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Investment Securities
 3 Months Ended
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
2. INVESTMENT SECURITIES
The following table summarizes the amortized cost and estimated fair value of securities available for sale at March 31, 2022 and December 31, 2021.
 
(Dollars in thousands)
    Amortized
Cost		      Gross
Unrealized /
Unrecognized
Gains		      Gross
Unrealized /
Unrecognized
Losses		      Estimated
Fair
Value		  
At March 31, 2022:
                                    
Mortgage backed securities
    $ 23,981      $ 91      $ (280 )     $ 23,792  
Government agencies
      29,730        25        (55 )       29,700  
Corporate bonds
      427        66        —          493  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total available for sale securities
    $ 54,138      $ 182      $ (335 )     $ 53,985  
    
 
 
     
 
 
     
 
 
     
 
 
  
Mortgage backed securities
    $ 71,857      $ —        $ (3,826 )     $ 68,031  
Government agencies
      3,091        —          (352 )       2,739  
Corporate bonds
      42,831        150        (1,415 )       41,566  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total held to maturity securities
    $ 117,779      $ 150      $ (5,593 )     $ 112,336  
    
 
 
     
 
 
     
 
 
     
 
 
  
At December 31, 2021:
                                    
Mortgage backed securities
    $ 29,943      $ 325      $ (320 )     $ 29,948  
Government agencies
      3,093        —          (100 )       2,993  
Corporate bonds
      41,725        694        (468 )       41,951  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total available for sale securities
    $ 74,761      $ 1,019      $ (888 )     $ 74,892  
    
 
 
     
 
 
     
 
 
     
 
 
  
Mortgage backed securities
    $ 22,772      $ —        $ (140 )     $ 22,632  
Government agencies
      —          —          —          —    
Corporate bonds
      5,614        —          (30 )       5,584  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total held to maturity securities
    $ 28,386      $ —        $ (170 )     $ 28,216  
    
 
 
     
 
 
     
 
 
     
 
 
  
The Company purchased 7 available for sale securities for $34.2 million and 10 held to maturity securities for $40.8 million during the three months ended March 31, 2022. The Company purchased 2 available for sale securities for $7.2 million and no held to maturity securities during the three months ended March 31, 2021. The Company did not sell any securities during the three months ended March 31, 2022 and 2021, respectively.
Net unrealized losses on available for sale investment securities totaling $153,000 were recorded, net of deferred tax assets, as accumulated other comprehensive income within shareholders’ equity at March 31, 2022. Net unrealized gains on available for sale investment securities totaling $131,000 were recorded, net of deferred tax assets, as accumulated other comprehensive income within shareholders’ equity at December 31, 2021, respectively.
During the first quarter of 2022, the Company
re-designated
certain securities previously classified as available for sale to the held to maturity classification. The securities
re-designated
consisted of mortgage backed securities and government agencies with a total carrying value of $49.9 million at December 31, 2021. At the time of re-designation the securities included $281,000 of pretax unrealized losses in other comprehensive income which is being amortized over the remaining life of the securities in a manner consistent with the amortization of a premium or discount.
The following table summarizes securities with unrealized losses at March 31, 2022 and December 31, 2021 aggregated by major security type and length of time in a continuous unrealized loss position.
 
     Less Than 12 Months     More Than 12 Months     Total  
(Dollars in thousands)
    Fair Value      Unrealized
Losses		     Fair Value      Unrealized
Losses		     Fair Value      Unrealized
Losses		  
At March 31, 2022:
                                                    
Mortgage backed securities
    $ 12,890      $ (280 )    $ —        $ —       $ 12,890      $ (280 ) 
Government agencies
      9,830        (55 )      —          —         9,830        (55 ) 
Corporate bonds
      —          —         —          —         —          —    
    
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Total available for sale securities
    $ 22,720      $ (335 )    $ —        $ —       $ 22,720      $ (335 ) 
    
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Mortgage backed securities
    $ 62,356      $ (3,140 )    $ 5,675      $ (686 )    $ 68,031      $ (3,826 ) 
Government agencies
      2,739        (352 )      —          —         2,739        (352 ) 
Corporate bonds
      25,409        (746 )      6,331        (669 )      31,740        (1,415 ) 
    
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Total held to maturity securities
    $ 90,504      $ (4,238 )    $ 12,006      $ (1,355 )    $ 102,510      $ (5,593 ) 
    
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
At December 31, 2021:
                                                    
Mortgage backed securities
    $ 14,302      $ (320 )    $ —        $ —       $ 14,302      $ (320 ) 
Government agencies
      2,993        (100 )      —          —         2,993        (100 ) 
Corporate bonds
      15,233        (200 )      4,732        (268 )      19,965        (468 ) 
    
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Total available for sale securities
    $ 32,528      $ (620 )    $ 4,732      $ (268 )    $ 37,260      $ (888 ) 
    
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Mortgage backed securities
    $ 22,632      $ (140 )    $ —        $ —       $ 22,632      $ (140 ) 
Government agencies
      5,584        (30 )      —          —         5,584        (30 ) 
Corporate bonds
      —          —         —          —         —          —    
    
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
Total held to maturity securities
    $ 28,216      $ (170 )    $ —        $ —       $ 28,216      $ (170 ) 
    
 
 
     
 
 
    
 
 
     
 
 
    
 
 
     
 
 
  
At March 31, 2022 the Company’s investment security portfolio consisted of 60 securities, 41 of which (mortgage backed securities and corporate securities with investment grade ratings) were in an unrealized loss position at quarter end. At December 31, 2021 the Company’s investment security portfolio consisted of 44 securities, 16 of which were in an unrealized loss position at year end. Management believes that changes in the market value since purchase are primarily attributable to changes in interest rates and relative illiquidity. Because the Company does not intend to sell and is unlikely to be required to sell until a recovery of fair value, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at March 31, 2022 and December 31, 2021, respectively. As part of the Company’s assessment of other-than-temporary-impairment (OTTI), management considered the current impact of the
COVID-19
pandemic and determined that its impact on the general economic environment and financial markets has improved and stabilized and, as such, does not currently represent an indicator of impairment.
The following table summarizes the scheduled maturities of the Company’s investment securities as of March 31, 2022.
 
     Available for Sale      Held to Maturity  
(Dollars in thousands)
    Amortized
Cost		      Fair
Value		      Amortized
Cost		      Fair Value  
Less that one year
    $ —        $ —        $ —        $ —    
One to five years
      41,806        41,687        23,701        23,371  
Five to ten years
      —          —          30,349        29,560  
Beyond ten years
      427        493        22,374        20,806  
Securities not due at a single maturity date
      11,905        11,805        41,355        38,599  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total investment securities
    $ 54,138      $ 53,985      $ 117,779      $ 112,336  
    
 
 
     
 
 
     
 
 
     
 
 
  
The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. As such, mortgage backed securities and government agencies are not included in the maturity categories above and instead are shown separately as securities not due at a single maturity date.