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Securities Available-for-Sale
 3 Months Ended
Mar. 31, 2022
Available For Sale Securities [Abstract]  
Securities Available For Sale

2.

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 March 31, 2022 and December 31, 2021:

 

 

 

March 31, 2022

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

 

 

(Dollars in thousands)

 

U.S. Government-sponsored enterprises obligations

 

$

6,573

 

 

$

—

 

 

$

(486

)

 

$

6,087

 

U.S. Government agency small business

   administration pools guaranteed by SBA

 

 

7,593

 

 

 

—

 

 

 

(321

)

 

 

7,272

 

Collateralized mortgage obligations issued by

   the FHLMC, FNMA and GNMA

 

 

4,227

 

 

 

—

 

 

 

(280

)

 

 

3,947

 

Residential mortgage-backed securities

 

 

25,779

 

 

 

—

 

 

 

(2,159

)

 

 

23,620

 

Municipal bonds

 

 

56,403

 

 

 

180

 

 

 

(2,941

)

 

 

53,642

 

Corporate subordinated debt

 

 

4,066

 

 

 

—

 

 

 

(144

)

 

 

3,922

 

 

 

$

104,641

 

 

$

180

 

 

$

(6,331

)

 

$

98,490

 

 

 

 

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 March 31, 2022 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

 

 

Amortized

Cost

 

 

Fair Value

 

 

 

(Dollars in thousands)

 

March 31, 2022

 

 

 

 

 

 

 

 

Due in one year or less

 

$

—

 

 

$

—

 

Due after one year through five years

 

 

—

 

 

 

—

 

due after five years through ten years

 

 

11,600

 

 

 

10,976

 

Due after ten years

 

 

55,442

 

 

 

52,675

 

Total U.S. Government-sponsored enterprises obligations,

   municipal bonds and corporate subordinated debt

 

 

67,042

 

 

 

63,651

 

U.S. Government agency small business pools guaranteed

   by SBA(1)

 

 

7,593

 

 

 

7,272

 

Collateralized mortgage obligations issued by the FHLMC,

    FNMA and GNMA(1)

 

 

4,227

 

 

 

3,947

 

Residential mortgage-backed securities(1)

 

 

25,779

 

 

 

23,620

 

Total

 

$

104,641

 

 

$

98,490

 

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

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 March 31, 2022 and December 31, 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)

 

March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored

   enterprises obligations

 

 

7

 

 

$

4,301

 

 

$

(290

)

 

 

3

 

 

$

1,786

 

 

$

(196

)

 

$

6,087

 

 

$

(486

)

U.S. Government agency small business

   administration pools guaranteed by SBA

 

 

7

 

 

 

6,264

 

 

 

(321

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,264

 

 

 

(321

)

Collateralized mortgage obligations issued by

   the FHLMC, FNMA and GNMA

 

 

5

 

 

 

3,606

 

 

 

(253

)

 

 

1

 

 

 

287

 

 

 

(27

)

 

 

3,893

 

 

 

(280

)

Residential mortgage-backed securities

 

 

23

 

 

 

17,150

 

 

 

(1,426

)

 

 

6

 

 

 

6,470

 

 

 

(733

)

 

 

23,620

 

 

 

(2,159

)

Municipal bonds

 

 

63

 

 

 

43,337

 

 

 

(2,895

)

 

 

1

 

 

 

538

 

 

 

(46

)

 

 

43,875

 

 

 

(2,941

)

Corporate subordinated debt

 

 

3

 

 

 

3,922

 

 

 

(144

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,922

 

 

 

(144

)

 

 

 

108

 

 

$

78,580

 

 

$

(5,329

)

 

 

11

 

 

$

9,081

 

 

$

(1,002

)

 

$

87,661

 

 

$

(6,331

)

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 as 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 March 31, 2022.

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

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

 

 

(Dollars in thousands)

 

Proceeds from sales, maturities and principal payments

     received on securities available-for-sale

 

$

1,796

 

 

$

9,746

 

Gross realized gains

 

 

52

 

 

 

203

 

Gross realized losses

 

 

—

 

 

 

—

 

Net realized gains

 

$

52

 

 

$

203

 

 

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