Securities Held-to-Maturity

9 Months Ended

Sep. 30, 2022

Securities Held-to-Maturity

Securities Held-to-Maturity

Note 5 — Securities Held-to-Maturity

The following table summarizes the Company’s portfolio of securities held-to-maturity at September 30, 2022 and December 31, 2021.

	September 30, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Mortgage-backed securities – residential:
Government National Mortgage Association	$	544	$		$	13	$	531
Federal Home Loan Mortgage Corporation		985		—		140		845
Federal National Mortgage Association		2,389		—		275		2,114
Collateralized mortgage obligations – GSE		3,083		—		480		2,603
Total mortgage-backed securities		7,001		—		908		6,093
Municipal Bonds		9,709		—		2,787		6,922
U.S. Treasury securities		10,022		—		137		9,885
	$	26,732	$	—	$	3,832	$	22,900

	December 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Mortgage-backed securities – residential:
Government National Mortgage Association	$	656	$	19	$	—	$	675
Federal Home Loan Mortgage Corporation		1,059		—		5		1,054
Federal National Mortgage Association		2,695		23		6		2,712
Collateralized mortgage obligations – GSE		3,453		18		49		3,422
Total mortgage-backed securities		7,863		60		60		7,863
Municipal Bonds		10,017		7		267		9,757
	$	17,880	$	67	$	327	$	17,620

Contractual final maturities of mortgage-backed securities, municipal bonds, U.S. Treasury securities were as follows at September 30, 2022:

	September 30, 2022
	Amortized		Fair
	Cost		Value
	(In Thousands)
Due within one year	$	10,389	$	10,292
Due after one but within five years		1,774		1,983
Due after five but within ten years		2,585		2,346
Due after ten years		11,984		8,279
	$	26,732	$	22,900

The maturities shown above are based upon contractual final maturity. Actual maturities will differ from contractual maturities due to scheduled monthly repayments and due to the underlying borrowers having the right to prepay their obligations.

The age of unrealized losses and the fair value of related securities held-to-maturity were as follows:

	Less than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
September 30, 2022:
Mortgage-backed securities - residential:
Government National Mortgage Association	$	531	$	13	$	—	$	—	$	531	$	13
Federal Home Loan Mortgage Corporation		809		139		36		1		845		140
Federal National Mortgage Association		2,114		275		—		—		2,114		275
Collateralized mortgage obligations – GSE		2,603		480		—		—		2,603		480
Total mortgage-backed securities		6,057		907		36		1		6,093		908
Municipal Bonds		6,922		2,787		—		—		6,922		2,787
U.S. Treasury securities		9,885		137		—		—		9,885		137
	$	22,864	$	3,831	$	36	$	1	$	22,900	$	3,832

	Less than 12 Months				12 Months or More				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
December 31, 2021:
Municipal Bonds	$	9,134	$	267	$	—	$	—	$	9,134	$	267
Mortgage-backed securities - residential:
Federal Home Loan Mortgage Corporation	$	1,004	$	5	$	—	$	—	$	1,004	$	5
Federal National Mortgage Association		2,035		6		—		—		2,035		6
Collateralized mortgage obligations – GSE		907		49		—		—		907		49
Total mortgage-backed securities		3,946		60		—		—		3,946		60
	$	13,080	$	327	$	—	$	—	$	13,080	$	327

At September 30, 2022, thirty five mortgage-backed securities, five municipal bonds and two U.S. Treasury notes had unrealized loss due to interest rate volatility. Management concluded that the unrealized loss reflected above was temporary in nature since the unrealized loss was related primarily to market interest rates volatility, and not related to the underlying credit quality of the issuers of the securities. Additionally, the Company has the ability and intent to hold the securities for the time necessary to recover the amortized cost. At December 31, 2021, there were four mortgage-backed securities and three municipal bonds with unrealized loss.