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Investment Securities
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
3.
INVESTMENT SECURITIES

The amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale are summarized as follows:

 

 

 

December 31, 2022

 

(In Thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Administration loan pools

 

$

858

 

 

$

—

 

 

$

(15

)

 

$

843

 

Obligations of state and political subdivisions

 

 

44,189

 

 

 

14

 

 

 

(4,034

)

 

 

40,169

 

Mortgage-backed securities in government-sponsored entities

 

 

41,873

 

 

 

—

 

 

 

(4,072

)

 

 

37,801

 

 

 

$

86,920

 

 

$

14

 

 

$

(8,121

)

 

$

78,813

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

14,993

 

 

$

—

 

 

$

(994

)

 

$

13,999

 

Structured mortgage-backed securities

 

 

16,829

 

 

 

—

 

 

 

(748

)

 

 

16,081

 

 

 

$

31,822

 

 

$

—

 

 

$

(1,742

)

 

$

30,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

(In Thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Administration loan pools

 

$

1,099

 

 

$

—

 

 

$

(15

)

 

$

1,084

 

Obligations of state and political subdivisions

 

 

46,115

 

 

 

2,405

 

 

 

(38

)

 

 

48,482

 

Mortgage-backed securities in government-sponsored entities

 

 

54,239

 

 

 

382

 

 

 

(404

)

 

 

54,217

 

 

 

$

101,453

 

 

$

2,787

 

 

$

(457

)

 

$

103,783

 

 

 

The following tables show the Company's gross unrealized losses and fair value, aggregated by investment category and length of time the individual debt securities have been in a continuous unrealized loss position.

 

 

 

 

December 31, 2022

 

 

 

Less Than Twelve Months

 

 

Twelve Months or Greater

 

 

Total

 

(In Thousands)

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Administration loan pools

 

$

334

 

 

$

(1

)

 

$

509

 

 

$

(14

)

 

$

843

 

 

$

(15

)

Obligations of state and political subdivisions

 

 

34,836

 

 

 

(3,372

)

 

 

2,559

 

 

 

(662

)

 

 

37,395

 

 

 

(4,034

)

Mortgage-backed securities in government-sponsored entities

 

 

18,052

 

 

 

(1,538

)

 

 

19,749

 

 

 

(2,534

)

 

 

37,801

 

 

 

(4,072

)

 

 

$

53,222

 

 

$

(4,911

)

 

$

22,817

 

 

$

(3,210

)

 

$

76,039

 

 

$

(8,121

)

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

13,999

 

 

$

(994

)

 

$

—

 

 

$

—

 

 

$

13,999

 

 

$

(994

)

Structured mortgage-backed securities

 

 

16,081

 

 

 

(748

)

 

 

—

 

 

 

—

 

 

 

16,081

 

 

 

(748

)

 

 

$

30,080

 

 

$

(1,742

)

 

$

—

 

 

$

—

 

 

$

30,080

 

 

$

(1,742

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

Less Than Twelve Months

 

 

Twelve Months or Greater

 

 

Total

 

(In Thousands)

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Administration loan pools

 

$

—

 

 

$

—

 

 

$

1,084

 

 

$

(15

)

 

$

1,084

 

 

$

(15

)

Obligations of state and political subdivisions

 

 

3,189

 

 

 

(38

)

 

 

—

 

 

 

—

 

 

 

3,189

 

 

 

(38

)

Mortgage-backed securities in government-sponsored entities

 

 

23,420

 

 

 

(266

)

 

 

4,687

 

 

 

(102

)

 

 

28,107

 

 

 

(368

)

 

 

$

26,609

 

 

$

(304

)

 

$

5,771

 

 

$

(117

)

 

$

32,380

 

 

$

(421

)

The Company reviews its position quarterly and believes that as of December 31, 2022 and 2021, the declines outlined in the above tables represent temporary declines, and the Company does not intend to sell, and does not believe it will be required to sell, these debt securities before recovery of their cost basis, which may be at maturity. There were 175 and 41 available for sale debt securities with unrealized losses at December 31, 2022 and 2021, respectively. There were ten and zero held-to-maturity debt securities with unrealized losses at December 31, 2022 and 2021, respectively. The Company has concluded that the unrealized losses disclosed above are not other than temporary, but are the result of interest rate changes that are not expected to result in the noncollection of principal and interest during the year.

Our corporate debenture portfolio as of December 31, 2022 contained $3,000 of an investment in subordinated notes issued by Signature Bank. As a result of and subsequent to the failure of Signature Bank during the first quarter of 2023, the Company sold its investment in the Signature Bank subordinated notes and incurred a pre-tax gross loss of approximately $2,445 before applying the CECL reserve allocated to this security.

As of December 31, 2022, amortized cost and fair value by contractual maturity, where applicable, are shown below. Actual maturities may differ from contractual maturities because the borrower may have the right to prepay obligations with or without penalty.

 

 

 

Available for Sale Securities

 

 

Held to Maturity Securities

 

(In Thousands)

 

Amortized
Cost

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

Due within one year

 

$

314

 

 

$

314

 

 

$

—

 

 

$

—

 

Due after one year through five years

 

 

6,480

 

 

 

6,340

 

 

 

3,000

 

 

 

2,888

 

Due after five years through ten years

 

 

12,701

 

 

 

11,949

 

 

 

11,993

 

 

 

11,111

 

Due after ten years

 

 

25,552

 

 

 

22,408

 

 

 

—

 

 

 

—

 

Mortgage-backed securities and Collateralized mortgage obligations

 

 

41,873

 

 

 

37,802

 

 

 

16,829

 

 

 

16,081

 

 

 

$

86,920

 

 

$

78,813

 

 

$

31,822

 

 

$

30,080

 

 

 

The following table summarizes sales of debt securities:

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

For the Year Ended December 31,

 

 

 

2022

 

 

2021

 

Proceeds

 

$

 

513

 

 

$

 

11,371

 

Gross gains

 

 

 

13

 

 

 

 

127

 

Gross losses

 

 

 

—

 

 

 

 

(53

)

Net gain

 

$

 

13

 

 

$

 

74

 

 

The Company had pledged debt securities with a carrying value of $47,418 and $45,300 to secure public monies as of December 31, 2022 and 2021, respectively.