INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

The following is a summary of the Company's investments in available for sale and held to maturity securities as of September 30, 2023 and December 31, 2022:


As of September 30, 2023	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(Dollars in thousands)
Available for sale:

Residential mortgage-backed securities	$	8,137	$	—	$	866	$	7,271

Total available for sale	$	8,137	$	—	$	866	$	7,271

Held to maturity:
Residential mortgage-backed securities	$	5,449	$	—	$	1,388	$	4,061
States and political subdivisions	3,870		—		646		3,224
Total held to maturity	$	9,319	$	—	$	2,034	$	7,285


As of December 31, 2022	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(Dollars in thousands)
Available for sale:
Corporate debt obligations	$	500	$	—	$	—	$	500
Residential mortgage-backed securities	9,575		3		712		8,866

Total available for sale	$	10,075	$	3	$	712	$	9,366

Held to maturity:
Residential mortgage-backed securities	$	5,556	$	—	$	1,096	$	4,460
States and political subdivisions	3,822		56		533		3,345
Total held to maturity	$	9,378	$	56	$	1,629	$	7,805

The amortized cost and fair value of debt securities classified as available for sale and held to maturity, by contractual maturity as of September 30, 2023 are as follows:


	Amortized Cost		Fair Value
	(Dollars in thousands)
Available for sale:
Due within one year	$	—	$	—
Due after one year through five years	2,809		2,566
Due after five years through ten years	1,541		1,396
Due after ten years	3,787		3,309
Total available for sale	$	8,137	$	7,271

Held to maturity:
Due within one year	$	—	$	—
Due after one year through five years	1,395		1,385
Due after five years through ten years	—		—
Due after ten years	7,924		5,900
Total held to maturity	$	9,319	$	7,285

Expected maturities may differ from contractual maturities because the issuers of certain debt securities do have the right to call or prepay their obligations without any penalty.

The Company did not sell any securities during the three and nine months ended September 30, 2023. The following tables show the gross unrealized losses and fair value of the Company's investments for which an allowance for credit losses has not been recorded, which are aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2023 and December 31, 2022:


As of September 30, 2023	Less Than 12 Months				12 Months or Greater				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousand)
Available for sale:
Residential mortgage-backed securities	$	230	$	4	$	7,041	$	862	$	7,271	$	866
Total available for sale	$	230	$	4	$	7,041	$	862	$	7,271	$	866
Held to maturity:
Residential mortgage-backed securities	$	—	$	—	$	4,061	$	1,388	$	4,061	$	1,388
States and political subdivisions	—		—		3,224		646		3,224		646
Total held to maturity	$	—	$	—	$	7,285	$	2,034	$	7,285	$	2,034


As of December 31, 2022	Less Than 12 Months				12 Months or Greater				Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Available for sale:
Residential mortgage-backed securities	$	7,579	$	576	$	1,043	$	136	$	8,622	$	712
Total available for sale	$	7,579	$	576	$	1,043	$	136	$	8,622	$	712
Held to maturity:
Residential mortgage-backed securities	$	—	$	—	$	4,460	$	1,096	$	4,460	$	1,096
States and political subdivisions	—		—		1,943		533		1,943		533
Total held to maturity	$	—	$	—	$	6,403	$	1,629	$	6,403	$	1,629

The Company’s unrealized loss for the debt securities is comprised of 16 securities in the less than 12 months loss position and 19 securities in the 12 months or greater loss position at September 30, 2023. The mortgage-backed securities that had unrealized losses were issued or guaranteed by the US government or US government sponsored entities. The unrealized losses associated with those mortgage-backed securities are generally driven by changes in interest rates and are not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. The states and political subdivisions securities that had unrealized losses were issued by a school district, and the loss is attributed to changes in interest rates and not due to credit losses. Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis, the Company does not consider the unrealized loss in these securities to be credit losses at September 30, 2023.