Note 4 - Securities Available for Sale

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

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

NOTE 4 Securities Available for Sale

A summary of securities available for sale at December 31, 2023 and 2022 is as follows:

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2023
Mortgage-backed securities:
Federal National Mortgage Association (FNMA)	$	96,837		0		(9,704	)		87,133
Federal Home Loan Mortgage Corporation (FHLMC)		82,495		0		(8,246	)		74,249
Collateralized mortgage obligations:
FNMA		34		0		(2	)		32
		179,366		0		(17,952	)		161,414
Other marketable securities:
U.S. Government agency obligations		54,112		120		(552	)		53,680
		54,112		120		(552	)		53,680
	$	233,478		120		(18,504	)		215,094
December 31, 2022
Mortgage-backed securities:
FNMA	$	117,690		0		(12,754	)		104,936
FHLMC		98,893		0		(11,177	)		87,716
Collateralized mortgage obligations:
FNMA		38		0		(2	)		36
		216,621		0		(23,933	)		192,688
Other marketable securities:
U.S. Government agency obligations		54,998		0		(2,157	)		52,841
Corporate preferred stock		700		0		(210	)		490
		55,698		0		(2,367	)		53,331
	$	272,319		0		(26,300	)		246,019

The Company did not sell any available for sale securities and did not recognize any gains or losses on securities available for sale in 2023 or 2022. The Company had available for sale securities pledged as collateral for customer deposits in excess of the $250,000 insurance limit of the Federal Deposit Insurance Corporation. The securities pledged had a fair market value of $41.6 million and $45.9 million at December 31, 2023 and 2022, respectively.

The following table presents the amortized cost and estimated fair value of securities available for sale at December 31, 2023, based upon contractual maturity adjusted for scheduled repayments of principal and projected prepayments of principal based upon current economic conditions and interest rates. Actual maturities may differ from the maturities in the following table because obligors may have the right to call or prepay obligations with or without call or prepayment penalties:

(Dollars in thousands)	Amortized Cost		Fair Value
Due one year or less	$	64,814		60,590
Due after one year through five years		134,875		124,096
Due after five years through fifteen years		33,786		30,405
Due after fifteen years		3		3
Total	$	233,478		215,094

The allocation of mortgage-backed securities in the table above is based upon the anticipated future cash flow of the securities using estimated mortgage prepayment speeds. The allocation of other marketable securities that have call features is based on the anticipated cash flows to the expected call date if it is anticipated that the security will be called, or to the maturity date if it is not anticipated to be called.

The following table shows the gross unrealized losses and fair values for the securities available for sale portfolio aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and 2022:

	Less Than Twelve Months							Twelve Months or More							Total
(Dollars in thousands)	# of Investments		Fair Value		Unrealized Losses			# of Investments		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2023
Mortgage backed securities:
FNMA		0	$	0		0			34	$	87,133		(9,704	)	$	87,133		(9,704	)
FHLMC		0		0		0			24		74,249		(8,246	)		74,249		(8,246	)
Collateralized mortgage obligations:
FNMA		0		0		0			1		32		(2	)		32		(2	)
Other marketable securities:
U.S. government and agency obligations		1		5,000		(9	)		7		34,456		(543	)		39,456		(552	)
Total		1	$	5,000		(9	)		66	$	195,870		(18,495	)	$	200,870		(18,504	)
December 31, 2022
Mortgage backed securities:
FNMA		12	$	19,337		(1,629	)		22	$	85,599		(11,125	)	$	104,936		(12,754	)
FHLMC		4		10,542		(1,214	)		20		77,174		(9,963	)		87,716		(11,177	)
Collateralized mortgage obligations:
FNMA		1		36		(2	)		0		0		0			36		(2	)
Other marketable securities:
U.S. government and agency obligations		4		19,334		(667	)		7		33,507		(1,490	)		52,841		(2,157	)
Corporate preferred stock		0		0		0			1		490		(210	)		490		(210	)
Total		21	$	49,249		(3,512	)		50	$	196,770		(22,788	)	$	246,019		(26,300	)

The Company reviews its investment portfolio on a quarterly basis for indications of impairment due to credit and noncredit-related factors. This review includes analyzing the extent to which the fair value has been lower than the cost, the market liquidity for the investment, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer, and the Company’s intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value.

As of December 31, 2023, the Company did not consider the unrealized losses on its securities available for sale to be attributable to credit-related factors. All of the Company’s investments are issued by U.S. government agencies, are implicitly guaranteed by the U.S. government, and have a long history of no credit losses. The unrealized losses on impaired securities are the result of changes in interest rates. As a result, there was no allowance for credit losses required on available for sale debt securities in an unrealized loss position at December 31, 2023.

For the year ended December 31, 2022, the Company did not believe any other-than-temporary impairments existed and therefore did not recognize any losses on its investment securities.