Securities Available-for-Sale

12 Months Ended

Dec. 31, 2022

Debt Securities, Available-for-Sale [Abstract]

Securities Available For Sale

5.Securities Available-for-Sale

The amortized cost and fair value of securities available-for-sale, and the corresponding amounts of gross unrealized gains and losses, are as follows as of December 31, 2022 and 2021:

	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. Government-sponsored enterprises obligations	$	2,191	$	—	$	(365	)	$	1,826
U.S. Government agency small business administration    pools guaranteed by SBA		9,475		—		(1,116	)		8,359
Collateralized mortgage obligations issued by the    FHLMC, FNMA and GNMA		6,922		8		(708	)		6,222
Residential mortgage-backed securities		26,390		—		(4,567	)		21,823
Municipal bonds		69,373		172		(7,129	)		62,416
Corporate debt		500		—		(3	)		497
Corporate subordinated debt		5,550		—		(593	)		4,957
	$	120,401	$	180	$	(14,481	)	$	106,100
	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. Government-sponsored enterprises obligations	$	6,098	$	—	$	(127	)	$	5,971
U.S. Government agency small business administration    pools guaranteed by SBA		5,059		22		(36	)		5,045
Collateralized mortgage obligations issued by the    FHLMC, FNMA and GNMA		3,400		1		(69	)		3,332
Residential mortgage-backed securities		23,784		32		(484	)		23,332
Municipal bonds		49,164		1,501		(52	)		50,613
Corporate subordinated debt		3,072		-		-			3,072
	$	90,577	$	1,556	$	(768	)	$	91,365

The amortized cost and fair values of available-for-sale securities at December 31, 2022 by contractual maturity are shown below. Actual 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, 2022
	Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		500		497
Due after five years through ten years		9,378		8,387
Due after ten years		67,736		60,812
Total U.S. Government-sponsored enterprises obligations,    municipal bonds and corporate subordinated debt		77,614		69,696
U.S. Government agency small business pools guaranteed    by SBA(1)		9,475		8,359
Collateralized mortgage obligations issued by the FHLMC,    FNMA, and GNMA(1)		6,922		6,222
Residential mortgage-backed securities(1)		26,390		21,823
Total	$	120,401	$	106,100

(1) Actual maturities for these debt securities are dependent upon the interest rate environment and prepayments on the underlying loans.

Proceeds from sales, maturities, principal payments received and gross realized gains and losses on available-for-sale securities were as follows for the years ended December 31:

	December 31,
	2022			2021
	(Dollars in thousands)
Proceeds from sales, maturities and principal payments      received on securities available-for-sale	$	9,872		$	20,037
Gross realized gains		52			588
Gross realized losses		(799	)		(53	)
Net realized (losses) gains	$	(747	)	$	535

The following is a summary of gross unrealized losses and fair value for those investments with unrealized losses, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, at December 31, 2022 and 2021.

	Less than 12 Months							More than 12 Months							Total
	Number of Securities		Fair Value		Unrealized Losses			Number of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in thousands)
December 31, 2022
U.S. Government sponsored    enterprises obligations		1	$	453	$	(43	)		3	$	1,373	$	(322	)	$	1,826	$	(365	)
U.S. Government agency small    business administration pools    guaranteed by SBA		8		5,947		(602	)		3		2,412		(514	)		8,359		(1,116	)
Collateralized mortgage    obligations issued by    the FHLMC, FNMA    and GNMA		5		3,212		(209	)		4		2,016		(499	)		5,228		(708	)
Residential mortgage    backed securities		8		4,239		(503	)		23		16,649		(4,064	)		20,888		(4,567	)
Municipal bonds		86		49,228		(5,900	)		8		5,769		(1,229	)		54,997		(7,129	)
Corporate debt		1		497		(3	)		—		—		—			497		(3	)
Corporate subordinated debt		4		4,457		(593	)		—		—		—			4,457		(593	)
		113	$	68,033	$	(7,853	)		41	$	28,219	$	(6,628	)	$	96,252	$	(14,481	)
December 31, 2021
U.S. Government sponsored    enterprises obligations		7	$	5,022	$	(80	)		2	$	949	$	(47	)	$	5,971	$	(127	)
U.S. Government agency small    business administration pools    guaranteed by SBA		3		2,988		(36	)		—		—		—			2,988		(36	)
Collateralized mortgage    obligations issued by    the FHLMC, FNMA    and GNMA		4		2,779		(69	)		—		—		—			2,779		(69	)
Residential mortgage    backed securities		22		19,541		(399	)		1		2,304		(85	)		21,845		(484	)
Municipal bonds		7		6,494		(49	)		1		584		(3	)		7,078		(52	)
		43	$	36,824	$	(633	)		4	$	3,837	$	(135	)	$	40,661	$	(768	)

In evaluating whether investments have suffered an other-than-temporary decline, management evaluated the amount of the decline compared to cost, the length of time and extent to which fair value has been less than cost, the underlying creditworthiness of the issuer, the fair values exhibited during the year and estimated future fair values. In general, management concluded the declines are due to coupon rates compared to market rates and current economic conditions. The Company does not intend to sell investments with unrealized losses, and it is more likely than not that the Company will not be required to sell these investments before recovery of their amortized cost basis. Based on evaluations of the underlying issuers’ financial condition, current trends and economic conditions, management does not believe any securities suffered an other-than-temporary decline in value as of December 31, 2022.

As of December 31, 2022 and 2021, there were no holdings of securities of any issuer, other than the SBA, FHLMC, GNMA and FNMA, whose aggregate carrying value exceeded 10% of stockholders’ equity.