Investment securities available for sale

6 Months Ended

Jun. 30, 2023

Investment securities available for sale

Investment securities available for sale

Note 4 – Investment securities available for sale

The amortized cost and fair value of investment securities available for sale as of June 30, 2023 and December 31, 2022 are as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
June 30, 2023
U.S. Government agency obligations	$	64,594	$	3	$	(3,107)	$	61,490
Mortgage-backed securities		66,119		—		(8,243)		57,876
Municipals		2,266		—		(599)		1,667
Subordinated debt		12,442		21		(1,261)		11,202
	$	145,421	$	24	$	(13,210)	$	132,235
December 31, 2022
U.S. Government agency obligations	$	64,631	$	5	$	(3,734)	$	60,902
Mortgage-backed securities		69,151		6		(8,597)		60,560
Municipals		2,268		—		(718)		1,550
Subordinated debt		11,553		29		(741)		10,841
	$	147,603	$	40	$	(13,790)	$	133,853

At June 30, 2023 and December 31, 2022, the Company had investment securities with a fair value of $23,245,000 and $5,613,000, respectively, pledged to secure borrowings from the Federal Home Loan Bank of Atlanta ("FHLB").

There were no sales of available for sale securities for the three and six months ended June 30, 2023 and 2022.

Investment securities available for sale that have an unrealized loss position at June 30, 2023 and December 31, 2022 are detailed below (in thousands):

	Securities in a loss				Securities in a loss
	position for less than				position for more than
	12 Months				12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
June 30, 2023
U.S. Government agency obligations	$	3,699	$	(39)	$	57,419	$	(3,068)	$	61,118	$	(3,107)
Mortgage-backed securities		8,360		(177)		49,516		(8,066)		57,876		(8,243)
Municipals		—		—		1,667		(599)		1,667		(599)
Subordinated debt		3,007		(243)		5,284		(1,018)		8,291		(1,261)
	$	15,066	$	(459)	$	113,886	$	(12,751)	$	128,952	$	(13,210)
December 31, 2022
U.S. Government agency obligations	$	21,848	$	(723)	$	37,256	$	(3,011)	$	59,104	$	(3,734)
Mortgage-backed securities		36,089		(3,588)		22,549		(5,009)		58,638		(8,597)
Municipals		—		—		1,549		(718)		1,549		(718)
Subordinated debt		5,305		(498)		2,007		(243)		7,312		(741)
	$	63,242	$	(4,809)	$	63,361	$	(8,981)	$	126,603	$	(13,790)

As of June 30, 2023, there were 72 investments available for sale totaling $128,952,000 that were in a loss position and had an unrealized loss of $13,210,000.

All of the unrealized losses are attributable to movements in interest rates and not to credit deterioration. Currently, the Company believes that it is probable that the Company will be able to collect all amounts due according to the contractual terms of the investments. Because the decline in fair value is attributable to changes in interest rates and not to credit quality, and because it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be impaired at June 30, 2023.

The amortized cost and estimated fair value of investment securities available for sale as of June 30, 2023, by contractual maturity, are as follows (in thousands):

	Amortized
	Cost		Fair Value
Less than one year	$	29,937	$	29,410
One to five years		35,240		32,641
Five to ten years		16,369		14,787
More than ten years		63,875		55,397
Total	$	145,421	$	132,235