Note 6 - Investment and Equity Securities

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 6 – INVESTMENT AND EQUITY SECURITIES

The amortized cost and fair values of investment securities available for sale are as follows:

	March 31, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(Dollar amounts in thousands)	Cost (a)		Gains		Losses			Value
Subordinated debt	$	34,300	$	86	$	(1,557	)	$	32,829
Obligations of states and political subdivisions:
Tax-exempt		147,634		4		(23,787	)		123,851
Mortgage-backed securities in government-sponsored entities		8,953		25		(644	)		8,334
Total	$	190,887	$	115	$	(25,988	)	$	165,014

(a) Accrued interest of $1.5 million is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheet.

	December 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(Dollar amounts in thousands)	Cost (a)		Gains		Losses			Value
Subordinated debt	$	34,300	$	67	$	(1,898	)	$	32,469
Obligations of states and political subdivisions:
Tax-exempt		147,767		4		(22,805	)		124,966
Mortgage-backed securities in government-sponsored entities		9,144		1		(778	)		8,367
Total	$	191,211	$	72	$	(25,481	)	$	165,802

(a) Accrued interest of $1.5 million is excluded from amortized cost and presented in "accrued interest receivable and other assets" on the Consolidated Balance Sheet.

The amortized cost and fair value of investment securities at March 31, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	590	$	591
Due after one year through five years		6,816		6,664
Due after five years through ten years		57,517		54,754
Due after ten years		125,964		103,005
Total	$	190,887	$	165,014

There were no investment securities sold during the three months ended March 31, 2025, or year ended  December 31, 2024. 

Investment securities with an approximate carrying value of $111.0 million and $112.1 million on  March 31, 2025, and  December 31, 2024, respectively, were pledged to secure deposits and for other purposes as required by law.

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.

	March 31, 2025
	Less than Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollar amounts in thousands)	Value		Losses			Value		Losses			Value		Losses
Subordinated debt	$	2,660	$	(90	)	$	27,333	$	(1,467	)	$	29,993	$	(1,557	)
Obligations of states and political subdivisions:
Tax-exempt		11,486		(414	)		105,341		(23,373	)		116,827		(23,787	)
Mortgage-backed securities in government-sponsored entities		1,400		(24	)		5,082		(620	)		6,482		(644	)
Total	$	15,546	$	(528	)	$	137,756	$	(25,460	)	$	153,302	$	(25,988	)

	December 31, 2024
	Less than Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Dollar amounts in thousands)	Value		Losses			Value		Losses			Value		Losses
Subordinated debt	$	10,632	$	(368	)	$	20,770	$	(1,530	)	$	31,402	$	(1,898	)
Obligations of states and political subdivisions:
Tax-exempt		15,456		(487	)		102,484		(22,318	)		117,940		(22,805	)
Mortgage-backed securities in government-sponsored entities		1,986		(49	)		5,118		(729	)		7,104		(778	)
Total	$	28,074	$	(904	)	$	128,372	$	(24,577	)	$	156,446	$	(25,481	)

Every quarter, the Company evaluates investment securities with unrealized losses to determine if the decline in fair value has resulted from credit losses or other factors. There were 23 securities in an unrealized loss position for less than twelve months and 177 securities in an unrealized loss position for twelve months or greater on March 31, 2025. Unrealized losses on investment securities available for sale have not been recognized into income because we do not intend to sell and it is more likely than not that we will not be required to sell any of the securities in an unrealized loss position before recovery of their amortized cost. The unrealized losses on investment securities were attributable to changes in interest rates and not related to the credit quality of these issuers. As of March 31, 2025 and December 31, 2024, no ACL was required on investment securities available for sale. 

Other investments, which primarily represents equity securities, totaled $1.0 million and $855,000 at March 31, 2025 and December 31, 2024, respectively. The Company recognized a loss on other investments of $34,000 and $52,000 for the three months ended March 31, 2025 and 2024, respectively.