Available for Sale Securities

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Available for Sale Securities

NOTE 3 – AVAILABLE-FOR-SALE SECURITIES

The amortized costs and fair values of securities available-for-sale were as follows:

	September 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
U.S. Treasury notes	$	8,235	$	—	$	(1,093	)	$	7,142
Obligations of states and political subdivisions		19,850		—		(3,939	)		15,911
Government-sponsored mortgage-backed securities		87,519		—		(10,704	)		76,815
Asset-backed securities		3,827		5		(25	)		3,807
Certificates of deposit		995		—		(29	)		966
Total	$	120,426	$	5	$	(15,790	)	$	104,641

	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
U.S. Treasury notes	$	29,597	$	—	$	(2,970	)	$	26,627
Obligations of states and political subdivisions		21,379		6		(3,729	)		17,656
Government-sponsored mortgage-backed securities		73,235	$	—		(8,968	)		64,267
Asset-backed securities		4,563	$	—		(46	)		4,517
Certificates of deposit		1,459	$	—		(34	)		1,425
Total	$	130,233	$	6	$	(15,747	)	$	114,492

The fair value of available-for-sale securities that were pledged as collateral at September 30, 2023 and December 31, 2022, were $7.8 million and $3.6 million, respectively.

The amortized costs and fair values of available-for-sale securities, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. In addition, expected maturities will differ from contractual maturities for mortgage-backed securities and asset-backed securities, as the expected repayment terms may be less than the underlying mortgage pool contractual maturities. Therefore, these securities are not included in the maturity categories in the maturity summary below.

	September 30, 2023
	Amortized Cost		Fair Value
	(in thousands)
Debt and other securities:
Due in one year or less	$	1,080	$	1,064
Due after one through 5 years		8,229		7,312
Due after 5 through 10 years		16,657		13,352
Due after 10 years		3,114		2,291
Total debt and other securities		29,080		24,019
Mortgage-related securities		87,519		76,815
Asset-backed securities		3,827		3,807
Total	$	120,426	$	104,641

NOTE 3 – AVAILABLE-FOR-SALE SECURITIES (continued)

Gross unrealized losses on securities available-for-sale and the fair values of the related securities, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position were as follows:

	September 30, 2023
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
U.S. Treasury notes	$	—	$	—		$	7,142	$	(1,093	)	$	7,142	$	(1,093	)
Obligations of states and political    subdivisions		339		(1	)		15,572		(3,938	)		15,911		(3,939	)
Government-sponsored mortgage-backed    securities		20,958		(279	)		55,857		(10,425	)		76,815		(10,704	)
Asset-backed securities		—		—			1,928		(25	)		1,928		(25	)
Certificates of deposit		—		—			966		(29	)		966		(29	)
Total	$	21,297	$	(280	)	$	81,465	$	(15,510	)	$	102,762	$	(15,790	)

	December 31, 2022
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
U.S. Treasury notes	$	—	$	—		$	26,627	$	(2,970	)	$	26,627	$	(2,970	)
Obligations of states and political    subdivisions		5,088		(396	)		12,145		(3,333	)		17,233		(3,729	)
Government-sponsored mortgage-backed    securities		19,084		(1,310	)		45,183		(7,658	)		64,267		(8,968	)
Asset-backed securities		4,517		(46	)		—		—			4,517		(46	)
Certificates of deposit		1,425		(34	)		—		—			1,425		(34	)
Total	$	30,114	$	(1,786	)	$	83,955	$	(13,961	)	$	114,069	$	(15,747	)

At September 30, 2023 and December 31, 2022, respectively, the Company had 81 and 92 debt securities with unrealized losses representing aggregate depreciation of approximately 13.3% and 12.1%, respectively, from their respective amortized cost basis. These unrealized losses relate principally to changes in interest rates and were not caused by changes in the financial condition of the issuers, the quality of any underlying assets or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other-than-temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer and the quality of any underlying assets or credit enhancements. As management has the intent and ability to hold these debt securities to projected recovery, none of these declines are deemed to be other-than-temporary.

On August 29, 2023, the Company executed the sale of $21.4 million in U.S. Treasury available-for-sale securities for a pre-tax loss of $1.9 million. Proceeds from the sale were used to purchase approximately $21.4 million of U.S. government sponsored mortgage-backed securities, which were classified as available-for-sale upon purchase.

The following is a summary of the proceeds from sales of securities available-for-sale, as well as gross gains and losses, for each of the periods listed below:

	Three months ended September 30,					Nine months ended September 30,
	2023			2022		2023			2022
	(in thousands)					(in thousands)
Proceeds from sales of securities available-for-sale	$	19,495		$	—	$	19,495		$	—
Gross realized gains	$	—		$	—	$	—		$	—
Gross realized losses		(1,925	)		—		(1,925	)		—
Net realized loss	$	(1,925	)	$	—	$	(1,925	)	$	—