Securities Available for Sale

3 Months Ended

Mar. 31, 2022

Debt Securities, Available-for-sale [Abstract]

NOTE 2 – SECURITIES AVAILABLE FOR SALE

The fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income at March 31, 2022 and December 31, 2021 were as follows:


March 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S Government sponsored entities	$	3,000	$	—	$	(332	)	$	2,668
Municipal- taxable		13,829		111		(1,061	)		12,879
Municipal- tax exempt		1,365		4		(7	)		1,362
Residential MBS (1)		9,510		5		(150	)		9,365
SBA(2) guaranteed debenture		857		—		(41	)		816
Total	$	28,561	$	120	$	(1,591	)	$	27,090

December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S Government sponsored entities	$	3,000	$	—	$	(43	)	$	2,957
Municipal- taxable		13,839		375		(57	)		14,157
Municipal- tax exempt		1,365		34		—			1,399
Residential MBS		1,638		35		(4	)		1,669
SBA guaranteed debenture		1,120		11		—			1,131
Total	$	20,962	$	455	$	(104	)	$	21,313

(1) Mortgage-backed security

(2) Small Business Administration

The Company’s mortgage-backed securities are primarily issued by GSEs and agencies such as Fannie Mae and Ginnie Mae as denoted in the tables above and below as GSE.

There was one equity security held and carried at the fair value amount of $994 as of March 31, 2022.

There were no sales or calls of securities for the three months ended March 31, 2022 and 2021.

NOTE 2 – SECURITIES AVAILABLE FOR SALE (Continued)

The amortized cost and fair value of the investment securities portfolio are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	March 31, 2022
	Amortized Cost		Estimated Fair Value
Due one year or less	$	—	$	—
Due from one to five years		1,401		1,410
Due from five to ten years		2,731		2,707
Due after ten years		14,062		12,792
Residential mortgage-backed		9,510		9,365
SBA guaranteed debenture		857		816
Total	$	28,561	$	27,090

Carrying amounts of securities pledged to secure public deposits as of March 31, 2022 and December 31, 2021 were $9,905 and $9,261, respectively. At March 31, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.

NOTE 2 – SECURITIES AVAILABLE FOR SALE (Continued)

Securities with unrealized losses at March 31, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:


	Less than 12 months					12 months or more					Total
March 31, 2022	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S Government sponsored entities	$	2,668	$	(332	)	$	—	$	—		$	2,668	$	(332	)
Municipal- taxable		8,326		(773	)		2,341		(288	)		10,667		(1,061	)
Municipal- tax free		283		(7	)		—		—			283		(7	)
Residential MBS		9,134		(150	)		—		—			9,134		(150	)
SBA guaranteed debenture		816		(41	)		—		—			816		(41	)
Total temporarily impaired	$	21,227	$	(1,303	)	$	2,341	$	(288	)	$	23,568	$	(1,591	)


	Less than 12 months					12 months or more					Total
December 31, 2021	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S Government sponsored entities	$	2,957	$	(43	)	$	—	$	—		$	2,957	$	(43	)
Municipal- taxable		805		(16	)		1,771		(41	)		2,576		(57	)
Residential MBS		503		(4	)		—		—			503		(4	)
Total temporarily impaired	$	4,265	$	(63	)	$	1,771	$	(41	)	$	6,036	$	(104	)

The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. The Company considers the length of time and the extent to which the fair value has been less than cost and the financial condition and near-term prospects of the issuer. Additionally, the Company considers its intent to sell or whether it will be more likely than not it will be required to sell the security prior to the security’s anticipated recovery in fair value.

There were three US government agencies, one municipal-tax free, 16 municipal-taxable securities, one SBA guaranteed debenture and eight mortgage backed security with unrealized losses at March 31, 2022. None of the unrealized losses for these securities have been recognized into net income for the three months ended March 31, 2022 because the issuer’s 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 is largely due to changes in interest rates. The fair value is expected to recover as the bonds approach their maturity date or reset date.