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Debt Securities
 6 Months Ended
Jun. 30, 2025
Debt Securities [Abstract]  
Debt Securities
Note 4: Debt Securities
 
The following table summarizes the amortized cost and fair value of debt securities available-for-sale at June 30, 2025 and December 31, 2024 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss):
 
 

 
Amortized Cost
     
Gross Unrealized
Gains
     
Gross Unrealized
Losses
       
Fair Value
  
(in thousands)
  
Available-for-sale as of June 30, 2025
                        
U.S. federal agencies
  
$
42
    
$
-
    
$
-
    
$
42
  
Mortgage-backed securities(1)(2)
    
29,822
      
-
      
(2,579
)
    
27,243
  
State and political subdivisions
    
20,647
      
-
      
(1,045
)
    
19,602
  
U.S. treasuries
    
6,016
      
-
      
(510
)
    
5,506
  
Corporate debt securities
    
5,500
      
-
      
(723
)
    
4,777
  
Total available-for-sale
    
62,027
      
-
      
(4,857
)
    
57,170
  
Total debt securities
    
62,027
      
-
      
(4,857
)
    
57,170
  

     
Amortized Cost
       
Gross Unrealized
Gains
       
Gross Unrealized
Losses
       
Fair Value
  
(in thousands)
    
Available-for-sale as of December 31, 2024
                        
U.S. federal agencies
  
$
64
    
$
-
    
$
-
    
$
64
  
Mortgage-backed securities(1)(2)
    
33,704
      
-
      
(3,508
)
    
30,196
  
State and political subdivisions
    
21,156
      
-
      
(1,430
)
    
19,726
  
U.S. treasuries
    
6,021
      
-
      
(695
)
    
5,326
  
Corporate debt securities
    
5,500
      
-
      
(871
)
    
4,629
  
Total available-for-sale
    
66,445
      
-
      
(6,504
)
    
59,941
  
Total debt securities
    
66,445
      
-
      
(6,504
)
    
59,941
  

(1) All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities.
(2) Included in amortized cost of mortgage-backed securities is $20.47 million and $21.97 million of residential mortgage-backed securities and $9.35 million and $11.73 million of commercial mortgage-backed securities as of June 30, 2025 and December 31, 2024, respectively.
The amortized cost and estimated fair value of investment securities at June 30, 2025 and December 31, 2024, by contractual maturity, are shown below. The expected life of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay the underlying mortgage loans with or without call or prepayment penalties.
 
(in thousands)
  
Amortized Cost
    
Fair Value
  
Available-for-sale as of June 30, 2025
            
Due in one year or less
  
$
2,524
    
$
2,510
  
Due after one year through five years
    
15,335
      
14,644
  
Due after five years through ten years
    
14,346
      
12,773
  
Due after ten years
    
-
      
-
  
Mortgage-backed securities
    
29,822
      
27,243
  
Total available-for-sale
    
62,027
      
57,170
  

(in thousands)
  
Amortized Cost
    
Fair Value
  
Available-for-sale as of December 31, 2024
            
Due in one year or less
  
$
2,061
    
$
2,028
  
Due after one year through five years
    
16,345
      
15,315
  
Due after five years through ten years
    
14,335
      
12,402
  
Due after ten years
    
-
      
-
  
Mortgage-backed securities
    
33,704
      
30,196
  
Total available-for-sale
    
66,445
      
59,941
  

There were no holdings of securities of issuers in an amount greater than 10% of stockholders’ equity at June 30, 2025.

The following table presents a summary of realized gains and losses from the sale, prepayment and call of debt securities for the three and six months ended June 30, 2025 and June 30, 2024.
 
   
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
(in thousands)
                        
Proceeds from sales, maturities, prepayments and calls
  
$
3,170
    
$
86,214
    
$
4,315
    
$
188,536
  
                                 
Gross realized gains on sales, prepayments and calls
    
-
      
-
      
-
      
-
  
Gross realized losses on sales, prepayments and calls
    
-
      
-
      
-
      
-
  
Total realized (losses), net
  
$
-
    
$
-
    
$
-
    
$
-
  

The following table details book value of pledged securities as of June 30, 2025 and December 31, 2024:
 
(in thousands)
  
June 30,
2025
    
December 31,
2024
  
Book value of pledged securities
  
$
17,946
    
$
19,071
  
The following table details gross unrealized losses and fair values of investment securities aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2025 and December 31, 2024. As of June 30, 2025, the Company had the ability and intent to hold the debt securities classified as available-for-sale for a period of time sufficient for a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying debt securities were purchased or acquired. The fair value of those debt securities having unrealized losses is expected to recover as the securities approach their maturity date or repricing date, or if market yields for such investments decline. Management has no intent or requirement to sell before the recovery of the unrealized loss; therefore, no impairment loss was realized in the Company’s consolidated statements of comprehensive income. As of June 30, 2025 and December 31, 2024, there was no allowance for credit losses recorded related to investment securities.
 
   
Less than Twelve Months
    
Twelve Months or Longer
    
Total
  
     
Fair Value
    
Gross Unrealized
Losses
    
Fair Value
    
Gross Unrealized
Losses
      
Fair Value
    
Gross Unrealized
Losses
  
                         
(in thousands)
                                    
Available-for-sale as of June 30, 2025
                                    
U.S. federal agencies
  
$
-
    
$
-
    
$
5
    
$
-
    
$
5
    
$
-
  
Mortgage-backed securities
    
-
      
-
      
27,243
      
(2,579
)
    
27,243
      
(2,579
)
State and political subdivisions(1)
    
-
      
-
      
19,102
      
(1,045
)
    
19,102
      
(1,045
)
U.S. treasuries
    
-
      
-
      
5,506
      
(510
)
    
5,506
      
(510
)
Corporate debt securities(2)
    
-
      
-
      
4,777
      
(723
)
    
4,777
      
(723
)
Total available-for-sale
  
$
-
    
$
-
    
$
56,633
    
$
(4,857
)
  
$
56,633
    
$
(4,857
)

   
Less than Twelve Months
    
Twelve Months or Longer
    
Total
  
     
Fair Value
    
Gross Unrealized
Losses
      
Fair Value
    
Gross Unrealized
Losses
      
Fair Value
    
Gross Unrealized
Losses
  
                         
(in thousands)
                                    
Available-for-sale as of December 31, 2024
                                    
U.S. federal agencies
  
$
-
    
$
-
    
$
64
    
$
-
    
$
64
    
$
-
  
Mortgage-backed securities
    
-
      
-
      
30,196
    
$
(3,508
)
    
30,196
      
(3,508
)
State and political subdivisions(1)
    
499
      
-
      
19,227
    
$
(1,430
)
    
19,726
      
(1,430
)
U.S. treasuries
    
-
      
-
      
5,326
    
$
(695
)
    
5,326
      
(695
)
Corporate debt securities(2)
    
-
      
-
      
4,629
    
$
(871
)
    
4,629
      
(871
)
Total available-for-sale
  
$
499
    
$
-
    
$
59,442
    
$
(6,504
)
  
$
59,941
    
$
(6,504
)

(1) Of our state and political subdivision securities, $18.18 million and $17.83 million are rated BBB+ or better and $1.43 million and $1.90 million are not rated as of June 30, 2025 and December 31, 2024, respectively.
(2) Our corporate debt securities are not rated.