INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

3.            INVESTMENT SECURITIES

The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as AFS at the dates indicated are summarized as follows:

			Gross		Gross
	Amortized		unrealized		unrealized		Estimated
	cost		gains		losses		fair value
December 31, 2023
Municipal securities	$	21,910	$	75	$	(1,158)	$	20,827
Mortgage-backed securities		41,048		194		(3,641)		37,601
Collateralized mortgage obligations		35,019		256		(2,299)		32,976
SBA securities		5,280		49		(77)		5,252
Corporate bonds		80,383		7		(13,894)		66,496
Total	$	183,640	$	581	$	(21,069)	$	163,152

			Gross		Gross
	Amortized		unrealized		unrealized		Estimated
	cost		gains		losses		fair value
December 31, 2022 (As Restated)
U.S. Government Agencies	$	1,505	$	—	$	—	$	1,505
Municipal securities		21,099		2		(1,544)		19,557
Mortgage-backed securities		37,199		23		(4,212)		33,010
Collateralized mortgage obligations		28,153		—		(2,729)		25,424
SBA securities		4,381		19		(95)		4,305
Corporate bonds		77,900		156		(7,853)		70,203
Total	$	170,237	$	200	$	(16,433)	$	154,004

Amortized cost and fair values exclude accrued interest receivable of $1.2 million at both December 31, 2023 and 2022, which is included in interest receivable and other assets in the consolidated balance sheets.

For the year ended December 31, 2023, the Company sold no securities AFS, sold one security AFS for a minimal net realized gain for the year ended December 31, 2022 and sold $3.0 million in securities AFS for net realized gains of $41,000 for the year ended December 31, 2021.

The amortized cost and estimated fair value of securities AFS at the dates indicated by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	December 31, 2023				December 31, 2022
	Amortized		Estimated		Amortized		Estimated
	cost		fair value		cost		fair value
					(As Restated)		(As Restated)
Securities AFS
Due in one year or less	$	6,397	$	6,338	$	4,994	$	4,960
Due after one through five years		15,909		14,206		18,892		17,925
Due after five years through ten years		102,430		87,867		95,071		85,482
Due after ten years		58,904		54,741		51,280		45,637
Total	$	183,640	$	163,152	$	170,237	$	154,004

At December 31, 2023 and 2022, there were no securities pledged.

The estimated fair value and gross unrealized losses for securities AFS aggregated by the length of time that individual securities have been in a continuous unrealized loss position at the dates indicated are as follows:

	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	fair value		loss		fair value		loss		fair value		loss
December 31, 2023
Municipal securities	$	2,483	$	(28)	$	13,975	$	(1,130)	$	16,458	$	(1,158)
Mortgage-backed securities		1,369		(30)		26,435		(3,611)		27,804		(3,641)
Collateralized mortgage obligations		1,496		(8)		20,713		(2,291)		22,209		(2,299)
SBA securities		—		—		1,610		(77)		1,610		(77)
Corporate bonds		—		—		65,505		(13,894)		65,505		(13,894)
Total	$	5,348	$	(66)	$	128,238	$	(21,003)	$	133,586	$	(21,069)

	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	fair value		loss		fair value		loss		fair value		loss
December 31, 2022 (As Restated)
Municipal securities	$	1,147	$	(8)	$	16,843	$	(1,536)	$	17,990	$	(1,544)
Mortgage-backed securities		—		—		31,291		(4,212)		31,291		(4,212)
Collateralized mortgage obligations		2,284		(26)		23,140		(2,703)		25,424		(2,729)
SBA securities		—		—		1,416		(95)		1,416		(95)
Corporate bonds		—		—		64,797		(7,853)		64,797		(7,853)
Total	$	3,431	$	(34)	$	137,487	$	(16,399)	$	140,918	$	(16,433)

At December 31, 2023, the Company held 334 investment securities, of which 297 were in an unrealized loss position for more than twelve months and 22 were in an unrealized loss position for less than twelve months. At December 31, 2022, the Company held 333 investment securities, of which 102 were in an unrealized loss position for more than twelve months and 174 were in an unrealized loss position for less than twelve months. The Company anticipates full recovery of amortized cost with respect to these securities at maturity or sooner in the event of a more favorable market interest rate environment.

Allowance for credit losses on investment debt securities available-for-sale

The securities that were in an unrealized loss position as of December 31, 2023, were evaluated to determine whether the decline in fair value below the amortized cost basis resulted from a credit loss or changes in required yields by investors in these types of securities, among other factors. This assessment first includes a determination of whether the Company intends to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit losses. In making this assessment, management considers the nature of the security and any related government guarantees, any changes to the rating of the security by a rating agency, creditworthiness of the issuers/guarantors, the underlying collateral, the financial conditions and prospects of the issuer, and any adverse conditions specifically related to the security among other factors.

As of December 31, 2023, the Company expects to recover the amortized cost basis of its securities, has no present intent to sell any investment securities with unrealized losses, it is more likely than not that we will not be required to sell securities with unrealized losses before recovery of their amortized cost and the decline in fair value is largely attributed to changes in interest rates and other market conditions. The issuers of these securities continue to make timely principal and interest payments. No allowances for credit losses have been recognized on investment debt securities available-for-sale in an unrealized loss position, as management does not believe any of the securities are impaired due to reasons of credit quality at December 31, 2023.

Equity Securities

The Company recognized a net loss on equity securities of $1.1 million, $4.6 million, and zero for the years ended December 31, 2023, 2022 and 2021, respectively, due to a decrease in fair value of the equity securities. Equity securities were $12.6 million and $13.8 million as of December 31, 2023 and 2022, respectively.