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Investment Securities
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
2.
INVESTMENT SECURITIES

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

 

 

June 30, 2025

 

(In Thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Allowance for Credit Losses

 

 

Fair
Value

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Government Agency securities

 

$

13,177

 

 

$

186

 

 

$

(18

)

 

$

—

 

 

$

13,345

 

Obligations of state and political subdivisions

 

 

50,758

 

 

 

16

 

 

 

(4,455

)

 

 

—

 

 

 

46,319

 

Mortgage-backed securities in government-sponsored entities

 

 

111,564

 

 

 

544

 

 

 

(2,554

)

 

 

—

 

 

 

109,554

 

Other securities

 

 

358

 

 

 

—

 

 

 

(7

)

 

 

—

 

 

 

351

 

 

 

$

175,857

 

 

$

746

 

 

$

(7,034

)

 

$

—

 

 

$

169,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
 Value

 

 

Allowance for
Credit Losses

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

12,250

 

 

$

—

 

 

$

(728

)

 

$

11,522

 

 

$

(475

)

Structured mortgage-backed securities

 

 

15,034

 

 

 

6

 

 

 

(458

)

 

 

14,582

 

 

 

—

 

 

 

$

27,284

 

 

$

6

 

 

$

(1,186

)

 

$

26,104

 

 

$

(475

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

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.

 

 

June 30, 2025

 

 

 

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

 

$

3,982

 

 

$

(18

)

 

$

—

 

 

$

—

 

 

$

3,982

 

 

$

(18

)

Obligations of state and political subdivisions

 

 

10,961

 

 

 

(309

)

 

 

33,554

 

 

 

(4,146

)

 

 

44,515

 

 

 

(4,455

)

Mortgage-backed securities in government-sponsored entities

 

 

31,384

 

 

 

(375

)

 

 

31,339

 

 

 

(2,179

)

 

 

62,723

 

 

 

(2,554

)

Other securities

 

 

—

 

 

 

—

 

 

 

351

 

 

 

(7

)

 

 

351

 

 

 

(7

)

 

 

$

46,327

 

 

$

(702

)

 

$

65,244

 

 

$

(6,332

)

 

$

111,571

 

 

$

(7,034

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

No allowance for credit losses on available for sale debt securities was needed at June 30, 2025 or December 31, 2024. The Company reviews its position quarterly and believes that as of June 30, 2025 and December 31, 2024, 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 204 and 210 available for sale debt securities with unrealized losses at June 30, 2025 and December 31, 2024, 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 $915 at June 30, 2025 and is excluded from the estimate of credit losses.

There were nine and ten held to maturity debt securities with unrealized losses at June 30, 2025 and December 31, 2024, 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 tables present the activity in the allowance for credit losses for corporate debentures held to maturity for the three and six months ended June 30, 2025 and 2024.

 

 

 

For the Three Months Ended June 30,

 

(in Thousands)

 

2025

 

 Balance, March 31, 2025

 

$

421

 

 Changes in the allowance for credit losses

 

 

54

 

 Balance June 30, 2025

 

$

475

 

 

 

 

 

 

 

For the Three Months Ended June 30,

 

(in Thousands)

 

2024

 

 Balance, March 31, 2024

 

$

507

 

 Changes in the allowance for credit losses

 

 

(5

)

 Balance June 30, 2024

 

$

502

 

 

 

 

 

For the Six Months Ended June 30,

 

(in Thousands)

 

2025

 

 Balance, December 31, 2024

 

$

459

 

 Changes in the allowance for credit losses

 

 

16

 

 Balance, June 30, 2025

 

$

475

 

 

 

 

 

 

 

For the Six Months Ended June 30,

 

(in Thousands)

 

2024

 

 Balance, December 31, 2023

 

$

512

 

 Credit to allowance for credit losses

 

 

(10

)

 Balance, June 30, 2024

 

$

502

 

Accrued interest receivable on held-to-maturity debt securities totaled $197 at June 30, 2025 which is excluded from the estimate of credit losses.

As of June 30, 2025, 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

 

$

222

 

 

$

222

 

 

$

—

 

 

$

—

 

Due after one year through five years

 

 

16,430

 

 

 

16,161

 

 

 

3,000

 

 

 

2,970

 

Due after five years through ten years

 

 

22,142

 

 

 

21,327

 

 

 

9,250

 

 

 

8,552

 

Due after ten years

 

 

25,141

 

 

 

21,954

 

 

 

—

 

 

 

—

 

Mortgage-backed securities and Collateralized mortgage obligations

 

 

111,564

 

 

 

109,554

 

 

 

15,034

 

 

 

14,582

 

Other securities

 

 

358

 

 

 

351

 

 

 

—

 

 

 

—

 

 

 

$

175,857

 

 

$

169,569

 

 

$

27,284

 

 

$

26,104

 

 

The following tables summarize sales of debt securities for the three and six months ended June 30, 2024. There were no sales of debt securities for the three and six months ended June 30, 2025.

 

 

 

For the Three Months Ended June 30,

 

(In Thousands)

 

2024

 

 Proceeds

$

1,691

 

 Gross gains

 

4

 

 Gross losses

 

—

 

 Net gains (losses)

$

4

 

 

 

 

 

 

 

For the Six Months Ended June 30,

 

(In Thousands)

 

2024

 

 Proceeds

$

1,691

 

 Gross gains

 

 

4

 

 Gross losses

 

—

 

 Net gains (losses)

$

4

 

 

The tax provision related to these realized gains and losses was approximately $1 as of three and six months ended June 30, 2024.

 

The Company had pledged debt securities with a carrying value of $55,435 and $57,852 to secure public deposits and certain borrowing capacity as of June 30, 2025 and December 31, 2024, respectively.