XML 19 R10.htm IDEA: XBRL DOCUMENT v3.23.2
Investment Securities
 6 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
2.
INVESTMENT SECURITIES

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

 

 

June 30, 2023

 

 

 

 

(In Thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US government agency securities

 

$

2,000

 

 

$

—

 

 

$

(19

)

 

$

1,981

 

 

 

 

Small Business Administration loan pools

 

 

726

 

 

 

—

 

 

 

(15

)

 

 

711

 

 

 

 

Obligations of state and political subdivisions

 

 

45,651

 

 

 

7

 

 

 

(3,728

)

 

 

41,930

 

 

 

 

Mortgage-backed securities in government-sponsored entities

 

 

42,946

 

 

 

—

 

 

 

(3,948

)

 

 

38,998

 

 

 

 

 

 

$

91,323

 

 

$

7

 

 

$

(7,710

)

 

$

83,620

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
 Value

 

 

Allowance for
Credit Losses

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

15,000

 

 

$

—

 

 

$

(1,782

)

 

$

13,218

 

 

$

586

 

Structured mortgage-backed securities

 

 

23,806

 

 

 

—

 

 

 

(966

)

 

 

22,840

 

 

 

—

 

 

 

$

38,806

 

 

$

—

 

 

$

(2,748

)

 

$

36,058

 

 

$

586

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

The following tables summarize the Company's debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security type and length of time in a continuous unrealized loss position.

 

 

June 30, 2023

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

US Government Agency Securities

 

$

1,981

 

 

$

(19

)

 

$

—

 

 

$

—

 

 

$

1,981

 

 

$

(19

)

Small Business Administration loan pools

 

 

—

 

 

 

—

 

 

 

711

 

 

 

(15

)

 

 

711

 

 

 

(15

)

Obligations of state and political subdivisions

 

 

4,008

 

 

 

(139

)

 

 

27,946

 

 

 

(3,589

)

 

 

31,954

 

 

 

(3,728

)

Mortgage-backed securities in government-sponsored entities

 

 

47

 

 

 

(1

)

 

 

38,951

 

 

 

(3,947

)

 

 

38,998

 

 

 

(3,948

)

 

 

$

6,036

 

 

$

(159

)

 

$

67,608

 

 

$

(7,551

)

 

$

73,644

 

 

$

(7,710

)

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

7,234

 

 

$

(765

)

 

$

5,983

 

 

$

(1,017

)

 

$

13,217

 

 

$

(1,782

)

Structured mortgage-backed securities

 

 

5,708

 

 

 

(52

)

 

 

17,132

 

 

 

(914

)

 

 

22,840

 

 

 

(966

)

 

 

$

12,942

 

 

$

(817

)

 

$

23,115

 

 

$

(1,931

)

 

$

36,057

 

 

$

(2,748

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

No allowance for credit losses on available for sale debt securities was needed at June 30, 2023. The Company reviews its position quarterly and believes that as of June 30, 2023 and December 31, 2022, 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 181 and 175 available for sale debt securities with unrealized losses at June 30, 2023 and December 31, 2022, respectively. The Company has concluded that the

unrealized losses disclosed above are the result of interest rate changes and market conditions that are not expected to result in the noncollection of principal and interest during the year.

There were 13 and ten held to maturity debt securities with unrealized losses at June 30, 2023 and December 31, 2022, respectively.

As of June 30, 2023, 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

 

$

300

 

 

$

296

 

 

$

—

 

 

$

—

 

Due after one year through five years

 

 

7,684

 

 

 

7,506

 

 

 

6,000

 

 

 

5,696

 

Due after five years through ten years

 

 

14,908

 

 

 

14,027

 

 

 

9,000

 

 

 

7,522

 

Due after ten years

 

 

25,485

 

 

 

22,793

 

 

 

—

 

 

 

—

 

Mortgage-backed securities and Collateralized mortgage obligations

 

 

42,946

 

 

 

38,998

 

 

 

23,806

 

 

 

22,840

 

 

 

$

91,323

 

 

$

83,620

 

 

$

38,806

 

 

$

36,058

 

 

The following table summarizes sales of debt securities for the six months ended June 30, 2023 and 2022. There were no sales of debt securities for the three months ended June 30, 2023 and 2022.

 

(In Thousands)

 

For the Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 Proceeds

 $

 

1,847

 

 $

 

513

 

 Gross gains

 

 

 

—

 

 

 

 

13

 

 Gross losses

 

 

2,370

 

 

 

—

 

 Net (loss) gain

 $

 

(2,370

)

 $

 

13

 

 

 

The tax benefit (provision) related to these realized gains and losses was $498 and $(3) as of June 30, 2023 and 2022, respectively.

At December 31, 2022, the Company's corporate debenture portfolio 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.

 

The Company had pledged debt securities with a carrying value of $45,561 and $47,418 to secure public monies as of June 30, 2023 and December 31, 2022, respectively.