Securities

3 Months Ended

Mar. 31, 2024

Securities

Securities

Note 2:         Securities

The amortized cost and fair values, together with gross unrealized gains and losses of securities are as follows:

			Gross		Gross
			Unrealized		Unrealized
	Amortized Cost		Gains		Losses		Fair Value
Available-for-sale Securities:
March 31, 2024:
U.S. government agencies	$	27,500	$	—	$	(417)	$	27,083
Subordinated notes		28,984		—		(4,042)		24,942
State and municipal obligations		204,662		1,479		(6,359)		199,782
Total debt securities	$	261,146	$	1,479	$	(10,818)	$	251,807

			Gross		Gross
			Unrealized		Unrealized
	Amortized Cost		Gains		Losses		Fair Value
	(In thousands)
Available-for-sale Securities:
December 31, 2023:
U.S. government agencies	$	45,000	$	—	$	(732)	$	44,268
Subordinated notes		29,013		—		(4,713)		24,300
State and municipal obligations		177,670		2,264		(5,742)		174,192
Total debt securities	$	251,683	$	2,264	$	(11,187)	$	242,760

There was no allowance for credit losses at March 31, 2024 or December 31, 2024.

The amortized cost and fair value of available-for-sale securities at March 31, 2024, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
	Cost		Value
	(In thousands)
Under 1 year	$	15,000	$	14,909
One to five years		13,084		12,698
Five to ten years		31,321		27,244
Over ten years		201,741		196,956
Totals	$	261,146	$	251,807

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $76.6 million and $72.8 million at March 31, 2024 and December 31, 2023, respectively.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at March 31, 2024 was $153.8 million, which represented 61% of the Company’s available-for-sale investment portfolio. The total fair value of these investments at December 31, 2023 was $123.1 million, which represented less than 51% of the Company’s available-for-sale.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary and are a result of an increase in longer term interest rates.

The following tables show the Company’s available for sale securities and the related gross unrealized losses and fair value,for which an allowance for credit losses has not been recorded,  aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2024 and December 31. 2023:

	March 31, 2024
	Less than 12 Months				12 Months or More				Total
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(In thousands)
U.S. Government agencies	$	—	$	—	$	27,083	$	(417)	$	27,083	$	(417)
Subordinated notes		4,110		(390)		20,832		(3,652)		24,942		(4,042)
State and municipal obligations		51,346		(432)		50,402		(5,927)		101,748		(6,359)
Total temporarily impaired securities	$	55,456	$	(822)	$	98,317	$	(9,996)	$	153,773	$	(10,818)

	December 31, 2023
	Less than 12 Months				12 Months or More				Total
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(In thousands)
US government agencies	$	—	$	—	$	44,268	$	(732)	$	44,268	$	(732)
Subordinated notes		3,717		(799)		20,583		(3,914)		24,300		(4,713)
State and municipal obligations		3,365		(12)		51,163		(5,730)		54,528		(5,742)
Total temporarily impaired securities	$	7,082	$	(811)	$	116,014	$	(10,376)	$	123,096	$	(11,187)

The unrealized losses on the Company’s 214 investments in available for sale securities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to require an allowance for credit losses to be recognized as of March 31, 2024 or December 31, 2023.

The Company recorded a loss on the sale of available-for-sale securities of approximately $194,000 for the three months ended March 31, 2024. The Company sold $20.3 million in securities for a loss of $228,000 and sold $5.0 million in securities for a gain of $34,000. The Company wanted to rebalance a portion of its security portfolio during the first quarter of 2024. There were no sales of available-for-sale securities for the three months ended March 31, 2023.