Available for Sale Securities

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Available for Sale Securities

NOTE 3— Available for Sale Securities

Amortized costs and fair values of available for sale securities are summarized as follows:

	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Obligations of states and political subdivisions		17,043		3		(2,815	)		14,231
Government-sponsored mortgage-backed securities		97,674		305		(6,960	)		91,019
Asset-backed securities		3,593		—		(21	)		3,572
Certificates of deposit		745		—		(8	)		737
Total	$	119,055	$	308	$	(9,804	)	$	109,559

	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

Fair values of securities are estimated based on financial models or prices paid for similar securities. It is possible interest rates could change considerably, resulting in a material change in estimated fair value.

The Company’s mortgage-backed securities and collateralized mortgage obligations issued by government sponsored enterprises are guaranteed by one of the following government enterprises: Fannie Mae, Freddie Mac or Ginnie Mae.

The fair value of available-for-sale securities that were pledged as collateral at December 31, 2023 and December 31, 2022, was $426 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.

	December 31, 2023
	Amortized Cost		Fair Value
	(in thousands)
Debt and other securities:
Due in one year or less	$	830	$	821
Due after one through 5 years		1,070		1,054
Due after 5 through 10 years		12,774		10,645
Due after 10 years		3,114		2,448
Total debt and other securities		17,788		14,968
Mortgage-related securities		97,674		91,019
Asset-backed securities		3,593		3,572
Total	$	119,055	$	109,559

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:

	December 31, 2023
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Obligations of states and political    subdivisions		—		—			13,889		(2,815	)		13,889		(2,815	)
Government-sponsored mortgage-backed    securities		—		—			40,983		(6,960	)		40,983		(6,960	)
Asset-backed securities		1,740		(5	)		1,832		(16	)		3,572		(21	)
Certificates of deposit		—		—			737		(8	)		737		(8	)
Total	$	1,740	$	(5	)	$	57,441	$	(9,799	)	$	59,181	$	(9,804	)

	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	)

The following table presents the number of debt securities in an unrealized loss position and the aggregate depreciation from their amortized cost basis, by security type, as of December 31, 2023.

	Number of Securities		Aggregate Depreciation
Obligations of states and political subdivisions	$	16		16.9	%
Government-sponsored mortgage-backed securities		25		14.5	%
Asset-backed securities		4		0.6	%
Certificates of deposit		3		1.1	%
Total	$	48		14.2	%

The Company does not consider these unrealized losses to be attributable to credit-related factors, as the unrealized losses in each category have occurred as a result of changes in noncredit-related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. As a result, no allowance for credit losses on available-for-sale securities was recognized as of December 31, 2023. As of December 31, 2022, prior to the adoption of CECL, the Company had determined that none of the unrealized losses were other than temporary.

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:

	Year ended December 31,
	2023			2022
	(in thousands)
Proceeds from sales of securities available-for-sale	$	44,437		$	—
Gross realized gains	$	—		$	—
Gross realized losses		(4,529	)		—
Net realized loss	$	(4,529	)	$	—