XML 19 R13.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Investment Securities
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
3.
INVESTMENT SECURITIES

The amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale are summarized as follows:

 

 

March 31, 2024

 

(In Thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Allowance for Credit Losses

 

 

Fair
Value

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Government Agency securities

 

$

12,743

 

 

$

106

 

 

$

—

 

 

$

—

 

 

$

12,849

 

US Government Treasury securities

 

 

4,942

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

4,944

 

Obligations of state and political subdivisions

 

 

49,231

 

 

 

55

 

 

 

(3,319

)

 

 

—

 

 

 

45,967

 

Mortgage-backed securities in government-sponsored entities

 

 

71,276

 

 

 

173

 

 

 

(3,489

)

 

 

—

 

 

 

67,960

 

Other securities

 

 

2,250

 

 

 

—

 

 

 

(21

)

 

 

—

 

 

 

2,229

 

 

 

$

140,442

 

 

$

336

 

 

$

(6,829

)

 

$

—

 

 

$

133,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
 Value

 

 

Allowance for
Credit Losses

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

15,000

 

 

$

—

 

 

$

(1,455

)

 

$

13,545

 

 

$

(507

)

Structured mortgage-backed securities

 

 

21,616

 

 

 

—

 

 

 

(892

)

 

 

20,724

 

 

 

—

 

 

 

$

36,616

 

 

$

—

 

 

$

(2,347

)

 

$

34,269

 

 

$

(507

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

(In Thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Allowance for Credit Losses

 

 

Fair
Value

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Government Agency securities

 

$

12,711

 

 

$

279

 

 

$

(5

)

 

$

—

 

 

$

12,985

 

US Government Treasury securities

 

 

4,925

 

 

 

17

 

 

 

—

 

 

 

—

 

 

 

4,942

 

Obligations of state and political subdivisions

 

 

49,640

 

 

 

420

 

 

 

(3,015

)

 

 

—

 

 

 

47,045

 

Mortgage-backed securities in government-sponsored entities

 

 

50,795

 

 

 

515

 

 

 

(3,129

)

 

 

—

 

 

 

48,181

 

Other securities

 

 

2,301

 

 

 

49

 

 

 

(13

)

 

 

—

 

 

 

2,337

 

 

 

$

120,372

 

 

$

1,280

 

 

$

(6,162

)

 

$

—

 

 

$

115,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Fair Value

 

 

Allowance for Credit Losses

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

15,000

 

 

$

—

 

 

$

(1,592

)

 

$

13,408

 

 

$

(512

)

Structured mortgage-backed securities

 

 

21,735

 

 

 

—

 

 

 

(907

)

 

 

20,828

 

 

 

—

 

 

 

$

36,735

 

 

$

—

 

 

$

(2,499

)

 

$

34,236

 

 

$

(512

)

 

 

The following tables summarize the Company's debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security type and length of time in a continuous unrealized loss position.

 

 

March 31, 2024

 

 

 

Less Than Twelve Months

 

 

Twelve Months or Greater

 

 

Total

 

(In Thousands)

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Government Agency securities

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

US Government Treasury securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Obligations of state and political subdivisions

 

 

13,306

 

 

 

(325

)

 

 

28,394

 

 

 

(2,994

)

 

 

41,700

 

 

 

(3,319

)

Mortgage-backed securities in government-sponsored entities

 

 

24,632

 

 

 

(197

)

 

 

31,369

 

 

 

(3,292

)

 

 

56,001

 

 

 

(3,489

)

Other securities

 

 

1,672

 

 

 

(9

)

 

 

557

 

 

 

(12

)

 

 

2,229

 

 

 

(21

)

 

 

$

39,610

 

 

$

(531

)

 

$

60,320

 

 

$

(6,298

)

 

$

99,930

 

 

$

(6,829

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

Less Than Twelve Months

 

 

Twelve Months or Greater

 

 

Total

 

(In Thousands)

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Government Agency Securities

 

$

1,995

 

 

$

(5

)

 

$

—

 

 

$

—

 

 

$

1,995

 

 

$

(5

)

Obligations of state and political subdivisions

 

 

4,836

 

 

 

(247

)

 

 

27,736

 

 

 

(2,768

)

 

 

32,572

 

 

 

(3,015

)

Mortgage-backed securities in government-sponsored entities

 

 

4,703

 

 

 

(136

)

 

 

31,249

 

 

 

(2,993

)

 

 

35,952

 

 

 

(3,129

)

Other securities

 

 

—

 

 

 

—

 

 

 

601

 

 

 

(13

)

 

 

601

 

 

 

(13

)

 

 

$

11,534

 

 

$

(388

)

 

$

59,586

 

 

$

(5,774

)

 

$

71,120

 

 

$

(6,162

)

No allowance for credit losses on available for sale debt securities was needed at March 31, 2024 or December 31, 2023. The Company reviews its position quarterly and believes that as of March 31, 2024 and December 31, 2023, the declines outlined in the above tables represent temporary declines, and the Company does not intend to sell, and does not believe it will be required to sell, these debt securities before recovery of their cost basis, which may be at maturity. There were 190 and 164 available for sale debt securities with unrealized losses at March 31, 2024 and December 31, 2023, respectively. The Company has concluded that the unrealized losses disclosed above are the result of interest rate changes and market conditions that are not expected to

result in the non-collection of principal and interest during the year. Accrued interest receivable on available for sale debt securities totaled $726 thousand at March 31, 2024 and is excluded from the estimate of credit losses.

There were 12 held to maturity debt securities with unrealized losses at March 31, 2024 and December 31, 2023, respectively.

The Company monitors the credit quality of corporate debentures held to maturity through the use of credit ratings, where available, and financial analysis, including capital monitoring and financial performance analysis. The Company monitors these securities on a quarterly basis.

The following table presents the activity in the allowance for credit losses for corporate debentures held to maturity for the three months ended March 31, 2024 and 2023.

 

 

March 31,

 

(in Thousands)

 

2024

 

 Balance, December 31, 2023

 

$

512

 

 Credit to allowance for credit losses

 

 

(5

)

 Balance, March 31, 2024

 

$

507

 

 

 

 

 

 

 

March 31,

 

(in Thousands)

 

2023

 

 Balance, December 31, 2022

 

$

-

 

 Impact of adopting ASC 326

 

 

601

 

 Securities charged-off

 

 

(68

)

 Balance, March 31, 2023

 

 

533

 

Accrued interest receivable on held-to-maturity debt securities totaled $187 at March 31, 2024 which is excluded from the estimate of credit losses.

As of March 31, 2024, amortized cost and fair value by contractual maturity, where applicable, are shown below. Actual maturities may differ from contractual maturities because the borrower may have the right to prepay obligations with or without penalty.

 

 

Available for Sale Securities

 

 

Held to Maturity Securities

 

(In Thousands)

 

Amortized
Cost

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

Due within one year

 

$

7,846

 

 

$

7,846

 

 

$

3,000

 

 

$

2,956

 

Due after one year through five years

 

 

13,106

 

 

 

12,883

 

 

 

3,000

 

 

 

2,890

 

Due after five years through ten years

 

 

19,421

 

 

 

18,641

 

 

 

9,000

 

 

 

7,698

 

Due after ten years

 

 

27,112

 

 

 

24,947

 

 

 

—

 

 

 

—

 

Mortgage-backed securities and Collateralized mortgage obligations

 

 

71,276

 

 

 

67,960

 

 

 

21,616

 

 

 

20,725

 

Other securities

 

 

1,681

 

 

 

1,672

 

 

 

—

 

 

 

—

 

 

 

$

140,442

 

 

$

133,949

 

 

$

36,616

 

 

$

34,269

 

 

The following table summarizes sales of debt securities for the three months ended March 31, 2023. There were no sales of debt securities for the three months ended March 31, 2024.

 

(In Thousands)

 

For the Three Months Ended March 31,

 

 

 

2023

 

 Proceeds

 $

 

1,847

 

 Gross gains

 

 

 

—

 

 Gross losses

 

 

2,370

 

 Net losses

 $

 

(2,370

)

 

 

The tax benefit (provision) related to these realized gains and losses was $498 for the three months ended March 31, 2023.

 

The Company had pledged debt securities with a carrying value of $62,455 and $65,935 to secure public deposits and certain borrowing capacity as of March 31, 2024 and December 31, 2023, respectively.