is recognized.

The amortized cost and fair values of securities available for sale as of December 31, 2022 by contractual maturity are shown below. Actual maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties.

	Amortized		Fair
	Cost		Value
	(Dollars in thousands)
Less Than One Year	$	18,071	$	17,908
One to Five Years		232,550		218,789
Over Five to Ten Years		373,007		336,559
Over Ten Years		361,971		317,495
Total Securities Available for Sale	$	985,599	$	890,751

Securities available for sale with a fair value of $482.7 million and $373.4 million, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law as of December 31, 2022 and 2021.

There were $9,000, $593,000 and $293,000 realized gross gains from sales or redemptions of securities for the years ended December 31, 2022, 2021 and 2020, respectively. There were $57,000, $215,000 and $158,000 realized gross losses from sales or redemptions of securities for the years ended December 31, 2022, 2021 and 2020, respectively.

Other Equity Securities and VIEs

The Company has invested in the Federal Home Loan Bank of Dallas which is included in other equity securities and reflected at cost in these financial statements. The cost of these securities was $19.7 million and $5.3 million, respectively, at December 31, 2022 and 2021. The Federal Home Loan Bank stock is pledged to secure advances from the Federal Home Loan Bank of Dallas at both December 31, 2022 and 2021. The Company also has investments of $302,000 in TIB National Association, $562,000 in Bankers Insurance, LLC at both December 31, 2022 and 2021. The Company also has investments in First National Banker's Bank of $2.2 million and $2.0 million and Senior Housing Crime Prevention Foundation stock of $501,000 and $502,000 at December 31, 2022 and 2021, respectively. These investments are carried at cost, less any impairment, due to the lack of a quoted market price and a ready market for these types of investments.

VIEs are legal entities that either do not have sufficient equity to finance their activities without the support from other parties or whose equity investors lack a controlling financial interest. The Company has investments in certain partnerships and limited liability entities that have been evaluated and determined to be VIEs. Consolidation of a VIE is appropriate if a reporting entity holds a controlling financial interest in the VIE and is the primary beneficiary. The Company is not the primary beneficiary and does not hold a controlling interest in the VIEs as it does not have the power to direct the activities that most significantly impact the VIEs’ economic performance.

Small Business Investment Companies (“SBIC”) and financial technology (“Fintech”) funds at December 31, 2022 and 2021 are summarized below.

	December 31,
	2022		2021
	(Dollars in thousands)
McLarty Capital Partners SBIC, L.P.	$	878	$	1,432
McLarty Capital Partners SBIC II, L.P.		2,437		2,246
Firmament Capital Partners SBIC III, L.P.		1,787		1,033
Bluehenge Capital Secured Debt SBIC, L.P.		3,934		1,682
Bluehenge Capital Secured Debt SBIC II, L.P.		296		-
New Louisiana Agnel Fund 2, LLC		49		37
Pharos Capital Partners IV-A, L.P.		356		211
Valesco Fund II, LP		1,147		-
GP Capital Partners, LP		277		-
BankTech Ventures, LP		77		60
Jam Fintop BankTech, LP		340		161
Ledyard Capital Managers, LLC		928		989
Mendon Ventures Banktech Fund I, LP		896		154
Castle Creek Launchpad Fund I, LP		211		-
Work America Capital Fund I, LP		629		-
	$	14,242	$	8,005