Debt Securities

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Debt Securities

Note 2: Debt Securities

Our debt securities portfolio consists of an available for sale (“AFS”) and a held to maturity (“HTM”) securities portfolio, both of which represent interest earning debt securities.

Debt Securities AFS

The following table summarizes the amortized cost and estimated fair value of AFS securities on March 31, 2025 and December 31, 2024, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		(Losses)		Fair Value
March 31, 2025
Securities available for sale:
Mortgage-backed securities	$	8,806,738	$	—	$	(1,045,621)	$	7,761,117
State and political subdivisions		14,192,368		—		(1,829,771)		12,362,597
Corporate securities		3,467,558		—		(561,018)		2,906,540
Total securities available for sale	$	26,466,664	$	—	$	(3,436,410)	$	23,030,254

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		(Losses)		Fair Value
December 31, 2024
Securities available for sale:
Mortgage-backed securities	$	9,078,650	$	—	$	(1,254,841)	$	7,823,809
State and political subdivisions		14,191,881		—		(2,052,935)		12,138,946
Corporate securities		3,466,328		—		(622,247)		2,844,081
Total securities available for sale	$	26,736,859	$	—	$	(3,930,023)	$	22,806,836

There were no sales of securities available for sale during the three months ended March 31, 2025 and 2024.

The following tables show the fair value and gross unrealized losses of AFS debt securities in an unrealized loss position at March 31, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

	Less Than 12 Months				12 Months or More				Total
		Estimated		Unrealized	Estimated		Unrealized		Estimated		Unrealized
		Fair Value		Loss	Fair Value		Loss		Fair Value		Loss
March 31, 2025
Securities available for sale:
Mortgage-backed securities	$	—	$	—	$	7,761,117	$	(1,045,621)	$	7,761,117	$	(1,045,621)
State and political subdivisions		—		—		12,362,597		(1,829,771)		12,362,597		(1,829,771)
Corporate securities		—		—		2,906,540		(561,018)		2,906,540		(561,018)
Totals	$	—	$	—	$	23,030,254	$	(3,436,410)	$	23,030,254	$	(3,436,410)

	Less Than 12 Months				12 Months or More				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Loss		Fair Value		Loss		Fair Value		Loss
December 31, 2024
Securities available for sale:
Mortgage-backed securities	$	—	$	—	$	7,823,809	$	(1,254,841)	$	7,823,809	$	(1,254,841)
State and political subdivisions		—		—		12,138,946		(2,052,935)		12,138,946		(2,052,935)
Corporate securities		—		—		2,844,081		(622,247)		2,844,081		(622,247)
Totals	$	—	$	—	$	22,806,836	$	(3,930,023)	$	22,806,836	$	(3,930,023)

At March 31, 2025, 50 debt securities designated as AFS were in an unrealized loss position. Based on our analysis of these securities, the decline in value was unrelated to credit loss and is related to changes in market interest rates since purchase, and therefore, changes in value for securities were included in other comprehensive income. In analyzing whether unrealized losses on debt securities are not related to credit losses, management takes into consideration, as applicable, whether the securities are issued by a governmental body or agency, whether the rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer, and the quality of any underlying assets or credit enhancements. Market valuations and credit loss analysis on assets in the AFS securities portfolio are reviewed and monitored on a quarterly basis. None of the investments in our AFS securities portfolio were past due as of March 31, 2025. Management has the ability and intent to hold the securities for the foreseeable future and no declines are deemed to be related to credit losses; therefore, no provision for expected credit losses or allowance is carried for the AFS portfolio.

The following is a summary of amortized cost and estimated fair value of debt securities by contractual maturity as of March 31, 2025. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties.

	March 31, 2025
			Estimated
Available-for-sale	Amortized Cost		Fair Value
Due in one year or less	$	795,093	$	791,942
Due after one year through five years		6,640,628		5,931,413
Due after five years through ten years		10,076,791		8,420,057
Due after ten years		147,414		125,725
Subtotal		17,659,926		15,269,137
Mortgage-backed securities		8,806,738		7,761,117
Total	$	26,466,664	$	23,030,254

Debt Securities HTM

The following table summarizes the amortized cost and estimated fair value of HTM securities at March 31, 2025 and December 31, 2024, and the corresponding amounts of gross unrealized gains and losses.

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
March 31, 2025	Cost		Gains		Losses		Fair Value
Securities held to maturity:
U.S. government sponsored agencies	$	28,514,187	$	17,148	$	(227,078)	$	28,304,257
U.S. Treasury securities		10,788,629		6,566		(483)		10,794,712
Total securities held to maturity	$	39,302,816	$	23,714	$	(227,561)	$	39,098,969

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
December 31, 2024	Cost		Gains		Losses		Fair Value
Securities held to maturity:
U.S. government sponsored agencies	$	28,306,633	$	282	$	(812,896)	$	27,494,019
U.S. Treasury securities		10,699,998		—		(31,391)		10,668,607
Total securities held to maturity	$	39,006,631	$	282	$	(844,287)	$	38,162,626

Investment securities classified as HTM are recorded at amortized cost subject to measurement of credit losses on financial instruments, also known as Current Expected Credit Losses (“CECL”). This methodology consists of measuring the value of investments on a collective basis when similar risk characteristics exist. Our investment policy requires securities designated as HTM to carry an explicit or implicit guarantee of the United States Government (i.e., issued by the U.S. Treasury and federal agencies of the United States). Market valuations and credit loss analysis on assets in the HTM securities portfolio are reviewed and monitored on a quarterly basis. None of the investments in our HTM securities portfolio were past due as of March 31, 2025. An allowance for credit losses (“ACL”) is not calculated or recorded based on the implied guarantee of these securities.

The following table summarizes the remaining contractual principal maturities of investment securities classified as HTM as of March 31, 2025. For United States agency debentures, the expected maturity is the actual contractual maturity of the notes. Expected remaining maturities for certain United States agency debentures may occur earlier than their contractual maturities because the note issuers have the right to call outstanding amounts ahead of their contractual maturity.

	March 31, 2025
	Amortized		Estimated
Held-to-maturity	Cost		Fair Value
Due in one year or less	$	6,341,418	$	6,342,455
Due after one year through five years		14,949,630		14,939,301
Due after five years through ten years		14,414,863		14,281,719
Due after ten years		3,596,905		3,535,494
Total	$	39,302,816	$	39,098,969