SECURITIES AVAILABLE FOR SALE

6 Months Ended

Jun. 30, 2022

Available-for-sale Securities

Schedule Of Available For Sale Securities [Line Items]

SECURITIES AVAILABLE FOR SALE AND SECURITIES HELD TO MATURITY

NOTE 3 – SECURITIES AVAILABLE FOR SALE

The following table summarizes the amortized cost, fair value, and gross unrealized gains and losses of securities available for sale, by contractual maturity, at June 30, 2022 and December 31, 2021:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2022
U.S treasury bills less than one year	$	9,910,459	$	—	$	(40,027	)		9,870,432
U.S. government and agency obligations
One through five years		6,000,000		—		(432,891	)		5,567,109
Corporate bonds due in:
One through five years		15,252,017		503		(358,051	)		14,894,469
Five through ten years		2,949,325		—		(234,025	)		2,715,300
MBSs – residential		46,918,907		11,912		(5,546,864	)		41,383,955
MBSs – commercial		25,553,578		—		(2,477,150	)		23,076,428
Total	$	106,584,286	$	12,415	$	(9,089,008	)	$	97,507,693
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2021
U.S. government and agency obligations
One through five years	$	3,000,000	$	—	$	(18,270	)	$	2,981,730
Corporate bonds due in:
One through five years		6,375,068		17,594		(636	)		6,392,026
Five through ten years		1,002,542		3,050		—			1,005,592
MBSs – residential		21,695,539		89,297		(24,591	)		21,760,245
MBSs – commercial		9,741,782		—		(42,577	)		9,699,205
Total	$	41,814,931	$	109,941	$	(86,074	)	$	41,838,798

All of the mortgaged-backed securities (“MBSs”) are issued by the following government sponsored agencies: Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Government National Mortgage Association (“GNMA”).

NOTE 3 – SECURITIES AVAILABLE FOR SALE (Continued)

There were no sales of securities during the three and six months ended June 30, 2022 or June 30, 2021.

The age of unrealized losses and the fair value of related securities as of June 30, 2022 and December 31, 2021 were as follows:

	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
June 30, 2022
U.S treasury bills	$	9,870,432	$	(40,027	)	$	—	$	—		$	9,870,432	$	(40,027	)
U.S. government and agency obligations		5,567,109		(432,891	)		—		—			5,567,109		(432,891	)
Corporate bonds		16,608,727		(592,076	)		—		—			16,608,727		(592,076	)
MBSs – residential		40,333,985		(5,541,734	)		239,326		(5,130	)		40,573,311		(5,546,864	)
MBSs – commercial		23,076,428		(2,477,150	)		—		—			23,076,428		(2,477,150	)
Total	$	95,456,681	$	(9,083,878	)	$	239,326	$	(5,130	)	$	95,696,007	$	(9,089,008	)
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2021
U.S. government and agency obligations	$	2,981,730	$	(18,270	)	$	—	$	—		$	2,981,730	$	(18,270	)
Corporate bonds		1,006,523		(636	)		—		—			1,006,523		(636	)
MBSs – residential		10,000,558		(22,652	)		250,581		(1,939	)		10,251,139		(24,591	)
MBSs – commercial		9,699,205		(42,577	)		—		—			9,699,205		(42,577	)
Total	$	23,688,016	$	(84,135	)	$	250,581	$	(1,939	)	$	23,938,597	$	(86,074	)

Unrealized losses on corporate bonds available for sale have not been recognized into income because the issuer bonds are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value was largely due to changes in interest rates and other market conditions. At June 30, 2022, 100% of the mortgage-backed securities were issued by U.S. government-sponsored entities and agencies, primarily FNMA and FHLMC, institutions which the government has affirmed its commitment to support. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Bank does not consider these securities to be other-than-temporary impaired at June 30, 2022. At June 30, 2022, securities available for sale with a carrying value of $144,705 were pledged to secure public deposits. There were no securities available for sale and pledged to secure public deposits at December 31, 2021. There were 53 securities in a loss position at June 30, 2022, none of which were considered to be other-than-temporally impaired.