SECURITIES

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

The amortized cost of securities available for sale and their estimated fair values at March 31, 2022 and December 31, 2021 are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In thousands)
March 31, 2022
Available for sale
U.S. Treasury Note	$	46,939	$	—	$	(1,666)	$	45,273
Corporate Bonds	86,560		415		(1,749)		85,226
U.S. Government agency obligations	22,885		23		(544)		22,364
Obligations issued by U.S. states and their political subdivisions	19,115		293		(210)		19,198
Mortgage-backed securities: Residential one-to-four family	178,941		5		(10,607)		168,339
Multifamily	29,604		36		(427)		29,213
Asset-backed securities	6,269		—		(268)		6,001
Total available-for-sale	$	390,313	$	772	$	(15,471)	$	375,614


December 31, 2021
Available for sale
U.S. Treasury Note	$	36,933	$	4	$	(105)	$	36,832
Corporate Bonds	86,118		1,791		(290)		87,619
U.S. Government agency obligations	23,462		46		(179)		23,329
Obligations issued by U.S. states and their political subdivisions	19,172		1,152		—		20,324
Mortgage-backed securities: Residential one-to-four family	116,166		140		(1,905)		114,401
Multifamily	35,412		598		(94)		35,916
Asset-backed securities	6,538		3		(70)		6,471
Total available-for-sale	$	323,801	$	3,734	$	(2,643)	$	324,892

The amortized cost of securities held-to-maturity and their estimated fair values at March 31, 2022 and December 31, 2021, are as follows:


	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Estimated Fair Value

	(In thousands)
March 31, 2022
Held-to-maturity


Asset-backed securities	$	15,238	$	—	$	(1,306)	$	13,932
Corporate bonds	14,600		1		(540)		14,061
Total held-to-maturity	$	29,838	$	1	$	(1,846)	$	27,993

	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Estimated Fair Value

	(In thousands)
December 31, 2021
Held-to-maturity
Corporate bonds	$	8,000	$	—	$	(59)	$	7,941
Asset-backed securities	15,281		—		(373)		14,908

Total Held-to-maturity	$	23,281	$	—	$	(432)	$	22,849

There were no available for sale securities called or sold during the three months ended March 31, 2022. During the three months ended March 31, 2021, proceeds from sales and calls of securities available for sale totaled $1.7 million, resulting in no gain or loss realized.

There were no other-than-temporary impairment (“OTTI”) charges for the three months ended March 31, 2022 or March 31, 2021, respectively.

The amortized cost and fair value of debt securities are shown below by contractual maturity. Expected maturities on mortgage-backed securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. Securities not due at a single maturity are shown separately.


	March 31, 2022
	Amortized Cost		Estimated Fair Value

	(In thousands)
Available-for-sale
Due in one year or less	$	5,420	$	5,440
Due from one year to five years	97,836		95,474
Due from five to ten years	55,726		54,965
Due after ten years	16,517		16,182
Mortgage-backed and asset-backed securities	214,814		203,553
Total	$	390,313	$	375,614

Held-to-maturity

Due from one year to five years	$	6,058	$	5,594
Due from five to ten years	21,780		20,410
Due after ten years	2,000		1,989
Total	$	29,838	$	27,993

The following tables summarize available-for-sale securities with unrealized losses at March 31, 2022 and December 31, 2021, aggregated by major security type and length of time in a continuous loss position.


	Less than 12 Months				12 Months or More				Total
	Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value

	(In thousands)
March 31, 2022
Available for sale
U.S. Treasury Note	$	(1,083)	$	38,949	$	(583)	$	6,324	$	(1,666)	$	45,273
Corporate Bonds	(1,381)		45,434		(368)		4,988		(1,749)		50,422
U.S. Government agency obligations	(356)		9,643		(188)		7,419		(544)		17,062
Obligations issued by U.S. states and their political subdivisions	(210)		2,925		—		—		(210)		2,925
Mortgage-backed securities:
Residential one-to-four family	(6,795)		129,328		(3,812)		38,897		(10,607)		168,225
Multifamily	(304)		12,654		(124)		784		(427)		13,438
Asset-backed securities	(139)		4,601		(128)		1,400		(268)		6,001
Total available-for-sale	$	(10,268)	$	243,534	$	(5,203)	$	59,812	$	(15,471)	$	303,346

December 31, 2021
Available for sale
U.S. Treasury Note	$	(105)	$	16,814	$	—	$	—	$	(105)	$	16,814
Corporate Bonds	(290)		17,183		—		—		(290)		17,183
U.S. Government agency obligations	(49)		9,951		(130)		7,980		(179)		17,931

Mortgage-backed securities:
Residential one-to-four family	(1,761)		104,805		(144)		3,009		(1,905)		107,814
Multifamily	—		—		(94)		910		(94)		910
Asset-backed securities	(70)		4,458		—		—		(70)		4,458
Total available-for-sale	$	(2,275)	$	153,211	$	(368)	$	11,899	$	(2,643)	$	165,110

The number of available for sale securities in an unrealized loss position at March 31, 2022 totaled 84, compared with 44 at December 31, 2021. The increase in the number of securities in an unrealized loss position at March 31, 2022 was due to higher current market interest rates compared to rates at December 31, 2021. Of the 84 available for sale securities in an unrealized loss position at March 31, 2022, 59 are comprised of U.S. Government agency obligations, Treasury notes, and mortgage-backed securities. These securities were all issued by U.S. Government-sponsored entities and agencies, which the government has affirmed its commitment to support. There were also three municipal bonds, 18 investment grade corporate bonds and four asset-backed securities in an unrealized loss position. The Company does not consider these securities to be other-than-temporarily impaired due to the decline in fair value being attributable to changes in interest rates and liquidity, not credit quality. The Company also does not intend to sell these securities, nor does it foresee being required to sell them before the anticipated recovery (maturity).

The Company did not have any held to maturity securities in an unrecognized loss position for more than twelve months at March 31, 2022 and December 31, 2021. The number of held to maturity securities in an unrealized loss position at March 31, 2022 totaled eight, compared with four at December 31, 2021. The increase in the number of securities in an unrealized loss position at March 31, 2022, was due to higher current market interest rates compared to rates at December 31, 2021. At March 31, 2022, held to maturity securities in an aggregate unrecognized loss position for less than twelve months included two asset-backed securities with total fair value of $13.9 million in an aggregate unrecognized loss position of $1.3 million and six investment grade corporate bonds with total fair value of $13.1 million in an aggregate unrecognized loss position of $540 thousand. At December 31, 2021, held to maturity securities in an aggregate unrecognized loss position for less than twelve months included two asset-backed securities with total fair value of $14.9 million in an aggregate unrecognized loss position of $373 thousand and two investment grade corporate bonds with total fair value of $6.9 million in an aggregate unrecognized loss position of $59 thousand.

Securities pledged at March 31, 2022 and December 31, 2021, had a carrying amount of $4.7 million and $9.1 million, respectively, and were pledged to secure public deposits, Federal Home Loan Bank (“FHLB”) advances, repurchase agreements and derivatives as needed.