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SECURITIES HELD TO MATURITY
 6 Months Ended
Jun. 30, 2023
Held-to-maturity Securities  
Marketable Securities [Line Items]  
SECURITIES AVAILABLE FOR SALE AND SECURITIES HELD TO MATURITY

NOTE 3 – SECURITIES HELD TO MATURITY

Effective January 1, 2023, the Company adopted ASC 326, which requires management to complete an evaluation of the held-to-maturity securities portfolio to identify whether any ACL is required. Management completed an evaluation as of the adoption date and determined the ACL on the held-to-maturity portfolio was not significant. This

determination was based on financial review of securities and ratings of each security.

The following table summarizes the amortized cost, fair value, and gross unrecognized gains and losses of securities held to maturity by contractual maturity at June 30, 2023 and December 31, 2022:

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair
Value

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

 

 

 

 

 

 

 

 

 

 

 

One through five years

 

$

10,000,000

 

 

$

—

 

 

$

(488,890

)

 

$

9,511,110

 

Five through ten years

 

 

3,000,000

 

 

 

—

 

 

 

(414,570

)

 

 

2,585,430

 

Corporate bonds due in:

 

 

 

 

 

 

 

 

 

 

 

 

One through five years

 

 

2,450,732

 

 

 

—

 

 

 

(59,312

)

 

 

2,391,420

 

Five through ten years

 

 

17,283,079

 

 

 

—

 

 

 

(2,107,369

)

 

 

15,175,710

 

Municipal obligations due in:

 

 

 

 

 

 

 

 

 

 

 

 

One through five years

 

 

902,072

 

 

 

—

 

 

 

(74,765

)

 

 

827,307

 

Five through ten years

 

 

375,000

 

 

 

274

 

 

 

—

 

 

 

375,274

 

Greater than ten years

 

 

1,726,059

 

 

 

—

 

 

 

(289,342

)

 

 

1,436,717

 

MBSs:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

13,414,683

 

 

 

924

 

 

 

(1,590,709

)

 

 

11,824,898

 

Commercial

 

 

20,657,955

 

 

 

—

 

 

 

(3,028,725

)

 

 

17,629,230

 

Total

 

$

69,809,580

 

 

$

1,198

 

 

$

(8,053,682

)

 

$

61,757,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair
Value

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

 

 

 

 

 

 

 

 

 

 

 

One through five years

 

$

10,000,000

 

 

$

—

 

 

$

(456,850

)

 

$

9,543,150

 

Five through ten years

 

 

3,000,000

 

 

 

—

 

 

 

(466,866

)

 

 

2,533,134

 

Corporate bonds due in:

 

 

 

 

 

 

 

 

 

 

 

 

One through five years

 

 

2,444,729

 

 

 

1,269

 

 

 

(55,836

)

 

 

2,390,162

 

Five through ten years

 

 

15,825,262

 

 

 

54,738

 

 

 

(1,045,557

)

 

 

14,834,443

 

Municipal obligations due in:

 

 

 

 

 

 

 

 

 

 

 

 

Less than one year

 

 

7,706,402

 

 

 

—

 

 

 

(36,250

)

 

 

7,670,152

 

One through five years

 

 

902,545

 

 

 

—

 

 

 

(84,742

)

 

 

817,803

 

Five through ten years

 

 

375,000

 

 

 

1,286

 

 

 

—

 

 

 

376,286

 

Greater than ten years

 

 

1,728,184

 

 

 

—

 

 

 

(346,586

)

 

 

1,381,598

 

MBSs:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

14,425,827

 

 

 

410

 

 

 

(1,431,861

)

 

 

12,994,376

 

Commercial

 

 

21,019,360

 

 

 

—

 

 

 

(2,860,813

)

 

 

18,158,547

 

Total

 

$

77,427,309

 

 

$

57,703

 

 

$

(6,785,361

)

 

$

70,699,651

 

 

All of the MBSs are issued by the following government sponsored agencies: FHLMC, FNMA and GNMA.

 

NOTE 3 – SECURITIES HELD TO MATURITY (Continued)

The age of unrecognized losses and the fair value of related securities were as follows:

 

 

 

Less Than 12 Months

 

 

12 Months or More

 

 

Total

 

 

 

Fair
Value

 

 

Unrecognized
Losses

 

 

Fair
Value

 

 

Unrecognized
Losses

 

 

Fair
Value

 

 

Unrecognized
Losses

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency obligations

 

$

—

 

 

$

—

 

 

$

12,096,540

 

 

$

(903,460

)

 

$

12,096,540

 

 

$

(903,460

)

Corporate bonds

 

 

7,141,119

 

 

 

(508,820

)

 

 

10,426,010

 

 

 

(1,657,861

)

 

 

17,567,129

 

 

 

(2,166,681

)

Municipal bonds

 

 

—

 

 

 

—

 

 

 

2,264,024

 

 

 

(364,107

)

 

 

2,264,024

 

 

 

(364,107

)

MBSs – residential

 

 

139,017

 

 

 

(2,057

)

 

 

10,511,096

 

 

 

(1,588,652

)

 

 

10,650,113

 

 

 

(1,590,709

)

MBSs – commercial

 

 

—

 

 

 

—

 

 

 

17,629,230

 

 

 

(3,028,725

)

 

 

17,629,230

 

 

 

(3,028,725

)

Total

 

$

7,280,136

 

 

$

(510,877

)

 

$

52,926,900

 

 

$

(7,542,805

)

 

$

60,207,036

 

 

$

(8,053,682

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Than 12 Months

 

 

12 Months or More

 

 

Total

 

 

 

Fair
Value

 

 

Unrecognized
Losses

 

 

Fair
Value

 

 

Unrecognized
Losses

 

 

Fair
Value

 

 

Unrecognized
Losses

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency obligations

 

$

9,543,150

 

 

$

(456,850

)

 

$

2,533,134

 

 

$

(466,866

)

 

$

12,076,284

 

 

$

(923,716

)

Corporate bonds

 

 

11,464,282

 

 

 

(680,447

)

 

 

3,329,054

 

 

 

(420,946

)

 

 

14,793,336

 

 

 

(1,101,393

)

Municipal bonds

 

 

7,670,152

 

 

 

(36,250

)

 

 

2,199,401

 

 

 

(431,328

)

 

 

9,869,553

 

 

 

(467,578

)

MBSs – residential

 

 

2,008,303

 

 

 

(101,341

)

 

 

10,809,648

 

 

 

(1,330,520

)

 

 

12,817,951

 

 

 

(1,431,861

)

MBSs – commercial

 

 

7,383,822

 

 

 

(282,984

)

 

 

10,774,725

 

 

 

(2,577,829

)

 

 

18,158,547

 

 

 

(2,860,813

)

Total

 

$

38,069,709

 

 

$

(1,557,872

)

 

$

29,645,962

 

 

$

(5,227,489

)

 

$

67,715,671

 

 

$

(6,785,361

)

No ACL on the securities above has been recorded because the issuers of the securities are of high credit quality and the decline in fair value was due to changes in interest rates and other market conditions. The fair value is expected to recover as the securities approach maturity. At June 30, 2023 and December 31, 2022, securities held to maturity with a carrying amount of $5,006,088 and $5,293,804, respectively, were pledged to secure repurchase agreements at the Federal Home Loan Bank of New York. There were 54 securities in a loss position at June 30, 2023. At December 31, 2022 the Bank did not consider these securities to be other-than-temporary impaired. At June 30, 2023 and December 31, 2022, securities held to maturity with a carrying value of $5,183,704 and $5,293,804, respectively, were pledged to secure public deposits.