SECURITIES

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Debt Securities

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


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

	(In thousands)
Available for sale
December 31, 2022
U.S. Treasury Notes	$	46,937	$	—	$	(3,178)	$	43,759
Corporate Bonds	81,725		4		(5,431)		76,298
U.S. Government agency obligations	16,367		—		(944)		15,423
Obligations issued by U.S. states and their political subdivisions	16,559		49		(340)		16,268
Mortgage-backed securities: Residential one-to-four family	164,843		—		(24,657)		140,186
Multifamily	19,475		—		(1,317)		18,158
Asset-backed securities	4,525		—		(369)		4,156
Total available-for-sale	$	350,431	$	53	$	(36,236)	$	314,248


December 31, 2021
U.S. Treasury Notes	$	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

During the year ended December 31, 2022, proceeds from calls of securities available for sale totaled $4.7 million, resulting in gross realized gains of $14 thousand and no gross realized losses. During the year ended December 31, 2021, proceeds from calls of securities available for sale totaled $14.2 million, resulting in no gross realized gains and gross realized losses of $1 thousand. There were no securities sold during the years ended December 31, 2022 and 2021.

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


	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Estimated Fair Value

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

Asset-backed securities	$	15,105	$	—	$	(2,309)	$	12,796
Corporate bonds	18,600		—		(2,281)		16,319
Total held-to-maturity	$	33,705	$	—	$	(4,590)	$	29,115

December 31, 2021

Asset-backed securities	$	15,281	$	—	$	(373)	$	14,908
Corporate bonds	8,000		—		(59)		7,941
Total held-to-maturity	$	23,281	$	—	$	(432)	$	22,849

At December 31, 2022 and 2021, the held to maturity securities portfolio was comprised of investment grade credit ratings.

Securities pledged at December 31, 2022 and December 31, 2021, had a carrying amount of $4.2 million and $9.1 million, respectively, and were pledged to secure borrowings, public deposits and derivatives, as needed.

The amortized cost and fair value of debt securities are shown below by contractual maturity. Expected maturities on mortgage and asset-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:


	December 31, 2022
	Amortized Cost		Estimated Fair Value

	(In thousands)
Available-for-sale
Due in one year or less	$	13,089	$	12,707
Due from one year to five years	90,415		85,755
Due from five to ten years	42,212		38,836
Due after ten years	15,872		14,450
Mortgage-backed and asset-backed securities	188,843		162,500
Total	$	350,431	$	314,248

Held-to-maturity

Due from one year to five years	$	—	$	—
Due from five to ten years	18,600		16,319
Due after ten years	—		—
Mortgage-backed and asset-backed securities	15,105		12,796
Total	$	33,705	$	29,115

The following tables summarize available-for-sale securities with unrealized losses at December 31, 2022 and 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)
December 31, 2022
Available for sale
U.S. Treasury Note	$	(1,342)	$	28,670	$	(1,836)	$	15,089	$	(3,178)	$	43,759
Corporate Bonds	(3,608)		58,509		(1,823)		15,522		(5,431)		74,031
U.S. Government agency obligations	(5)		696		(939)		14,727		(944)		15,423
Obligations issued by U.S. states and their political subdivisions	(65)		5,641		(275)		1,568		(340)		7,209
Mortgage-backed securities:
Residential one-to-four family	(8,273)		60,986		(16,384)		79,189		(24,657)		140,175
Multifamily	(1,166)		17,689		(151)		469		(1,317)		18,158
Asset-backed securities	—		—		(369)		4,156		(369)		4,156
Total available-for-sale	$	(14,459)	$	172,191	$	(21,777)	$	130,720	$	(36,236)	$	302,911

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
Obligations issued by U.S. states and their political subdivisions	—		—		—		—		—		—
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

There were no other-than-temporary impairment (“OTTI”) charges on available for sale securities for the years ended December 31, 2022 or 2021. The number of available for sale securities in an unrealized loss position at December 31, 2022 totaled 105, compared with 44 at December 31, 2021. The increase in the number of securities in an unrealized loss position at December 31, 2022 was due to higher current market interest rates compared to rates at December 31, 2021. Of the 105 available for sale securities in an unrealized loss position at December 31, 2022, 64 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 8 municipal bonds, 31 investment grade corporate bonds and two 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 following table summarizes held-to-maturity securities with unrecognzed losses at December 31, 2022, aggregated by major security type and length of time in a continuous loss position. The Company did not have any held- to- maturity securities in an unrecognized loss position for more than twelve months at December 31, 2021.


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

	(In thousands)
December 31, 2022
Held-to-maturity
Corporate Bonds	$	(1,177)	$	10,423	$	(1,104)	$	5,896	$	(2,281)	$	16,319
Asset-backed securities	—		—		(2,310)		12,796		(2,310)		12,796
Total held-to-maturity	$	(1,177)	$	10,423	$	(3,414)	$	18,692	$	(4,591)	$	29,115

There were no other-than-temporary impairment (“OTTI”) charges on held-to-maturity securities for the years ended December 31, 2022 or 2021. The number of held-to-maturity securities in an unrecognized loss position at December 31, 2022 totaled 11, compared with four at December 31, 2021. The increase in the number of securities in an unrecognized loss position at December 31, 2022, was due to higher current market interest rates compared to rates at December 31, 2021. Of the 11 held-to-maturity securities in an unrecognized loss position at December 31, 2022, two are asset-backed securities and nine are investment grade corporate bonds. 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). 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.

Other Investments

At December 31, 2022, other investments primarily consisted of investments in FHLB stock, and to a much lesser extent, investments in a financial technology fund and a community banking core provider cooperative. Other investments carried at fair value totaled $15.9 million and $10.2 million at December 31, 2022 and 2021, respectively. Other investments carried at NAV totaled $157 thousand at December 31, 2022. The Company recorded a net increase in the NAV of $7 thousand for the year ended December 31, 2022 as a component of other income. The Company's unfunded commitments related to the financial technology fund totaled $850 thousand.