XML 26 R10.htm IDEA: XBRL DOCUMENT v3.22.0.1
INVESTMENT SECURITIES
12 Months Ended
Dec. 31, 2021
INVESTMENT SECURITIES  
INVESTMENT SECURITIES

NOTE 3 - INVESTMENT SECURITIES

The following presents the amortized cost and fair value of securities available-for-sale, with gross unrealized gains and losses recognized in accumulated other comprehensive income as of December 31, 2021 and December 31, 2020 (in thousands):

    

    

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

December 31, 2021

Cost

Gains

Losses

Value

Investment securities available-for-sale:

 

  

 

  

 

  

 

  

U.S. Treasury debt

$

250

$

$

(3)

$

247

U.S. Government Agency

3,522

3,522

Corporate bonds

8,113

227

(15)

8,325

GNMA mortgage-backed securities – residential

 

26,611

 

185

 

(146)

 

26,650

FNMA mortgage-backed securities – residential

14,400

43

14,443

Government CMO and MBS - commercial

878

878

Corporate CMO and MBS

 

1,492

 

23

 

(18)

 

1,497

Other

649

649

Total securities available-for-sale

$

55,915

$

478

$

(182)

$

56,211

    

    

Gross

    

Gross

    

Amortized

Unrealized

Unrealized

Fair

December 31, 2020

Cost

Gains

Losses

Value

Investment securities available-for-sale:

 

  

 

  

 

  

 

  

U.S. Treasury debt

$

250

$

4

$

$

254

Corporate bonds

6,000

55

(11)

6,044

GNMA mortgage-backed securities – residential

 

23,806

 

798

 

 

24,604

FNMA mortgage-backed securities – residential

1,616

61

1,677

Corporate CMO and MBS

 

4,078

 

62

 

(53)

 

4,087

Total securities available-for-sale

$

35,750

$

980

$

(64)

$

36,666

Net amortization of premiums and discounts related to mortgage securities during each of the years ended December 31, 2021 and 2020 was $0.1 million and $0.4 million, respectively, and is included in Net interest income in the Consolidated Statements of Income.

As of December 31, 2021, the amortized cost and estimated fair value of available-for-sale securities have contractual maturity dates shown in the table below (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.

    

Amortized

    

Fair

December 31, 2021

Cost

Value

Due within one year

$

506

$

506

Due between one year and five years

414

411

Due between five years and ten years

9,303

9,515

Due after ten years

1,662

1,662

Securities (CMO and MBS)

 

44,030

 

44,117

Total

$

55,915

$

56,211

In 2014, the Company began investing in a small business investment company ("SBIC") fund administered by the Small Business Administration. During the year ended December 31, 2021, the Company did not make any contributions to the SBIC fund and received a $0.1 million return of capital. During the year ended December 31, 2020, the Company invested $0.5 million in SBIC. As of December 31, 2021 and 2020, the Company held a balance of $2.0 million and $2.1 million, respectively, with SBIC, 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, 2021, securities with carrying values totaling $17.3 million, which includes $14.9 million acquired from the Teton Acquisition, were pledged to secure various public deposits and credit facilities of the Company. As of December 31, 2020, securities with carrying values totaling $3.7 million were pledged.

As of December 31, 2021 and December 31, 2020, 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, 2021 and December 31, 2020, ten securities and seven securities were in an unrealized loss position, with unrealized losses totaling $0.2 million and $0.1 million, respectively. One of the securities in an unrealized loss position as of December 31, 2021 has been in a continuous unrealized loss position for more than twelve months, and the remaining have been in a continuous unrealized loss position for less than twelve months. The unrealized 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, 2021.

The following presents securities with unrealized losses as of December 31, 2021 and December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands, before tax):

    

Less than 12 Months

    

12 Months or Longer

    

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

December 31, 2021

Value

Losses

Value

Losses

Value

    

Losses

U.S. Treasury debt

$

247

$

(3)

$

$

$

247

$

(3)

Corporate bonds

485

(15)

485

(15)

GNMA mortgage-backed securities – residential

17,205

(146)

17,205

(146)

Corporate CMO and MBS

 

 

 

521

 

(18)

 

521

 

(18)

Total

$

17,937

$

(164)

$

521

$

(18)

$

18,458

$

(182)

    

Less than 12 Months

    

12 Months or Longer

    

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

December 31, 2020

    

Value

Losses

Value

Losses

    

Value

    

Losses

Corporate bonds

$

3,489

$

(11)

$

$

$

3,489

$

(11)

Corporate CMO and MBS

 

880

 

(40)

 

566

 

(13)

 

1,446

 

(53)

Total

$

4,369

$

(51)

$

566

$

(13)

$

4,935

$

(64)

The Company did not sell any securities during the years ended December 31, 2021 or 2020.