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SECURITIES
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
NOTE 3.    SECURITIES
The amortized cost and fair value of securities at March 31, 2023 and December 31, 2022 are summarized as follows:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
March 31, 2023
Securities Available for Sale
U.S. Treasury securities$9,753 $— $(995)$8,758 
U.S. Government Sponsored Enterprises (GSEs)2,882 53 (214)2,721 
State and municipal securities45,474 — (5,029)40,445 
Corporate debt securities12,524 — (1,007)11,517 
Asset based securities21,644 5 (728)20,921 
Mortgage-backed GSE residential/multifamily and non-GSE84,579 24 (5,415)79,188 
Total securities available for sale$176,856 $82 $(13,388)$163,550 
Securities Held to Maturity
State and municipal securities19,647 — (3,528)16,119 
Total securities held to maturity$19,647 $— $(3,528)$16,119 
Total securities$196,503 $82 $(16,916)$179,669 
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
December 31, 2022
Securities Available for Sale
U.S. Treasury securities$9,764 $— $(1,180)$8,584 
U.S. Government Sponsored Enterprises (GSEs)2,009 — (221)1,788 
State and municipal securities56,204 100 (6,379)49,925 
Corporate debt securities12,526 — (899)11,627 
Asset based securities14,079 — (742)13,337 
Mortgage-backed GSE residential/multifamily and non-GSE75,892 3 (5,612)70,283 
Total securities available for sale$170,474 $103 $(15,033)$155,544 
Securities Held to Maturity
State and municipal securities19,652 — (4,287)15,365 
Total securities held to maturity$19,652 $— $(4,287)$15,365 
Total securities$190,126 $103 $(19,320)$170,909 
Securities with a carrying value of $33,253 and $32,222 at March 31, 2023 and December 31, 2022, respectively, were pledged to secure public deposits and for other purposes as required or permitted by law.
The amortized cost and fair value of securities available for sale and securities held to maturity as of March 31, 2023 and December 31, 2022 by contractual maturity are shown below. Actual maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid with or without penalty. Therefore, these securities are not included by maturity in the following summary:
March 31, 2023December 31, 2022
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Securities Available for Sale
Due in less than one year$— $— $—$—
Due from one year to five years8,116 7,640 8,3387,818
Due after five to ten years25,119 22,934 24,46822,047
Due after ten years59,042 53,788 61,77655,396
Mortgage-backed securities84,579 79,188 75,89270,283
Total securities available for sale$176,856 $163,550 $170,474 $155,544 
Securities Held to Maturity
Due in less than one year$— $— $—$—
Due from one year to five years— — ——
Due after five to ten years5,689 4,776 5,3104,255
Due after ten years13,958 11,343 14,34211,110
Mortgage-backed securities— — ——
Total securities held to maturity$19,647 $16,119 $19,652 $15,365 
Total securities$196,503 $179,669 $190,126 $170,909 
Restricted equity securities as of March 31, 2023 and December 31, 2022 consist of the following:
March 31,

December 31,
20232022
Federal Home Loan Bank stock$2,937 $2,209 
First National Banker’s Bankshares, Inc. stock675 675 
Pacific Coast Banker’s Bank stock250 250 
Total restricted equity securities$3,862 $3,134 
The following table shows the gross unrealized losses and fair value of securities, aggregated by category and length of time that securities have been in a continuous unrealized loss position at March 31, 2023 and December 31, 2022.
Less Than Twelve MonthsOver Twelve Months
Gross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueTotal
Unrealized
Losses
March 31, 2023
Securities Available for Sale
U.S. Treasury securities$— $— $(995)$8,758 $(995)
U.S. Government Sponsored Enterprises (GSEs)— — (214)1,672 (214)
State and municipal securities(48)627 (4,981)39,817 (5,029)
Corporate debt securities(358)5,396 (649)6,122 (1,007)
Asset based securities(167)10,599 (561)9,681 (728)
Mortgage-backed GSE residential/multifamily and non-GSE(726)28,953 (4,689)47,171 (5,415)
Total securities available for sale$(1,299)$45,575 $(12,089)$113,221 $(13,388)
Securities Held to Maturity
State and municipal securities— — (3,528)16,119 (3,528)
Total securities held to maturity$— $— $(3,528)$16,119 $(3,528)
Total securities$(1,299)$45,575 $(15,617)$129,340 $(16,916)
Less Than Twelve MonthsOver Twelve Months
Gross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueTotal
Unrealized
Losses
December 31, 2022
Securities Available for Sale
U.S. Treasury securities$(119)$1,873 $(1,061)$6,711 $(1,180)
U.S. Government Sponsored Enterprises (GSEs)— — (221)1,788 (221)
State and municipal securities(2,561)26,504 (3,818)19,012 (6,379)
Corporate debt securities(507)8,497 (392)3,130 (899)
Asset based securities(178)6,497 (564)6,840 (742)
Mortgage-backed GSE residential/multifamily and non-GSE(3,598)52,260 (2,014)16,107 (5,612)
      Total securities available for sale$(6,963)$95,631 $(8,070)$53,588 $(15,033)
Securities Held to Maturity
State and municipal securities(2,072)8,153 (2,215)7,211 (4,287)
Total securities held to maturity$(2,072)$8,153 $(2,215)$7,211 $(4,287)
Total securities$(9,035)$103,784 $(10,285)$60,799 $(19,320)
The unrealized losses on 228 securities at March 31, 2023 were caused by interest rate changes. 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 the securities before recovery of the amortized cost bases, at maturity, the Company does not consider these securities to be credit impaired at March 31, 2023.
At March 31, 2023, no allowance for credit losses has been recognized on available for sale debt securities in an unrealized loss position as the Company does not believe any of the debt securities are credit impaired. This is based on the Company’s analysis of the risk characteristics, including credit ratings, and other qualitative factors related to available for sale debt securities. The issuers of these debt securities continue to make timely principal and interest payments under the contractual terms of the securities. The Company does not intend to sell these debt securities and it is more likely than not that the Company will not be required to sell the debt securities before recovery of their amortized cost, which may be at maturity. The unrealized losses are due to increases in market interest rates over the yields available at the time the debt securities were purchased. Management measures expected credit losses on held to maturity securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. With regard to securities issued by states and political subdivisions, management considers (i) issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, and (iv) internal forecasts. Historical loss rates associated with securities having similar grades as those in our portfolio have generally not been significant. Furthermore, as of March 31, 2023, there were no past due principal or interest payments associated with these securities. Based upon (i) the issuer’s strong bond ratings and (ii) a zero historical loss rate, no allowance for credit losses has been recorded for held to maturity state and municipal securities as such amount is not material at March 31, 2023. All debt securities in an unrealized loss position as of March 31, 2023 continue to perform as scheduled and the Company does not believe there is a possible credit loss or that an allowance for credit loss on these debt securities is necessary.