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Securities Available-for-Sale
 12 Months Ended
Dec. 31, 2021
Available For Sale Securities [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, 2021 and 2020:

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

 

(Dollars in thousands)

 

U.S. Government-sponsored enterprises obligations

 

$

997

 

 

$

—

 

 

$

(24

)

 

$

973

 

U.S. Government agency small business administration

   pools guaranteed by SBA

 

 

2,399

 

 

 

71

 

 

 

—

 

 

 

2,470

 

Collateralized mortgage obligations issued by the

    FHLMC

 

 

938

 

 

 

11

 

 

 

—

 

 

 

949

 

Residential mortgage-backed securities

 

 

5,100

 

 

 

49

 

 

 

(13

)

 

 

5,136

 

Municipal bonds

 

 

44,005

 

 

 

1,944

 

 

 

(7

)

 

 

45,942

 

 

 

$

53,439

 

 

$

2,075

 

 

$

(44

)

 

$

55,470

 

 

The amortized cost and fair values of available-for-sale securities at December 31, 2021 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, 2021

 

 

 

Amortized

Cost

 

 

Fair Value

 

 

 

(Dollars in thousands)

 

Due in one year or less

 

$

—

 

 

$

—

 

Due after one year through five years

 

 

—

 

 

 

—

 

Due after five years through ten years

 

 

10,132

 

 

 

10,054

 

Due after ten years

 

 

48,202

 

 

 

49,602

 

Total U.S. Government-sponsored enterprises obligations,

   municipal bonds and corporate subordinated debt

 

 

58,334

 

 

 

59,656

 

U.S. Government agency small business pools guaranteed

   by SBA(1)

 

 

5,059

 

 

 

5,045

 

Collateralized mortgage obligations issued by the FHLMC,

   FNMA, and GNMA(1)

 

 

3,400

 

 

 

3,332

 

Residential mortgage-backed securities(1)

 

 

23,784

 

 

 

23,332

 

Total

 

$

90,577

 

 

$

91,365

 

 

(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,

 

 

 

2021

 

 

2020

 

 

 

(Dollars in thousands)

 

Proceeds from sales, maturities and principal payments

     received on securities available-for-sale

 

$

20,037

 

 

$

27,433

 

Gross realized gains

 

 

588

 

 

 

437

 

Gross realized losses

 

 

(53

)

 

 

(27

)

Net realized gains

 

$

535

 

 

$

410

 

 

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, 2021 and 2020.

 

 

 

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, 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

)

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored

   enterprises obligations

 

 

2

 

 

$

973

 

 

$

(24

)

 

 

—

 

 

$

—

 

 

$

—

 

 

$

973

 

 

$

(24

)

U.S. Government agency small

   business administration pools

   guaranteed by SBA

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Collateralized mortgage

   obligations issued by

   the FHLMC

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

   backed securities

 

 

1

 

 

 

3,102

 

 

 

(13

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,102

 

 

 

(13

)

Municipal bonds

 

 

4

 

 

 

2,381

 

 

 

(7

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,381

 

 

 

(7

)

 

 

 

7

 

 

$

6,456

 

 

$

(44

)

 

 

—

 

 

$

—

 

 

$

—

 

 

$

6,456

 

 

$

(44

)

 

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, 2021.

As of December 31, 2021 and 2020, there were no holdings at either date that were issued by a single state or political subdivision which comprised more than 10% of the total fair value of the Bank’s available-for-sale securities.