Investment Securities

12 Months Ended

Dec. 31, 2024

Note 2.

Investment Securities

The amortized cost and estimated fair values of investment securities available-for-sale at December 31, 2024 and December 31, 2023 are as follows (in thousands):

December 31, 2024

Gross

Estimated

Amortized

Unrealized

Fair

(in thousands)

Cost

Gains

Losses

Value

U.S. Government Agencies

1,000

—

(4)

996

Mortgage-Backed Securities

94,003

(8,674)

85,419

Collateralized Mortgage Obligations

2,459

—

(137)

2,322

Corporate Bonds

4,250

—

4,250

Total

101,712

(8,815)

92,987


	December 31, 2023
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gains		Losses		Value
U.S. Government Agencies	$	1,000	$	—	$	(34)	$	966
Mortgage-Backed Securities		74,072		15		(8,759)		65,328
Collateralized Mortgage Obligations		1,733		—		(126)		1,607

Total	$	76,805	$	15	$	(8,919)	$	67,901

The following tables show the gross unrealized losses and estimated fair value of investment securities available-for-sale for which an allowance for credit losses has not been recorded by category and length of time that securities have been in a continuous unrealized loss position at December 31, 2024, and December 31, 2023 (in thousands):

Securities

With Losses Under

With Losses Over

12 Months

Total

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

(in thousands)

Value

Loss

Value

Loss

Value

Loss

U.S. Government Agencies

—

996

(4)

996

(4)

Mortgage-Backed Securities

38,128

(433)

39,103

(8,241)

77,231

(8,674)

Collateralized Mortgage Obligations

962

(10)

1,360

(127)

2,322

(137)

Total

39,090

(443)

41,459

(8,372)

80,549

(8,815)


	Securities				Securities
	With Losses Under				With Losses Over
	12 Months				12 Months				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2023	Value		Loss		Value		Loss		Value		Loss
U.S. Government Agencies	$	—	$	—	$	966	$	(34)	$	966	$	(34)
Mortgage-Backed Securities		498		(2)		63,384		(8,757)		63,882		(8,759)
Collateralized Mortgage Obligations		—		—		1,607		(126)		1,607		(126)

Total	$	498	$	(2)	$	65,957	$	(8,917)	$	66,455	$	(8,919)

At December 31, 2024, 80 of the Company’s available-for-sale securities had unrealized losses totaling 9.9% of the individual securities’ amortized cost basis and 8.7% of the Company’s total amortized cost basis of the investment securities portfolio. At December 31, 2024, 57 of these 91 securities had been in a continuous loss position for over 12 months. The unrealized losses of these securities are believed to be caused by interest rate increases and changing market conditions and the Company does not intend to sell the securities, and it is not likely to be required to sell these securities prior to maturity. Management has determined that the declines in the fair value of these securities are not attributable to credit losses.

The Company’s securities in an unrealized loss position are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the implicit guarantee of the U.S. government and have a long history of zero credit loss. No allowance for credit losses was recorded for available-for-sale securities at December 31, 2024 and 2023.

The amortized cost and estimated fair value of securities classified as available-for-sale at December 31, 2024, by contractual maturity, are shown in the table below (in thousands). Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. The expected maturity of a security may differ from its contractual maturity because of the exercise of call options and potential paydowns. Accordingly actual maturities may differ from contractual maturities.


	Amortized		Fair
(in thousands)	Cost		Value
Available-for-Sale
Due in 1 Year or Less	$	—	$	—
Due after 1 Year through 5 Years		165		158
Due after 5 Years through 10 Years		5,214		5,204
Due after 10 Years		96,333		87,625

Total	$	101,712	$	92,987

During the year ended December 31, 2024, the company recorded no gross gains and gross loses of $1,144,000 related to the sales of securities. There were no sales of securities during the year ended December 31, 2023.