Debt Securities (Tables)

12 Months Ended

Dec. 31, 2024

Amortized Cost and Fair Value of Debt Securities Available-for-sale

The following table summarizes the amortized cost and fair value of debt securities available-for-sale at December 31, 2024 and December 31, 2023, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income:

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale as of December 31, 2024
U.S. Federal agencies	$	64	$	-	$	-		$	64
Mortgage-backed securities⁽¹⁾⁽²⁾		33,704		-		(3,508	)		30,196
State and political subdivisions		21,156		-		(1,430	)		19,726
U.S. Treasuries		6,021		-		(695	)		5,326
Corporate debt securities		5,500		-		(871	)		4,629
Total available-for-sale		66,445		-		(6,504	)		59,941
Total debt securities		66,445		-		(6,504	)		59,941

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale as of December 31, 2023
U.S. Federal agencies	$	138	$	-	$	(3	)	$	135
Mortgage-backed securities⁽¹⁾⁽²⁾		38,465		-		(3,963	)		34,502
State and political subdivisions		27,368		-		(1,512	)		25,856
U.S. Treasuries		106,030		-		(1,373	)		104,657
Corporate debt securities		5,500		-		(1,163	)		4,337
Total available-for-sale		177,501		-		(8,014	)		169,487
Total debt securities		177,501		-		(8,014	)		169,487

⁽¹⁾	All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities.

⁽²⁾	Included in amortized cost of mortgage-backed securities is $21.97 million and $24.80 million of residential mortgage-backed securities and $11.73 million and $13.67 million of commercial mortgage-backed securities as of December 31, 2024 and December 31, 2023, respectively.

Contractual Maturity

The amortized cost and estimated fair value of investment securities at December 31, 2024 and December 31, 2023, by contractual maturity, are shown below. The expected life of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay the underlying mortgage loans with or without call or prepayment penalties.

(in thousands)	Amortized Cost		Fair Value
Available-for-sale as of December 31, 2024
Due in one year or less	$	2,061	$	2,028
Due after one year through five years		16,345		15,315
Due after five years through ten years		14,335		12,402
Due after ten years		-		-
Mortgage-backed securities		33,704		30,196
Total available-for-sale		66,445		59,941

(in thousands)	Amortized Cost		Fair Value
Available-for-sale as of December 31, 2023
Due in one year or less	$	105,944	$	105,186
Due after one year through five years		15,654		14,675
Due after five years through ten years		17,276		14,980
Due after ten years		162		144
Mortgage-backed securities		38,465		34,502
Total available-for-sale		177,501		169,487

Realized Gains and Losses from Sale, Repayment and Call of Debt Securities

The following table presents a summary of realized gains and losses from the sale, prepayment and call of debt securities for the year ended December 31, 2024 and December 31, 2023.

	Year Ended December 31,
	2024				2023
(in thousands)
Proceeds from sales, maturities, prepayments and calls		$	195,692			$	7,422
Gross realized losses on sales, prepayments and calls		$	(6	)		$	(16	)
Total realized (losses), net		$	(6	)		$	(16	)

Pledged Securities

The following table details book value of pledged securities as of December 31, 2024 and December 31, 2023:

	Year Ended December 31,
(in thousands)	2024		2023
Book value of pledged securities	$	19,071	$	121,283

Debt Securities in Continuous Unrealized Loss Position

The following table details gross unrealized losses and fair values of investment securities aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2024 and December 31, 2023. As of December 31, 2024, the Company had the ability and intent to hold the debt securities classified as available-for-sale for a period of time sufficient for a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying debt securities were purchased and acquired. The fair value of those debt securities having unrealized losses is expected to recover as the securities approach their maturity date or repricing date, or if market yields for such investments decline. Management has no intent or requirement to sell before the recovery of the unrealized loss; therefore, no impairment loss was realized in the Company’s consolidated statement of comprehensive income.

	Less than Twelve Months						Twelve Months or Longer							Total
	Fair Value			Gross Unrealized Losses			Fair Value			Gross Unrealized Losses				Fair Value			Gross Unrealized Losses
(in thousands)
Available-for-sale as of December 31, 2024
U.S. Federal agencies		$	-		$	-		$	64		$	-			$	64		$	-
Mortgage-backed securities			-			-			30,196			(3,508	)			30,196			(3,508	)
State and political subdivisions⁽¹⁾			499			-			19,227			(1,430	)			19,726			(1,430	)
U.S. Treasuries			-			-			5,326			(695	)			5,326			(695	)
Corporate debt securities⁽²⁾			-			-			4,629			(871	)			4,629			(871	)
Total available-for-sale		$	499		$	-		$	59,442		$	(6,504	)		$	59,941		$	(6,504	)

	Less than Twelve Months							Twelve Months or Longer							Total
	Fair Value			Gross Unrealized Losses				Fair Value			Gross Unrealized Losses				Fair Value			Gross Unrealized Losses
(in thousands)
Available-for-sale as of December 31, 2023
U.S. Federal agencies		$	-		$	-			$	135		$	(3	)		$	135		$	(3	)
Mortgage-backed securities			-			-				34,502		$	(3,963	)			34,502			(3,963	)
State and political subdivisions⁽¹⁾			1,160			(5	)			24,696		$	(1,507	)			25,856			(1,512	)
U.S. Treasuries			-			-				104,657		$	(1,373	)			104,657			(1,373	)
Corporate debt securities⁽²⁾			-			(195	)			4,337		$	(968	)			4,337			(1,163	)
Total available-for-sale		$	1,160		$	(200	)		$	168,327		$	(7,814	)		$	169,487		$	(8,014	)

⁽¹⁾	Of our state and political subdivision securities, $17.83 million and $22.84 million are rated BBB+ or better and $1.90 million and $3.02 million are not rated as of December 31, 2024 and December 31, 2023, respectively.

⁽²⁾	Our corporate debt securities are not rated.

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

Bank7 Corp. 10-K