Investments

3 Months Ended

Mar. 31, 2022

Note 2 – Investments

Investment securities held-to-maturity, at cost

The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s held-to-maturity securities at March 31, 2022 and December 31, 2021, are summarized as follows:

	March 31, 2022
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Mortgage-backed securities	$	10,986	$	3	$	(726	)	$	10,263

	December 31, 2021
($ in thousands)	Amortized Cost		Unrealized Gain		Unrealized Loss			Estimated Fair Value
Mortgage-backed securities	$	11,423	$	23	$	(114	)	$	11,332

The Company had twelve securities in an unrealized loss position at March 31, 2022 and nine securities in an unrealized loss position at December 31, 2021, as summarized in the following tables:

	March 31, 2022
	Less than 12 months					12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	10,042	$	(726	)	$	—	$	—	$	10,042	$	(726	)

	December 31, 2021
	Less than 12 months					12 Months or More				Total
($ in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	8,961	$	(114	)	$	—	$	—	$	8,961	$	(114	)

The amortized cost and estimated market value of debt securities at March 31, 2022, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

($ in thousands)	Amortized Cost		Estimated Fair Value
Securities held-to-maturity
Due in one year or less	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		1,462		1,402
Due after ten years		9,524		8,861
Total Securities held-to-maturity	$	10,986	$	10,263

At March 31, 2022, all held-to-maturity securities were pledged as collateral for a credit line held by the Bank. There were no sales of investment securities during the three months ended March 31, 2022 or 2021.

FHLB stock

The Bank is a member of the FHLB system. Members are required to own FHLB stock of at least the greater of 1% of FHLB membership asset value or 2.7% of outstanding FHLB advances. At March 31, 2022 and December 31, 2021, the Bank owned $0.4 million, respectively, of FHLB stock, which is carried at cost. The Company evaluated the carrying value of its FHLB stock investment at March 31, 2022 and determined that it was not impaired. This evaluation considered the long-term nature of the investment, the current financial and liquidity position of the FHLB, repurchase activity of excess stock by the FHLB at its carrying value, the return on the investment from recurring and special dividends, and the Company’s intent and ability to hold this investment for a period of time sufficient to recover our recorded investment.