Investment Securities Available for Sale

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investment Securities Available for Sale

Investment securities have been classified in the consolidated balance sheets according to management’s intent. The carrying amount of securities and their approximate fair values as of December 31, 2022 and 2021 are as follows:


	December 31, 2022
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities available-for-sale:
State and municipal securities	$	422	$	—	$	5	$	417
Mortgage-backed securities and other agency obligations		23,522		238		879		22,881
U.S. Treasury bonds		100,567		—		2,049		98,518
Corporate bonds		57,607		59		3,415		54,251
	$	182,118	$	297	$	6,348	$	176,067


	December 31, 2021
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Securities Available-for-sale:
State and municipal securities	$	1,087	$	7	$	—	$	1,094
Mortgage-backed securities and other agency obligations		791		20		—		811
U.S. Treasury bonds		—		—		—		—
Corporate bonds		23,556		972		1		24,527
	$	25,434	$	999	$	1	$	26,432

Mortgage-backed securities are typically issued with stated principal amounts and are backed by pools of mortgages that have loans with varying maturities. The characteristics of the underlying pool of mortgages, such as prepayment risk, are passed on to the certificate holder. Accordingly, the term of mortgage-backed securities approximates the term of the underlying mortgages and can vary significantly due to prepayments. Therefore, schedules of maturities for mortgage-backed securities have been excluded from the below disclosure.

The amortized cost and estimated fair value of securities available for sale at December 31, 2022, by contractual maturity, are shown below.


	December 31, 2022
	Securities Available for Sale
(Dollars in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	100,990	$	98,935
Due from one year to five years		3,778		3,838
Due from five to ten years		53,828		50,413
		158,596		153,186
Mortgage-backed securities and other agency obligations		23,522		22,881
	$	182,118	$	176,067

The following table summarizes securities with unrealized losses at December 31, 2022 and 2021, aggregated by major security type and length of time in a continuous unrealized loss position:


	December 31, 2022
(Dollars in thousands)	Less Than 12 Months in a Loss Position		Greater Than 12 Months in a Loss Position		Total Unrealized Loss		Estimated Fair Value
Securities available-for-sale:
State and municipal securities	$	5	$	—	$	5	$	417
Mortgage-backed securities and other agency obligations		879		—		879		18,376
U.S. Treasury bonds		2,049		—		2,049		98,518
Corporate bonds		3,415		—		3,415		50,413
	$	6,348	$	—	$	6,348	$	167,724

	December 31, 2021
(Dollars in thousands)	Less Than 12 Months in a Loss Position		Greater Than 12 Months in a Loss Position		Total Unrealized Loss		Estimated Fair Value
Securities available-for-sale:
State and municipal securities	$	—	$	—	$	—	$	—
Mortgage-backed securities and other agency obligations		—		—		—		—
U.S. Treasury bonds		—		—		—		—
Corporate bonds		—		1		1		3,999
	$	—	$	1	$	1	$	3,999

There were 35 investments in an unrealized loss position at December 31, 2022, and two investments in an unrealized loss position at December 31, 2021. The Company does not consider any securities to be other-than-temporarily impaired. In estimating other-than-temporary impairment losses, the Company considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near term prospects of the issuer, (iii) that the Company does not intend to sell these securities, and (iv) it is more likely than not that the Company will not be required to sell before a period of time sufficient to allow for any anticipated recovery in fair value. The Company has reviewed the ratings of the issuers and has not identified any issues related to the ultimate repayment of principal because of credit concerns on these securities.

There were no securities pledged as collateral as of December 31, 2022 and 2021.