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Investment Securities
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
3.
INVESTMENT SECURITIES

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

 

 

December 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

 

$

13,017

 

 

$

96

 

 

$

(40

)

 

$

—

 

 

$

13,073

 

Obligations of state and political subdivisions

 

 

51,254

 

 

 

10

 

 

 

(4,063

)

 

 

—

 

 

 

47,201

 

Mortgage-backed securities in government-sponsored entities

 

 

88,289

 

 

 

61

 

 

 

(3,567

)

 

 

—

 

 

 

84,783

 

Other securities

 

 

542

 

 

 

—

 

 

 

(9

)

 

 

—

 

 

 

533

 

 

 

$

153,102

 

 

$

167

 

 

$

(7,679

)

 

$

—

 

 

$

145,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
 Value

 

 

Allowance for
Credit Losses

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

15,250

 

 

$

—

 

 

$

(984

)

 

$

14,266

 

 

$

(459

)

Structured mortgage-backed securities

 

 

16,717

 

 

 

6

 

 

 

(705

)

 

 

16,018

 

 

 

—

 

 

 

$

31,967

 

 

$

6

 

 

$

(1,689

)

 

$

30,284

 

 

$

(459

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Loss

 

 

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 show the Company's gross unrealized loss positions for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time the individual debt securities have been in a continuous unrealized loss position.

 

 

 

December 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

 

$

3,960

 

 

$

(40

)

 

$

—

 

 

$

—

 

 

$

3,960

 

 

$

(40

)

Obligations of state and political subdivisions

 

 

11,433

 

 

 

(273

)

 

 

34,345

 

 

 

(3,790

)

 

 

45,778

 

 

 

(4,063

)

Mortgage-backed securities in government-sponsored entities

 

 

45,629

 

 

 

(902

)

 

 

29,877

 

 

 

(2,665

)

 

 

75,506

 

 

 

(3,567

)

Other securities

 

 

—

 

 

 

—

 

 

 

407

 

 

 

(9

)

 

 

407

 

 

 

(9

)

 

 

$

61,022

 

 

$

(1,215

)

 

$

64,629

 

 

$

(6,464

)

 

$

125,651

 

 

$

(7,679

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 required at December 31, 2024 or December 31, 2023. The Company reviews its position quarterly and believes that as of December 31, 2024 and 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 210 and 164 available for sale debt securities with unrealized losses at December 31, 2024 and 2023, respectively. There were 10 and 12 held-to-maturity debt securities with unrealized losses at December 31, 2024 and 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 $817 and $505 at December 31, 2024 and 2023, respectively, which is excluded from the estimate of credit losses.

Accrued interest receivable on held-to-maturity debt securities totaled $278 and $288 at December 31, 2024 and 2023, respectively, which is excluded from the estimate of credit losses.

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 tables presents the activity in the allowance for credit losses for corporate debentures held to maturity for the twelve months ended December 31, 2024 and 2023.

 

 

 

For the Twelve Months Ended December 31,

 

(in Thousands)

 

2024

 

Balance, December 31, 2023

 

$

512

 

Changes in the allowance for credit losses

 

 

(53

)

Balance, December 31, 2024

 

$

459

 

 

 

 

 

 

For the Twelve Months Ended December 31,

 

(in Thousands)

 

2023

 

Balance, December 31, 2022

 

$

—

 

Impact of adopting ASC 326

 

 

602

 

Changes in the allowance for credit losses

 

 

51

 

Securities charged-off

 

 

(141

)

Balance, December 31, 2023

 

$

512

 

 

As of December 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

 

$

660

 

 

$

655

 

 

$

3,000

 

 

$

2,982

 

Due after one year through five years

 

 

14,109

 

 

 

13,779

 

 

 

3,000

 

 

 

2,944

 

Due after five years through ten years

 

 

21,973

 

 

 

20,928

 

 

 

9,250

 

 

 

8,340

 

Due after ten years

 

 

27,529

 

 

 

24,912

 

 

 

—

 

 

 

—

 

Mortgage-backed securities and Collateralized mortgage obligations

 

 

88,289

 

 

 

84,783

 

 

 

16,717

 

 

 

16,018

 

Other securities

 

 

542

 

 

 

533

 

 

 

—

 

 

 

—

 

 

 

$

153,102

 

 

$

145,590

 

 

$

31,967

 

 

$

30,284

 

 

The following table summarizes sales of debt securities:

 

(In Thousands)

 

For the year ended December 31,

 

 

 

2024

 

 

2023

 

 Proceeds

 $

 

1,691

 

 $

 

91,364

 

 Gross gains

 

 

 

4

 

 

 

 

—

 

 Gross losses

 

 

—

 

 

 

2,370

 

 Net gain (loss)

 $

 

4

 

 $

 

(2,370

)

 

The tax (provision) benefit related to these realized gains and losses was approximately ($1) and $498 as of December 31, 2024 and December 31, 2023, respectively.

 

The Company had pledged debt securities with a carrying value of $57.9 million and $65.9 million to secure public monies as of December 31, 2024 and 2023, respectively.