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INVESTMENT SECURITIES
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES
The following presents the amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses as of the date noted (dollars in thousands):
December 31, 2022Amortized
Cost		Gross
Unrecognized
Gains		Gross
Unrecognized
Losses		Fair
Value
Investment securities held-to-maturity:
U.S. Treasury debt$243 $— $(9)$234 
Corporate bonds23,819 — (2,453)21,366 
GNMA mortgage-backed securities – residential39,426 — (2,800)36,626 
FNMA mortgage-backed securities – residential6,708 — (506)6,202 
Government CMO and MBS - commercial6,786 13 (403)6,396 
Corporate CMO and MBS4,074 — (180)3,894 
Total securities held-to-maturity$81,056 $13 $(6,351)$74,718 
The following presents the amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss as of the date noted (dollars in thousands):
December 31, 2021Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Investment securities available-for-sale:
U.S. Treasury debt$250 $— $(3)$247 
U.S. Government Agency3,522 — — 3,522 
Corporate bonds8,113 227 (15)8,325 
GNMA mortgage-backed securities – residential26,611 185 (146)26,650 
FNMA mortgage-backed securities – residential14,400 43 — 14,443 
Government CMO and MBS - commercial878 — — 878 
Corporate CMO and MBS1,492 23 (18)1,497 
Total securities available-for-sale$55,266 $478 $(182)$55,562 
Net amortization of premiums and discounts related to mortgage securities during each of the years ended December 31, 2022 and 2021 was $0.1 million and is included in Net interest income in the Consolidated Statements of Income.
The Company reassessed classification of investment securities and, effective April 1, 2022, elected to transfer all securities, fair valued at $58.7 million, from available-for-sale to held-to-maturity. The related unrealized loss of $2.3 million included in other comprehensive income on April 1, 2022 remained in other comprehensive income and is being amortized out with an offsetting entry to interest income as a yield adjustment through earnings over the remaining term of the securities. No gain or loss was recorded at the time of transfer.
As of December 31, 2022, the amortized cost and estimated fair value of held-to-maturity securities have contractual maturity dates shown in the table below (dollars in thousands). Expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
December 31, 2022Amortized
Cost		Fair
Value
Due within one year$— $— 
Due between one year and five years2,234 2,048 
Due between five years and ten years21,54819,290
Due after ten years280262
Securities (CMO and MBS)56,99453,118
Total$81,056 $74,718 
For the year ended December 31, 2022, the Company committed $6.0 million in total to two bank technology funds. During the year ended December 31, 2022, the Company made $1.3 million in contributions to both partnerships and received a $0.1 million return on investment. As of December 31, 2022, the Company held a balance of $1.3 million, which is included in Other assets in the accompanying Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $4.7 million in future contributions.
In 2014, the Company began investing in a small business investment company ("SBIC") fund administered by the Small Business Administration. During the years ended December 31, 2022 and 2021, the Company did not make any contributions to the SBIC fund and received a $0.1 million return of capital. As of December 31, 2022 and 2021, the Company held a balance of $2.0 million in the SBIC fund, which is included in Other assets in the accompanying Consolidated Balance Sheets. The Company may be obligated to invest up to an additional $1.0 million in future SBIC investments.
As of December 31, 2022 and December 31, 2021, securities with carrying values totaling $22.6 million and $17.3 million, respectively, were pledged to secure various public deposits and credit facilities of the Company.
As of December 31, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than the U.S. Government sponsored entities and agencies, in an amount greater than 10% of shareholders’ equity.
As of December 31, 2022, 98 securities were in an unrecognized loss position, with unrecognized losses totaling $6.4 million. As of December 31, 2021, 10 securities were in an unrealized loss position with unrealized losses totaling $0.2 million. Of the securities in an unrecognized loss position as of December 31, 2022, 14 have been in a continuous unrecognized loss position for more than twelve months, and the remaining have been in a continuous unrecognized loss position for less than twelve months. The unrecognized loss positions were caused primarily by interest rate changes and market assumptions about prepayments of principal and interest on the underlying mortgages. Because the decline in market value is attributable to market conditions, not credit quality, and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be near or at maturity, the Company does not consider these investments to be other-than-temporarily impaired as of December 31, 2022.
The following presents securities with unrecognized losses aggregated by major security type and length of time in a continuous unrecognized loss position as of the date noted (dollars in thousands, before tax):
Less than 12 Months12 Months or LongerTotal
December 31, 2022Fair
Value		Unrecognized
Losses		Fair
Value		Unrecognized
Losses		Fair
Value		Unrecognized
Losses
Investment securities held-to-maturity:
U.S. Treasury debt$— $— $234 $(9)$234 $(9)
Corporate bonds20,911 (2,436)455 (17)21,366 (2,453)
GNMA mortgage-backed securities – residential22,371 (1,051)14,255 (1,749)36,626 (2,800)
FNMA mortgage-backed securities – residential6,202 (506)— — 6,202 (506)
Government CMO and MBS - commercial5,591 (403)— — 5,591 (403)
Corporate CMO and MBS3,499 (147)395 (33)3,894 (180)
Total$58,574 $(4,543)$15,339 $(1,808)$73,913 $(6,351)
The following presents securities with unrealized losses aggregated by major security type and length of time in a continuous unrealized loss position as of the date noted (dollars in thousands, before tax):
Less than 12 Months12 Months or LongerTotal
December 31, 2021Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Investment securities available-for-sale:
U.S. Treasury Debt$247 $(3)$— $— $247 $(3)
Corporate bonds485 (15)— — 485 (15)
GNMA mortgage-backed securities - residential17,205 (146)— — 17,205 $(146)
Corporate CMO and MBS— — 521 (18)521 (18)
Total$17,937 $(164)$521 $(18)$18,458 $(182)
The Company did not sell any securities during the years ended December 31, 2022 or 2021.